Employee Benefits Trends 2025–2026: Attracting Top Talent
HR Question
We want to evaluate our employee benefits and consider different offerings. What are the latest employee benefit trends?
HR Answer
Organizations that strive to offer competitive benefits have an advantage in attracting and retaining top talent. However, there can sometimes be a misalignment between the benefits or extra perks employees value most and those employers offer. A recent Forbes Advisor survey of employers and employees showed alignment on some benefits, but a notable mismatch was seen in the case of paid time off. Employers did not list it among their top five in-demand benefits, yet 31% of employees cited it as most important.
According to that same Forbes Advisor survey, employees are most likely to quit for higher pay, more competitive benefits, better advancement opportunities, and flexible work-from-home arrangements. This raises the question: what constitutes “more competitive benefits”? See some top benefits trends below.
What employee benefits still top the list?
In addition to fair and competitive pay, traditional benefits such as comprehensive health insurance plans (including mental health coverage), paid time off (PTO), employee development programs, and retirement savings plans like a 401(k) remain the most popular and critical for both employers and employees.
What are the trending benefits?
Whether influenced by generational demographic shifts, economic factors, or the need for benefits that simplify our busy lives, here are a few interesting trends for 2026:
Expanded Medical Insurance-Related Benefits
- Coverage for GLP-1 drugs: Prescriptions for type 2 diabetes and weight loss continue to grow and are a top request among employees, with 31% saying they’d change jobs to obtain GLP-1 coverage. According to survey results by 9amHealth noted on PRNewswire, employer-sponsored coverage has more than doubled over the past two years, with over a third of employers now providing coverage for GLP-1 drugs. Health providers and Pharmacy Benefit Management (PBM) companies stress the importance of requiring stipulations and promoting exercise incentives alongside this drug coverage, as declining exercise rates are raising concerns.
- Telehealth/Telemedicine: I recently used this benefit for a quick telehealth visit for my daughter. We logged onto the system, selected an available provider, and within 30 minutes had a prescription sent to our pharmacy. I’m fortunate to have job flexibility, but many workers don’t have the option to visit a doctor during work hours. These benefits save time, increase access to medical treatment, and reduce productivity losses—a win-win! The One Big Beautiful Bill Act (OBBBA) makes it easier for employers to add telehealth to their plan allowance, making it a more integral and permanent part of the healthcare landscape—especially for those with HDHPs and HSAs—by removing previous restrictions and providing greater flexibility and access to care.
- Hospital Indemnity and Critical Care Insurance: Benefits that supplement emergencies and critical health care expenses are on the rise again this year. Hospital indemnity insurance plans continue to show year-over-year increases in enrollees, as noted in the SHRM 2025 Employee Benefits Survey.
Other Voluntary Benefits
Perks and voluntary benefits should reflect current trends and align with your specific workforce’s needs. These can vary widely from those listed below to work-from-home equipment stipends, gym memberships, women’s health support, or AI software.
- Family Caregiver Benefits: These include childcare or eldercare aid, long-term care insurance, access to resources, paid leave insurance or voluntary PTO, and more. Today, 4 in 10 people are part of the “sandwich generation,” juggling careers alongside childcare and eldercare responsibilities. According to the Mercer 2025 Survey on Health and Benefit Strategies, employers offering childcare benefits or caregiver subsidies provide a median of $1,500 annually.
Some states are increasing attention to these needs. For example:
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- Illinois has added “family responsibilities” as a protected class, prohibiting discrimination or harassment against employees based on family caregiving duties.
- Washington state is mandating long-term care solutions.
- Many states are amending insurance codes to allow carriers to sell policies for voluntary paid family leave (PFL) benefits. Under these laws, employers may purchase policies to provide a PFL wage-replacement benefit to their employees. Laws like these may encourage employers to proactively expand caregiving benefits.
- Financial Education and Resources: Financial insecurity is rising, with 48% of Gen Z and 46% of millennials reporting they do not feel financially secure, according to the Deloitte Global Gen Z and Millennial 2025 Survey. With employees citing financial concerns impacting mental health and 23% of employees saying financial stress affects their focus and productivity at work, offering resources in this area can improve health outcomes and reduce absenteeism.
- Check with your insurance provider, broker, or financial company to see if they offer debt reduction counseling or financial management courses on budgeting, investing, or home buying.
- Tuition Reimbursement and Loan Repayment Assistance: Have you seen the cost of college lately? According to the College Board, the annual cost ranges from $11,600 to $100,000 depending on the institution. New college recruits are consistently asking for this benefit.
- The One Big Beautiful Bill Act brought significant changes to employer-provided tuition assistance and its tax implications, helping employers continue this popular tax-free benefit while also allowing the deduction as a business expense. It permanently extends the tax exclusion for employer-paid reimbursement of qualified student loans under Code Section 127 and makes the $5,250 limit subject to annual inflation adjustments.
Don’t forget to check out how the OBBBA may impact your other benefits and taxes, potentially helping you take advantage of increased employer childcare tax credits, HSA changes, and more, which you can learn about in our OBBB Resource Hub.
Thank you to Andrea Whalen for sharing her insights on the latest employee benefits trends.
Ready to ensure your benefits package is competitive and aligned with employee needs? Connect with our team today to review your offerings and explore strategies that attract and retain top talent. Schedule a consultation or contact us to get started.