Amid escalating cost pressures and shifting workforce expectations, most U.S. employers are preparing to overhaul their employee benefits strategies within the next three years, according to a recent survey from WTW.
The survey, released on June 10, reveals that 90% of the 696 employers surveyed identified rising benefit costs as the top factor influencing their 2025 benefits strategy—up significantly from 67% in 2023. Healthcare expenses, in particular, are placing a strain on companies’ ability to provide robust health benefits (44%), well-being programs (44%), and leave benefits (36%).
“After years of inflated benefit costs and growing economic uncertainty, employers are now re-evaluating which offerings provide the greatest value to both employees and the business,” said Jeff Levin-Scherz, Population Health Leader at WTW. “There’s a clear move toward more targeted and personalized support to drive better outcomes.”
The data suggests that 63% of employers plan to reallocate or rebalance their benefits spending by 2028—up from just 8% who reported doing so the year prior. Many employers are looking to improve benefit value by selecting more cost-effective vendors for health, retirement, and risk coverage (73%), while others plan to address high-cost medical conditions (44%) or establish preferred provider networks (37%).
In response to ongoing employee needs, employers say they will place increased focus on mental health, healthcare, financial well-being, and family support programs over the coming years. Enhanced communication tools, employee feedback mechanisms, and benefit navigation support are also being prioritized to enrich the overall employee experience.
Another WTW report highlights how employers are being urged to explore digital health tools and efficient vendor partnerships to manage healthcare costs more effectively. Evaluating solutions that reduce unnecessary healthcare use and optimize access to care is becoming a key component of benefits redesign.
Separately, a joint report by WellTheory and the Integrated Benefits Institute identifies autoimmune diseases as a major cost driver due to increased healthcare utilization, absenteeism, and presenteeism. The report advises employers to better support affected employees through flexible work arrangements, ergonomic adaptations, job modifications, and training programs aimed at both managers and coworkers.
As employers navigate a complex and costly benefits landscape, strategic adjustments appear inevitable—driven by both economic realities and a renewed commitment to enhancing employee well-being.
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Source: Hrdive.com
