Inside the rapidly changing world of employee benefits

Healthcare costs have been on an upward trajectory for years, with little end in sight.

In fact, insurers project a 10.2% increase in the U.S. for 2025, up from 9.3% in 2024, according to WTW survey results from late last year.

And most said that will continue for years.

The reasons behind these increases are varied, but include a rise in new medical technologies and pharmaceuticals, the firm said, as well as increased utilization.

“The seemingly never-ending rise in costs poses a constant challenge for employers to take action in order to mitigate these unsustainable increases,” Linda Pham, global health and risk leader, integrated and global solutions at WTW, said in an analysis of the survey results.

Employers will need to manage budget expectations and balance cost increases with data-driven business and health outcomes, Pham added.

To control costs while boosting benefits value, employers can evaluate vendor and digital health solutions that expand well-being resources and reduce unnecessary utilization, said Courtney Stubblefield, managing director, health and benefits at the firm.

They can also review their markets to ensure efficient sourcing of private coverage, she suggested.

Only a little over half the workforce knows how to access their mental healthcare benefits, according to a poll of more than 2,000 U.S. adults conducted by the National Alliance on Mental Illness in cooperation with Ipsos. 

Further, more than one-quarter of workers don’t know if their employer offers mental healthcare benefits, an employee assistance program, flexible work arrangements or sick days for mental health. More than three-quarters of workers said training would help, specifically on insurance benefits, stress or burnout management, mental health crisis response and more. 

“It takes a commitment for companies to implement mental health education and establish mental health benefits,” Darcy Gruttadaro, chief innovation officer at NAMI, said. “By doing so, organizations will see the individual and organizational impact of increased productivity, connection, and satisfaction amongst employees who are connected to resources.”

HR professionals continually run into a frustrating conundrum when it comes to mental healthcare resources: While workers say they want and would benefit from such offerings, they appear to rarely use them when made available.

Many factors likely contribute to this apparent contradiction. As a 2023 survey from OneMedical showed, 45% of those who avoided using such benefits said they didn’t have time, 25% said they were embarrassed and 22% cited costs — pointing to three very different hurdles.  

HR can potentially bolster usage with the right kind of destigmatizing communication and training, workers have said. 

HR can loop in managers as well; a 2023 survey from MetLife found that one-third of workers prefer to hear from their managers on benefits, but also that many managers don’t feel confident in that role. MetLife researchers suggested empowering managers with training to build their confidence on benefits communication.

A culture that supports use of mental health resources also must start at the top — SHRM researchers released data last year showing that even one-quarter of HR pros were hesitant to use mental health benefits, and 35% said they didn’t believe their organization truly cared about their mental health.

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By FitOn Health

The modern workplace is built for efficiency, but often at the cost of employee movement. Prolonged sitting has been linked to obesity, cardiovascular disease, and musculoskeletal disorders, leading to higher healthcare costs and lost productivity. Sedentary behavior isn’t just a personal health issue—it’s a business challenge.

Employees who don’t engage in regular physical activity are at a higher risk of chronic conditions and burnout—leading to absenteeism and turnover. According to the World Health Organization, just 20-30 minutes of moderate exercise per day can provide significant health benefits to those with chronic conditions.

For employers, the financial impact is undeniable. The CDC estimates that absenteeism costs U.S. businesses $225.8 billion annually, largely driven by chronic conditions that can be mitigated through preventive wellness initiatives. Companies that overlook movement in the workplace aren’t just seeing higher healthcare costs—they’re also facing disengaged, less productive teams.

