Before 2020, most employee benefits were standard and chosen by employers, leaving employees with little say. Typical perks included retirement plans, on-site childcare, and free meals.
However, the pandemic, along with the shift toward hybrid work and the growing influence of younger generations like Millennials and Gen Z, has caused a major change in how companies design benefits. Today’s employee benefits focus more on work-life balance, mental and financial health, and flexibility. According to Randstad’s 2025 Workmonitor, 31% of employees left a job because their benefits did not offer enough flexibility.
As workers’ expectations continue to change, HR and People Operations teams are feeling more pressure to offer benefits that work for different age groups and changing job trends.
This article shares useful steps for building benefits packages that meet what today’s workforce wants in 2025. It also includes expert insights to help you move from traditional benefits to more complete and personal ones.
Why Employee Benefits Matter for Startups and Global Teams
Employee benefits are key to helping growing businesses bring in and keep top workers, support employee well-being, and build a strong company culture. Here’s why benefits matter:
Attract and Keep the Right Talent:
In a competitive job market, benefit packages are a major factor in hiring and retaining skilled workers. In fact, 74% of employers say it’s hard to find qualified candidates. Indeed’s 2024 Workforce Insights Report found that 34% of job seekers see better benefits as a top reason to change jobs. Similarly, Gallup’s Employee Retention and Attraction Indicator found that pay and benefits were the biggest reasons people switched jobs in 2024.
Support Overall Well-being:
Good benefits do more than attract talent—they also help employees stay healthy in all areas of life. This includes their financial, physical, mental, and career health. This is especially important as 81% of workers say they feel nervous, anxious, or stressed.
Offering support for well-being shows that you care about your team’s health. Gallup’s research shows that employees who feel good about life take 53% fewer sick days and are 32% less likely to look for another job. Helpful benefits include mental health care, flexible hours, health insurance, and paid time off.
Build a Strong and Positive Culture:
Well-rounded benefits help shape an inclusive and united company culture, even when teams work in different places. These perks can include both financial rewards and fun activities like team outings to help people bond and feel comfortable during big changes.
For example, when Aspida switched from remote to hybrid work, the company added “Free Lunch Tuesdays” and other in-office perks to make returning more enjoyable. Sandy Ball, Chief People Officer at Aspida, shared that these small additions created a welcoming space that encouraged employees to come back with a positive attitude.
Key Trends Shaping Employee Benefits in 2025
Employee needs are changing quickly, making it hard for employers to know what benefits matter most. In 2024, the SHRM Employee Benefits Survey reported 216 types of benefits—a 23% jump from 175 in 2023. This increase shows that employees now expect more varied and personalized options.
To keep up, HR teams must offer benefits that match these changing expectations. Below are the key trends shaping benefits in 2025:
Personalized and Flexible Benefits
Personalized benefits are now a top goal for companies trying to support a wide range of workers. People from different generations—like Gen Z and those caring for both children and aging parents—need different things.
Suzy Goodwin, Benefits Expert and Client Success Manager at Airvet, says, “benefits aren’t linear.” For example, someone who regularly goes to the gym might need at-home fitness options while caring for an elderly parent. This shows the need to adjust benefits to meet each person’s changing lifestyle.
Basic perks like retirement plans, healthcare, and PTO are still important, but they’re not enough anymore. More companies are offering cafeteria-style plans, letting employees choose benefits that fit their lives. Workers can put part of their paycheck into the plan, choosing options like 401(k) contributions or family health coverage.
Some flexible benefits that are becoming more popular include support for family care, healthcare for menopause, help with student loans, spending accounts, grandparent leave, and custom fitness programs. These options reduce wasted spending and ensure people get what they truly need.
Mental Health and Emotional Support
With stress and burnout continuing to affect employees, wellness programs are more valuable than ever. Gallup reports that 23% of Chief Human Resource Officers consider employee well-being a main concern. As a result, 45% of businesses are putting more money into these programs.
Companies are now offering therapy access, mental health days, wellness apps, yoga, flexible hours, and stress relief programs. For example, PwC closes its offices twice a year to give everyone time off at the same time, helping prevent burnout and guilt over taking breaks.
