Top Employee Benefits Enhancements for Small Businesses in 2025

At a glance

• The main takeaway: To remain competitive in 2025, small businesses should review their employee benefits and identify areas for improvement.
• Impact on your business: By focusing on flexibility, wellness, financial security, and career growth, business owners can create a workplace where employees feel valued, supported, and motivated to stay.
• Next steps: Meet with an employee benefits consultant and get an independent opinion on how you can change your benefits package for the better.

The full story:

As we wrap up the first quarter of 2025, small business owners face an increasingly competitive market when it comes to attracting and retaining top talent. To differentiate themselves and stand out from the crowd, many business owners, executives, and leaders are focused on boosting their employee benefits packages to keep the most capable talent.

By identifying gaps in your employee benefits and taking steps to fill them, you can significantly boost employee satisfaction, productivity, and loyalty to your business. Whether you’re looking to refine your current package or introduce new perks, here are some of the top benefits enhancements and ideas to consider this year.

1. More flexible work options

According to a new study by the Arbinger Institute, efficiency and productivity scores are notably higher at companies that offer programs specifically designed to improve their employees’ work-life balance. In 2025, work-life balance will remain a top priority for employees — and to capitalize on this, employers should re-evaluate their flexible work policies and even their work schedules.

If your business cannot accommodate remote work arrangements for all employees, you should still offer hybrid and work-from-home flexibility, when possible, to boost morale. In addition, seek out creative, innovative flex-work strategies that allow employees to improve productivity and job satisfaction without sacrificing output.

2. Identify gaps in your health and wellness benefits package

Healthcare remains a top concern for employees, so it doesn’t hurt to give your health and wellness benefits package a second look. Your business can further enhance its offerings to meet employees’ evolving needs by:

• Expanding telehealth and mental health services: Virtual healthcare options, therapy stipends, and mental wellness programs show employees that you not only care about their well-being but are there to support them both inside and outside the office.
• Customizable health plans: By offering multiple coverage tiers or health savings accounts (HSAs) in your benefits package, you can empower employees to self-select the plans that fit their unique needs.
• Wellness stipends: To underscore your commitment to your employees’ work-life balance and holistic health, consider providing reimbursements for gym memberships, fitness classes, or mindfulness apps in 2025.

3. Consider more financial wellness and retirement perks

One of the best ways to improve employee retention is to provide a competitive retirement plan. Aside from helping employees save for life post-work, many companies have moved toward offering financial wellness and education to their teams, empowering them with the knowledge they need to secure their short- and long-term financial picture. Your business may consider implementing:

• 401(k) matching and student loan repayment: Making even a small contribution to your employees’ retirement plans or student debt relief will further cement their loyalty to you and your business.
• Emergency savings programs: Consider helping your employees set up emergency funds to provide additional financial stability and reduce workplace stress.
• Profit-sharing or equity options: If you are a small or startup business, consider providing your ground-floor employees a stake in the company’s success to further encourage their commitment.

4. Introduce more family-friendly benefits

As more baby boomers leave the workforce for retirement, millennials and Gen Zers are coming up through the ranks; many employees in this cohort are in the thick of parenthood. To better support your employees through this critical life stage, you can enhance family-focused benefits, including:

• Expanded parental leave: Be sure that your paid maternity, paternity, and adoption leave plans are benchmarked to industry standards and stand out from your competition.
• Childcare assistance: Consider providing stipends for daycare, access to backup childcare, or partnerships with childcare providers to ease your employees’ financial burdens.
• Flexible paid time off (PTO): Create a more positive, supportive, and low-stress work environment by allowing employees to use their PTO time more freely (including for caregiving needs).

5. Add professional growth and lifestyle perks

Today’s employees value employers that actively provide opportunities for learning and career advancement, such as:

• Tuition reimbursement and upskilling programs: Investing in your employees’ education and skill-building goals increases retention and business growth.
• Personalized career development plans: One of the most effective strategies for improving retention is through internal leadership development. Consider providing your employees with one-on-one mentorship programs and leadership training to motivate them to build their careers with your company.
• Lifestyle perks: These may include commuter benefits for in-office employees, subscription discounts, and food stipends during busy seasons.

The bottom line

As a small business, you may be pressed for both time and money — but you don’t need a massive budget to offer meaningful benefits to your employees. By focusing on flexibility, wellness, financial security, and career growth, you can create a workplace where employees feel valued and supported. Investing in your team’s well-being isn’t just good for them — it’s good for business.

Looking to enhance your employee benefits strategy in 2025? Schedule a consultation with Aprio today.

Related Resources

8 Tips to Choose the Right PEO for Your Benefits Program

The Long-Term ROI of Investing in Employee Mental Health

Managing Human Capital Risks: How to Help Your Organization Thrive