The ROI of Fitness Benefits

Wellness programs aren’t just a nice-to-have; they deliver measurable business outcomes. Studies have shown that companies with strong wellness programs see:

• Lower healthcare costs – Active employees require fewer medical interventions, reducing claims and insurance premiums. A study by Johns Hopkins Bloomberg School of Health found that physical inactivity in the workplace can account for 11% of healthcare expenditures.
• Higher productivity – Movement enhances cognitive function, improving focus, creativity, and problem-solving abilities. FitOn Health’s wellness programs have helped 73% of members better manage the demands of their work or job.
• Reduced absenteeism – Employees with access to wellness resources take fewer sick days and report higher job satisfaction. A study found that Employees who engaged in at least 75 minutes of vigorous physical activity each week have been found to miss an average of 4 fewer workdays annually.
• Stronger engagement and retention – Employees who feel their employer supports their well-being are more likely to remain with the company long term. In fact, 45% of workers say they would stay at their jobs longer because of wellness programs — with fitness programs at the top of their wishlist.

FitOn Health’s approach to workplace wellness drives results: 85% of users reported that they have become more active since using FitOn. Companies that offer our program see measurable improvements in employee health outcomes.

Building an Inclusive Wellness Program

A one-size-fits-all approach to wellness doesn’t work. The most effective programs are personalized, accessible, and engaging for a diverse workforce. Employers should focus on:

• On-demand options – Not every employee has time for in-person gym sessions. Digital solutions like FitOn Health’s virtual workouts and meditations meet employees where they are.
• Comprehensive wellness – Physical health is just one piece of the puzzle. Programs should also support mental well-being, stress management, and nutrition.
• Leadership buy-in – When executives participate in and promote wellness initiatives, engagement skyrockets.
• Recognition and rewards – Gamification and incentives can boost participation and long-term adherence.

By integrating these elements, companies can create wellness programs that engage all employees—not just those already committed to fitness.

Prioritizing Movement: A Call to Action for HR Leaders

The phrase "sitting is the new smoking" isn’t an exaggeration—lack of movement is now one of the biggest threats to employee health. But forward-thinking HR leaders are taking action by embedding movement into the workday.

Successful strategies include:

• Micro-movement breaks – Encouraging 5-minute movement sessions throughout the day boosts energy and focus.
• Walking meetings – Stepping away from desks improves collaboration and creativity.
• Flexible schedules for fitness – Allowing employees to integrate exercise into their workday leads to higher participation rates.
• Making fitness accessible – Offering on-demand fitness solutions (like FitOn Health) ensures employees can access movement that fits their schedule, regardless of their fitness level or work location.

By making movement a core part of company culture, employers can prevent health issues before they start—rather than just managing them after they arise.

Reducing Turnover Through Wellness Programs

Wellness benefits are no longer optional—they are a competitive advantage in today’s job market. Employees who feel their employer prioritizes their well-being are more likely to stay and more engaged at work. In fact, a study found that 87% of employees consider health and wellness offerings when choosing an employer.

With burnout and stress at all-time highs, companies that fail to offer wellness solutions risk losing top talent. By investing in holistic wellness programs like FitOn Health, employers can create a happier, healthier workforce—and see measurable improvements in retention.

Avoiding Common Pitfalls in Implementing Fitness Benefits

Despite good intentions, many wellness programs fail due to common mistakes, such as:

• Lack of personalization – Employees need options that fit their lifestyle, whether it’s yoga, strength training, or guided mindfulness.
• Poor communication – Simply offering a benefit isn’t enough—employers must actively promote and integrate it into company culture.
• Limited accessibility – Fitness benefits should be available to remote, hybrid, and in-office employees alike.

Employers who overcome these challenges see significantly higher adoption and engagement rates, leading to a more resilient and productive workforce.

Take the Next Step with FitOn Health

A healthier, more engaged workforce starts with the right wellness strategy. FitOn Health makes it easy for employers to offer personalized, engaging fitness and wellness programs that drive real results.

Ready to see how FitOn Health can transform your workplace? Learn more about our employer wellness solutions here or reach out to our team.

Nearly 8 in 10 HR leaders responding to a survey said they struggle to convince the C-suite that investing in expanded child care benefits pays off, according to a survey of 152 CHROs, CPOs, VPs and HR heads of Fortune 500 companies by the Harris Poll and KinderCare Learning Companies.

