WTW’s 2025 Benefits Trends Survey: Key Insights for Brokers

Quick look: The WTW 2025 Benefits Trends Survey reveals that benefits strategy is no longer about offering more, it’s about offering what matters the most to employers and employees alike. Here are the top four takeaways from the research, as well as how brokers can partner with a professional employer organization (PEO) to help small and midsized businesses (SMBs) navigate today’s cost pressures while delivering plans that resonate with their workforce.

WTW’s 2025 Benefits Trends Survey identified how employers’ benefits strategies are shifting this year by surveying over 5,500 organizations worldwide, representing more than 24 million employees. The findings point to a common theme: businesses want to offer top-tier plans to their staff, but economic changes are forcing them to do more with less.

From reallocating benefit spend to expanding reporting methods, here’s what’s shaping benefit strategies this year, and how brokers can work with a professional employer organization (PEO) like ExtensisHR to solve these challenges.

Coping with rising benefit costs

Per WTW’s report, healthcare costs are projected to rise 35% globally from 2022 to 2025, outpacing general inflation. This steep climb is affecting how companies approach their benefits strategy:

• 58% of employers say rising benefit costs are their top concern, a significant increase from previous years
• Two years ago, just 14% of businesses said that budgetary financial pressure was a key business issue; that figure has grown to 29%
• To manage cost increases, 63% of employers are renegotiating terms or switching to better-value vendors for health, retirement, and risk benefits

Additionally, more than half of employers plan to reallocate or rebalance their benefit spend over the next three years. This recalibration involves reducing or removing some benefits in order to add or enhance others. To do so, business leaders must carefully consider which plans employees prioritize and which provide the most value to the company.

Broker takeaway: Partnering with a PEO can give your SMB clients access to large-group buying power, potentially receiving better rates on health, dental, vision, and more. This means you can help them shift from high-cost, low-impact benefits to programs that offer measurable return on investment (ROI).

Expanding the value of benefits

Employees want their companies to support their well-being and have values that align with their own. WTW data shows that employers understand those expectations and are planning to meet them to better attract and retain top talent:

• Approximately 40% of businesses currently design their benefit programs to be employee-focused, and this figure is slated to reach almost 50% in three years
• Over the next three years, 41% of employers are expected to actively use their benefits to demonstrate their purpose and values to staff and stakeholders, up from roughly 30% currently

Broker takeaway: A PEO like ExtensisHR helps clients customize their benefits packages to reflect their core values and appeal to candidates and current employees. Plus, our complimentary recruiting services ensure clients clearly communicate their total rewards to potential hires.

Meeting employees where they are

Today’s workforce increasingly expects choice and flexibility in their benefits. As such, by 2028, over 75% of employers plan to offer more customizable benefits packages.

How businesses plan to tailor their plans is reflected in three key areas. Per the WTW survey, mental health (55%), health benefits (47%), and financial well-being (33%) are among employers’ top benefit priorities. This makes sense considering the continued rise in cost of living, and that around half of younger workers display signs of anxiety and depression.

Tailoring plans with employee needs in mind is a win-win. By designing benefits packages to address staff pain points, clients can encourage improved engagement and performance.

Broker takeaway: PEOs empower SMBs to cater to diverse preferences by offering Fortune 500-level plans at affordable rates, including comprehensive health insurance, various voluntary benefits, flexible spending options, financial wellness programs, and more. Many PEOs also proactively send benefit communications throughout the year to help worksite employees get the most value from their plans.

Making data-driven decisions

To better understand workforce preferences and fine-tune their benefit strategies, many organizations are moving toward enhanced reporting, cost forecasting, and risk analytics.

For instance, the WTW survey found that while 40% of businesses now rely on basic reporting, in three years, 29% will adopt enhanced methods, including employee pulse surveys, online dashboards highlighting benefit usages, etc.

Broker takeaway: ExtensisHR’s Work Anywhere® platform helps SMBs to make informed, proactive benefit decisions with custom reporting, executive dashboards, and more. And our partnership with 15Five, a leading employee engagement tool, makes it easy and affordable for clients to administer staff surveys.

ExtensisHR: a powerful partner in helping SMBs adapt and grow

The modern employee benefits landscape demands agility. SMBs that don’t pivot their strategies risk falling behind in talent attraction and retention, and in controlling costs.

By connecting clients with the right PEO partner, brokers can help them rebalance benefits to focus on high-impact areas, provide more choice and flexibility to workers, and strengthen their total rewards without overspending.

And while PEOs are known for helping SMBs access expanded employee benefits, not every PEO is the same. ExtensisHR stands out to brokers and clients alike with:

• Exceptional customer support from the start: During onboarding, every client is paired with a dedicated Implementation Manager. Next, they receive dedicated HR Managers and Payroll Specialists, plus rapid assistance from our Employee Solution Center, which responds to worksite employee questions within seconds.
• Tailored, competitive benefit offerings: From mental wellness plans to student loan repayment programs, we give SMBs the ability to customize their benefits packages as needed.
• Broker-focused approach: We focus on helping you grow your book of business and earn competitive commissions, never on competing with you.

Looking to offer clients bigger benefits without bigger costs? Partner with ExtensisHR to learn more about our group buying power, HR solutions, and competitive commissions. Let’s talk.