As we navigate through 2025, employers are increasingly turning to voluntary benefits to enhance their total rewards packages. These benefits, often low-cost or no-cost to employers, provide employees with valuable options to support their financial, physical, and emotional well-being.
Let's explore four voluntary benefits that are gaining significant traction this year:
1. Supplemental Health Benefits
With healthcare costs projected to rise by 7–8% in 2025, employees are seeking additional coverage to mitigate out-of-pocket expenses. Supplemental health benefits, such as accident insurance, critical illness coverage, and hospital indemnity plans, offer financial protection against unexpected medical events. These benefits are particularly appealing to employees facing high-deductible health plans, providing peace of mind and financial security.
2. Student Loan Assistance and Financial Wellness Programs
Student loan debt is at a record high, and delinquency rates are rising. Americans collectively owe $1.6 trillion in federal student loans; that is $400 billion more than they owe on credit cards. This financial problem won’t disappear anytime soon, and employees are looking to their workplaces for assistance.
More companies are offering student loan assistance programs, including direct contributions and refinancing options. Additionally, comprehensive financial wellness programs that encompass budgeting tools, debt management resources, and financial counseling are becoming standard offerings. These initiatives not only aid employees in achieving financial stability but also enhance overall job satisfaction and retention.
3. Employee Purchase Programs
Employees’ outstanding personal debts, like student loans and credit cards, may prevent them from making certain necessary purchases. Employee purchase programs can help employees get the things they need without resorting to cash advances or high-interest payday and title loans. Payments are easily managed and deducted from the employee’s payroll over a period of time. This easy, actionable benefit can help young employees establish credit and provides an alternative to taking out loans from a 401(k) plan to make major, but necessary, purchases.
4. Identity Theft Protection
As cyber threats become more sophisticated, identity theft protection has emerged as a critical voluntary benefit. Employers are partnering with cybersecurity firms to offer services that monitor credit activity, alert employees to potential breaches, and assist in identity restoration. Providing this benefit demonstrates a commitment to safeguarding employees' personal information and financial health.
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While no one knows for sure what the future may hold, successful benefits professionals will likely continue to evaluate and implement voluntary benefits to help address the needs of diverse populations. As healthcare costs skyrocket, many organizations will continue to shift towards these low-cost ways to provide their workers with high-value benefits.