Quick-Start Guide to Employee Travel Benefits: 2025

 

For millions of American workers, travel has taken on new meaning in 2025 — not just as a leisure activity, but as a vital component of personal fulfillment, workplace satisfaction, and overall well-being. As global tourism rebounds and younger generations drive a cultural shift in how and why we explore, employers have a unique opportunity to align with this momentum.  

From employee engagement to retention, the benefits of supporting travel are clear — and increasingly, companies are finding creative, cost-effective ways to make it a reality for their teams. Employers are recognizing that enabling travel isn’t just a perk — it’s a strategic advantage. When organizations empower their people to disconnect, recharge, and explore, they’re investing in a more energized, loyal, and productive workforce.  

But there is no one-size-fits-all approach when it comes to offering meaningful travel-related benefits. There are countless options, and understanding which ones are best for your organization can be tricky. With that in mind, we’ve created this guide to help you better understand the role travel plays for the U.S. workforce in 2025, what’s motivating them to hit the road in such numbers and how employers can help make this a reality for their people — and reap the rewards.  

 

The Golden Age of Travel 

Travel has come roaring back in the wake of the Covid-19 pandemic. After years of limited mobility, international tourism surpassed pre-pandemic levels in 2024, and momentum shows no signs of slowing. At the outset of the year, the U.S. Travel Association projected that U.S. travel spending will grow by 3.9% in 2025, reaching $1.35 trillion. Travel has become so pervasive, in fact, that dozens of countries and cities across the globe are finding ways to push back on what they consider to be overtourism, including increased visitor taxes, bans on short-term rentals (Airbnb, etc.), daily limits on the number of visitors to culturally significant areas and more, but this seems to be having little impact on America’s wanderlust. 

Much of this renewed interest in travel is driven by Millennials and Gen Zers — generations that are poised to make up 80% of the workforce in advanced economies by 2034. For these groups, travel isn’t just a leisure activity; it’s a reflection of identity and a top financial priority. A Thrillist and Vox survey found that 72% of Millennials and Gen Zers consider travel core to their identity, and nearly 90% rank it as a financial priority above other expenses. These younger workers also prioritize personalized travel experiences over specific destinations, signaling a deeper emotional connection to exploration. Even globally, the trend holds: 71% of Gen Zers in Hong Kong, for example, say travel is their main motivation for working, outpacing traditional milestones like buying a home or starting a family. 

Unsurprisingly, this passion is also spilling into their professional lives. According to new research from American Express, 90% of Gen Z workers say business travel improves their job satisfaction, and 60% plan to travel more for work in 2025. Nearly half extend these trips for personal enjoyment, blending business and leisure seamlessly.  

While younger employees may travel more frequently, research from McKinsey confirms that the desire to travel spans all generations. According to their findings, Millennials averaged 5 trips over the past year, followed by GenZ at 4.4, Gen X at 3.9 and the Baby Boomers at 3.4.  

Even in the face of ongoing economic uncertainty, Americans’ passion for travel remains remarkably resilient. According to the World Travel & Tourism Council’s 2025 Economic Impact Research report, the travel and tourism sector is expected to continue its upward trajectory this year, signaling strong consumer demand despite inflation and other financial pressures. This sustained interest highlights the value people place on travel experiences, even when budgets are tight. 

 

Evolving Travel Trends 

Americans are not only eager to explore — they’re doing so with greater intentionality and purpose. Today’s travelers are seeking more than just a change of scenery; they’re prioritizing meaningful experiences, personal well-being, and deeper connections, whether with loved ones, local cultures, or themselves. This year’s most popular travel trends reflect a growing desire to make each trip count — financially, emotionally, and socially.  