The disconnect stems primarily from the C-suite’s uncertainty about the return on investment in providing enhanced benefits and a lack of clarity over employee needs, the analysis, released Jan. 15, concluded.

To close the gap, HR leaders said they are assessing employee needs to help them and the C-suite better understand the specific needs of their employee base.

HR professionals responding to the survey largely said they’ve experienced or anticipate increased demand for child care solutions from employees. Most also said such benefits would be critical for return-to-office plans.

But they reported difficulting obtaining C-suite buy-in, despite more than 80% of respondents reporting a belief that child care benefits reduce turnover, help with recruiting, improve employee mental health and improve productivity.

Some research indicates a measurable return on investment: A March 2024 study by working parent advocacy group Moms First and Boston Consulting Group revealed that child care benefits result in a return on investment of up to 425%.

The five companies that participated in the study reported that child care benefits improved retention and productivity and reduced absences. It’s not just the money, it’s “an incredible morale booster,” one corporate employee said.

Almost all of the HR leaders responding to the most recent survey said their company already offers some kind of child care benefit, with subsidized care being the most popular at 66%. This was followed by mixed child care benefits (63%); on-demand child care (57%); emergency back-up care (56%); off-hour care (54%); and tax credits (53%). Less than half (45%) of the HR leaders surveyed said their companies offer on-site child care or co-working spaces that double as day care.

For many working parents in the U.S. who depend on paid caregivers for their children, the need for employer-sponsored child care benefits may be dire, according to a November report from the U.S. Department of Labor’s National Database of Childcare Prices.

Nationwide, families spend between nearly 9% and 16% of their median income for full-day care for one child, the NDCP said. In 2022, for some, this meant paying almost as much as, or more, than a month’s rent, according to DOL.

Student loan debt significantly influences employee decisions to accept a job offer or stay with their current employer, according to a report from MissionSquare Research Institute.

A survey of 2,036 U.S. employees aged 18-49 revealed that 62% of private sector employees, and 56% public sector employees, consider their student loan debt before saying yes to a job offer. As for retention, only 34% of employees in the private sector with student loan debt, and 39% of employees in public sector, indicated they’re likely to stay with their employer, the report found.

On the other hand, employees with student loan debt “are more likely to pursue professional development goals, particularly those that lead to new skills, supervisor/managerial roles, additional education or certifications, and increased responsibility,” MissionSquare noted.

As of early last year, student loan debt totaled $1.6 trillion, with the average debt load among all borrowers nearly $38,000, Mary Moreland, Abbott’s HR executive vice president, pointed out in an op-ed for HR Dive.

Studies consistently document the toll student loan debt takes on employees. For example, more than 90% of borrowers between 18 and 39 reported that it affected their physical and mental well-being, according to a survey Abbott conducted with Morning Consult, Moreland said.

MissionSquare’s findings echoed this concern. Employees with student debt perceive the debt as a barrier to career advancement and are more likely to experience low morale, according to its report.

But the findings also revealed that employees with student loan debt may be more motivated to pursue professional development to enhance their income potential, the report said.

This suggests employers may benefit from subsidizing or absorbing the cost of helping with skills development, such as by adjusting compensation based on enhanced abilities, productivity and responsibilities, MissionSquare noted.

In a 2023 report, ADP Research Institute recommended employers offer financial education. Resources that help with budgeting, debt management and the basics on credit and interest may alleviate employee stress related to student loans, ADPRI’s research director wrote in a post about the report.

The Secure 2.0 Act, which aims to address shortfalls in employee retirement savings, offers another option — employer contributions to help with student loan debt.

Last year, the IRS detailed steps employers must take when contributing student loan payment matches to employee defined contribution plans for plan years beginning in 2025.

