With five generations in today’s workforce — and younger generations (Gen Z and millennials) making up slightly more than half of all U.S. workers — employees are increasingly relying on benefits that address their financial, physical, and mental wellbeing. To that end, more than half of employers (including two-thirds of large employers) say they expect to offer more benefits over the next five years.
That’s one big takeaway from the latest LIMRA and EY “2025 Harnessing Growth in Workforce Benefits” study. Published annually since 2021, the study offers a forward-looking perspective to help employers and workplace benefits providers address the needs of the current and future workforce. Similar to prior years, the 2025 study finds that many key factors driving the market remain.
Workplace benefits continue to be central in the war for talent, for example, while digital transformation continues unabated, and profitable and sustainable growth is the end game.
AI will drive improvements
The discussion now includes the use of artificial intelligence to improve the benefits process, according to LIMRA-EY researchers, who conducted qualitative interviews of brokerage leaders and found that a majority of them believe AI will be a primary driver of disruption in four specific areas:
1. Enrollment: AI will allow increased personalization of benefit offerings and education to help workers understand and choose the benefits best suited for them.
2. Underwriting: New data sources, like biometrics, will enable greater predictive analytics and offer more precise and faster underwriting.
3. Claims: Using AI will support an increase in automating claims with improved data-based decision-making capabilities.
4. Service: Although brokers caution that workers will want the option to speak to a human in certain circumstances, AI chatbots and other AI tools can address many service tasks — improving productivity across the enterprise.
Related: Crafting a total rewards strategy for the multi-generational workforce
Absence and leave management
The paid leave landscape is shifting rapidly, too, researchers say. As of 2025, 13 states and the District of Columbia have established mandatory paid family leave programs. An additional 10 states have voluntary insurance programs that provide paid family leave through private insurance. Add in vacation/annual leave, sick leave, short- and long-term disability, bereavement leave, and leave for jury duty or military service, and the complexities of managing leave have increased substantially for employers.
The new study shows 92% of workers across generations are interested in paid family or medical leave, with a majority (54%) saying it is a priority. Along with medical, dental, and vision, paid leave now is considered a “core four” benefit, which is driving greater need for leave management services. The study shows most employers either already offer or plan to offer a wide array of leave benefits to their workers.
To do that, employers are increasingly choosing to outsource leave management by seeking platforms and support that can help them manage the expanding leave benefits that address increasingly complex regulations, compliance challenges, process inefficiencies, and tools to avoid absence and leave mismanagement. Researchers suggest carriers have an opportunity to expand their services, as long as they also ensure their offerings and operations can deliver an integrated, frictionless experience.
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