Turning the page to a new year typically motivates many of us to make resolutions — whether they may be focused on health and wellness, financial goals, or personal growth. There seem to be popular trends every year like eating healthier, exercising more, saving more money, and spending more time with family and friends. While the resolution may be the same for many, each person has a different idea of what it means to them and how they are going to achieve.
Most people start out the year with the hope of transformation, consistency, and new habits becoming the norm. Some achieve their goals throughout the year, and some fizzle out by the end of January. Regardless, the new year strikes a chord in many of us to approach the year with energy, optimism, and motivation to be our best.
Employee benefit trends are like New Year’s resolutions — employers review them every year. They spend months planning programs that offer strong coverage, peace of mind, and encourage positive change. These trends take commitment, flexibility, and engagement to deliver real value. Gone are the days when a basic health plan and retirement account are enough. Today’s workforce expects benefits that match their diverse needs and lifestyles. Employers are responding with innovative strategies that go beyond traditional offerings — using technology, personalization, and a focus on wellbeing to stay competitive.
As we get ready to flip the calendar to 2026, I’ve identified 5 key benefits trends our Holmes Murphy Employee Benefits team has seen that employers may want to pay close attention to.
Personalization and Flexibility
The era of “one-size-fits-all” benefits is fading. Employers are embracing customizable benefit offerings, allowing employees to select options that fit their unique needs — whether that’s health plan options, mental health support, student loan assistance, or enhanced wellness programs. Additionally, digital and virtual solutions continue to expand, with telehealth, virtual care, and mental health apps becoming a component of the standard package. Because of this, the need for a streamlined and engaging employee communication strategy is critical.
Continued Emphasis on Preventive Care
Chronic diseases are driving employer healthcare costs, prompting a renewed focus on prevention and evidence-based condition management. Employers can aim to boost employee engagement in preventive care through incentives, plan design, and strategies that meet the needs of their population. We believe many will continue to promote primary care utilization and age-appropriate screenings to allow for early risk identification and timely intervention. However, in 2026, it will be smart for employers to also closely evaluate wellbeing programs targeting costly conditions like diabetes, heart disease, and obesity to ensure they deliver measurable clinical and economic value.
Pharmacy
Today’s pharmacy landscape is evolving at an unprecedented pace, creating significant challenges for employers. Escalating drug costs, sweeping policy changes, and breakthrough treatments — such as gene therapies and weight-loss medications — are reshaping expectations and driving complexity. Employers can no longer rely on traditional models; they all need to explore adopting innovative pharmacy benefit strategies that deliver transparency and control costs. Employers should also consider how disruptive trends like direct-to-consumer pricing and government initiatives could impact their program.
Technology
Artificial Intelligence (AI) is transforming employee benefits by personalizing offerings and recommendations, automating administrative tasks, and enhancing engagement through AI chatbots and virtual assistants. It also delivers predictive insights that support better plan design and cost management.
For employees, AI simplifies complex benefits information, provides tailored recommendations, answers questions, and even estimates costs — creating a more intuitive and supportive experience. For employers, AI streamlines administration, offers data-driven insights, and uses predictive analytics to identify opportunities for cost savings and strategic improvements. Overall, AI makes management faster, smarter, and more employee friendly. If employers aren’t looking into AI, this should be something heavily considered.
Cost Management
Employers are expecting to see healthcare costs rise by an average of 7-10% in 2026, forcing many of them to make plan design and contribution changes. This continuous surge in cost, largely driven by chronic conditions, rising medical and pharmacy prices, and technology, has led to pressure for both short-term and long-term containment strategies. To manage, employers will need to closely evaluate programs and vendors and consider significantly different funding arrangements to address high-cost drivers.
We all know the landscape of employee benefits is complex and ever evolving. To remain competitive, organizations need to adapt by leveraging data and technology and focusing on cost efficiency and employee wellbeing.
If you would like to dive deeper into these trends and see how you can enhance the offerings you offer your employees, don’t hesitate to reach out to our Holmes Murphy team. We’re happy to jump in and help.
