Four Top Health Trends Impacting Employee Benefit Strategies in 2025

Employee expectations around health and well-being have changed, and benefits leaders are taking note. In 2025, we’re seeing a significant shift: Employers are moving away from reactive, transactional benefits to proactive strategies that anticipate employee needs and address them head-on.

As detailed in our latest research report, Navigating Health Trends and Enrollment Insights for Better Benefits Planning, the trends redefining benefits today are as diverse as the workforces they serve. Below, we explore four of the most impactful health-related trends shaping benefits strategy this year and highlight what HR teams can do to respond — if they haven’t already.

1. Mental Health Support Moves from Optional to Essential

Nearly 70% of large employers say they are expanding access to behavioral health services to meet employee demand. Options include benefits like teletherapy and wellness apps. But what’s different in 2025 is the understanding that mental health benefits must evolve beyond access alone.

Younger employees in particular are signaling a shift. Our research found that enrollment in traditional EAPs dropped among Gen Z by 12 percentage points, even as this group increased its uptake of bundled voluntary benefits by 26 percentage points. For our report, voluntary benefits are optional benefits, such as critical care insurance and legal services, that employees can elect and pay for through payroll deductions, often at group-discounted rates. Bundled benefits are two or more benefits packaged into a single offering for employees.

Employees like bundled benefits because they simplify enrollment, offer cost savings, provide comprehensive protection, and feel more personalized to their life stage and needs. Employers like bundled benefits because they simplify administration, reduce costs, and encourage higher enrollment as a convenient, one-stop benefits package tailored to diverse needs.

The message is clear:

• Gen Z and millennials are seeking modern, digital-first well-being solutions (vs. using traditional employee assistance programs, for example).
• They want them packaged in ways that make sense for their lifestyles.

Actionable takeaway for HR and benefits leaders: Explore modernizing your mental health strategy by offering a mix of digital wellness tools, personalized enrollment experiences, and mobile-first education that reaches employees where they are.

2. Financial Wellness: The New Core Benefit

Amid continued economic uncertainty, financial stress remains one of the top concerns for U.S. employees. In fact, 66% now cite financial wellness as their most important benefits issue. However, only 23% of employers prioritize it.

Enrollment data from Empyrean shows that employees are proactively seeking financial security through pre-tax accounts like HSAs and FSAs.

• Employee contributions to HSAs rose nearly 4% this year.
• Contributions to FSAs saw a comparable bump.
• Enrollment in hospital indemnity plans has also surged, especially among Gen Z and millennials.

Actionable takeaway for HR and benefits leaders: Employees are telling us they need help protecting themselves from out-of-pocket healthcare costs. Consider expanding your offerings to include savings vehicles, voluntary financial protection plans, and coaching tools that speak to generational needs.

3. Family-Centric Benefits Go Mainstream

Today’s definition of “family” is more expansive and diverse than ever — a reality reflected in the growing demand for family-building benefits, childcare and eldercare support, and inclusive leave policies.

According to SHRM, the number of employers offering fertility benefits has jumped to 42%, up from 30% in 2020. The bigger story lies in enrollment behavior. Empyrean data show that nearly every generation increased its participation in bundled or “packaged” ancillary benefits. As with voluntary benefit packages, these are usually a small handful of related ancillary benefits offered together, such as life insurance, AD&D, short- and long-term disability, and caregiving-related resources.

Women and Gen Z employees were the most likely to increase their participation in wellness and long-term care benefits. This trend suggests they have a broader, more holistic view of family care and personal health security.

Actionable takeaway for HR and benefits leaders: Think about broadening your definition of “family support.” Consider building benefit packages that accommodate caregiving, nontraditional families, and diverse life paths, not just parental leave.

4. Personalization Is the New Standard

Whether they’re choosing a health plan or seeking support for a chronic condition, employees want guidance, not guesswork. That’s why personalization is no longer a nice-to-have; it’s a requirement.

In 2025, younger employees are leading the charge for flexibility and digital-first decision support. Gen Z enrollment in voluntary benefits surged to 78% this year — a 26-point increase over last year, attributed largely to their preference for bundled, tech-friendly offerings.

Empyrean’s platform data reveals that when employee demographics are considered and benefits are tailored to individual needs and preferences, participation and satisfaction increase across the board.

Actionable takeaway for HR and benefits leaders: Look at ways to simplify and streamline how employees navigate complex decisions. Options include offering bundled benefits, real-time recommendations, and educational nudges that match their needs and behaviors.

Final Thoughts: Healthier Employees, Stronger Organizations

Everyone wins when benefits align with employee needs — financial, mental, emotional, and familial. A more personalized, data-informed benefits approach not only increases benefits utilization but also enhances organizational outcomes like retention, engagement, and productivity.

Explore the full trends report to learn how leading organizations are planning for the year ahead.

Download Navigating Health Trends and Enrollment Insights for Better Benefits Planning.