Need to Know: SHRM’s 2025 Employee Benefits Trends

Robin Weingast
3 days ago
4 min read

The 2025 Society for Human Resource Management (SHRM) Employee Benefits Survey delivers a clear message: organizations that combine strong foundational benefits with targeted innovation are better positioned to attract and retain talent in a competitive labor market. Drawing insights from nearly 4,000 U.S. employers across industries and sizes, the report highlights where benefits strategies are holding steady, where they’re evolving, and where opportunities for improvement remain.

Here's what you need to know to align with employee expectations, whether you're fine-tuning an existing benefits package or reimagining your approach.

1. Foundational Benefits Still Rule

Health-related benefits remain the undisputed foundation of any benefits strategy. Over 95% of organizations offer general health, dental, and vision plans, and 88% of employers rank health benefits as “extremely” or “very” important.

Retirement and leave benefits follow closely, with 81% of employers prioritizing both categories. From 401(k) plans to paid time off, these benefits provide the stability necessary for employees to manage both their professional and personal lives.

Why it matters: Letting these core offerings slip, or making broad-based changes without careful consideration and even input from employees may risk weakening trust and engagement among current employees or may struggle to attract top talent.

On the Upswing: Flexibility

In flux? Wellness Benefits

Workplace flexibility continues to be a differentiator. Two-thirds of organizations now offer flexible work arrangements, highlighting its value in attracting and keeping top talent. What's more, over half of the companies that offer these benefits also have a structured program to underwrite technology and equipment costs for hybrid work needs.

Contrast that with employer-sponsored wellness offerings, which have dropped from 53% in 2021 to 39% in 2025. While some employers may be consolidating wellness under broader well-being initiatives, the downward trend is notable.

What this signals: Flexibility is here to stay, but the wellness space is less firm. This may signal that it's time for organizations to differentiate themselves by reintroducing wellness in creative, cost-effective ways. This could also be an opportunity to think about what flexible work might contribute to how wellness programs are structured; for example, hybrid wellness programs, digital health platforms, or wellness stipends. This creative thinkink might help companies stand out.

Other notable declines were seen in housing/relocation benefits, and specific lifestyle benefits, including onsite stress management programs and smoking cessation programs.

Caregiving Gaps Demand Innovation

Support for caregiving is still sparse, despite its growing importance for today’s workforce. Only 13% of organizations offer elder care referral services, and just 10% provide paid prenatal leave beyond what’s legally required.

Opportunity area: Addressing caregiving needs, whether through financial assistance, expanded leave, or community partnerships, signals empathy and foresight. These benefits are especially valued by mid-career employees balancing work with family responsibilities.

Emerging Trends: GLP-1 Coverage and AI Integration

Benefits innovation is starting to take shape in two distinct areas: medical coverage and technology.

GLP-1 Coverage: Nearly one in four employers now cover GLP-1 medications, which are used for type 2 diabetes and weight management. Demand for this coverage is likely to grow alongside public awareness and adoption.
AI in Benefits: From personalized well-being platforms to AI-powered learning tools, technology is becoming a key driver in how benefits are delivered, tracked, and optimized.

Forward view: Employees are increasingly seeking benefits that feel personalized. Leveraging data and technology to meet that need will help employers remain competitive.

BONUS TIP: Benchmarking as a Strategic Advantage

SHRM’s interactive benchmarking tool allows members to compare benefits by industry, size, and region, with data going back to 2021. This level of insight helps employers make evidence-based decisions about their offerings and see how they stack up against peers.

Takeaway: Data-driven benefits planning can help you offer packages that are both cost-effective and highly attractive to the talent you want to keep. Benchmarking is the first step in understanding not only your own plan, but how it stacks up against others in your industry. These insights may give you the tools you need to go after and retain top talent, saving you recruiting costs and the loss of institutional knowledge that comes with employee turnover.

The Big Picture

The 2025 SHRM survey reinforces a simple truth:employee expectations evolve with societal shifts, economic realities, and technological advancements. This means that benefits have to remain flexible and responsive.

Health coverage, flexibility, and financial security remain essential. But employers who are thinking about how to address caregiving needs, integrate emerging medical treatments, and apply technology to personalize benefits will be a step ahead of the competition.

Employers who combine strong foundational offerings with a willingness to innovate will be best positioned to attract and retain talent.

Work with Experts Who Keep You Ahead

Interpreting survey data is just the start. The real challenge, and opportunity, comes in applying these insights to your organization in a way that’s sustainable, competitive, and meaningful to your workforce.

At Robin S. Weingast & Associates, Inc., we specialize in helping organizations design and adapt benefits packages that align with both organizational goals and employee priorities. Our team can help you benchmark your offerings, identify areas for improvement, and implement strategies that ensure your benefits remain a powerful tool for recruitment and retention.