The New Benefits Package: What Employees Really Want in 2025

Written by
Sunny Day Fund
Published on
January 31, 2025
The New Benefits Package: What Employees Really Want in 2025

Employees’ expectations for their benefits have changed. With rising costs, the growing trend of flexible work, and a more diverse workforce, it’s clear that the old benefits packages are no longer sufficient.

In 2025, employees want benefits that meet their needs, from helping with financial stress to offering better work-life balance and supporting mental and physical health. For HR leaders and benefits directors, this means rethinking how to provide value through benefits.

So, what should today’s benefits package look like? Here’s a look at the top trends and actionable steps to improve your benefits strategy for 2025.

The Changing Workforce: What’s Shaping Benefits Preferences?

Employee preferences differ, and understanding what drives them is key to crafting a relevant benefits package. Consider these trends:

  • Generational differences: Gen Z employees, who now make up a growing part of the workforce, prioritize career development, well-being, and mental health support. Most millennials remain focused on work-life balance. Meanwhile, Gen X values retirement security, and Baby Boomers value comprehensive healthcare benefits more.
  • The impact of hybrid work: Flexible schedules and remote work options have become expectations rather than perks. A MarketWatch report shows that 82% of Gen Z respondents value schedule flexibility, and 83% believe employers should support psychological health. This reflects a bigger shift toward well-being and independence at work.
  • Financial stress on the rise: Rising costs of living and persistent economic uncertainty are making financial wellness programs more critical than ever. A PwC survey found that 60% of full-time employees are stressed about their finances, a figure higher than during the height of the pandemic. This stress affects mental health, sleep, relationships, and productivity. Addressing these challenges through financial wellness programs is a practical and strategic move for organizations.

What Do Employees Want Most in 2025?

To build a benefits package that resonates, it’s essential to focus on what employees value most. Here’s what employees are looking for:

1. Financial Wellness

Financial stress is an undeniable workplace disruptor, and employees seek solutions that address immediate and long-term needs. Leading programs include:

  • Emergency Savings Accounts (ESAs): ESAs allow employees to set aside savings directly from their paychecks, providing a financial cushion for unexpected expenses. A recent study by the Aspen Institute found that 60% of employees actively want their employer to offer emergency savings as a workplace benefit, with particularly high interest among younger workers and workers of color.
  • Student loan assistance: With many employees still managing significant debt, tools to help with repayment or refinancing can make a big difference.
  • Financial education: Budgeting workshops, one-on-one financial coaching, and digital tools empower employees to take control of their money.

Financial wellness programs also address employer concerns. For example, reducing financial stress among employees has been linked to improved retention rates, higher engagement levels, and better productivity.

2. Health and Wellness

Employee well-being extends beyond physical health. Benefits that address mental and emotional health are increasingly popular:

  • Mental health resources: Comprehensive insurance coverage for therapy, access to telehealth options, and even mental health apps are in demand.
  • Wellness programs: Fitness reimbursements, mindfulness sessions, and incentives for preventative care encourage healthier lifestyles.
  • Expanded coverage: Employees appreciate flexible health plans that accommodate diverse needs, such as family planning services or coverage for alternative treatments.

3. Work-Life Balance

Employees now expect their work and personal life to balance well. Here’s how HR can help:

  • Flexible schedules: Options for remote work or hybrid arrangements help employees manage their time effectively.
  • Paid leave: Generous PTO policies, parental and caregiving leave support employees through various life stages.
  • Childcare and eldercare support: Assistance with dependent care can alleviate stress for employees juggling caregiving duties.

Work-life balance initiatives also encourage loyalty. Employees who feel supported in their personal lives are more likely to stay with their current employer, reducing turnover and associated recruitment costs.

4. Career Development

Employees are looking for ways to grow in their careers, and employers can support this by offering:

  • Upskilling and reskilling: Offering courses or certifications in emerging fields keeps employees engaged and prepared for future challenges.
  • Leadership development: Programs that build management and leadership skills are highly valued by ambitious employees.
  • Tuition reimbursement: Helping employees pay for further education builds loyalty and enhances skills.

How to Modernize Your Benefits Package

To keep up with changing employee needs, HR leaders should modernize their benefits strategy. Here’s how:

  • Survey employees: Use surveys and focus groups to understand what your workforce values most, considering generational and demographic differences.
  • Use technology: Implement benefits portals and apps to make it easy for employees to enroll, track, and access their benefits.
  • Offer flexibility: Provide tiered or customizable benefits packages so employees can choose what suits them best while managing costs.
  • Partner with trusted vendors: Collaborate with experienced providers to offer cost-effective solutions like financial wellness platforms, emergency savings accounts, or telehealth services. Sunny Day Fund offers payroll-deducted emergency savings accounts designed to reduce financial stress and improve employee retention.

Budgeting for Modern Benefits

One of the biggest challenges for HR leaders is balancing comprehensive benefits with budget constraints. Here are a few strategies to make the most of your resources:

  • Reallocate existing funds: Evaluate underused programs and shift resources to higher-demand benefits.
  • Partner with providers: Work with third-party vendors to deliver cost-effective solutions like financial wellness platforms or telehealth services.
  • Offer flexible spending: Allow employees to allocate their benefits budget toward the options that suit them best.

A sample breakdown for a modern benefits budget might include:

  • 40% for healthcare and wellness programs.
  • 25% for financial wellness initiatives.
  • 20% for PTO and work-life balance resources.
  • 15% for career development and training.

Measuring Success

Modernizing your benefits package is about making sure they deliver tangible value. Track your strategy’s impact with these key metrics:

  • Participation rates: Are employees actively using the benefits available to them? High engagement levels indicate that your programs are relevant and effectively addressing employee needs.
  • Employee satisfaction: Use pulse surveys to gather ongoing feedback from employees. Their responses will help you refine the benefits experience and identify areas for further improvement.
  • Retention and productivity: How do your benefits influence retention and overall productivity? A well-designed benefits package should help reduce turnover and improve employee performance.
  • Return on Investment (ROI): Measure the financial impact of your benefits. Track reductions in absenteeism, healthcare claims, and turnover costs to ensure the investment is generating value.

Bringing Benefits Into the Future

Employees today want benefits that truly meet their needs, from reducing financial stress to achieving a healthier work-life balance and advancing their careers. By prioritizing financial wellness programs, offering flexible schedules, and investing in upskilling opportunities, HR leaders can create a benefits package that cuts across generations and drives retention.

Everything discussed points to one conclusion: modern benefits are essential for attracting and retaining top talent. Tailored solutions like payroll-deducted Emergency Savings Accounts (ESAs) and wellness programs can empower employees both personally and professionally.

To explore how your organization can implement these solutions, contact Sunny Day Fund today and take the first step toward building a stronger, more resilient workforce.

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