U.S. EMPLOYERS LEAVING VALUABLE BENEFITS OPPORTUNITIES ON THE TABLE, PUTTING EMPLOYEE PRODUCTIVITY AND RETENTION AT RISK

PR Newswire
Wednesday, August 13, 2025 at 12:01pm UTC

U.S. EMPLOYERS LEAVING VALUABLE BENEFITS OPPORTUNITIES ON THE TABLE, PUTTING EMPLOYEE PRODUCTIVITY AND RETENTION AT RISK

PR Newswire

HUB International's 2025 U.S. Workforce Vitality Gap Index Finds Employers Have Opportunity to Improve Employee Benefits Programs to Increase Productivity and Engagement

CHICAGO, Aug. 13, 2025 /PRNewswire/ -- HUB International Limited (HUB), a leading insurance brokerage and financial services firm, today released its 2025 U.S. Workforce Vitality Gap Index. The report reveals a key issue: while organizations desire to make thoughtful investments in employee benefits, they often rely on incomplete data. This results in missed opportunities in drive engagement, increase productivity and maximize retention.

"Companies are doing their best and pulling every lever to compete for talent in a tight labor market," said Linda Keller, HUB Employee Benefits COO. "But we now know that organizations could dig even deeper to ensure that the insights they rely on are reflective of what today's workforce really values. Because the reality is that misalignments in these areas have business and financial implications —not just in turnover, but in productivity and culture."

Despite deploying engagement surveys and tracking industry benchmarks, drawing meaningful insights can be especially difficult for leaders in a workforce that's generationally and geographically diverse. By further understanding employee motivations and needs, organizations can find creative ways to increase productivity and retention.

"Surveys and benchmarks only tell part of the story. For starters, they are often backward-looking. As a result, the benefits employees care about most—like flexibility and solutions that support financial well-being, including retirement planning—are often overlooked," added Jim O'Shaughnessy, Managing Partner of HUB Retirement and Private Wealth. "For example, many employees express a desire for financial wellness, and companies often try to deliver. What our data shows is either the solutions offered to employees are missing the mark – or employees need more support in order to take advantage of the services offered." 

Misalignment Carries a Clear Business Cost
The index reveals that even when companies are investing heavily in a total rewards program, a misaligned strategy can be felt across the organization, from operations to reduced employee engagement, increased absenteeism and turnover, as well as stalled recruitment.

In an economic environment where leaders are under pressure to do more with less, employee benefits spending must be data-informed, intentional, and closely aligned with performance outcomes to be effective.

Key Findings from the 2025 U.S. Workforce Vitality Gap Index:

  • Personalization is a Retention Driver: Almost 3 in 4 employees would be more inclined to stay with their employer if benefits reflected their personal needs, but data shows employers are not implementing the personalized programs needed for retention.
  • Flexibility over Pay: Employees rank work-life balance and flexibility higher any other benefit, including salary—yet most employer programs still lead with compensation.
  • Mental Health Gaps Remain: Just over a quarter of employees report mental health concerns, utilization of support programs remains low — suggesting a gap in awareness, understanding or value. 
  • More Spending Doesn't Always Mean More Value: 72% of employers' planning to make changes to their total rewards programs are looking to expanding their offerings. Having the right data will help allocate budgets more effectively. 

Modernized Data Directly Impacts Business Outcomes
HUB encourages employers to elevate benefits planning strategically to drive outcomes like retention, engagement, and cost control.

"With the right data, you can design benefits that matter most to your people—without inflating your spend," concluded Keller. "This goes beyond benefits — it's a business imperative."

Learn how your organization can close the gap and build a healthier, more engaged workforce. Read the full 2025 U.S. Workforce Vitality Gap Index or connect with a HUB International employee benefits or retirement advisor with experience supporting organizations with national, as well cross-border strategies.

About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services. With more than 20,000 employees in offices located throughout North America, Hub's vast network of specialists brings clarity to a changing world with tailored solutions and unrelenting advocacy, so clients are ready for tomorrow. For more information, visit Hub Media Center.

MEDIA CONTACTS:
Marni Gordon
Phone: 312-279-4601
Marni.gordon@hubinternational.com

Jessica Wiltse
Phone: 312-596-7573
jessica.wiltse@hubinternational.com

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SOURCE Hub International Limited