1. Family and Multigenerational Travel. Family vacations are leading the way, with 47% of travelers opting for multigenerational trips in 2025—a 17% increase from 2024. This trend reflects a growing desire to strengthen family bonds and create lasting memories across generations. 
2. Wellness and Restorative Escapes. There’s a significant rise in wellness tourism, with travelers seeking destinations that offer relaxation and rejuvenation. Activities such as yoga retreats, spa treatments, and digital detoxes are gaining popularity, catering to the need for physical and mental restoration.  
3. Experiential and Cultural Immersion. Travelers are increasingly seeking authentic experiences that allow them to engage deeply with local cultures. This includes participating in local traditions, cuisine, and storytelling, moving beyond typical tourist routes to gain a deeper understanding of the world.  
4. Bucket List Adventures. Despite rising travel costs, 40% of travelers are planning bucket list or big-ticket trips in 2025, indicating a sustained interest in fulfilling long-held travel dreams. 

 

The ROI of Travel: Why Employers Should Care 

Many Americans struggle to take full advantage of their PTO, and for years, it was assumed this benefited employers. However, research increasingly shows the opposite: well-rested (and well-traveled) employees are consistently among the most engaged, loyal, and productive members of the workforce by a wide margin.  

Case in point: employees who take vacation time return to work more refreshed, focused, and energized. A study published in the Harvard Business Review found that people who took more vacation were not only more productive but also reported being more satisfied with their jobs and less likely to burn out. Another study by Project: Time Off found that employees who used all their vacation days had a 6.5% higher chance of receiving a promotion or raise than those who left time unused. 

According to research from Gallup, “low engagement costs the global economy $8.8 trillion, or 9% of global GDP,” with burnout being a primary driver of disengagement. But time off, particularly for travel, improves overall job satisfaction and engagement. Employees who feel their well-being is valued are more likely to be loyal and committed to their employer. Gallup also found that engaged employees are 21% more productive and 59% less likely to look for another job. Encouraging employees to take regular time off — including travel — helps them return recharged and focused, with studies indicating PTO-related benefits can boost performance by up to 80%. 

Even business travel delivers measurable benefits. A survey found that 82% of U.S. CEOs and 65% of European CEOs believe business travel helps with employee retention, and 75% of HR decision-makers said adding business travel opportunities in job descriptions made them more attractive to applicants. Additionally, among employees, 63% said traveling for work makes them more likely to stay with their current employer — a figure that jumps to 76% among Gen Z employees. 

The report also indicated that companies that increased their travel budget in 2023 had an employee turnover rate of 8.6%, which is below the Gallup average of 10% and 3.5 points lower than companies that reduced their budgets. This suggests that companies investing in travel — whether for business or leisure — are likely to see better retention outcomes. Furthermore, a Booking.com for Business survey found that 82% of respondents believe work travel supports career growth, 75% say it aids personal development, and 52% report improved mental well-being. 

Finally, employers that incorporate travel benefits also gain a competitive edge by appealing to the existing preferences of their workforce. According to the Incentive Research Foundation, employees perceive travel incentives as more valuable than cash rewards — 77% even say a travel experience is the most effective incentive, period. The study also found that higher earners show an even stronger preference for non-cash rewards like travel, making it a strategic tool for retaining top talent. 

 

Adding Travel Benefits is Easier Said Than Done 

Despite the clear benefits of supporting employee travel — ranging from improved retention to greater engagement — many employers struggle to incorporate travel benefits into their offerings. Budget limitations, regulatory considerations, and administrative hurdles can all pose significant barriers, particularly for small to mid-sized organizations. Offering travel benefits presents challenges for employers, including: 

• Financial Constraints: Employer-provided travel benefits can be costly, requiring significant financial investment that may not align with every company’s budget. Smaller businesses and organizations with tighter margins may find it especially challenging to allocate funds for such programs while balancing other employee benefits and operational costs. 

• Legal and Compliance Issues: Travel-related benefits must comply with complex federal and state regulations, including tax implications, wage and hour laws, and benefits eligibility rules. Employers must also consider how these perks interact with existing compensation structures and ensure proper reporting to avoid potential compliance risks. 

