AmpTN

In today's evolving workforce, employee benefits have become a key aspect in attracting and retaining top talent, especially for small businesses. As inflation hit 3.2% in 2023 and wage growth remains slow, employees are seeking more than just financial compensation. They now prioritize benefits that promote work-life balance, flexibility, personalization, and overall well-being. According to a recent survey, 78% of employees are more likely to stay with an employer that offers flexible work options.

Small businesses often face unique challenges when it comes to providing competitive employee benefits, but the right approach can set your company apart in a competitive job market. At Ascend Management Partners, we specialize in helping small businesses in Tennessee design cost-effective, comprehensive employee benefit packages that align with employee expectations while optimizing your business's financial health.

Here are some top employee benefits trends for 2025 and how your local small business can leverage these insights to attract and retain top talent in Chattanooga and beyond.

1. Paid Leave & Family Support: Enhancing Employee Satisfaction

Paid leave is a top priority for employees across industries. According to the Bureau of Labor Statistics, 96% of full-time U.S. workers currently have access to paid time off (PTO), and the demand for family-focused benefits continues to rise.

In 2025, we expect to see a continued increase in companies offering paid parental leave. In fact, 75% of employers now provide paid parental leave, up from 53% in 2022. Additionally, 70% of companies offer adoption leave, recognizing the importance of family support in modern work-life dynamics.

For small businesses in Chattanooga, incorporating flexible paid leave policies and family support benefits, such as childcare stipends or backup care programs, can significantly enhance employee satisfaction. A recent study found that 67% of working parents would switch jobs for better childcare benefits. Ascend Management Partners can help you implement these benefits effectively through our Professional Employer Organization (PEO) services, ensuring that your business stays competitive without breaking the bank.

2. Healthcare Coverage: Affordable Solutions for Small Businesses

Healthcare coverage remains a top concern for employees, with 79% listing it as their most important benefit. However, rising healthcare costs pose a significant challenge for small businesses. In 2022, the average annual cost for employer-sponsored family health coverage reached $22,463, reflecting a 4% increase from the previous year, according to the Kaiser Family Foundation.

For small businesses in Chattanooga, offering affordable healthcare options can be daunting. That’s where Ascend Management Partners comes in. Through our PEO services, you can access group healthcare plans typically available only to larger corporations. We help small businesses offer high-quality, cost-effective healthcare options that keep employees healthy and satisfied while minimizing financial strain on your business.

By partnering with Ascend, your company can offer healthcare packages that go beyond the basics, including options like Health Savings Accounts (HSAs), flexible spending accounts (FSAs), and wellness programs that can reduce overall healthcare expenses over time.

3. Mental Health & Wellness: A Crucial Component

Mental health has emerged as a critical factor in employee retention, with 76% of employees now considering mental health benefits a key reason to stay with their employer. Offering robust mental health support not only fosters employee well-being but also boosts engagement and productivity. Companies that prioritize mental health see 81% higher employee engagement and 56% lower turnover, according to the American Psychological Association.

Small businesses in Chattanooga can greatly benefit from offering mental health resources, including Employee Assistance Programs (EAPs), access to counseling services, wellness apps, and mental health days. These programs don’t have to be costly to be effective. Ascend Management Partners helps businesses integrate mental health resources into their benefits packages at an affordable rate, ensuring that employees feel supported without overwhelming your business with expenses.

4. Virtual Healthcare & Telemedicine: Convenient and Cost-Effective

The demand for virtual healthcare is rapidly growing, with 77% of employees now preferring virtual doctor visits due to convenience. The COVID-19 pandemic accelerated the adoption of telemedicine, and this trend is here to stay. Incorporating virtual healthcare options into your benefits package not only saves time but can also reduce healthcare costs for both employers and employees.

By offering telemedicine services, Chattanooga small businesses can provide employees with easy access to healthcare while minimizing time spent away from work. Preventative care, which can be seamlessly provided through virtual healthcare, has the potential to significantly reduce long-term health costs for employers.

Ascend Management Partners can help your business implement virtual healthcare options, streamlining access to care while optimizing overall benefit costs. This is an essential move for companies looking to remain competitive in the 2025 job market.

5. Flexible Work Arrangements: The Future of Work

In 2025, flexibility will continue to be a key factor in employee satisfaction. Employees are increasingly seeking the opportunity to align their work lives with their needs and preferences while retaining productivity. According to a recent survey, 78% of employees said they would stay with an employer that offers flexible work arrangements, and this number is expected to rise as the workforce adapts to new expectations.

For small businesses in Chattanooga, adopting flexible work policies can be a powerful way to attract top talent. Whether it's offering remote or hybrid work options, compressed workweeks, or flexible hours, Ascend Management Partners can assist you in setting up these arrangements in a way that boosts productivity and maintains company culture.

6. Retirement Planning: Securing Employees' Futures

With the growing uncertainty around social security and the rising cost of living, employees are placing more value on retirement benefits. A strong retirement plan, such as a 401(k) with employer matching, can be a deciding factor for potential hires. In fact, studies show that 73% of employees consider retirement plans an essential benefit when choosing where to work.

At Ascend, we make it easy for small businesses to offer retirement plans that not only benefit current employees but also help small business owners recruit talent for their growing operations. Through our PEO services, we provide access to group retirement plans, ensuring your small business can compete with larger employers when it comes to offering attractive retirement options.

How Ascend Management Partners Can Help Your Local Small Business

At Ascend Management Partners, we understand the complexities small businesses in Tennessee face when it comes to providing comprehensive employee benefits. Our tailored HRO and PEO services allow small businesses to offer competitive benefits that rival larger corporations—all while reducing the administrative burden and controlling costs.

Here’s how Ascend can help:

Access to better healthcare options: Through our group healthcare plans, your small business can offer high-quality healthcare coverage at an affordable price.
Comprehensive employee wellness solutions: From mental health services to wellness programs, we ensure your employees feel supported in every aspect of their well-being.
Retirement and financial planning assistance: Help your employees secure their future with 401(k) options and other retirement benefits.
Customized paid leave policies: We assist in developing leave policies that align with your business's needs while ensuring employee satisfaction.

Are you ready to enhance your small business employee benefits package?

Schedule a complimentary 30-minute virtual consultation with Ascend Management Partners today to learn how we can help your local small business stay ahead of employee benefits trends and attract top talent in Chattanooga and beyond.

‍

Resources:

‍

Employee Benefits Trends for 2025: Essential Insights for Small Businesses in Chattanooga, TN