Voluntary benefits allow for more personalization that can help satisfy the unique needs of each worker, especially in today’s multigenerational workforce.
Benefits packages offer value to your employees and help you boost productivity and retention in a cost-effective manner. A good benefits package leads to satisfied employees with higher morale. Employees who find value in their benefits are typically more willing to commit to their company because it helps make them feel valued, which leads to increased productivity and decreased absenteeism.
Voluntary benefits allow for more personalization that can help satisfy the unique needs of each worker, especially in today’s multigenerational workforce. Although individual needs vary, some common themes—physical, mental and financial wellness—have surfaced, and employers can help address these pressing issues through offering voluntary benefits.
A rising number of organizations recognize that voluntary benefits are beneficial to employees and their families—and many come at little to no cost for the employer. This article highlights five voluntary benefits trends to monitor in 2025.
Voluntary Benefits Trends in 2025
1. Emphasis on Holistic Voluntary Benefits Offerings
The voluntary benefits market has been expanding steadily over the years and will continue to grow in 2025. According to a recent Willis Towers Watson survey, nearly all employers (94%) find voluntary benefits important to their talent and total rewards strategies over the next three years. Back in 2018, just 36% of employers felt that way. It’s expected that more employers this year will offer a wide range of voluntary benefits options to meet the needs of their current and prospective employees.
Americans face a different landscape shaped by nearly two years of the coronavirus pandemic. As the pandemic continues to impact workplaces and personal lives, non-traditional offerings like critical illness, health insurance plans, hospital indemnity, pet insurance service, identity theft and group legal are becoming popular. More employees are looking to protect their health and wellbeing, safety and finances, but might need some help or guidance to get started on their goals.
One of the best perks of voluntary benefits is that they are, in fact, optional, so employees can opt for the coverage that matters most to them. As a result, more organizations may design core benefits bundles that provide a range of options. Since employees often face unique stressors or challenges, employers can offer a wide array of benefits or services to support their diverse workforces. Supplemental offerings could be precisely what employees need to fill in coverage gaps.
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2. Increased Financial Wellness Support
Money is a top stressor for employees, and the pandemic has reinforced that fact. Finance-related voluntary benefits have the potential to support employee wellbeing with much-desired financial guidance and educational resources.
The voluntary benefits marketplace is expanding to include increasingly popular benefit plans (retirement savings plans, safety net insurance offerings, emergency savings funds, student loan repayment, and financial planning or coaching) that offer financial security and help employees and employers manage economic challenges.
When employees experience lower financial stress, they tend to be more engaged and motivated, leading to increased employee satisfaction and improved productivity.
In turn, companies can attract and retain top talent by prioritizing these financial benefits as part of an overall wellbeing strategy. Economic recovery from the pandemic will take time, but voluntary benefits can help decrease financial stress and provide peace of mind for employees.
3. Expanded Remote Health Services
The pandemic has undoubtedly increased employee stress, depression and anxiety. As a result, many employees need more mental health support than before the pandemic. On the other hand, employees may have put off preventive care or other health care services during the pandemic.
One way to combat those issues is to help make remote health services more accessible and affordable. To ensure employees receive necessary physical and mental health support, telemedicine or remote health services can help increase accessibility to resources and treatment; they have proven to be a valuable and cost-effective way to receive medical care from the comfort of home. As such, telemedicine is quickly proving to be a game-changer, and employers will want to consider adopting or expanding their current offerings to accommodate it.
4. Increased Demand for Caregiving and Family-Oriented Benefits
More employees are juggling work and caregiving. Many care for children, aging parents, or family members with special needs. They need benefits that make life easier.
To address these challenges, companies are expanding voluntary benefits solutions that focus on employees by offering:
- Paid leave for family caregiving. Employees get time off to care for loved ones without financial stress.
- Subsidized childcare and eldercare support. Companies help cover costs, easing the burden on working parents and caregivers.
- Flexible work arrangements. Remote work, adjusted schedules, and hybrid options make it easier to balance responsibilities.
These benefits build trust and loyalty. Employees feel valued and supported. As a result, businesses see lower absenteeism and stronger employee retention.
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5. Technology-Driven Employee Benefits Enrollment & Management
Benefits enrollment is becoming more digital. Employees want simple, fast, and mobile-friendly options. Companies are using AI and automation to make the process smoother.
New tools are changing how benefit employees access their options. They no longer rely on paperwork or HR meetings. Everything is available at their fingertips.
- Self-service benefits platforms. Employees can explore, compare, and enroll in benefits on their own.
- AI-driven virtual benefits assistants. These chatbots answer questions, guide decisions, and simplify enrollment.
- Mobile app integration. Employees can track, update, and manage benefits anytime, anywhere.
These solutions improve efficiency and peace of mind to employees. HR teams spend less time handling benefits inquiries. Employees get quick, accurate information. Businesses benefit from reduced admin costs and higher engagement.
Summary
Voluntary benefits are helpful add-ons that can round out any benefits package. They help provide value to employees without raising an employer’s costs, making them powerful tools. Voluntary benefits have helped organizations around the country with the multitude of issues brought on by the COVID-19 pandemic.
Still, those issues—including financial insecurity, mental health and health care access—are likely to remain in 2025 and beyond. Therefore, employers should consider exploring voluntary benefits to round off their current offerings.
If you are looking to optimize your voluntary benefits strategy, Melita Group is an outsourced human resources partner that can help you design and implement a customized benefits plan tailored to your workforce needs. As a trusted HR outsourcing company for your employees, we ensure seamless benefits administration, compliance, and employee satisfaction.
Explore our human resources services to enhance your HR strategy and stay ahead in 2025. Contact us today to find the best solutions for your organization.
