Zarah ChoudharyEmployer spending on wellbeing benefits – such as wellness apps, yoga classes, and virtual fitness – has fallen by 13% since 2022, with a 10% drop recorded in 2024 alone, according to The Ben Global State of Benefits Report 2025.
The Ben Global State of Benefits Report 2025 analysed workplace trends through a survey of more than 1,200 businesses conducted throughout 2024 and internal platform data from 329 employers across 140 countries.
In contrast to the decline in wellbeing benefits, spending on foundational benefits like medical and life insurance has increased significantly.
Employer spending on medical insurance rose by 105% in 2024, while life insurance saw a 115% increase during the same period.
On average, monthly employer spending per employee for medical insurance reached £278 in 2024, up from £136 the previous year.
Life insurance spending grew from £73 to £158 over the same timeframe.
The report attributed these shifts to rising costs, with insurance premiums increasing by 30% to 70% due to factors like local tax changes, even as the number of companies offering such benefits remained consistent.
Employers are increasingly favouring tangible benefits like insurance, over those perceived as harder to measure in terms of return on investment.
Another key challenge highlighted in the report was employee engagement with workplace benefits.
Despite 63% of companies prioritising engagement, 72% reported it as either ‘low’ (21%) or ‘average’ (51%) in 2024.
Disengagement was linked to disjointed benefit offerings, insufficient communication, and a lack of tracking mechanisms.
The survey found that 37% of companies communicated benefits to employees only once a year, and 70% lack a unified benefits solution.
Furthermore, 62% of organisations did not actively track the success of their benefits programmes.
Fewer than half (49%) provided employees with choices or flexibility in their benefits, presenting an additional barrier to engagement.
The report also identified the growing complexity of global benefit offerings as a significant trend.
Differences in local work culture regulations, tax requirements, and employee expectations are making benefit design and delivery increasingly challenging.
Only 23% of companies granted full autonomy on benefits to local offices, and just 17% had a global benefits strategy in place.
The report concluded with three key predictions for 2025.
They were: the implementation of AI to personalise benefit offerings at scale, legislative changes reshaping global benefits budgets, and shifting employee demographics influencing demand for more tailored benefits.
Sebastian Fallert, CEO at Ben, said: “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.”