• Administrative Complexity: Managing a travel benefit program requires well-defined policies, streamlined administrative processes, and user-friendly systems to ensure consistency, compliance, and accessibility for employees. Employers must balance these factors while making the program attractive and easy to navigate, ensuring it delivers real value to their workforce. 

 

Getting Creative with Travel Benefits 

While adding formal travel benefits may not be feasible for every employer, there are still meaningful and creative ways to support employees’ desire to travel. With a little flexibility and strategic thinking, companies can offer low-cost or scalable travel incentives that still feel rewarding and personal. Here are a few innovative ways employers can incorporate travel-friendly perks into their benefits package without overextending their budget. 

• Work-from-Anywhere Weeks. Allow employees to work remotely from any location for a set period each year. This flexibility lets them extend personal trips or experience living in a new city without using vacation days. Some companies even sponsor co-working spaces in popular destinations. 

• Travel Rewards for Performance. Instead of cash bonuses, consider offering all-expenses-paid trips as incentives for top-performing employees. Whether it’s a luxury resort stay, a cruise, or a guided adventure tour, these rewards feel exclusive and build excitement. 

• “Bucket List” Bonus. Give employees the chance to check something off their travel bucket list by offering a one-time travel grant (e.g., $2,000 after three years of employment) that employees can use for a dream destination or experience. 

• Volunteer Travel Grants. Support employees in giving back by funding volunteer trips abroad or domestic service projects. This encourages meaningful travel experiences and aligns with corporate social responsibility initiatives. 

• Travel Stipends. Instead of just offering vacation time, employers can provide a stipend for travel expenses that employees can use for flights, hotels, or experiences. This could be an annual allowance, a one-time reward for tenure milestones, or a wellness incentive to encourage time off. 

 

A Secret Weapon for Travel Benefits 

Beyond these ideas, many companies already have access to a tool that can offer extensive savings that make leisure travel more attainable for employees across all income levels and job roles: an employee discount program. These programs help break down the financial barriers that often prevent employees from taking full advantage of their time off.  

While travel may not be the first thing that comes to mind when mentioned, these days many employee discount programs offer a breadth and depth of travel-related savings that rival any dedicated travel benefit platform. These offerings align to the wants and needs of the U.S. workforce and provide a unique and compelling value — particularly for younger employees. Here are some ways an employee discount program can help: 

• Airfare: Lower ticket prices, waived baggage fees, priority boarding, and access to corporate or negotiated rates for domestic and international flights — perks that can make a significant financial difference, especially in a market where airfare prices had increased by 25% year over year as of November 2024. By leveraging an employee discount program, employees can mitigate rising travel costs and enjoy more affordable and accessible travel opportunities. 

• Hotels/Accommodations: Employees can access discounted room rates, complimentary breakfast, late checkouts, priority booking, and room upgrades at participating hotels and resorts worldwide. These benefits can significantly reduce the total cost of a vacation or business trip, especially when paired with seasonal promotions or loyalty programs that many hotel chains extend to EDP members. 

• Rental Vehicles: Reduced daily or weekly rental rates, free vehicle upgrades, discounted insurance options, and access to expedited rental processes. With the average daily rental car price reaching $159, these discounts can significantly lower out-of-pocket costs for employees, making travel more accessible and affordable. Additionally, discount programs often include partnerships with national rental car agencies, increasing convenience and availability. 

• Cruises: Exclusive pricing on popular cruise lines, onboard credits for dining and activities, complimentary cabin upgrades, and group discounts for families and friends. With the average seven-day cruise costing around $1,500 per person, these savings can make a cruise vacation more attainable for employees who might otherwise view it as out of reach. These benefits also support group travel, encouraging employees to bring along friends or family. 