At Abbott, for example, 401(k) eligible employees who apply a percentage of their salary toward student loans receive an annual employer contribution to their 401(k) — regardless of whether they contribute themselves, Moreland explained.

Those who participate are 19% more likely to stay with Abbott, and some 54% young adults with student loans have said such a benefit would be a key factor when considering competing job offers, Moreland pointed out.

Given the uncertainty surrounding how President Donald Trump’s administration will handle student loan debt, employer support may become even more critical.

Trump has pushed to abolish the U.S. Department of Education, which oversees the government’s student loan portfolio through its Office of Federal Student Aid.

Supporters of dismantling the Education Department suggest moving the office to the Treasury Department, where it would continue its regular duties, including managing the repayment process, ABC News reported last week.

But detractors warn the system is “messy” and no transition has ever gone well, much less in a first-time attempt to move the entire portfolio, the report noted.

Additionally, a proposal by House Republicans, the College Cost Reduction Act (H.R. 6951), would limit access to federal student loans and increase student loan payments by almost $200, according to an analysis by The Institute for College Access and Success.

On Tuesday, the 8th U.S. Circuit Court of Appeals blocked the Education Department from administering former President Joe Biden’s student debt relief plan, Savings on a Valuable Education, designed to lower monthly payments for millions of borrowers and provide loan forgiveness for some, Reuters reported.

Employers can self-correct certain retirement plan contribution errors, thanks to federal regulations published Jan. 15.

Employers may use a self-correction tool to “remedy delays in sending participant contributions, such as employee payroll deductions, and participant loan repayments to retirement plans,” according to a U.S. Department of Labor announcement.

When the change was proposed two years ago, a business-side attorney said employers would likely welcome the option to self-correct as it would streamline the process.

The correction program may allow employers and other plan officials to avoid certain civil enforcement actions and penalties under the Employee Retirement Income Security Act and the Internal Revenue Code, DOL said.

“The Employee Benefits Security Administration is pleased to provide these improvements to our Voluntary Fiduciary Correction Program so that employers and other plan officials can take advantage of streamlined tools to correct legal violations, and America’s workers get full protection for their hard-earned benefits,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez in a statement.

A federal judge has tossed out a lawsuit against Wells Fargo from a group of former employees arguing that the bank violated its fiduciary obligations by agreeing to pay steep prices for prescription drugs. It’s a victory for employers concerned they could be the next company accused of mismanaging health benefits.

The four ex-employees filed suit in July accusing Wells Fargo of allowing its pharmacy benefit manager, Express Scripts, to overcharge for drugs. In addition, Wells Fargo allowed Express Scripts to retain rebates it negotiated with drugmakers instead of passing the savings along, which could have lowered drug costs for the company and its members, according to the lawsuit.

The lawsuit argues that Wells Fargo’s actions violated the Employee Retirement Income Security Act, or ERISA, the federal law setting standards for employer-sponsored health coverage. However, Minnesota district court judge disagreed, ruling workers failed to demonstrate concrete harm and therefore lacked standing to bring the case.

The litigation against Wells Fargo is the second lawsuit accusing a large, self-funded employer of failing to bring down drug costs for their workers and acting as a poor steward of their healthcare dollars in violation of ERISA.

The first, filed against pharmaceutical giant Johnson & Johnson in February 2024, sent shockwaves through the health benefits industry as it represented a new and potentially powerful legal argument that, if successful, could force companies to take a much more active role in controlling drug costs.

However, employee plaintiffs have yet to persuade the courts. A New Jersey judge dismissed the case against J&J in January, also determining the plaintiffs lacked standing. Now, the dismissal of the Wells Fargo case throws more cold water on the possibility of other copycat suits against employers in the future.

The lawsuit against Wells Fargo claimed that the international bank mismanaged its health plan, including by paying excessive administrative fees to Express Scripts, one of the “Big Three” U.S. PBMs.