Sims Tillirson, Go-to-Market Advisor at Benefits Resource Group, says wellness programs should act as “preventative tools” to stop issues from growing. Carl Chapman, VP of Benefit Design & Partnerships at Thanks Ben, agrees, saying these programs can create a healthier workforce in the long run.
Perks for Hybrid and Home-Based Work
As more businesses go hybrid or fully remote, workers want better support for setting up a productive home office.
Buffer’s 2023 report on remote work shows that 23% of remote employees feel lonely, and 16% find it hard to focus. To help, smart companies are offering things like funds for home office equipment, cleaning services, Wi-Fi help, gym memberships, and even shared workspaces. These perks help employees build a setup that keeps them comfortable and productive.
Financial Health and Future Security
The 2024 Voice of the Workplace Report shows that 77% of HR leaders know financial stress affects mental health—and they’re taking action. With rising living costs and financial uncertainty, more companies are offering tools to help workers manage money.
Tony Garavaglia, Senior VP at Alliant Insurance Services, explains that even high earners can struggle with things like credit scores or 401(k) withdrawals.
Today’s employees want more than a retirement plan or HSA. Companies are now offering services like financial coaching, help with student loans, early pay access, emergency savings programs, and retirement planning support.
Some even offer flexible accounts for wellness and lifestyle needs. For example, Airbnb gives each employee $2,000 a year to spend on travel and fun activities.
Health and Family-Focused Benefits
Family benefits are more important than ever for workers balancing care for children, elderly parents, or both. While child and elder care are common, workers also need support for issues like fertility.
Infertility affects 1 in 6 people, but 47% of companies still don’t offer benefits to help. That’s why many are now adding support for fertility treatments, surrogacy, adoption, parental leave, elder care, and financial help for family needs.
Providing these benefits helps reduce the stress of family responsibilities and allows employees to stay focused and productive at work.
Ongoing Learning and Career Growth
More companies are investing in employee learning because it fills skill gaps, improves performance, and keeps people from leaving. Emmanuel Faith, HR Team Lead at Africhange, says that investing in training is a great way to keep employees, since people tend to stay where they grow.
In fact, 88% of global HR leaders say learning opportunities are a top way to keep workers. In 2025 and beyond, learning and development will be a key part of staying competitive.
This includes offering more than just onboarding. Companies are now giving learning stipends, access to online courses, tuition help, career path planning, and one-on-one coaching.
How to Review and Improve Your Benefits
Here’s how to keep your benefits packages up to date and useful for your team:
Ask for Feedback from Employees:
Use surveys, interviews, and meetings to learn what benefits matter most. Priya Krishnan from Bright Horizons says that feedback helps focus on the perks that really count.
Vikrant Bhalodia from WeblineIndia shares how his company changed course after offering a general wellness app that employees didn’t use. After listening to staff, they made changes that led to better engagement.
Compare Your Perks with Industry Standards:
Check how your benefits stack up to what others in your field offer. This helps you stay competitive and attractive to current and future employees.
While doing this, measure the costs and benefits of your programs using things like usage rates, employee satisfaction, and productivity gains. Also think about how the perks match your company culture and workforce makeup.
Check How Perks Are Delivered:
It’s important to look at how easy it is for employees to access and use their benefits. Use enrollment and usage data, plus feedback, to see if the perks are actually working and helping with things like retention or well-being.
Measure the Return on Investment (ROI):
Track the results of your benefits by setting clear goals—like improving retention or boosting performance. Measure costs, such as program fees and staff time, and compare them to outcomes using metrics like cost per employee, satisfaction scores, and usage rates.
Use a Benefits Management Platform:
Managing different providers across many locations can lead to confusion and more work for HR. Many companies still don’t have a single system for managing global benefits, which leads to fragmented data and uneven results.
A good benefits management platform helps companies offer consistent, competitive, and flexible benefits across all locations. It also allows employees to view, request, and manage their perks through one easy-to-use dashboard, making the entire process smoother.
Give Your Employees Better Benefits
Offering fair, flexible, and useful benefits around the world isn’t easy. Different labor laws, changing market needs, and shifting worker expectations can make it hard to build the right package.
But with the right tools and a clear plan, companies can provide benefits that support both employees and long-term business success. With the right systems in place, your business can deliver personalized benefits that improve employee experience, increase engagement, and boost your team’s overall well-being.
