Employee benefits trends: The flexibility reset
Employee benefits are evolving to help employees cope with the demands and uncertainties of the modern work environment. Here’s what to expect in 2025.
Flexibility is now business as usual, with 96% of Australian organisations reporting flexible work provisions and 89% supporting working from home according to our 2024 Australian Benefits Review (ABR). We’re also seeing a significant shift to part-time employment – even in senior executive and management roles.
With flexibility now the workplace norm, organisations are evolving their benefits to better support their people in moments that matter and build a positive work culture. Fifty-nine per cent of Australian employers now align their organisation’s internal culture with ‘work-life balance’. These organisations recognise their people have diverse responsibilities and commitments outside work, and are giving them the choice to manage their personal and professional life in a way that works for them.
Key employee benefits trends to watch in 2025
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“We are seeing flexibility used as a strategic approach that connects employee benefits with organisational goals, making companies more attractive to top talent in a competitive market.”Nithya Abraham
General Market Leader, Digital & Insights, Mercer -
“Employers need to find the balance between the needs of their employees and the overall business objectives in order to create a benefits strategy that delivers value to all.”
Don Barrera
Client Engagement Manager – General Market, Digital & Insights, Mercer
The latest Australian benefits trends
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This content is intended to inform clients of Mercer's views on particular issues. It should not be relied upon or used as a substitute for professional advice specific to a client's individual circumstances. Whilst Mercer believes the prospective information and forward looking statements made by Mercer in this report are based on reasonable grounds, they are predictive in character and may therefore be affected by inaccurate assumptions or by known or unknown risks and uncertainties. This content has been prepared by Mercer Consulting (Australia) Pty Ltd (MCAPL) ABN 55 153 168 140. `MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
