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Heightened economic uncertainty combined with increased financial pressures on budgets are transforming how HR and benefits leaders design employee benefit strategies, according to a recent survey.
The 2025 WTW Benefit Trends Survey from the global advisory, broking and solutions company found that employers are looking to spend smarter, sharpen focus and utilize benefits while continuing to drive engagement, retention and purpose. The survey was conducted this spring and included 696 U.S. employers, representing a broad range of industries in both the private and public sectors.
When asked what’s influencing changes to their employee benefits strategies, 90% of respondents cited costs, a significant jump from 67% in 2023. Other key issues include:
competition for talent (52%); expectations for an enhanced employee experience (43%); cost of living (39%); and rising mental health issues (32%). Today’s employee benefits strategy: a focus on the value
According to Jeff Levin-Scherz, population health leader, North America, Health & Benefits, employers are taking a step back and looking to focus on employee benefits strategies that drive real value for employees and the business.
“That means targeting support and spending on the benefits that matter most, enabling personalization and helping employees make better decisions,” he says.
