Entering 2025, employers are grappling with soaring healthcare costs and the need to prioritize employee health and wellbeing. The latest insights from Sequoia’s 2025 Wellbeing Trends report highlights key trends shaping wellbeing benefits this year. Here are some of the most impactful trends, according to our report.
Companies Are Addressing the Demand for GLP-1 Drugs
Condition management and chronic condition support are top of mind for employers as they strategize ways to contain healthcare costs. Currently, 26% of employers are covering GLP-1 medications, with an additional 20% planning to add coverage in the next year. This is a significant move as these medications play a vital role in treating type 2 diabetes and obesity.
Employers are beginning to turn to third-party weight management programs to contain the costs associated with GLP-1 medications and to promote holistic weight loss. These programs offer structured support and resources, helping employees achieve and maintain a healthier weight, which can lead to reduced healthcare costs in the long run.
Helping Employees Understand Their Benefits
When it comes to employee benefits, awareness and access remain key challenges. Often, employees are unaware of all their benefits or how to use them. And many employers often lack confidence in their employees’ understanding of their benefits.
Care navigation solutions significantly improve benefits utilization by helping employees understand what’s available to them, find the right providers, and make informed decisions about their healthcare. Currently, 32% of employers offer a care navigation solution, with 16% planning to explore this option within the year.
Overall, increased awareness can lead to higher utilization of benefits and greater engagement in preventive care, which can improve employee health, satisfaction, and avoid costs down the line.
Employers Turn to Family Care Solutions and LSA’s to Support Their RTO Strategy
Hybrid work models are becoming the norm, with 59% of companies adopting this approach. Interestingly, as companies grow larger, they are more likely to be hybrid or fully in-office.
To support the back-to-office transition, employers are increasingly offering family care solutions and lifestyle spending accounts (LSAs). These measures aim to alleviate some of the challenges employees face when returning to the office.
While the adoption of childcare solutions and LSAs is not yet widespread, employers who are in-office five days a week are leading the way in offering these benefits. Seventeen percent are currently offering a childcare solution, with 30% planning to explore this year. And an estimated 48% of fully in-office employers will offer LSAs in 2026.
Additionally, volunteering events and on-site health fairs are gaining popularity as strategies to foster community. These initiatives not only support employees’ wellbeing but also enhance team cohesion and morale. By creating opportunities for employees to connect and engage with one another, employers can build a stronger, more supportive workplace culture.
Mental Health Continues To Be a Priority, but Employers Are Unsure About AI
Mental health remains a critical focus, with 67% of employers investing in enhanced Employee Assistance Programs (EAPs) to prioritize mental health benefits. However, confidence in the effectiveness of these programs is moderate. Employers are continually seeking ways to improve their mental health offerings and ensure that employees have access to the support they need.
Emerging technologies like AI present new opportunities to guide employees to appropriate care levels, though 54% of employers say they are not yet ready to integrate AI into their mental health strategies.
AI can help onboard a new member onto a mental health solution and provide personalized recommendations for care. AI could be a transformative force in the coming years, offering more personalized and efficient mental health support. By leveraging AI, employers can enhance their mental health programs and better support their employees’ overall wellbeing.
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Download the full 2025 Wellbeing Trends report to see the data for yourself.
