The insights for the Ben Global State of Benefits Report 2025 were gained through a workplace survey conducted with more than 1200 businesses across 2024 and from analysing internal platform data from 329 employers in more than 140 countries.
According to the data, employer spending on wellbeing benefits - such as wellness apps, yoga classes, and virtual fitness - has fallen by 13% since 2022, and 10% in 2024 alone.
In contrast, spending on foundational benefits like medical and life insurance have seen increases of 105% and 115%, in 2024 respectively. On average, the employer monthly spend per employee for medical insurance last year was £278, up from £136 in 2023. Life insurance increased from an average of £73 to £158 in the same time.
Rising costs are a major factor. Premium pressures and local tax changes have driven insurance costs up by 30-70%, despite the number of companies offering it remaining fairly consistent. As a result, employers are turning away from benefits that are more challenging to prove ROI from, in favour of more tangible benefits.
Employee engagement with workplace benefits was another top priority for 63% of global companies in 2024, but the vast majority (72%) state that engagement was either ‘low’ (21%) or ‘average’ (51%).
Much of this disengagement comes from global benefit offerings being disjointed, and not effectively communicating and tracking success with employees. 37% of the surveyed companies only communicate their benefits once a year, and a huge 70% don’t have a unified benefits solution.
Additionally, the majority (62%) don’t actively track the success of their benefits offering, making it difficult to know what benefits resonate well with employees. Just under half (49%) of the surveyed companies offer benefit choices or flexibility to employees - another hurdle for benefits engagement.
Another key trend raised is that global workforce benefit offerings are becoming increasingly complex, due to differences in local work culture regulations (tax complexities, local laws), market standards, and employee expectations. The report found that less than a quarter (23%) of companies give full autonomy on benefits to local offices, and only 17% have a global benefits strategy.
Based on the research, the report outlines three employee benefit predictions for 2025:
- Implementation of AI in benefit design and delivery: AI offers a solution to many of the challenges outlined in the report, by personalising benefits offerings at scale, and ensuring relevance and appeal to diverse employee demographics.
- Legislative changes are highly likely to impact benefits budgets globally: changes in UK employer National Insurance contributions could reshape benefits priorities.
- Employee demographic shifts: aging workforces and workers having to balance eldercare and childcare needs will lead to more demand for benefits consultancy and design, a rise in interest for global minimum standards for core benefits, and a further decline of wellbeing first benefits.
Sebastian Fallert, CEO at Ben, said this on the report findings:
“This is an exciting time for benefits as companies refocus on what truly matters. In the face of economic uncertainty and tight labour markets, forward-thinking organisations are navigating the complexity of global benefits by harmonising and streamlining programmes.
Meanwhile, we’re seeing AI and data emerging as transformative tools, unlocking access to benefits knowledge and empowering reward leaders to deliver highly impactful strategies.”
Please see the full report with more information, insights from Ben’s key figures, and business recommendations here: https://www.thanksben.com/resources/guides/state-of-benefits-report-2025
Methodology:
The insights for the Ben Engagement Report were gained from analysing internal platform data from 329 employers across 140+ countries, and through a workplace survey conducted with more than 1200 businesses across 2024, with a focused analysis of 200+ organisations’ benefit trends. The data spans industries and geographies, to offer an unbiased global market view. The survey is ongoing for an up-to-date view of the benefits market. For the purpose of this report, we have isolated 2024 results.
About Ben:
Ben is a global flexible benefits platform that connects the entire benefits ecosystem to create better outcomes for employers, employees, brokers, and providers, with tens of millions in benefits spend managed for customers all around the world.
