The modern workforce has evolved significantly over the past decade. Employees just starting their careers have new and different priorities, while seasoned workers now expect benefits that were unavailable when they first joined the workforce. Many of these shifts can be traced back to the COVID-19 pandemic, which notably accelerated remote work and led to the widespread adoption of hybrid office and work-from-home arrangements.
From the rise of elevated benefits packages to compliance with new laws and regulations and the evolution of a hybrid workplace model, these changes offer HR leaders and PEOs the opportunity to build programs that can provide a competitive edge for new talent and boost employee retention.
Let’s examine three prevalent trends we’re seeing in 2025.
ELEVATING ANCILLARY BENEFITS TO CORE BENEFITS
In today’s competitive environment, employees have come to expect a benefits package that goes beyond traditional offerings. As such, benefits have become a leading consideration for job seekers, second only to salary. Today’s workers, whether entry-level or veteran employees, want more flexible and customizable benefits plans to better meet their unique, individual needs, including options for wellness programs, family leave policies, and retirement savings plans.
By combining traditional benefits (such as health, life, disability, dental, and retirement plans) with non-traditional ancillary options (such as paid time off, employee assistance programs, financial education, legal assistance, mental health support, pet insurance, and comprehensive wellness) and various spending account options), organizations can elevate their employee benefits offerings while improving the overall well-being of individuals.
Internal HR leaders and/or HR outsourcing partners, like PEOs, are crucial in developing and implementing these comprehensive benefits strategies, which include both traditional and ancillary offerings. Open communication about evolving expectations, combined with a deep understanding of employee needs, can empower HR leaders or outsourcing partners to provide more effective guidance to management and clients, respectively.
MANAGING CHANGING LAWS AND REQUIREMENTS
In recent years, labor laws and regulations have evolved at a rapid pace at the federal, state, and local levels. And more change is expected, which is common with new leadership in the White House and Congress. Some changes will bring new challenges for business owners who must navigate these new laws, deploy changes within their organizations, and take action to become compliant.
In 2024, several labor law changes targeted areas such as retirement plans, EEOC, independent contractor versus employee analysis, paid family and medical leave benefits, and pay transparency.
Staying updated on these fast-changing policies and integrating them into organizational practices shows a commitment to building a diverse, respectful, and fair workplace while also keeping the well-being of your employees at the forefront. PEOs can help businesses navigate the development and implementation of policies based on changing regulations by providing consultative expertise and innovative solutions.
NAVIGATING THE HYBRID WORKPLACE TRANSITION
The BLS report from the U.S. Bureau of Labor Statistics noted that “… employees’ desires to work from home exceeded employers’ plans for off-site work.”
During the COVID-19 pandemic, many businesses moved to a remote workplace model. Today, a number of businesses are considering bringing employees back to the office or moving toward a hybrid model where employees work a set number of days in the office per week. Employees are open to coming into the office, and they understand and value the benefits of an in-person work environment, which fosters relationship building, productivity, creativity, and culture. But they still appreciate the flexibility of remote work. Therefore, the trend of hybrid work (a combination of in-office and remote work) is gaining in popularity.
MOVING FORWARD
HR leaders and PEOs can play a key role in helping businesses navigate changes in laws and workplace dynamics. By understanding company values and employee needs, they can ensure that business goals align with a positive employee experience, making transitions smoother for small and mid-sized companies undergoing change.
At G&A Partners, we support businesses in navigating benefits, compliance, and workplace changes. By helping our clients design tailored benefits programs, stay informed about evolving regulations, and manage hybrid work transitions, we help them to build stronger, more supportive environments for their employees.
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