83% of people feel valued when offered benefits beyond medical by their employer, according to new research by ADP.
So, what are the trends in the benefits space today? ADP’s Prakriti Bhatia shares the latest data insights.
To read the full ADP TotalSource Benefits Guide, click here.
Prakriti Bhatia
Employees are looking for financial health and well-being, not just for them today, but for sustained future protection as well.
So there's a lot happening in the benefits space. But if I was to distill it down, it comes to three big trends. The first trend is around rising medical costs. Medical costs are a significant expense, and they've been rising for several years. This is having a real impact in terms of the decisions that employees are making and shaping their preferences.
As an example, we are seeing switch towards high deductible, low premium plans, especially amongst the younger generation. Affordability is not just one lens through which employers are evaluating benefits. It's become the primary lens. The second trend is around the fact that employers have really emerged as an anchor of trust for employees in the desire for certainty. This is exacerbated by the first trend around medical inflation,
volatility in the open market around medical offerings, shifting legislative landscape, what have you. What's super interesting is the fact that while there is a sense of uncertainty permeating the US healthcare landscape. Confidence in employer sponsored healthcare remains at an all time high, and employers report feeling a sense of value because of the medical and the non-medical benefit offerings that they receive.
Employers can play an instrumental role in helping their employees navigate complexity, provide guidance, and create a sense of stability. In this otherwise uncertain medical environment. The final trend is around retirement anxiety. Now, the importance of 401(k) had been rising for several years.
But 2025 really marked an inflection point where retirement overtook dental benefits as a second most valued benefit, and understandably so.
Employees are looking for financial health and well-being, not just for them today, but for sustained future protection as well. And they do place a lot of premium on employers that provide retirement benefits, because it signals to employees that employers are invested in their long term financial well-being.
