Companies around the world are reassessing their gym benefits and wellness programs as they face increasing economic pressures. Corporate wellness initiatives, once seen as essential for attracting and retaining talent, are now under scrutiny as businesses seek to cut costs without sacrificing employee well-being.
Over the past decade, corporate wellness programs have proliferated, offering perks like gym discounts and mental health apps. The COVID-19 pandemic intensified this trend, prompting many organizations to provide additional support to their employees in an increasingly stressful work environment. According to data from Ramp Capital, the average spending on wellness benefits per employee is projected to drop to $1,103 in 2025, down from $1,366 in 2023, marking a 20% decline.
Shifting Priorities in Corporate Spending
As companies tighten budgets, they are reevaluating which wellness benefits are truly valuable. Many organizations are eliminating underutilized perks and shifting to more cost-effective options. This shift reflects a growing concern over rising healthcare costs and the need for better return on investment (ROI) from wellness programs. Annual family premiums for employer-sponsored insurance have increased by 6% to nearly $27,000 in 2025, according to the Kaiser Family Foundation, and are expected to reach $30,000 this year.
Employers are focusing on controlling healthcare expenditures, as highlighted in a recent MetLife survey. Todd Katz, head of US group benefits at MetLife, noted that employers are scrutinizing every benefit to manage costs effectively. The trend is part of a broader strategy to support employee well-being while maintaining financial sustainability.
The Impact of Benefits on Employee Engagement
Despite the significant investment in wellness programs—estimated at nearly $95 billion globally in 2023—many employees remain unaware of available resources. A Deloitte survey revealed that 68% of workers do not utilize the full range of their company’s wellness offerings due to complexity and accessibility issues. Additionally, only a third of employees engage with their workplace’s digital wellness platform on a monthly basis, according to Sapient Insights Group.
Zachary Chertok, a senior research manager at IDC, suggests that companies must adopt a more strategic approach to wellness spending. Instead of implementing programs based solely on executive decisions, businesses are beginning to identify and invest in services that employees actually use. This change involves selecting vendors that offer comprehensive wellness solutions, allowing for data-driven insights into employee engagement.
The focus on meaningful employee benefits highlights the need for a more holistic approach to workplace wellness. While offerings like gym memberships and mental health apps can provide support, they cannot address deeper issues such as workplace culture, workload, and fair compensation. As Josh Bersin, a global industry analyst, points out, many companies have invested in wellness initiatives without clear evidence of their effectiveness.
As organizations navigate the balance between employee support and financial constraints, the future of corporate wellness programs appears to hinge on their relevance and accessibility. The challenge remains for companies to create an environment where employees feel valued and supported, even as they adjust their benefits strategies in response to economic realities.
