money in a gift box
Employers agree that providing a competitive benefits package is becoming increasingly expensive – but so is the cost of replacing a worker who leaves for greener pastures.
The average expense of hiring an employee, which can take up to 42 days, is $4,700, and the annual voluntary turnover cost for U.S. employers is $630 billion. As a result, employers struggle to understand how their benefit plans stack up against the competition, and they recognize it may be more cost-effective to retain existing talent with attractive benefits than to hire new employees.
“In today’s competitive market, employers are seeking to balance employees’ benefits expectations with escalating costs,” according to the 2025 Benefit Plan Trends Survey from USI. The survey of more than 10,000 organizations revealed several trends among employers.
Family leave. Forty-one percent of employers offer paid maternity leave, while 38% provide paternity leave. With more states mandating maternity leave benefits, the number of employers offering this benefit nationally is likely to grow. Offering parental leave benefits, especially in states that don't mandate maternity leave, can be a way to add value for growing families.
Financial wellbeing and educational support. Forty-six percent of companies offer tuition reimbursement, 19% provide financial wellness resources or training and 6% help with student loan repayment or refinancing. With nearly half of employees citing financial concerns as the cause of lower mental health and almost one-quarter saying financial stress affects their ability to focus and be productive at work, providing resources in these areas can help improve health outcomes while reducing absenteeism.
Population health management. Employers can improve outcomes and reduce avoidable health care costs by investing in comprehensive population health strategies to support the overall wellbeing of their members. One-quarter provide behavioral health solutions, slightly fewer offer virtual or direct primary care and 10% cover musculoskeletal care.
Prescription drugs contract. Plans that review their pharmacy contracts in detail and hold their PBMs accountable are more likely to operate at a competitive advantage. Nearly 60% of employers are reviewing their prescription drug contracts in detail and taking financial measurements to ensure that their pharmacy benefit managers are achieving the promises in their contract.
Gene therapy coverage. Seven in 10 employers offer coverage for gene therapies. Cell and gene therapy have the potential to lower long-term health care costs but come with an enormous price tag. Although use of these therapies is still relatively low, the likelihood of a member seeking these treatments is expected to increase as more therapies are approved.
Formulary options to address biosimilars. Biosimilars have the same therapeutic benefit as complex biologic drugs but with a lower price tag. Plans may reap savings of $1,000 to $4,000 per prescription fill of specialty medication when members switch to a biosimilar. By strategically placing biosimilars on formularies, the plan design can encourage their use over more expensive biologics. Seven percent of employers use a narrow formulary, while 6% have a custom formulary list.
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