Top Employee Benefits Trends in 2025

As we look toward 2025, the days of “one-size-fits-all” benefits packages are numbered. Instead, we’re seeing more personalized offerings that meet the changing needs of the workforce.

So, what should employers be keeping an eye on in the coming year? Here are three key trends that will shape employee benefits in 2025:

1. Mental Health and Wellness Programs Will Continue to Grow

Employers understand that mental health benefits are a must-have in any workplace, particularly since the COVID-19 pandemic. Over half of working Canadians report declining perceptions of mental health this year, which suggests a growing need for mental health support in the workplace. In 2025, mental health and wellness programs will likely be even more integral to employee benefits packages.

Employer-provided mental health benefits play a critical role in making sure employees have access to the care they need. A recent survey found that affordability is a significant barrier to accessing mental health services, with over 78 per cent of Canadian employees saying they’d like to access mental health services at least twice a year if cost were not a factor. The survey also revealed that nearly 43 per cent of respondents feel they can’t afford mental health services as often as they need them.

You may already be offering Employee Assistance Programs (EAPs) or similar services, but the scope of these offerings will likely expand. Expect to see a greater focus on proactive mental health resources, such as therapy sessions, mental wellness apps, stress management tools and even mental health days. Beyond the basics, companies are increasingly offering services like mindfulness coaching, financial wellness programs and social support networks. By providing a comprehensive approach to mental health, businesses can help employees reduce stress, improve productivity, and feel better about showing up to work every day.

Mental health resources will need to be easy to access and available when employees need them most. That means maintaining confidentiality, offering flexibility in how employees can access resources, and integrating mental wellness into your overall company culture.

2. Personalized and Flexible Benefits Packages Are on the Rise

Employees want the ability to personalize their benefits packages to meet their needs. As workforces become more diverse in terms of age, family situations, and life goals, employees want benefits that fit their lifestyles. Comprehensive but flexible options are on the rise, which allow employees to choose from a variety of plans that align with their specific health needs. Family leave options are also changing, with many employers expanding parental leave policies or offering paid time off for caregiving responsibilities, whether it’s for a child, spouse, or aging parents.

Some companies are offering more “cafeteria-style” benefits, where employees can choose from a variety of benefits, such as life insurance, retirement savings, wellness programs, and even pet insurance, to create a package that fits their lifestyle. Employees want to choose their benefits based on what they value most, and having this option can lead to greater satisfaction and a stronger sense of autonomy. When employees can choose benefits that fit their needs, they’re more likely to engage with them and feel that their company cares about their health.

3. Technology Will Play a Bigger Role in Benefits Administration

From platforms powered by artificial intelligence (AI) to mobile apps, technology will continue to help streamline the benefits administration process and make it easier for both employers and employees to manage their benefits.

AI is already making its mark in many industries. Expect to see AI-driven tools that help employees make smarter, more informed decisions about their benefits options. For example, AI can analyze employee preferences, health history, and family needs to recommend the best benefits package. It can also provide real-time answers to employee questions about claims, coverage options, or eligibility, and reduce the need for lengthy customer service calls and speeding up the overall process.

With more employees working remotely or on-the-go, mobile access to benefits information is now a must. Apps allow employees to easily track claims, check benefit balances, schedule doctor’s appointments, and even access telehealth services, all from the convenience of their smartphones. Expect mobile apps to integrate seamlessly with health insurance providers, wellness programs, and EAP services, to create a coordinated experience that keeps employees connected to their benefits wherever they are.

The more you can automate routine tasks like claims processing, eligibility verification, and benefits enrollment, the more time you free up for HR teams to focus on higher-value work. Technology will make these administrative tasks quicker, more efficient, and less error-prone, which will improve the employee experience.

Staying Ahead of the Curve

As we welcome 2025, it won’t be enough for employers to simply offer a standard benefits package. Employees want personalized and flexible options that fit their lives and expect seamless access and support through technology.

Contact us for more information on how we can help you offer benefits packages that go beyond the basics.

Suggested Reading

Why Comprehensive Benefits are Key to Attracting Talent

Retirement Revolution? How to Adapt to Changing Trends

Additional Resources

The triple gap: RBC Insurance survey exposes considerable coverage, knowledge and engagement gaps in Canadian employer benefits and well-being programs