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, MetLife's 2026 U.S. Employee Benefit Trends Study found.
"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."
The study results underscore the challenge of sustaining workforce wellbeing and engagement in an environment in which both workers and employers are financially strained:
- 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 6.1 days of work annually 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 No. 1 benefits objective, surpassing productivity, loyalty and attracting new talent for the first time since 2022.
- Six in 10 employers increased their investment in benefits, and 62% expanded their non-medical offerings.
- Overall workforce wellbeing has stalled, with just 44% of employees reporting feeling holistic healthy. Engagement, loyalty and productivity remain flat.
For every $1 invested in employee health, employers expect an average of $2.30 return through gains in productivity, retention and lower medical spending. Holistically healthy employees also report being 25% more productive and loyal, and taking 10% fewer sick days.
Non-medical benefits, such as dental, financial wellness, disability insurance and leave support, are considered particularly effective for lifting employee health while reducing costs. 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.
"Employers need to strategically tailor benefit offerings to the specific needs of the workforce that provide meaningful support," the study report said. "Non-medical benefits such as legal services, accident and health insurance can play a critical role by supplementing medical plans and supporting employees across all ages and life stages."
Improving access to preventive care can help employees reduce the risk of more serious and expensive health events in the future. Eighty-four percent of employees say preventive care reduces their likelihood of having more serious health problems, and 8 in 10 say it saves them money as a result.
"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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