Employers Commit to Maintaining Well-Being Benefits Despite Rising Costs in 2025

In 2025, despite facing increasing healthcare costs and economic uncertainty, the majority of large employers are determined to uphold their well-being benefits, according to a recent survey by Business Group on Health.

The nonprofit organization, dedicated to advocating for large employers, conducted the survey with participation from 131 companies that collectively employ over 11 million people globally.

The survey, carried out in January and February 2025, reveals a significant trend in how employers are approaching employee health benefits in the face of mounting financial pressures.

Employer Commitment to Well-Being Benefits

The survey highlights that 73% of employers intend to maintain their current well-being programs in 2025.

In addition, 20% of employers plan to expand their well-being offerings, while a smaller proportion will reduce their programs or remain uncertain about the future of their well-being benefits.

This resilience in maintaining well-being initiatives, despite the challenges posed by rising healthcare costs, demonstrates the growing importance of employee health programs within organizational strategies.

The projected increase in healthcare costs, estimated to rise by nearly 8% in 2025, marks the highest jump in over a decade.

Despite these escalating costs, employers are prioritizing employee well-being as a central part of their workforce strategy.

A critical factor driving this decision is the direct correlation between employee health and workplace engagement, as well as improved business performance.

Employers are beginning to realize that an investment in health and well-being is not only an investment in the employees but also in the overall productivity and financial health of the company.

The Rising Demand for Vendor Value

With healthcare costs on the rise, employers are becoming more discerning about the value they expect from well-being vendors.

The survey reveals that approximately 94% of employers are increasing their expectations for the vendors who provide these well-being services.

Many employers are incorporating well-being dashboards that help track health data and evaluate vendor performance, allowing them to optimize their investments in employee well-being.

Ellen Kelsay, president and CEO of Business Group on Health, emphasized the strategic importance of well-being programs:

“Employers continue to regard well-being as central to their workforce strategy and seek to further optimize their well-being investments,” Kelsay stated.

“By viewing these initiatives as having a direct impact on overall employee health, employers also boost workplace engagement, participant outcomes, and business performance, among other benefits.”

The growing reliance on well-being dashboards demonstrates a shift toward a more measurable and accountable approach to health benefits.  

This transparency ensures that employees are receiving the best possible support while also allowing employers to identify areas for improvement.

Comprehensive Well-Being Programs: Mental, Physical, and Financial Health

The survey findings also underscore the comprehensive nature of well-being programs in 2025.

According to the data, 100% of the responding employers have incorporated mental health into their well-being strategies, with 47% identifying mental health as the most critical component of their programs.

As work-related stress and burnout become more prevalent, employers are responding by offering programs that support mental wellness, including access to counseling, therapy, and other mental health resources.

In addition to mental health, physical health continues to play a central role, with 99% of employers addressing physical health concerns, particularly around weight management.

As part of their efforts to enhance physical health, many employers are incorporating support for emerging medical treatments, such as GLP-1 drugs, which have seen a surge in demand.

About two-thirds of employers noted that the growing popularity of GLP-1s has influenced their well-being strategies, leading to an increased focus on weight management and related health interventions.

By addressing both the physical and mental well-being of employees, employers are fostering a more holistic approach to employee health that ultimately leads to a more productive and satisfied workforce.

Financial health also remains a crucial aspect of well-being programs.

The survey found that 92% of employers are including financial health support in their programs, with offerings such as student loan assistance, tuition reimbursement, and emergency savings plans.

These initiatives reflect the broader role of financial well-being in improving overall employee satisfaction and productivity.

By providing financial support, employers help reduce the stress associated with personal financial burdens, thereby fostering a more engaged and focused workforce.

By offering financial well-being resources, employers can alleviate some of these pressures, helping employees feel more secure and supported.

In turn, this contributes to a healthier work environment and better overall business outcomes.

Global Consistency and Social Health Initiatives

In an increasingly globalized workforce, employers are also grappling with the challenges of providing consistent well-being benefits across different regions and cultures.

The survey reveals that about 85% of employers have developed or are working on a global consistency strategy for their well-being programs.

However, creating a consistent strategy can be challenging, as employers must account for varying cultural expectations and legal requirements in different countries.

Despite these challenges, physical health support and nutrition programs remain among the most consistent offerings across global locations.

Social connectedness also plays an essential role in the well-being of employees.

Approximately 75% of employers offer programs designed to foster social engagement and community within the workplace.

These programs may include employee resource groups, peer coaching, and mentoring initiatives.

By encouraging social connections, employers create a sense of belonging and support, which can have a profound impact on employee morale and retention.

Social connectedness can also improve overall employee well-being by promoting collaboration, communication, and teamwork.

Social determinants—such as access to education, housing, and healthcare—play a significant role in overall health outcomes.

Conclusion: The Future of Well-Being Programs

In conclusion, the 2025 survey findings underscore the growing commitment of employers to maintain and even expand their well-being programs, despite the ongoing challenges posed by rising healthcare costs and global economic uncertainty.

As employers work to optimize their well-being investments, they will need to focus on increasing vendor accountability, leveraging data-driven insights, and integrating mental, physical, and financial health into their programs.

Additionally, a global consistency strategy, along with a focus on social determinants of health, will be essential for creating well-being programs that are both effective and inclusive.

By taking these steps, employers will not only improve employee health but also enhance engagement, retention, and overall business performance in 2025 and beyond.

In sum, the future of well-being programs lies in the ability of employers to adapt to changing circumstances, embrace a more comprehensive approach to health, and collaborate with expert vendors to maximize the impact of their investments.

By prioritizing well-being, employers will contribute to a healthier, more engaged, and more productive workforce, setting the stage for long-term business success.