Employee demand for family support continues to grow. Gen Z is entering its childbearing years and starting to experience the “sandwich generation” squeeze, amplifying the need for benefits that support better work-life integration. More than any generation before, Gen Z is likely to push employers to support them in building and caring for a family — in whatever shape that takes. Here’s a glimpse of some family-friendly benefits trendspotters are noting for 2025.
Benefits for caregivers
A recent Harvard Business School study found 73% of people surveyed in the U.S. have some type of caregiving responsibility. As employers better understand the impact of caregiving on productivity and employee engagement, the issue has taken on increased importance.
In 2025, we’ll likely see more:
Customizable childcare
There’s no one-size-fits all for childcare, so look for benefits such as contributions to lifestyle spending accounts, back-up childcare services, overnight and weekend childcare stipends, access to childcare center discounts, and flexible work schedules.
Support for the ‘hidden middle’
Employer-sponsored childcare benefits tend to focus on preschoolers. But parents of school-aged children still face a childcare conundrum — before and after school and during school closures. Look for employers to sponsor camps, after-school care, and more back-up care. Newer support also includes tutoring services that help address pandemic-related academic losses.
Elder care
About a quarter of U.S. adults are part of the sandwich generation — those caring for children and aging parents. This figure is likely to increase. According to Mercer, in 2025, 34% of employers will offer elder care referrals/consultations, 20% will offer back-up elder care services, and 16% will offer care coordination services for benefits and Medicare. We’ll also see services offering end-to-end navigation support from birth to bereavement.
Pet care
Fewer Millennials have or are having children, but they’re three times more likely to have a pet. Watch for employers to go beyond pet insurance with “pet parent” services such as dog-walking, pet-sitting, overnight boarding, days off for welcoming a new pet, and more.
Expanded reproductive benefits
A Fidelity survey pointed to family-forming and reproductive support as one of the greatest areas of benefits expansion. Here are some notable reproductive benefit trends we’re seeing:
Male fertility
Thirty-five percent of employers in a Mercer survey will offer men’s fertility testing in 2025; 20% will offer sperm freezing. Male fertility benefits that don’t require a diagnosis of infertility better support LGBTQ+ employees seeking to start a family.
Doula coverage
Doulas are experts who support mothers throughout pregnancy, labor and delivery, and postpartum. They’re particularly important now, as an estimated 5.6 million U.S. women live in areas with little or no access to maternity care. Last year, Walmart offered up to $1,000 to employees nationwide for doula services during pregnancy. Of employers with more than 5,000 employees,13% now provide coverage or a financial subsidy for a doula, and 23% are considering adding doula coverage in 2025, according to Mercer.
Midwife coverage
Like doulas, midwives can help improve health outcomes for pregnant women. Midwife care is not uniformly covered by health insurance plans. But at employers with more than 5,000 employees, Mercer found 43% cover midwives, and in 2025 12% are considering adding midwife coverage or other support.
Providing benefits to support the diverse needs of today’s families gives you a unique opportunity to demonstrate your commitment to employee well-being. But even the best benefits can’t create impact if employees don’t know about them or understand their value.
The O’Keefe Group can help you develop a strategic communication plan that drives awareness, appreciation, and engagement with your family-focused benefits.
Stay tuned for Part 2 of our 2025 Benefits Trends coming soon!
