The Cost of Doing Nothing: Why 2025 is the Year to Rethink Your Benefits

As we continue through 2025 (hard to believe we're a month in!), it’s important to first, recognize the hidden costs of maintaining the status quo in employee benefits and second, know what to do about it.

If 2024 hit your benefits plan like a truck full of bad decisions—high premiums, poor retention, and disengaged employees flying everywhere—it’s time to slam on the brakes and rethink your approach.

The Hidden Costs of the Status Quo:

1. Skyrocketing Premiums: Employer-sponsored health insurance premiums have been on the rise and are expected to stay that way. In 2024, the average annual premium for family coverage reached $25,572, a 7% increase from the previous year. (KFF) This trend is expected to continue, with employers anticipating nearly a 6% spike in health insurance costs in 2025. (Reuters) Sticking with outdated plans, or being left in high risk pools, can lead to overpaying year after year.
2. Employee Turnover: Employee benefits, as always, will play a pivotal role in retention. A study found that a significantly high number of employees are open to looking for a new job, highlighting the importance of competitive benefits in retaining top talent. (The Access Perks Employee Benefits Blog) High turnover not only disrupts operations but also incurs significant costs in recruiting and training new employees.
3. Disengagement: Disengaged employees can be costly. Research indicates that disengaged employees contribute to $7.8 trillion in lost productivity globally each year. (Peoplebox)Ensuring your benefits align with employee needs is essential for maintaining engagement and productivity.
4. Missed Opportunities: Innovative funding models and data-driven insights can uncover significant savings and improvements. However, many employers are not fully leveraging these tools, potentially missing out on cost reductions and enhanced employee satisfaction.

Why 2025 is the Year to Act: The new year is an ideal time to evaluate past decisions and set fresh strategies.

Yes, even if you just went through enrollment, now is the time to do so. The "good, bad, ugly, and indifferent" are fresh on your mind. This means you likely have an idea of what you may want to amend.

Holding onto outdated benefit "strategies" (in quotations for a reason) might feel comfortable, but it’s a costly path forward. Companies that embrace change will see better results—in their bottom line and in their workforce.

A Forward-Looking Approach: Instead of maintaining the status quo, consider:

• Exploring funding options that can reduce cost and increase transparency.
• Tailoring benefits to meet the diverse needs of your employees.
• Leveraging technology to streamline administration and improve employee experience.

We’re Here to Help: If you’re ready to take a closer look at your 2024 benefits performance and explore opportunities for 2025, let’s connect.

A simple conversation could uncover strategies to save money, improve retention, and create a more engaged workforce.

What Do You Think?

How did your benefits perform last year? Are there areas you’d like to improve? Comment below or reach out for a consultation. Let’s make 2025 the year your benefits work harder for your business.

Sources: Kaiser Family Foundation, Reuters, AccessPerks,

People Box

BOOK A MEETING

Stephen Snyder

Client Executive

OneDigital

[email protected]