A benefits package is one of the most important components of any job offer. And for a prospective employee on the fence of accepting a role, it can be a make-or-break issue when it comes to signing on the dotted line.
This upcoming year, companies are looking to increase their investment in the areas where employees are the most stretched, starting with famously stressed out caregivers. Around 34% of employers are increasing their spending for parenting programs and resources supporting child mental health, according to the 2025 US Benefits Trend Report from NFP, a benefits, insurance, and wealth management consulting company. Roughly 61% will invest the same amount as the previous year, while only 6% will decrease their coverage.
Employers have increasingly taken notice of the “sandwich generation," defined as a specific adult population taking care of both young children and aging parents. With an increasing number of millennials and Gen Xers belonging to this group, companies are investing in caregiving programs.
“Employers are very interested in [caregiving benefits] because they've got so many employees who are taking care of children and taking care of aging parents or ill parents,” Kim Bell, Head of Health and Benefits, at NFP, tells Fortune. “That stress causes a lot of challenges and productivity issues, but I also think it causes distraction and time away from work.”
Another possible contributor to the increased investment in childcare in 2025 is return-to-work mandates. Bell says that employers are increasingly getting asked about their caregiving benefits as more and more companies are asking workers to come back to the office. And in order to retain and recruit talent, many companies are adding more options for caregiving.
Employer benefit spending changes also show the increasing emphasis among companies on worker well-being. Around 33% of employers are planning to increase their financial support for substance abuse disorder treatment, while 57% will keep their investment the same as last year; only 10% will decrease financial support. Similarly, mental health stigma reduction training will receive increased coverage from 37% of employers, with 56% maintaining the same investment as the past year, and 7% reducing coverage.
“Since COVID, we’ve had so many [mental health] challenges,” Bell says. “I think the statistics show employers are very focused on that. They've increased their resources there.”
