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In 2025, some of the top trends businesses executives will use to keep quality workers and gain valuable team members will include a strong benefits offering, a company culture that values the growth of their employees, and the balance between home and work life. In this blog we’ll discuss some of these trends and how they can greatly impact your bottom line.
Competitive and ACA-compliant health plans have become a cornerstone for retaining employees. Employers are offering robust plans that include preventive care, mental health coverage, and flexible options to cater to diverse workforce needs. This includes comprehensive coverage for flexible teams that rely on gig-workers or 1099 contracts across a range of states. Companies like Meridio make it easy to offer benefits that cover the needs of executive employees as well as part-time staff.
According to SHRM, 88% of workers view health benefits as critical to their job satisfaction. Providing these benefits enhances employee well-being, reduces absenteeism, and boosts productivity. It can be the driving factor when employees are making their final job decisions.
Flexibility in work hours and remote work options remain key in 2025. A survey by McKinsey shows that 58% of employees cite flexibility as a top factor in staying with their employer. This can look different for each business and if you don’t currently offer flexible hours, consider discussing what this might look like for your team during your next executive meeting.
Applicable large employers (ALEs) are integrating hybrid work models and providing resources for remote productivity to meet employee expectations. Employers who adapt to this trend will see higher retention rates and increased employee satisfaction.
Employers retain talent by offering training, up-skilling, and clear growth pathways. According to LinkedIn’s Workplace Learning Report, 94% of employees say they would stay longer with companies that invest in their career development. Set monthly or quarterly touch points and evaluations with your team members. Use this time to assess how they are doing in their position according to your expectations. Then ask about their career goals and see how you can support their efforts.
Offering professional growth opportunities fosters loyalty and helps businesses develop a strong internal talent pipeline. This can look like career trainings or certifications, but it can also be as simple as YouTube tutorials, webinars, or reading a book as a team.
ALEs emphasize employee well-being through wellness programs, mental health support, and generous PTO policies. Data from Gallup reveals that workplaces focusing on well-being see a 23% improvement in employee retention rates compared to those that do not.
Employees value companies that support their mental and physical health, leading to increased loyalty and productivity. Many companies are implementing new time-off policies with no limits as long as team members do not abuse the policy.
Being clear on expectations around working hours is crucial. Employees have lives outside of work, and offering a flexible schedule can mean the difference between retention and turnover. Employers who accommodate home commitments and unexpected life events will create an environment that fosters loyalty and job satisfaction.
Your workplace environment and company culture serve as the cornerstone of your business for employee retention. Seeing familiar faces, confident in their roles and ready to support one another, will create strong teams.
High turnover can lead to job insecurity, decreased morale, and a decrease in productivity resulting in a rise in errors. Strengthening your employee brand through company swag, team lunches, development outings, or company parties fosters a sense of belonging and loyalty.
Furthermore, rewarding employees and calling out their great efforts, team wins, or customer feedback can also help build an environment that promotes success and reassures company dedication. Combining these efforts will ensure a motivated workforce.
Compensation extends beyond salary—businesses that offer bonuses and lifestyle perks gain a competitive advantage. Examples include health savings or flexible spending accounts, wellness programs that reward healthy lifestyle choices, and professional development support. Providing these benefits signals to employees that their well-being and financial security are valued.
Remember, SHRM states the average cost to replace an employee is around $4,700 or 20% of their annual salary. In a world of work where the internet of things are shifting daily, building a workforce that is valued will save on expenses in the long run, creating a desirable brand culture within your organization.
The importance of health benefits, flexibility, career development, and workplace culture in retaining valuable employees cannot be overstated. As small businesses navigate the evolving job market, offering competitive benefits will be key to standing out. Business owners who prioritize their employees' well-being will build stronger teams and achieve long-term success.
If you’re a small business owner exploring everyday healthcare options for your team, Meridio might be a great fit. Meridio is a leading provider of health benefits for businesses of all sizes, offering ACA-compliant plans to avoid tax penalties, no group minimums, $0 deductibles, and standard nationwide rates. Schedule a call with one of our experts today to learn how Meridio can help improve employee retention while saving on costs.
