August 5, 2025
August 5, 2025
Photo by SaiKrishna Saketh Yellapragada on Unsplash
Offering benefits that address workers’ unique needs continues to be a topic of conversation. A July report from Gallagher indicated that employers were increasingly interested in providing voluntary benefits. This included quality-of-life perks such as pet insurance, accident assistance and adult day care and other caregiver support.
John Tournet, U.S. CEO of Gallagher’s benefits and HR consulting division, said at the time that reinvesting benefits savings could make employers competitive in the war for talent.
“Knowing that care encompasses all aspects of an employee’s well-being from physical to emotional and financial needs, ensuring leaders have the right data to make informed decisions, is more critical than ever,” Tournet said.
In the Aon survey, cost appeared to be a main barrier: 70% of employers said that medical inflation was the main cost driver. However, benefits leaders also said providing employee value is now one of their top objectives.
“This disconnect underscores a new challenge for global benefits leaders: meeting rising employee expectations for flexibility while managing escalating costs,” the Aon report found.
Looking ahead, 77% of survey respondents told Aon that they plan to negotiate costs with their current benefits provider, and 67% will be issuing a request for proposal from their benefits vendor.
Mercer’s July benefits report shows that employers are, in fact, making changes to their plans, but mainly shifting plan costs to employees.
About half of large employers told Mercer they’re either likely or very likely to make shifts that would raise deductibles or out-of-pocket maximums for their employees. This metric is up from 45% of employers who said the same in 2024.
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