Three key data insights
01.
Cost reduction is the top factor influencing benefits decisions, overtaking talent attraction and retention.
"Reducing costs" has now become the top factor for employers when making benefits plan decisions, ranked #1 by 38% of employers. In our Q1 Market Update, we predicted that cost reduction would surpass talent considerations this year, reflecting 2025’s high-cost environment.
02.
Only 2% of surveyed employers would consider making plan changes despite employee disruption.
Although 84% of employers cited an increase in cost as their biggest challenge regarding employee benefits, plan sponsors remain wary of changes that could disrupt their workforce.
03.
HR leaders are shifting toward a long-term view to navigate the evolving workplace.
42% of surveyed HR leaders selected leadership development and coaching as a top priority, highlighting HR’s growing role in guiding long-term, strategic change. This reflects a stronger alignment between HR and overall business goals, as HR takes on a more influential role in shaping and implementing organizational strategy.
Q2 2025 summary
With benefit plan costs continuing to rise — as seen in our Q1 Market Update data — plan sponsors are under growing pressure to make plan changes. Despite mounting pressure, the 2025 Lockton National Benefits Survey found that plan sponsors have been hesitant to make strategic cost-saving changes.
Rather than viewing member disruption as only a risk when making plan changes, Lockton sees an opportunity for plan sponsors to take a longer-term view, one where health plans are a lever for improving care and implementing positive change that can guide employees to better options and drive sustainable savings.
- Employers are recognizing the need to reduce costs, yet few are implementing progressive benefits' cost-saving tactics.
- At the same time, HR leaders are focusing on long-term priorities, addressing emerging skills gaps, leadership development, and generational expectations.
- Meanwhile, the shifting political landscape requires careful consideration of how policy changes may impact employees and benefits strategies.
