It’s often said the only constant is change — and 2025 is shaping up to be a banner year for just that. With unexpected crises, concerns about inflation, geopolitical volatility abroad and a new political and legislative landscape at home, employees face some big unknowns. And for many, that can be daunting.
In fact, in the 2024 ARAG Workforce Study, we surveyed 2,400 employees across multiple industries about “what kept them up at night” and found that “future uncertainties” was a top concern, second only to “financial stability.” Here are just a few of the pressure points weighing on employees:
- While inflation has cooled somewhat, rent prices are forecasted to rise in 2025 and 2026, interest rates keep ticking up and housing prices are expected to increase, albeit more slowly, offering limited financial relief in the near term.
- With budgets already feeling the pinch, employees and their employers continue to face higher health benefit costs, which rose by 4.5% in 2024, with an increase of 5.8% per employee predicted for this year. Some of that falls to the employee in terms of higher premiums, deductibles or co-pays, for example. While the Trump administration considers reining in health care costs a priority, it’s not yet clear how change will be effected.
- Speaking of a new administration, new executive orders and policies are being introduced at a fast and furious pace — with the potential to significantly and suddenly change people’s day-to-day lives. This leaves little time for employers to assess the impact on their workforce.
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Addressing the collective impact of these top-of-mind issues, along with managing everyday work-life challenges, can be substantial and time consuming. Benefits advisors and HR departments face the challenging task of monitoring regulatory changes and managing growing benefit costs (like health care) while still providing employees with robust benefits that help them effectively attract and retain their workforce. Oh, and there’s that whole “constant change” thing to try to get a handle on. Admittedly, it’s a tough juggling act.
Help employees deal with uncertainty
As we face today’s dynamic and sometimes tumultuous circumstances, HR decision makers like me are looking to trusted benefits advisors to identify and recommend benefits that will help our employees navigate through life’s increasing uncertainty and volatility. Whether it’s assessing current benefits or doing scenario planning in anticipation of potential change, here are five considerations for helping employees deal with the “big unknowns.
1. Look for synergy amongst benefit offerings.
Consider which benefits have natural synergies and provide the most versatile coverage, as well as making things simpler for those of us in HR. For example, this could be supplementing an existing health care plan with emergency travel assistance that provides medical and other vital services while away from home — a combination adds flexibility and resources for employees, thereby reducing their risks and worries. Another option is the potential advantages of offering identity theft protection alongside legal services to offer comprehensive and complimentary support for employees facing the increasing frequency of identity theft issues and data breaches.
2. Get employees’ financial wellness back on track.
While a priority for all employees, the specific financial pain points vary with life stage, from repaying student loans to saving for retirement, to getting a first apartment or raising a family. Although showing some improvement, debt remains high, savings low. Programs that support employees short- and long-term financial goals along with solid grounding in good fiscal practices remain critical.
3. Enrich caregiver benefits.
More employees are feeling the day-to-day push and pull of being a caregiver for a loved one while still trying to do their jobs. The result is a workforce that is increasingly distracted, exhausted and overwhelmed. This could range from the long-term employee who needs caregiving assistance for an elderly parent to a working parent who could benefit from a lifestyle spending account for childcare. And many times, an employee turns into a caregiver with little notice, whether it’s their parent who needs immediate medical help or a sick child at day care.
Make sure they have the tools and resources to help them care for their loved one, as well as themselves. These solutions could range from childcare referrals and backup care to legal plans that include caregiving benefits such as elder care referral services and access to legal counsel and documentation.
4. Safeguard health and wellbeing.
Health care continues to be the #1 benefit offered by employers. While costs continue to rise, many employers enhanced key benefits to support employees and their families in 2024, albeit still pursuing cost management strategies. Also, industry analysts say potential administrative changes may have impacts across ACA, Medicare, Medicaid, prescription drugs/PBMs as well as women’s reproductive health benefits. These changes may also have cost and legal implications.
And as employees deal with life’s uncertainties that hamper their physical and mental wellbeing, it’s important for them to feel understood and supported. That’s why almost half of today’s employers are pledging to take action to reduce the stigma of seeking behavioral care — and about two-thirds of them have added or enhanced their support for and promotion of mental health. Ask your clients how they’ve created a work culture where it’s “OK to say you’re not OK.”
5. Prepare for the unexpected.
Times of change can create new risks. A wide range of benefits can help insulate employees from future risk. These include: short- and long-term disability, estate planning services and legal insurance to help protect employees, their families and their assets. As their lives change, a legal plan offers employees the flexibility and resources to help them deal with a wide range of issues.
The bottom line is that employees are asking for inclusive, meaningful, and most of all, flexible benefits that are going to address their unique situations, lessen the uncertainty in their lives and give them a trusted place to turn for support. In return, employers can sustain a workplace that’s more responsive, engaged and productive.
Lisa Wolf is Director of People & Culture at ARAG Legal Insurance. With 20+ years of HR experience, Lisa oversees talent acquisition, organizational design and effectiveness, performance management, employee relations, compensation and benefits, succession management and team member learning and development. Lisa is fiercely dedicated to creating and protecting cultures where team members and organizations thrive.
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