March 3rd, 2025 – A recent report from Workplace Intelligence, Workplace Trends for 2025, highlights major shifts that business leaders should prepare for in the coming year. From expanded employee benefits to evolving hybrid work models, companies that fail to adapt may struggle with retention and compliance challenges.
Employee Benefits: What’s Now Considered “Core”
Traditionally considered perks, many benefits are now seen as essential by employees. These include telehealth services with $0 copays for medical and counseling needs, 401(k) plans, debt management programs, pet insurance, and gym membership discounts.
Offering these “core” benefits can increase job satisfaction, leading to happier and more productive employees. In some cases, providing certain benefits isn’t just a smart retention strategy—it’s a legal requirement. For example, in Colorado, businesses with five or more employees who have been operating for at least two years must offer a qualified retirement plan like a 401(k) or participate in the state-run Colorado SecureSavings program.
Given that employee preferences vary, experts recommend surveying staff to determine which benefits matter most to them.
The Rise of the “Just Right” Hybrid Work Model
The workplace landscape is also shifting away from fully remote or fully in-office models. Instead, businesses are embracing flexible hybrid options tailored to both job requirements and employee preferences. According to the report, these customized hybrid models can lead to better work-life balance, increased productivity, reduced commuting time, and improved mental health.
HR Challenges: Compliance Gaps and Legal Risks
Despite the growing importance of HR policies, the study found that 41% of small business owners manage HR themselves, while over 50% have compliance gaps. Staying updated on Fair Labor Standards Act (FLSA) regulations, as well as evolving state and local pay transparency and pay equity laws, is crucial.
Employers operating in multiple states must also navigate significant variations in anti-discrimination and anti-harassment laws. Issues such as gender identification protections and caregiver status laws differ widely, making compliance a potential legal minefield.
As 2025 approaches, businesses that proactively address these changes—by enhancing benefits, refining hybrid work policies, and closing HR compliance gaps—will be better positioned to attract and retain top talent.
