What Every HR Leader Needs to Know in 2025

5 Data-Backed Trends That Will Shape the Future of Employee Benefits

As healthcare costs rise at the fastest rate in a decade and employee expectations continue to evolve, 2025 is shaping up to be a defining year for HR and benefits leaders.

Employee benefits have officially shifted from being a background administrative function to a strategic business lever. Today’s workforce expects more from their benefits: more personalization, more flexibility, and more relevance to their daily lives. For employers, meeting those expectations isn’t just about adding new offerings; it's about delivering them effectively. It’s about making benefits meaningful, data-informed, and aligned with the needs of a diverse, multigenerational workforce.

Here are the five trends shaping the benefits landscape, along with what every HR leader needs to know to stay ahead.

1. Well-Being Has Moved Beyond Being a Business Imperative

It’s been a while since well-being was just an HR initiative. Now it’s a core component of organizational strategy. Mental, emotional, and financial health have a direct impact on employee engagement, retention, and productivity, and employers are taking note.

Nearly 70% of large employers are now prioritizing mental and emotional health, investing in services like teletherapy, wellness apps, and paid mental health days. More than half of employees report high stress levels, and younger workers are leading the charge in demanding support.

Interestingly, Empyrean enrollment data, highlighted in our report "Navigating Health Trends and Enrollment Insights for Better Benefits Planning"), shows that Gen Z has decreased enrollment in traditional EAPs by 12 percentage points while increasing their adoption of bundled voluntary wellness benefits.

This suggests a shift toward mobile-first, digital-native well-being solutions that better fit the expectations of younger employees.

 Takeaway for HR leaders:  Expand beyond traditional wellness offerings. Consider modern, mobile-first mental health resources, AI-powered decision tools, and communications strategies that normalize usage across all age groups.

2. Financial Wellness Is the New Core Benefit

While inflation may be stabilizing, financial stress remains top of mind for employees across all generations. According to WTW, 66% of employees cite financial wellness as their most important benefits concern. Yet only 23% of employers prioritize it.

This gap presents a powerful opportunity. Empyrean’s data shows that employees are proactively seeking financial safety nets through pre-tax accounts, such as HSAs and FSAs, and are increasingly enrolling in hospital indemnity plans to help manage rising out-of-pocket medical expenses. In 2025 alone, adoption of these plans jumped by 24 points among Millennials and 22 points among Gen Z, according to Empyrean data.

 Takeaway:  Strengthen your financial wellness ecosystem with tools that support both short-term needs and long-term planning. Consider offering student loan repayment support, personalized budgeting tools, and flexible voluntary benefits that meet employees where they are in their financial journey.

3. Family-Centric Benefits Are Becoming the Norm

The definition of “family” in today’s workforce is broader and more inclusive than ever, and employees expect their benefits to reflect that.

While traditional offerings like parental leave and dependent care FSAs are still important, the growing demand includes support for fertility services, eldercare, surrogacy, and menopause. According to industry research, 42% of employers now offer fertility benefits, up from 30% just five years ago. Empyrean’s enrollment data shows increased participation in life, disability, and long-term care benefits, especially among Gen Z, Millennials, and female employees. A report from SHRM and Morgan Stanley at Work supports our findings that ancillary benefits are seeing higher enrollment, especially among Gen Z, Millennials, and female employees.

These benefits are more than just value-adds. For many employees, they can be critical differentiators in employment decisions.

 Takeaway:  Rethink your definition of family support. Consider creating inclusive benefits packages that accommodate a variety of caregiving and life-stage needs across your workforce.

4. Personalization Is the New Standard

A one-size-fits-all approach to benefits is no longer acceptable, especially not in a workforce that spans four to five generations. Employees want benefits that reflect their individual needs, values, and life stages.

Empyrean data indicate that Gen Z enrollment in voluntary benefits increased to 78% in 2025, a 26-point rise from the previous year, primarily due to their preference for lifestyle-friendly, bundled offerings. Boomers continue to prioritize HSA contributions and vision coverage, while Gen X focuses on portability and long-term security.

Advancements in benefits technology, including AI and predictive analytics, now enable HR teams to deliver the level of personalization employees have come to expect in every facet of their lives. When data is used effectively, employees are more likely to engage with their benefits and more likely to stay.

 Takeaway:  Use data to personalize every step of the benefits experience—from decision support to ongoing engagement. Look for platforms that allow you to segment communications, tailor recommendations, and deliver real-time insights based on employee behavior and preferences.

5. Cost Management Must Be Transparent and Strategic

Employers face increasing pressure to control rising healthcare costs—but today’s employees are more sensitive than ever to perceived cost-shifting.

The traditional cost-cutting strategies of raising deductibles or limiting access can quickly erode trust. Instead, employers are adopting more nuanced approaches, including value-based care models, tighter pharmacy controls, and integrated technology that simplifies navigation while maintaining personalization.

Empyrean’s data shows that organizations that centralize access to benefits, reduce app fatigue, and offer mobile-first access are seeing better engagement, fewer HR inquiries, and stronger ROI.

 Takeaway:  Manage costs without sacrificing the employee experience. Invest in an integrated platform that helps employees clearly understand their options, navigate their benefits, and make informed decisions throughout the year.

Looking Ahead: Relevance, Not Quantity, Drives Value

In 2025 and beyond, the organizations that succeed won’t necessarily be the ones offering the most benefits. They’ll be the ones offering the most relevant benefits.

The throughline across all five trends is the power of data. When used well, data turns benefits from a static offering into a dynamic experience—one that can anticipate needs, improve satisfaction, and drive long-term organizational outcomes.

At Empyrean, we believe that when benefits reflect who your employees truly are—when your benefits are personal, inclusive, and thoughtfully delivered—you don’t just improve utilization. You create a culture of care that attracts top talent, boosts retention, and powers business performance.

So the real question for HR leaders isn’t whether to evolve your benefits strategy.

It’s how quickly you can evolve it to meet employees where they are—and where they’re going next.