As companies look to plan their employee benefits strategies for 2025, we’ve taken a deep dive into the data from our 2024 Mind the Gap survey to understand emerging risks, provision gaps and new trends in employee benefits.
From our research, one underlying theme is clear; across the UK, employee needs are not being met by benefit programmes. There are some noticeable differences in satisfaction – 72% of employees at large corporates report they are satisfied with their benefits provision vs only 53% at SMEs [1].
Financial Wellness
As we see employees impacted by the recent pandemic and high living costs, the focus on financial wellness has become more important than ever and will only continue to grow into 2025. Our survey found that 28% of employees worry about their personal finances to the extent that it impacts their work performance [1]. Understandably, financial wellness is interconnected to the productivity and morale of its workforce – employees who are stressed or distracted by their financial situation may not be able to perform at their best.
In 2025, we expect more companies to offer comprehensive financial wellness programs, with a particular focus on supporting everyday finances rather than just pensions. These could include access to financial coaching, student loan repayment assistance, budgeting tools, and investment education. These initiatives aim to provide employees with the knowledge and confidence to make informed financial decisions, leading to increased financial security and reduced stress.
Customised Benefits
There is no one-size-fits all approach to benefits; all employee needs should be catered for with a flexible and inclusive benefits programme. Customisation is likely to be the new standard as companies focus on catering to the diverse needs of a multi-generational workforce.
In 2025, employees will likely have the freedom to choose from a menu of benefits that suit their personal circumstances. Our Mind The Gap Survey found that 68% of employees would like more flexibility over the benefits they have [1].
These benefits could include options for health coverage, retirement plans, wellbeing programs, and even non-traditional perks such as pet insurance or fertility treatments.
The ability to tailor benefits packages ensures that employees feel valued and supported for the right stages in their lives, this can ultimately improve talent retention and attraction – and support the company’s overall wellbeing proposition.
Benefits for ‘non-employees’
In an increasingly competitive job market, offering benefits from the point of employment offer can serve as a differentiator for attracting top talent.
Companies are beginning to move towards providing immediate access to certain benefits as soon as an offer is extended – with access set up before the contractual start date. Offering benefits to employees during their enrolment process or probationary period highlights the company’s commitment to employee wellbeing and can include perks like health coverage, access to wellbeing resources, or financial advice.
With almost half of employees (49%) happy to leave their current role for one with better benefits [1], this approach could be a key differentiator for companies. Providing early access benefits could help new hires feel supported from the start, enhancing the onboarding experience and promoting retention. It also reaffirms a company’s investment in their employees.
Digital Health
Over the past few years, healthcare and medical treatment has undergone a massive technological shift, accelerated by the recent pandemic and uptake of AI. The continued rise of digital health solutions look to be a defining trend in 2025. Companies should look to integrate digital health services into their benefit offerings, including mental health apps, fitness trackers and digital diagnostics. We’ve found that there are still significant gaps in provision of support for physical and mental health and the demand for it [1].
30% of employees would like more support with their physical health and 24% would like more support with their mental health and this demand is heavily influenced by younger generations [1].
Offering remote health services, will allow companies to ensure their workforce remains healthy and engaged, regardless of location. Digital health tools also promote proactive wellbeing management, enabling employees to monitor and improve their health through accessible technology.
Hybrid and Remote Benefits
Although we are starting to see some headline trends towards a ‘return to office’, this isn’t the reality for many organisations – many employees remain in a post-COVID hybrid working arrangement, which is prompting companies to align their long-term benefits strategies.
Companies should continue to offer benefits that cater to a more flexible workforce, such as home office stipends, virtual mental health support, access to coworking spaces, and flexible work schedules. As 23% of employees continue to report that they struggle with work/life balance [1], offering more flexible working can help ease pressures to come into the office, this could also reduce presenteeism which might be a continued issue for companies heading into 2025.
Hybrid benefits in 2025 should aim to recognise that the workplace is no longer a single location, making it crucial to support employees wherever they choose to work.
Benefits Technology and AI
Technology and AI are continuing to transform how benefits are managed, delivered, and optimised. More than just a trend, benefits technology has transformed a company’s approach to employee benefits. Implementing technology offers both employers and employers more accessibility to benefits, and looks to reduce the administration burden on HR.
In 2025, we expect benefits technology to become a core part of employee benefits strategy. Offering an increasingly personalised experience for employees, they can choose benefits that best suit their needs providing much more autonomy. Benefits technology can also offer a range of analytical capabilities, allowing employers to access insights into utilisation which can help data-driven decision making. AI-driven platforms could also enable employers to offer predictive benefits, anticipating employee needs before they arise.
Our 2024 survey revealed increased levels of benefits disengagement; 37% of employees don’t engage with their employee benefits [1] (up from 28% in 2023). A strong benefits technology platform could increase engagement with benefits more appealing while supporting a more diverse or even global workforce.
Expanded Mental Health and Wellbeing Support
In 2025, employers should continue to prioritise their employee’s mental health and wellbeing. Employees are facing ongoing challenges such as stress, burnout, and work-life balance and our research found that this impacts women more than men, creating a noticeable gender gap that companies should look to support – 19% of men are struggling with their mental health vs 25% of women [1].
Benefits that support mental health and overall wellbeing can include access to counselling services, stress management workshops, access to gym memberships, and mindfulness resources. Additionally, there should be a greater focus on preventative mental health care, offering employees tools and resources to manage their mental wellbeing proactively. Expanding mental health benefits not only supports employees but also contributes to a healthier, more resilient workforce – the building blocks of organisational resilience.
All of these employee benefit trends reflect a shift towards a broader understanding of holistic employee wellbeing. From reactive financial wellbeing support to smart customisation to the integration of digital solutions, companies are continuing to recognise the importance of offering benefits that are as diverse and flexible as their workforce. The trends may change, but the strategy is simple: employees will not engage with benefits which are not meaningful to them.
[1] Mind The Gap 2024
