In 2025, employers and benefits administrators are navigating a complex landscape shaped by evolving employee benefits trends shaped by changing expectations, economic uncertainty and rising healthcare costs.
Not only that, but employers must also design employee benefits programs that accommodate four generations in the workforce: Baby Boomers, Gen X, Millennials and Gen Z.
Employers who don't adapt to changing employee needs—or who overlook any of these age groups—risk losing talented team members to forward-thinking competitors.
This guide explores the latest employee benefits trends and offers practical strategies to help employers meet the demands of each generation.
Aligning Company Benefits with Employee Needs
Different generations have different priorities regarding company benefits, meaning it’s the employer’s responsibility to tailor employee benefits programs accordingly. In fact, at least one third of employees across all generations believe benefits should align with their specific needs.
To achieve this alignment, companies can start by conducting surveys and audits to learn what matters most to each generation—just like Microsoft does with its “Viva Insights” program. Leveraging segmented employee data helps employers refine (and personalize) their benefits packages, track participation trends, and fill in potential gaps in coverage.
In addition, effective omnichannel communication is key. When employers communicate through a mix of emails, intranet updates and printed materials, employees can better understand relevant benefits and make the most of the resources available to them.
7 Employee Benefits Trends Making Waves in 2025
It’s safe to say employee benefits programs are undergoing a major transformation right now, due in large part to shifting workforce demographics.
These seven key trends are creating a new blueprint for employee wellness and will define the future of multigenerational workplace employee benefits moving forward.
1. A focus on affordable healthcare
Higher medication costs, the prevalence of chronic diseases, and increased benefit use have made healthcare affordability a central focus for employers from all industries.
Companies must somehow balance climbing costs with quality care, so that employees have access to necessary treatments without placing a huge financial burden on either party.
The challenge is, each generation has their own requirements when it comes to healthcare:
- Baby Boomers: Comprehensive health coverage and prescription drug benefits.
- Gen X: Preventive care, mental health services and family healthcare plans.
- Millennials: Telehealth options, wellness programs, and cost-effective solutions.
- Gen Z: Digital-first healthcare, mental health support and flexible spending accounts.
To address the diverse needs of each group, employers can invest in a combination of telehealth services, wellness incentives and employee benefits education.
For example, virtual healthcare appointments reduce overall expenses while improving accessibility—and they also help employees deal with health concerns earlier. Although telemedicine is most attractive to Millenials and Gen Z workers, every generation can take advantage of these convenient platforms.
Wellness incentives and tax advantaged accounts like HSAs or FSAs allow employees of any age to cover out-of-pocket expenses for specialized treatments and alternative therapies (acupuncture, chiropractic care, and so on). At the same time, employers enjoy tax savings and significantly lower healthcare costs.
Lastly, our 2024 State of Employee Financial Wellness Survey revealed that employees who feel informed about company benefits are 3x more likely to use them. These amazing insights validate the importance of employee education. Some of the easiest ways to boost employee knowledge about benefits programs are through interactive webinars, detailed benefits guides, and open enrollment education campaigns.
Each of these strategies, from virtual care options to financial accounts, go a long way in making healthcare more affordable (and attainable) for employees from all walks of life.
2. Shifting toward holistic health and financial wellness
Holistic health coverage is no longer considered a superfluous perk—it’s a top employee benefit that’s foundational to a thriving, multigenerational workforce.
Still, each generation is looking for something specific in terms of holistic health benefits:
- Baby Boomers: Appreciate on-site wellness clinics and fitness incentives.
- Gen X: Seek mental health services and work-life balance initiatives.
- Millennials: Want flexible benefits like gym reimbursements and nutritional coaching.
- Gen Z: Favor mental health days, social wellness programs, and mindfulness training.
The best way for employers to handle these demands? By taking a proactive approach to mental health, wellness technologies, and financial literacy programs. This helps create inclusive benefits packages that speak to the unique needs of each generation.
