Employers Embrace Holistic Wellbeing Strategies for Employee Growth Amid Uncertain Times

Employers Shifting Towards Holistic Wellbeing Strategies



In recent times marked by macroeconomic uncertainties and escalating living costs, employers are realizing the importance of prioritizing comprehensive wellbeing strategies for their workforce. According to the 2025 U.S. Benefits Benchmarks Report from Gallagher, a significant trend is emerging as organizations adopt holistic approaches catering to various aspects of employee health, including physical, emotional, career, and financial wellbeing.

The Importance of Employee Holistic Care


As John Tournet, the U.S. CEO of Gallagher's Benefits and HR Consulting Division, articulates, we are at a crucial juncture where organizational leaders hold the opportunity to transform the employee care experience dramatically. To attract and retain top talent, employers must reinvest benefits savings in ways that resonate with employees' genuine needs. It is imperative to realize that true care spans the entirety of an employee's wellbeing, demanding informed decisions based on accurate data.

The Gallagher report, derived from their 2025 U.S. Benefits Strategy Benchmarking Survey, collated insights from over 4,000 organizations. This atypical study aims to guide employers in optimizing their wellbeing initiatives while proficiently manag499ing healthcare costs.

Key Insights from the Survey


Rising Costs Prompt Design Changes


Access to affordable, high-quality healthcare is crucial for fostering a motivated and productive workforce. However, many employers are grappling with the skyrocketing costs associated with medical services and specialty medications. In response, 31% of employers have improved their medical benefits to enhance recruitment and retention initiatives, although only 12% have directed their focus towards refining pharmacy benefits.

Employers are exploring modifications to medical (31%) and prescription drug (26%) plan designs to effectively manage costs. Strategies such as transitioning to different plan carriers (29%) and executing eligibility (16%) or claims audits (16%) are also viable options, albeit less frequently utilized. Additionally, an increasing number of employers (32%) are outsourcing pharmacy benefits to specialized pharmacy benefit managers, marking a 13% increase from the previous year.

Specialty Coverages Address Diverse Employee Needs


Tailoring employee benefits through specialized coverages can significantly enhance benefits packages to cater to the varying needs of employees and their families. A notable 59% of employers now provide coverage for hearing aids, while 54% offer therapy for children with autism spectrum disorder, with other autism treatments covered by 44% of organizations. Furthermore, 45% of employers also offer coverage for bariatric surgeries.

Recognizing the profound effects of family planning on employees' emotional and physical well-being, many organizations are incorporating reproductive health benefits, with 48% offering infertility services and treatments. Notably, there has been a slight uptick from 2024 in the provision of fertility medications (84%), in vitro fertilization procedures (71%), and intrauterine insemination (54%).

Voluntary Benefits as a Safety Net


Two-thirds of employers (67%) acknowledge the critical role of voluntary benefits in constructing a robust financial wellbeing strategy. These added benefits can significantly mitigate potential financial burdens employees face during emergencies. Financially-oriented programs, like identity theft protection (39%) and legal plans (38%), assist employees in managing risks associated with financial exposure, alleviating stress and enhancing productivity in the workplace. Permanent life insurance options, including whole, term, and universal policies, provide additional financial security, offering long-term care benefits that support home healthcare and assisted living during the later stages of life.

"By committing to well-rounded wellbeing strategies, employers not only address the diverse needs of their employees but also lay out a pathway for organizational prosperity," Tournet concludes. "Investing in our people translates to investing in our future."

About the Gallagher Report


The 2025 U.S. Benefits Benchmarks Report is part of Gallagher's Workforce Trends Report series, highlighting critical survey findings on medical, pharmacy, and voluntary benefits while also examining wellbeing strategies. This series serves to equip employers with the data necessary to develop and refine people-centric strategies, fostering an environment where employees, families, organizations, and communities can thrive. The data used in the current report were gathered between January and March of 2025, with responses drawn from 4,035 organizations nationwide.

About Gallagher


Arthur J. Gallagher & Co. (NYSE: AJG) is a global insurance brokerage, risk management, and consulting services firm headquartered in Rolling Meadows, Illinois. Operating in around 130 countries, Gallagher delivers these services in collaboration with a network of correspondent brokers and consultants.

Topics People & Culture)

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