t’s 2025, and the workforce has made one thing clear: They want more than just a paycheck.
As a small business owner or HR lead, you’re under pressure to stay competitive in attracting and retaining great talent—without overextending your budget. But how do you choose the right benefits in an environment where employee needs are shifting faster than ever?
Let’s break down what employees actually want this year, what trends are shaping those preferences, and how small businesses can offer cost-effective plans that stand out.
The employee mindset has changed—again.
And with inflation still pinching family budgets, employees are evaluating benefits with a sharper eye than ever. Offering the wrong package can lead to costly turnover—or worse, disengaged employees who stay for the paycheck but quietly check out.
Still #1—by a long shot. Employees want health insurance that:
What’s trending:
Even in frontline and in-person roles, flexibility is huge. Employees are looking for:
Why it matters: Flexibility is linked to increased job satisfaction, improved retention, and better performance—especially among working parents and caregivers.
This category has grown significantly post-COVID. Employees aren’t just thinking about today’s paycheck—they’re looking for long-term security.
Popular financial benefits in 2025 include:
And yes, even small businesses can offer most of these affordably through voluntary benefit providers.
Mental health benefits have moved from “nice to have” to “essential.”
Today’s employees expect:
Bonus: A generous, clearly communicated PTO plan is one of the most valued and least expensive ways to improve loyalty.
Not every employee wants the same thing—and they don’t expect their employer to foot the bill for everything.
What they do want is choice. Popular voluntary add-ons in 2025 include:
The best part? These are usually 100% employee-paid, offered at discounted rates, and cost your business next to nothing.
Employees want benefits that match their lifestyle and stage of life. A one-size-fits-all approach is becoming a deal-breaker.
What to do: Offer core benefits, then layer in voluntary options so employees can build the package that works for them.
Complicated plan documents and HR portals lead to confusion and low engagement.
What to do: Provide one-pagers, benefit summaries, and live Q&A sessions. Communicate early and often—especially during onboarding and open enrollment.
Business owners and CFOs (like Otis and Fiona) are under pressure to reduce turnover and increase retention without ballooning benefit costs.
What to do: Work with a partner like Cadence to help you evaluate your current spend, benchmark your benefits, and find ways to improve perceived value without adding cost.
The best benefits in 2025 are not always the flashiest—they’re the ones your employees actually value and use.
Small businesses have a real opportunity to shine here. While you may not have a Fortune 500 budget, you can offer a thoughtful, relevant benefits package that makes your people feel supported—and more likely to stay.
Schedule a call with Cadence and we’ll help you build a plan that keeps your business and your people thriving.
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