A good first step is to expand virtual counseling and Employee Assistance Programs (EAPs) that offer free, confidential mental health assessments.
According to a 2023 survey conducted by the American Psychological Association, 92% of workers said they value mental health support benefits from their employer. This overwhelming majority indicates employees’ desire for access to mental health professionals in a safe, non-judgmental space—and that’s exactly what EAPs bring to the table.
Employers can also incorporate wellness technology into the workday to help employees alleviate stress. Tools like fitness trackers are great for monitoring stress levels and promoting healthy habits for all ages. Plus, by pairing these tools with personalized coaching, employees have a reliable game plan for managing stress more effectively.
The need for mental health support and stress reduction doesn’t stop once employees reach a certain age, which is why these resources are so invaluable to every team member.
In the same way, it’s always helpful to improve financial literacy around retirement planning, debt management, and budgeting. Providing workshops and financial education on these topics equips multigenerational employees to make confident, informed decisions about their future.
Employers who place financial wellness and holistic health benefits at the forefront will have an easier time attracting (and retaining) a qualified workforce that spans decades.
3. Adapting to changing work environments
As the debate over remote, hybrid, and onsite work continues, so do generational preferences for the optimal office setup.
The (gen)eral breakdown for each age group looks like:
- Baby Boomers: Like face-to-face communication but open to hybrid options.
- Gen X: Advocate for flexibility but appreciate in-person collaboration.
- Millennials: Want work-life balance through remote work and flexible schedules.
- Gen Z: Look for digital-first, asynchronous work models and greater independence.
Fortunately, there are many steps employers can take to satisfy these different opinions and ideals. For starters, companies can upgrade their offices by introducing quiet zones, natural lighting, and comfortable seating. This helps in-person workspaces resemble remote work environments, where employees say they feel more productive.
Additionally, implementing collaboration tools and cloud-based communications can help remote (or hybrid) employees stay connected. These technologies keep everyone engaged and foster a sense of camaraderie within distributed teams—especially those with multiple generations represented.
Another option is allowing employees to adjust their schedules to fit peak productivity times and personal commitments. In this case, it’s important to clearly define rules of engagement to ensure fairness. But when well-executed, this approach can reduce burnout and enhance employees’ well-being.
There’s no denying this flexibility is appealing, seeing as 76% of workers say they’d quit if flexible work arrangements were not available. With that in mind, employers have a lot to gain by embracing alternative work environments and encouraging employee autonomy.
4. Skill development and career advancement opportunities
Health in the workplace extends beyond physical and mental well-being—it also includes skill development and career advancement.
While every generation values growth opportunities, their expectations and priorities tend to differ. Here’s what each group is after:
- Baby Boomers: Mentorship and reskilling for advanced or evolving job roles.
- Gen X: Career stability, industry certifications, and tuition reimbursement.
- Millennials: Leadership development and student loan repayment assistance.
- Gen Z: Ongoing learning and upskilling via on-the-job training or career coaching.
Establishing programs for reskilling and upskilling is one of the best ways to support multigenerational career growth. For example, employers can capitalize on training courses in emerging technologies and soft skills like leadership and communication. That way, everyone from Baby Boomers to Gen Z have the expertise they need to move up in their careers.
Aside from offering workshops and professional certifications, employers can also launch dedicated mentorship programs. Mentorship allows each generation to explore cross-departmental roles and promotions, and it can really strengthen company loyalty, as well.
Overall, providing resources for continuous learning can have a big impact on employee engagement, help reduce turnover, and even future-proof a company’s workforce.
5. The growing demand for customization
Personalized employee benefits programs are essential for accommodating the needs of all four generations. In other words, the one-size-fits-all approach to company benefits is fading—and it’s being replaced by custom benefits packages that cater to multigenerational employees.
As expected, each generation wants something slightly different:
- Baby Boomers: Traditional benefits plus personalized healthcare and financial planning.
- Gen X: Flexibility in PTO, comprehensive retirement plans and dependent care support.
- Millennials: Mix of traditional/modern benefits like pet insurance and travel stipends.
