As we enter 2025, the landscape of employee benefits is shifting faster than ever. With rising healthcare costs and a growing focus on holistic well-being, clear and effective benefits communication will be essential to help employees understand, appreciate and engage with their offerings. At a time when organizations are striving to support their teams more meaningfully, we’re here to guide you through these changes.
Let’s delve into five key trends shaping employee benefits and explore how thoughtful communication can empower your workforce while driving clarity and impact.
#1. Navigating Pharmacy Benefits and Combating Rising Costs
The rising costs of prescription drugs remain a pressing issue, with prices projected to climb further in 2024. Prescription drug spending is expected to increase by 10% to 12% in 2024 compared to 2023. This trend is driven by several factors, including drug price inflation, higher utilization, and the introduction of new high-cost medications like GLP-1s.
This upward trend poses significant challenges for employer-sponsored health plans, often resulting in higher premiums or adjustments to benefits. Employees, meanwhile, face greater out-of-pocket expenses, heightening financial strain and making it more critical than ever for organizations to provide support.
By empowering employees to make smarter healthcare decisions, your organization can help reduce financial stress while fostering a culture of support and well-being.
Here’s What You Can Do in 2025:
- Educate employees on identifying generic alternatives—cost-effective options that deliver the same efficacy as brand-name medications.
- Offer interactive tools and webinars to guide employees in discovering cost-saving strategies.
- Ensure transparency around formulary changes and cost-sharing, providing clear guidance on navigating prescription drug benefits.
#2. Navigating Regulatory Changes: SECURE 2.0 Act
Retirement plans face additional changes in 2025 from the continued implementation of the SECURE 2.0 Act, simplifying the process to offer robust retirement options while empowering employees to plan confidently for their future.
There are three key provisions that are set to begin in 2025:
- Expanded eligibility, including mandatory access for part-time workers
- Automatic enrollment starting at a minimum of 3% with annual auto-escalation of at least 1%.
- Voluntary catch-up contribution updates, with limits increasing to $7,500 for employees aged 50 and $11,250 for those aged 60-63.
Additionally, there are four optional changes that plans may consider to adopt in 2025:
- Matching student loan repayments
- Penalty-free withdrawals for domestic abuse
- Federal disaster distributions
- Terminally ill distributions
These updates present an opportunity to strengthen the impact of your retirement offerings. By proactively communicating these changes, you can ensure employees are well-positioned to take advantage of these enhanced benefits.
What You Can Do in 2025:
- Develop a clear, tailored communication strategy to educate impacted groups, including part-time employees, new hires and those over 50 about their expanded options.
- Provide personalized support resources to help employees maximize their savings potential and navigate their choices effectively.
- Clearly outline details of automatic enrollment and contribution increases, including opt-out options and investment opportunities, ensuring transparency and trust.
#3. Expanding Financial Wellness Offerings
Economic uncertainty continues to amplify the importance of financial security for employees. Research consistently shows that financial stress can significantly affect overall well-being and workplace productivity. In fact, a recent PwC study found that 76% of employees report financial stress negatively impacts their job performance.
As we step into 2025, more employers are prioritizing financial wellness programs as an integral part of their benefits strategies. These programs not only address a critical need for employees but also provide organizations with an opportunity to strengthen engagement and differentiate themselves. Key initiatives include:
- Offering financial education programs and literacy workshops.
- Introducing employer-sponsored emergency savings accounts.
- Providing tools for managing debt and budgeting.
- Ensuring access to personalized financial planning resources.
What You Can Do in 2025:
- Develop compelling communications that drive awareness and participation in your financial wellness benefits—whether through retirement plan providers, Employee Assistance Programs (EAPs), or other offerings.
- Leverage data insights to segment your audience and deliver messages that resonate with specific employee demographics, ensuring relevance and impact.
- Host regular Q&A sessions or webinars to simplify and demystify financial tools, fostering greater confidence and understanding.
#4. Addressing Mental Wellness Amid Global Turmoil
Mental health remains a key focus in workplace benefits as employees navigate ongoing uncertainty and stress. Global instability and political unrest are intensifying mental health challenges, underscoring the need for organizations to provide effective mental health resources and clear communication strategies.
The impact of these challenges is substantial. Around 15% of the global working-age population experiences mental illness, costing the global economy approximately $1 trillion annually in lost productivity due to conditions like depression and anxiety. The situation has worsened, with 40% of Gen Z and 35% of millennial workers reporting frequent stress or anxiety.
Despite these figures, 67% of employees remain unaware or only somewhat aware of the mental health resources available to them. This highlights the importance of consistent and transparent communication to ensure employees can access the support they need.
How You Can Support Mental Wellness in 2025:
- Develop an ongoing, engaging campaign to promote mental health resources, incorporating videos, newsletters, and employee testimonials.
- Equip managers with the skills to identify potential signs of mental health struggles and guide employees toward appropriate resources.
- Foster a culture of openness by sharing mental health tips and data through company-wide communications, encouraging dialogue and awareness.
By taking these steps, your organization can create an environment where employees feel supported, empowered, and ready to thrive—both personally and professionally.
#5. Women’s Health: Spotlight on Menopause
Women’s health, particularly menopause, is becoming an increasingly important focus in employee benefits programs. This shift reflects a growing awareness of the significant impact menopause can have on women’s careers and workplace productivity. In fact, menopause-related productivity losses are estimated to cost U.S. businesses $1.8 billion annually. Addressing this challenge is not just a matter of supporting employees—it’s a strategic investment in workforce wellbeing and organizational success.
How to Prepare for 2025:
- Develop tailored communication strategies to promote women’s health benefits, ensuring employees understand and access the resources available to them.
- Highlight flexible solutions your organization offers to accommodate evolving health needs, demonstrating your commitment to employee wellbeing.
In 2025, the effectiveness of your benefits program will depend heavily on how well it’s communicated. By addressing these trends with clarity and empathy, organizations can ensure employees feel supported and informed, strengthening both engagement and loyalty.