In 2022, the plan paid over $25 million in administrative fees to Express Scripts, up from $9 million in 2019 — well above fees paid by other large Express Scripts clients, and despite Express Scripts’ services remaining the same and enrollment in Wells Fargo’s plan actually decreasing over that time, according to the complaint.

Wells Fargo also allowed Express Scripts to retain savings it negotiated with drugmakers, and agreed to require employees to fill some prescriptions at Accredo, a specialty mail pharmacy owned by Express Scripts, despite Accredo’s higher prices, the complaint alleges.

As a result, Wells Fargo members paid higher costs for drugs that they could have gotten for much lower prices. In one example laid out in the complaint, Wells Fargo employees in its plan paid almost $10,000 for a 90-unit prescription for the generic multiple sclerosis drug fingolimod — even though the same prescription could be filled without insurance for about $650 to $900 at various retail pharmacies.

However, Judge Laura Provinzino agreed with Wells Fargo that the plaintiff’s alleged harm was insufficient to confer standing.

The connection between Wells Fargo’s administrative fees and what plan members had to pay for drugs is “tenuous at best,” Provinzino wrote in her order dismissing the case. In addition, examples of high costs for specific drugs are an unrepresentative subset of the thousands of drugs covered in the plans’ full formulary, she said.

And, the plaintiffs’ entitlement to their benefits was unchanged, regardless of any mismanagement on the part of Wells Fargo.

“While compelling and detailed, Plaintiffs’ allegations are simply too speculative to show concrete individual harm, too tenuous to show causation, and too conjectural to show redressability,” Provinzino wrote, though she added later that “the Court is not unsympathetic to Plaintiff’s concerns” and called their frustration with prescription drug costs “understandable.”

Wells Fargo did not take issue with the facts of the case. A spokesperson for Wells Fargo declined to comment on the case’s dismissal and whether the bank’s relationship with Express Scripts has changed since it was filed.

Provinzino dismissed the lawsuit without prejudice, meaning the plaintiffs can replead the case if they choose. The legal team for the plaintiffs did not respond to a request for comment by time of publication.

For many Grindr workers, the path to parenthood is through adoption or surrogacy, CEO George Arison told HR Dive. 

At the company, which offers a dating app for gay, bi, trans and queer people, a plurality of workers are gay men, many of whom get left out of conversations about fertility benefits, he said. 

To meet the needs of its employees, Grindr recently started offering up to $300,000 over five years to workers to cover adoption, surrogacy and fertility treatments. The benefit is available to anyone who has been with the company for 18 months and is managed through the Carrot Fertility healthcare platform. 

In an ideal world, Grindr would have been able to offer complete coverage for surrogacy through the health insurance it offers to reduce the tax burden on employees, Arison said. But that world doesn’t exist – at least not yet. 

A new law goes into effect in California, where Grindr is based, starting July 1, that expands fertility coverage, including treatment of infertility in same-sex couples and IVF treatment. 

"Notably, SB 729 applies to same-sex couples. However, the extent to which policies will be required to cover costs associated with infertility treatments for same-sex couples (e.g., the cost of a surrogate pregnancy or artificial insemination) remains to be seen,” law firm Ogletree Deakins said in a blog post. 

Arison, who has two children through surrogacy, knows firsthand the financial burden it can be. His hope is that more states follow California’s lead, which will encourage health insurers to offer the benefit more broadly. 

“That’s a step in the right direction,” he said. “But, obviously, the really expensive part of the surrogacy process is the actual surrogate compensation, and that's not done through health insurance right now at all.”

Arison hopes, too, that Grindr’s example will both lead other companies to follow suit and to show other employees what kind of benefits are possible.

“Grindr’s mission is to build the neighborhood on your phone but also to help make a world that's more equal and fair and just for our employees,” Arison said. 

Expanding fertility benefits also is part of Grindr’s retention strategy, the CEO explained. 

“We want people who are here to be here for a long time and feel very committed to the business and for them to feel like we're committed to that,” Arison said.