Modernizing Employee Benefits for 2025

Employees have always been drawn in by better benefit packages – no surprise there. In fact, it’s become a cornerstone of recruitment and retention strategies. But we’re seeing a significant shift in which types of benefits are actually trending. We want to know how employers around the nation are modernizing employee benefits for 2025.

With four generations actively participating in the workplace today, is it possible to offer options that work for everyone? We’ve ripped these three benefit trends straight from the headlines to help you pinpoint some solutions to the challenges you’re facing.

“Why don’t workers participate in employer wellness programs?” - Benefits Pro¹

Article Takeaway: As of May 2024, fewer than half of employees are even aware of what wellness programs are out there. With this gap, you could be spending money on unique programs your employees never use. When employees understand their benefits, they’re more likely to take part.

Lead Your Employees to Wellness

One school district we serve in Iowa shared key actions they used to increase participation in their wellness program.² Just remember to L.E.A.D!

Listen:

Create wellness committees.
Share wellness questions with your district’s benefits specialist.
Invite diverse representation through the district’s insurance committee.
Increase mental health services and reclassify them to primary care.
Add activities to the wellness portal.

Educate:

Discuss benefits at annual one-on-one employee meetings.
Share flyers, videos, and online materials about your benefits.
Send email reminders about benefits and incentives.

Accommodate:

Educate employees about telemedicine resources.
Offer up-to-date benefits and HIPAA/ADA compliant incentives.
Include a variety of benefits in your Employee Assistance Program (EAP).
Host financial wellness programs at work.

Demonstrate:

Consider a financial reward at a cost you can support.
Use a point system through the year that supports follow-through.
Find local sponsors to contribute incentives.

Are you taking time to listen to what’s going on in your employees' lives? When you’re open to feedback from everyone, your workforce can feel seen and heard. This first step opens the gateway to more effective communication as you educate them on their benefits. They should be more likely to take part in casual discussions about benefits, and more open to viewing the materials or emails you send out.

Always be on the lookout for more ways to meet the needs of your employees. What are you missing that your employees would consider essential? Telemedicine resources, for example, might seem tertiary, but they often have a lower cost and more availability after work hours.

At the end of the day, you have to walk the walk. Show your team how committed you are to their wellness. While these programs can require an investment, you can find creative options for keeping that commitment on a tight budget.

“More than 80% of U.S. employers are planning to change their leave policies over the next two years” – Work Life³

Article Takeaway: A family and medical leave plan can directly affect employee satisfaction. Employers are seeing this in real time. And they’re making the shift to reflect that impact with the benefits they offer.

Even if your state doesn’t have a PFML program currently, it’s important to know what may be on the horizon when it comes to paid leave in your area. Four in five Americans support these laws, so it may not be far behind.⁴ Understanding these policies can help you take the next steps to support your employees as you adapt.

Questions to Consider with PFML

How will this affect employers, labor unions, and associations?
Are employers prepared to manage the added tasks for these types of plans?
How will this impact recruitment and retention?

As answers evolve, we’re keeping you informed with the latest in PFML news.

“53% of Americans surveyed feel they are behind on retirement planning and savings” – CNBC⁵

Article Takeaway: According to CNBC, adults in the U.S. are struggling to save enough to live on during retirement. Many plan to rely on government support and may currently rely on credit card debt just to get by.

Right now, Gen Z and millennials outpace other generations in saving money.⁶ Saving earlier lets them take advantage of compounding interest, growing funds more quickly over time. That’s great, but what about everyone else?

For employees feeling a little behind in their retirement plan, these three solutions may help them maximize their benefits:

1. Accrued Sick Leave

This isn’t a new concept, but employees are realizing just how valuable this unused sick leave can be. For professionals in education with a sick leave bank, they may get paid for their accrued time. With provisions in a 403(b) or 457(b) plan, it’s possible to defer this payment to a retirement savings plan either at retirement or on an ongoing basis. This may help them avoid immediate taxes on the income and increase retirement savings.

2. SECURE 2.0 Act

Beginning in 2025, new 403(b) and 457(b) plans must include automatic enrollment and auto-escalation. For everyone else, this is a great time to consider adopting an automatic enrollment that includes an escalation revision. Learn more about SECURE 2.0's 2025 provisions.

Another update for 2025 is the increase in catch-up contributions for participants ages 60-63. If an employer’s plan allows this provision, you may want to work with your plan’s third-party administrator or legal counsel if you decide you don’t want this provision.

3. Public Service Loan Forgiveness (PSLF)

All full-time public education professionals could be eligible for PSLF. This federal program can forgive a person’s student loan balance tax-free. To be eligible, they must have made 10 years’ worth of monthly payments (or 120 payments) while working for the government or a nonprofit organization. Point employees towards the road to debt elimination. Financial freedom means they could save more for retirement.

Your Employees Have Options – Do They Know?

This is your chance to remove employee barriers and stay ahead of legislative developments. You can offer the right benefits and empower your employees to take advantage of what’s available.

This blog is up to date as of October 2024 and has not been updated for changes in the law, administration or current events.