What the 2025 Benefits Survey Tells Us — And What to Do About It

If you're an HR professional, your to-do list probably never gets shorter. You're managing people, policies, and questions — often all at once. Benefits are supposed to make your job easier, not harder.

Every year, one of Canada's largest benefits surveys gives us a window into how plan members and plan sponsors are really doing. This year's results are worth paying attention to because they point to where the biggest opportunities are.

·         Your employees are struggling more than your claims experience shows

·         Your plan may be better than your team thinks it is

·         Costs are rising, but cutting benefits may not be the answer

·         Mental health and wellness benefits are now core – not add-ons

As an employer, start by reviewing your plan in the context of your current utilization. Next, communicate your plan in bite-sized, plain language. Finally, collaborate with us. Our job is to help you find efficiencies and ensure that your plan is meeting your team’s needs.

Read on for more on what stood out in this year’s benefits survey and what it means for you.

Your Employees Are Struggling More Than Your Claims Experience Shows

On the surface, things look fine. Nearly 9 in 10 plan members rate their overall health as good, very good, or excellent. But look a little closer and a different picture emerges.

Only 31% of plan members say their mental health is excellent or very good. One in five reports poor mental health — up from last year. And stress levels have reached a multi-year high, with nearly 40% of employees experiencing high to extreme daily stress.

Financial health is adding fuel to the fire. One in four plan members reports poor financial health. Financial stress is directly linked to poorer mental health outcomes.

Chronic illness is also more common than many employers realize. Nearly 60% of plan members live with at least one chronic condition. Chronic pain — when diagnosed and undiagnosed cases are combined — affects close to 40%. Mental health conditions are now the most frequently reported chronic illness.

Meanwhile, 44% of plan members feel overdue to see a family doctor, even among those who have one.

What this means for you: Employees who aren't submitting claims may still be struggling. Stress, undiagnosed conditions, and deferred care don't show up on a utilization report — but they do show up in productivity, absenteeism, and turnover. Understanding the full picture of your employees' health helps you build a plan that supports them.

Your Plan May Be Better Than Your Team Thinks It is

Plan sponsors consistently rate their benefits plans higher than plan members do. This year, 84% of sponsors rated their plan as excellent or good — compared to 71% of members.

Only 56% of plan members feel their plan meets their needs. That number hasn't changed in a decade, even though benefits offerings have expanded significantly over that same period.

The gap isn't just about coverage. It's about understanding. Only 53% of plan members say they understand their plan extremely or very well. Employees who understand their plan report better health outcomes.

When asked whether they'd prefer their benefits or $5,000 in cash, 57% chose benefits. But offer $10,000 in cash? 60% would take the money — particularly younger employees.

What this means for you: You may be investing more in your plan than your employees realize. That's not a benefits problem — it's a communication problem. When employees understand what they have, they use it. When they use it, they're healthier. And when they're healthier, your plan delivers the return on investment it's designed to.

Costs Are Rising, But Cutting May Not be the Answer

Sixty-four percent of plan sponsors reported increased benefits costs this year. The main drivers are familiar: inflation, rising drug costs, and the long-term impact of chronic disease. Plan sponsors estimate that 41% of their total benefits costs are tied to chronic conditions alone.

Utilization is high. More than half of plan members hit at least one annual benefit maximum. Dental, vision, and massage therapy are the most commonly maxed-out categories.

Drug costs are a growing pressure point. New high-cost medications for diabetes and weight management are reshaping plan design conversations across the country.

Two-thirds of members who are interested in weight-loss drugs expect their plan to cover them, but most plan sponsors say they are not including weight loss medications or planning to cover them in the future.

Plan sponsors are in a difficult position because 80% of employees say it's unacceptable for employers to reduce benefits because of rising costs.

What this means for you: The answer to rising costs isn't a smaller plan. It's a smarter one. Targeted plan design, better utilization data, and proactive conversations about cost drivers can help you manage expenses without cutting the coverage your employees count on.

Mental Health and Wellness Are Now Core, Not Add-Ons

Employers are investing more in mental health than ever before. The average annual maximum for standalone mental health benefits has risen to $2,583. More plans now include EAPs, health care spending accounts, and dedicated mental health coverage.

And wellness programs are maturing. Half of plan sponsors now have a documented wellness strategy — up from 44% just last year. Eighty-five percent support at least one wellness initiative beyond the benefits plan itself.

But here's what employees are asking for: flexible work arrangements, reasonable workloads, and HR policies that feel supportive rather than punitive. These aren't benefits plan items. They're culture and leadership decisions.

What this means for you: Mental health coverage matters, but it works best when it's part of a broader strategy. If your wellness initiatives and your benefits plan aren't connected, you're likely leaving value on the table. Employers who treat benefits, wellness, and workplace culture as one integrated system are driving results.

Where to Start

If you take one thing from this survey, let it be this: a good benefits plan is only as effective as employees' ability to understand and use it. Here are three simple places to start:

• Review your plan design. Is your coverage aligned with what your employees need? Chronic disease, mental health, and drug costs are reshaping utilization patterns. Your plan design should reflect that reality.

• Improve how you communicate your plan. Benefits education isn't a one-time event during onboarding. Regular, plain-language communication about what's covered, how to use it, and why it matters makes a difference in employee perception of your plan.

• Let’s collaborate. Ask us how to make sure your plan is working as hard as it should be. Our job is to help find efficiencies without sacrificing the coverage your team depends on. Cutting costs by reducing important benefits may lead to unintended consequences.

The 2025 survey paints a clear picture: employees want support, not just coverage. They want to understand what they have, and they are counting on their employers to support their wellbeing. When your plan is designed with the right guidance, that’s exactly what it can do.

If you'd like to talk through what this year's survey results mean for your specific plan, please reach out to your consultant.

Leslie Consulting Group has been helping Canadian employers build better benefits and retirement programs for over 30 years. We make the complex simple — so you can focus on what you do best.