The Enterprise Edition of Sequoia’s 2025 Benefits Benchmarking Report details how companies with 500 or more employees are designing their healthcare, wellbeing, leave, and retirement programs this year.
Overall, we found that companies of this size are designing their programs with more intention and focusing on things that have the most impact. Read on to see some of the key data from the full report.
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Healthcare Benefits: Cost Containment Over Coverage Expansion
Healthcare remains a top concern for employers. But rather than expanding access and coverage, companies are prioritizing cost control and sustainability, especially in high-cost areas like specialty pharmacy and weight loss drugs.
Here’s how this looks in practice:
- Just 9% eliminated plans this year and 33% raised employee contributions.
- 73% of employers are prioritizing strategies to reduce overall healthcare costs, while only 26% are focused on affordability.
- 20% are implementing tighter clinical management practices for GLP-1 drugs, and 24% are implementing utilization management tools like step therapy and quantity limits.
Wellbeing Benefits: Stabilization and Strategic Investment
The post-pandemic surge in wellbeing programs is leveling out. With a focus on efficiency, impact, and long-term sustainability, employers are doubling down on what’s working and scaling back what’s not.
Here’s how this looks in practice:
- 70% of employers plan to maintain their current wellbeing offerings in 2025, and only 1% plan to eliminate them.
- When selecting vendors, companies are prioritizing cost (68%) and proven ROI (48%), favoring measurable impact over perceived value.
- Lifestyle spending accounts (LSAs) are growing more popular, with 29% of companies offering them in 2025 — up from 17% last year.
Leave Policies: It’s All About Simplification
When it comes to leave, employers are focused on streamlining policies, staying compliant, and mitigating risk.
Here’s how this looks in practice:
- 40% are redesigning or simplifying their current leave policies — far outpacing the 10% who are adding new policies.
- 53% of employers are focused on reducing the administrative work tied to managing leave and making their programs more efficient.
- Evolving regulations and requirements (44%) and employee feedback (43%) are the top drivers of change.
- 21% of employers plan to expand leave. And up to 14% are planning reductions
Retirement Plans: Slow, Steady Growth in Employer Support
While growth is gradual, the trend is clear — more employers are enhancing retirement support as part of a mature, future-focused benefits strategy.
Here’s how this looks in practice:
- 10% of employers increased their existing match in the past year.
- 6% plan to introduce a matching contribution in the next 12 months.
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