According to a new study, basic employee benefit packages aren’t cutting it anymore. Instead, employers are prioritizing employees’ physical, mental and financial health through more holistic well-being options.
Nearly 1 in 3 employers expect to expand voluntary benefit offerings by 2027
The study, Gallagher’s 2025 U.S. Benefits Benchmarks report, highlights the change in employer-provided benefits. From a survey of over 4,000 U.S. organizations, Gallagher found employers’ benefit offerings are expanding to meet the unique needs of today’s workforce.
A common priority in benefit packages is health care, and employers are continuing to boost these benefits despite rising costs of medical services and medications. To make health care options appealing, companies are turning to specialized coverage. Hearing aids, autism treatments and bariatric surgery rank as the most common choices for employees.
Another growing area for employee benefits is options for reproductive health. Almost half of employers cover infertility services or fertility treatments. Fertility medications and in vitro fertilization are the most commonly offered reproductive benefits, but options for surgery and cryopreservation, also known as embryo freezing, are growing among employers.
Outside of the health care sphere, employers are looking at benefits that value more than just an employee’s physical health.
Paid time off isn’t just for vacation days anymore—26% of employers now offer paid bereavement leave for pregnancy loss and 11% offer a well-being or culture day. These new leave options are helping companies align with the needs of employees and show a commitment to treating employees as human.
Gallagher predicts more specialized leave options will grow in the future, specifically menopause-related leave and benefits. While only eight of the surveyed employers currently offer menopause leave, Gallagher expects an increase in the coming years as more employers begin to look at creating a supportive environment for employees in all phases of life.
Financial-focused programs are also growing, with 39% of employers offering identity theft protection benefits to help address concerns around cybersecurity.
What’s the point?
Benefits can keep employees around and happy. Economist Impact reports that 70% of workers are willing to switch jobs for better benefits, meaning employers can use benefits as an advantage to land—and keep—qualified candidates.
According to a 2025 MetLife study, over half of employees are concerned about rising medical costs, economic uncertainty or mental health issues. Introducing new benefit options is a way for employers to address these concerns and build trust with employees.
U.S. CEO of Gallagher’s Benefits & HR Consulting Division John Tournet agrees with this sentiment. “By embracing comprehensive well-being strategies, employers not only support their workforce’s diverse needs but also pave the way for organizational success,” Tournet said in a recent press release. “When we invest in our people, we invest in our future.”
Employee retention isn’t easy in today’s workforce, but comprehensive health benefits and more could be the secret weapon to keeping employees happy and healthy.
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