• Theme Parks and Attractions: Savings on admission tickets, dining, and merchandise at major amusement parks, zoos, aquariums, museums, and other entertainment venues. For families in particular, these discounts can result in hundreds of dollars in savings over the course of a vacation, making memorable experiences more accessible and less financially stressful. Theme parks represent 16 of the 50 most-visited tourist attractions in the world, so this one is sure to be popular. 

• Tours + Excursions: Discounts on guided sightseeing experiences, adventure excursions, cultural tours, and specialized travel packages tailored to different interests and destinations align to the travel preferences of Millennial and Gen Z employees. These benefits can help employees enhance their trips with meaningful experiences they may not have pursued otherwise due to cost. 

In addition to travel-related discounts, employee discount programs include hundreds of deals on everyday goods and services, directly supporting broader financial wellness goals and enhancing overall employee well-being. And perhaps best of all, many of these programs come at no cost to the employer, making them a highly attractive and scalable solution. 

 

Make Travel a Reality for Your Employees 

To maximize the value of employee travel — whether through a discount program or other creative benefits — employers should adopt a thoughtful, proactive approach. This includes integrating travel opportunities into broader wellness and benefits strategies, promoting a culture that supports the use of PTO, and providing access to tools and programs that help make travel more affordable and attainable. Clear and consistent communication is essential to help employees understand the options available to them, and ongoing feedback should be used to fine-tune offerings based on evolving needs and interests. Here are a few tips to get you started:  

• Encourage employees to use their PTO: Clearly communicate that taking time off is not only acceptable but fully encouraged. Let employees know that using every single PTO day is expected and supported by leadership. This kind of open communication helps eliminate lingering stigmas about taking time off and reinforces a culture of rest, balance, and well-being. 

• Survey employees on their travel preferences: Use surveys or feedback tools to gather insights on what types of travel experiences employees value most. Over time, this data can inform your benefits strategy, helping you refine and tailor travel perks to meet employee interests and boost participation. 

• Look for creative ways to make travel a reality: Think beyond traditional travel stipends or benefits. Whether it’s offering employee discount program access, coordinating group rates for vacations, or designing custom travel perks based on employee interests, there are many ways to support travel. Even small gestures — like offering additional PTO for off-season travel or partnering with local travel companies — can have a big impact. The goal is to remove as many financial and logistical barriers as possible, encouraging employees to take advantage of their time off to explore the world. These efforts not only promote well-being but also translate into improved productivity, engagement, and retention when employees return refreshed and recharged. 

 

Travel is no longer just a luxury—it is a crucial factor in employee well-being, retention, and productivity. While traditional travel benefits may not be feasible for all employers, an employee discount program offers an easy and cost-effective way to help employees afford the vacations they need. By strategically utilizing these programs, companies can foster a more engaged, satisfied, and high-performing workforce. 

The Cost of Financial Stress: What Employers Need to Know in 2025

To say the American workforce has been through a tumultuous 20 years, economically speaking, would be an understatement. The financial crisis of 2008 ushered in economic conditions unseen in the United States for nearly a century, leaving many individuals facing tremendous hardship. This difficult period was followed by a decade of significant economic growth, offering some relief and stability. However, the COVID-19 outbreak abruptly ended this, once again throwing the economy into disarray. Although a brief recovery followed, it proved shorter and less stable than the previous expansion. For many, this relentless seesaw of economic highs and lows has become exhausting and discouraging. 

Now, as we turn the page to the next chapter, new uncertainties loom. With a new administration in place, questions abound about what the future holds for American workers and how forthcoming policies will shape the economic landscape. This moment presents an important opportunity to take stock of the state of financial wellness among the U.S. workforce. Emerging research consistently underscores the strong correlation between employees’ financial strain and critical performance indicators such as productivity, healthcare costs, and overall business success. The data paints a stark picture of a growing crisis in employee financial wellness, making it clear that while awareness has increased, substantial efforts are still required to create lasting solutions that improve financial stability for American workers. 

Let’s explore the latest data. 