- Gen Z: Lifestyle perks like company-sponsored retreats, donation matching, and commuter benefits.
Even though standard benefits like health insurance and retirement savings remain vital, over 40% of workers say customizable benefits options would strengthen their sense of company loyalty. That’s exactly why so many businesses have shifted toward employee-centered benefits models that are tailored to the individual.
Tons of companies now use digital tools that let employees self-select benefits aligned with their needs. What’s more, payroll integration tools are proven to increase employee benefit plan participation while supporting employees' long-term financial goals and wellness.
And that all goes without mentioning specialized benefits like gym memberships, mental wellness programs, and paid volunteer days (which Millennials and Gen Z love). Voluntary benefits like these help team members feel valued, and they can be a big selling point as prospective employees are deciding whether to sign on with a company.
6. Benefits for changing families
Because today’s workforce spans four generations, employee benefits programs have to support a wide range of family responsibilities.
It’s more important than ever for employers to offer benefits packages that cover each generation’s familial needs:
- Baby Boomers: Eldercare support as well as long-term care insurance.
- Gen X: Childcare assistance, flexible scheduling and dual-career support.
- Millennials: Longer parental leave, fertility benefits and remote work options.
- Gen Z: Policies for non-traditional family structures and caregiver flexibility.
Many companies are starting to scale paid family leave and dependent care assistance. The expansion of parental, caregiving, and bereavement leave—along with employer-sponsored childcare or Dependent Care FSAs—helps employees manage major life events if/when they occur.
On top of that, employers are offering specialized health benefits for services like fertility treatments, maternity care, and menopause support. This extended coverage guarantees comprehensive reproductive healthcare at every stage of employees’ lives.
With the aging U.S. population projected to reach 82 million by 2050, there’s also been an uptick in company benefits related to eldercare. A growing number of companies are providing financial aid for geriatric healthcare in addition to flexible work options. This way, employees can balance their caregiving and career responsibilities more seamlessly.
7. Benefits for retirement, debt and future security
The financial concerns of Baby Boomers aren’t the same as Gen X or anyone else in the workforce—meaning, the financial benefits these generations want don’t often overlap.
For the most part, each group has their sights set on:
- Baby Boomers: Robust 401(k) plans, pension support and retirement coaching.
- Gen X: Employer-matching retirement plans and financial wellness tools.
- Millennials: Student loan assistance, emergency savings programs and investment education.
- Gen Z: Financial literacy programs, budgeting tools, and debt reduction assistance.
Even still, employees of all ages have to contend with economic uncertainty, inflation, and layoffs—which heightens financial stress. That’s why it’s crucial for employers to come up with benefits programs that address immediate financial needs and long-term stability.
More and more companies are implementing student loan repayment programs as a way to tackle employees' financial struggles head on.
With U.S. student loan debt reaching a whopping $1.773 trillion in 2024, companies like PricewaterhouseCoopers (PwC) now offer up to $1,200 per year to help employees reduce loan terms by up to three years. Employers who can’t provide direct repayment can instead opt for financial counseling and debt management tools.
Along those same lines, employers can lean into financial education via budgeting apps and one-on-one coaching to help employees manage their money more effectively. This education, coupled with early wage access and savings programs, promotes financial well-being among employees from every generation.
Employee Benefits Trends: Wrapping Up
Companies who want to remain competitive must move beyond conventional, one-size-fits-all employee benefits programs in favor of a personalized, data-driven approach that appeals to the needs of a multigenerational workforce.
The truth is, employee benefits have become a core part of company culture and identity. The seven employee benefits trends influencing 2025 don’t just call for adaptation, but a complete overhaul in how companies view the relationship between employers and employees.
The biggest trends—from financial wellness to flexible work environments—demonstrate that when benefits are designed with employees in mind, workplaces transform into strong, supportive communities.
Not only does this give employers a competitive edge in such a complex labor market, but it positively impacts employee engagement, productivity and company loyalty.
