Our 2025 Global Medical Trends Survey reported increases in medical costs are projected to remain high at a double-digit global average, continuing the trend of recent years. Our new Benefits Trends Survey reveals that effective leaders are transforming how they think about the issue amid rising costs, economic instability and employees demanding more support and benefits personalization. These leaders are spending smarter, recalibrating programs, sharpening their focus and using benefits as a strategic tool to drive employee engagement, retention and company purpose.
Several major factors contribute to continued high medical costs beyond general inflation:
- Increased use of new medical technologies and pharmaceuticals globally
- Overwhelmed public healthcare systems worldwide from high demand and limited available resources, leaving members to rely on private medical providers
- A surge in healthcare utilization, with a growing trend in use of mental health services
Effective boards and senior leadership teams take the following actions to optimize benefits and drive better health and wellbeing outcomes:
Effective leaders are rethinking benefits by doing what matters most and doing it better. As they manage the challenges of 2025, one message is clear: The old rules are changing, and effective leaders use benefits as a strategic tool to drive engagement, retention and purpose.
A version of this article originally appeared on Forbes on June 30, 2025.
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