
Mr. Harish Sarma, Marketing & Product Director, Pluxee India
Top trends that shaped employee benefits in 2024 and what to expect in 2025
Employee benefits are undergoing a significant transformation, shaped by an ever-evolving workforce dynamics, economic shifts as well as accelerating technological adaptation. According to an SHRM survey, employers offered an average of 175 benefits two years ago. By 2024, this figure rose to 216—a 23% increase—with further growth anticipated in 2025.
While traditional benefits like retirement plans, and paid leave remain core, 2024 saw the rise of holistic health and wellness benefits such as menopause support and grandparent leave. Globally, innovative policies like the four-day workweek are gaining momentum, with companies in Australia, Canada, and Germany reporting improved productivity and employee well-being.
In India, the evolution of employee benefits is ongoing, presenting a significant scope of understanding for employers: identifying the benefits that will effectively attract and retain talent while aligning with business objectives. As 2025 approaches, staying attuned to these trends staying attuned to these trends will be crucial for sustained success.
Evolution of employee benefits in 2024
Employee benefits in 2024 showcased a shift toward addressing diverse workforce needs, with flexibility, personalization, and inclusivity taking center stage. Flexible work arrangements, including hybrid models, evolved from being an option to an expectation, significantly boosting employee satisfaction and productivity. A study revealed that 71% of employees rated flexibility as an important benefit. This underlines its growing importance in talent retention.
Personalization emerged as a key driver of engagement, with 61% of employees seeking customizable health benefits. To meet these expectations, companies increasingly adopted benefits marketplaces and partners like Pluxee, allowing employees to tailor offerings to their unique needs. This approach not only improved satisfaction but also positioned businesses as forward-thinking and competitive in a dynamic job market.
Additionally, mental health and well-being took priority, with 55% of employees ranking mental health initiatives among their top three benefits for promoting inclusivity and empowerment. Leading organizations in India rolled out targeted mental health programs to support their workforce. Sustainability and diversity, equity, and inclusion (DE&I) initiatives further shaped benefits in 2024 and will continue to shape. Green-commuting incentives, expanded parental support and gender affirming care were introduced by some businesses, reflecting a commitment to both societal and employee needs. In India, employees aged 25-44 particularly valued expanded childcare and eldercare benefits, helping them navigate financial and time pressures in dual-income households.
Expectations and predictions for 2025
As workplaces continue to evolve, 2025 is poised to bring unprecedented changes in employee benefits.
1. AI is here for good
Artificial intelligence is here to stay and is becoming an essential part of every sector. With 76% of leaders identifying AI as critical for competitiveness, its ability to anticipate employee needs and streamline HR processes is undeniable. Currently, 93% of HR professionals use AI-powered tools to enhance operations, and this number will rise in 2025. From personalized recommendations to real-time analytics and chatbot support, organizations are embracing AI-driven solutions to thrive. Companies lagging in adoption risk may fall behind in efficiency and engagement.
2. Increased focus on financial wellness
Financial wellness is set to take center stage in 2025 as employers recognize its impact on employee productivity and morale. Many leading companies are already prioritizing this aspect within their holistic wellbeing strategies. Providing tools to make informed financial decisions demonstrates an organization’s commitment to its employees’ long-term financial health, inviting trust and loyalty.
3. Is a four-day workweek the future?
The four-day workweek is gaining momentum globally, challenging traditional structures. By focusing on fewer meetings and more independent work, this model is proving its potential to enhance employee wellbeing while maintaining productivity. Advocates report increased satisfaction, better work-life balance, and reduced carbon footprints. In 2025, more organizations may enter into trial and adopt this approach, reflecting the growing demand for progressive workplace policies.
4. The demand for pay transparency
Pay transparency is emerging as a critical expectation for employees, spurred by the EU Pay Transparency Directive, which mandates gender pay gap reporting for companies with over 100 employees by 2027. Globally, this trend is reshaping workplace culture. Research shows that 82% of employees feel more engaged and productive when they perceive fair compensation. For 2025, organizations are considering clear and structured compensation practices to enhance trust and employee engagement.
5. Enhanced family and caregiving support
Modern workplaces are expanding their definitions of caregiving, recognizing diverse needs such as parental leave and pet caregiving. A report from India highlights that 25% of employers are considering benefits for unconventional caregivers. Organizations are now embracing flexible caregiving policies, to support the evolving dynamics of family life, reducing stress and strengthening work-life integration for their workforce.
6. Career development support is on the rise
Upskilling and career advancement opportunities are becoming critical components of employee benefits. In 2025, organizations will increasingly offer tailored learning paths, focusing on individual roles, strengths, and career goals. Leadership development programs are also expected to grow, equipping employees with industry-specific skills to excel in leadership roles. This boosts employee engagement and helps position companies as innovation leaders in a competitive market.
Takeaway for leaders
As the workplace evolves, businesses must rise to the challenge of shaping the future of work. This requires more than keeping pace—it calls for proactive, forward-thinking strategies that put people at the core of organizational success.
Leaders are now designing benefits that reflect diverse needs and nurture inclusion and purpose. This means building trust, supporting growth, and prioritizing well-being. Treating the workforce as a community helps create a space where people thrive and contribute, driving success for everyone.