Employers are walking a tightrope between meeting worker needs and controlling spiraling costs as the new year begins.
“Current economic conditions mean employers are under immense pressure to manage costs while remaining invested in employee wellbeing at a time when their workforce is also stressed,” said Todd Katz, head of U.S. Group Benefits at MetLife. “Our research shows how effective benefits strategies can help organizations strike a balance between financial discipline and improving outcomes for their employees.”
Less than half of the nation’s workforce is holistically healthy as employees battle rising costs and employers balance investing in benefits with broader cost-cutting measures, according to MetLife’s 2026 U.S. Employee Benefit Trends Study.
Among the key findings:
- Eighty-three percent of employees say rising living expenses and medical costs are their top stressors, and three-quarters say economic uncertainty is a major concern.
- On average, employees miss six days of work each year because of health-related issues, and half often avoid seeking medical care because of out-of-pocket costs.
- Employers cite controlling health care costs as their top benefits objective, surpassing productivity, loyalty and attracting new talent for the first time since 2022.
- Six in 10 employers have increased their investment in benefits, and 62% expanded their non-medical offerings.
- Overall workforce wellbeing has stalled. Only 44% of employees report feeling holistically healthy and engagement, while loyalty and productivity remain flat.
Despite pressure to control costs, employers recognize that investing in workforce health and wellbeing improves business outcomes. They expect an average return of $2.30 for every dollar invested in employee health. Holistically healthy employees report being 25% more productive and loyal, and taking 10% fewer sick days, which drives a significant return on investment for employers.
One way employers can promote worker health while reducing costs is by offering non-medical benefits such as dental plans, financial wellness solutions, disability insurance and leave. Nearly three-quarters of employers say non-medical benefits are the most cost-effective way to support employee wellbeing, and 83% report lower medical costs as a result of offering them.
Another strategy to reduce the risk of more serious and expensive health events in the future by improving access to preventive care. More than 8 in 10 employees say preventive care reduces their likelihood of having more serious health problems and saves them money as a result. Six in 10 also say non-medical benefits are essential to accessing preventive care.
"Through more strategic investments in employee health and benefits, beyond simply expanding the menu of options, organizations can help strengthen the resilience of their workforce in the face of persistent cost pressures," Katz said. "This ultimately empowers businesses to sustain growth, adapt to change and maintain a competitive edge in any environment."
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