 

Where Things Stand in 2025 

Financial stress has reached an alarming level for American workers, creating significant challenges in their daily lives. This financial strain is not only affecting their ability to meet basic expenses but also limiting their capacity to save for the future and manage escalating debt.  

A recent Resume Now survey underscores the severity of financial hardship among workers, revealing that 73% of employees can barely afford expenses beyond basic living costs, while 12% are unable to cover even their essential needs. This growing financial strain has forced 30% of workers into debt just to manage daily necessities, exacerbating their overall instability and limiting their ability to plan for the future. 

The savings crisis is equally concerning. Bankrate’s 2025 Emergency Savings Report reveals that 59% of Americans lack sufficient savings to cover a $1,000 emergency expense, and 73% are saving less than they did in 2024. As a result, 43% of Americans would need to borrow money to handle an unexpected financial setback, a troubling reality given the record $1.14 trillion in credit card debt reported by the Federal Reserve Bank of New York. 

Debt in general remains a growing burden. The average total consumer household debt climbed to $104,215 in 2023—an 11% increase since 2020. A staggering 77% of U.S. workers identify personal credit card debt as a significant financial challenge, with 40% admitting it influences their career decisions. Additionally, 62% of private-sector employees factor in student loan debt when assessing job opportunities, which is likely to limit prospects over the course of their career. 

Younger generations, particularly Millennials and Gen Z, are the most vulnerable. 80% of Gen Z workers worry about affording immediate expenses if they were to lose their income, compared to 72% of Millennials and Gen Xers. Retirement savings are also lagging—only 20% of Gen Zers are actively saving for retirement, largely due to a lack of financial literacy. Even among those who do save, contributions are alarmingly low, with 60% of Gen Z and Millennials holding less than $5,000 in retirement savings.  

These financial struggles highlight the urgent need for greater financial education and workplace support programs, but just as important as understanding the state of financial wellness among the American workforce is understanding how things got to this point.  

 

What’s Driving This Financial Distress? 

The roots of poor financial wellness are multifaceted and long-standing, shaped by economic trends, policy decisions, and shifting workforce dynamics. Over the years, stagnant wages, rising living costs, and a lack of comprehensive financial education have compounded the problem, leaving many workers struggling to achieve financial stability. The aforementioned Resume Now study identified several key factors contributing to financial stress, as reported by U.S. workers. These include: 

• Rising housing costs (55%): U.S. home prices have surged by 47.1% since 2020, far outpacing historical trends. Rent prices have also climbed significantly, increasing by 33.1% since the onset of the COVID-19 pandemic. The combination of high mortgage rates and soaring property values has made homeownership increasingly unattainable for many, pushing more individuals into the rental market, where demand has further driven up costs. This housing crisis is particularly challenging for younger workers and low-income families, who are finding it increasingly difficult to build equity or achieve long-term financial stability. 

• Inflation (41%): Although inflation has decreased from its peak in 2022, consumer prices remain 22.5% higher than in February 2020, intensifying financial pressures on workers. Rising costs for essentials like groceries, healthcare, and transportation have further strained household budgets. Many employees find themselves cutting back on discretionary spending, delaying major purchases, or even taking on additional jobs to make ends meet. Despite wage increases in some sectors, the cumulative effect of prolonged inflation continues to erode purchasing power and financial stability for millions of workers. 

• Wages failing to keep up with inflation (34%): While average hourly earnings have grown by 19.2% since 2020, inflation has risen by 20.6% over that same period, resulting in a 1.1% decline in real hourly earnings. This disparity has left many workers struggling to maintain financial stability. Even in industries experiencing wage growth, the purchasing power of these earnings has diminished, making it harder for employees to keep up with rising costs. Many workers are resorting to gig work, side hustles, or additional part-time jobs just to cover basic expenses. As a result, financial stress continues to rise, impacting overall well-being and job performance. 

• Inability to save for emergencies or the future (33%): At the end of September 2024, Americans had collectively saved $291 billion less than projected had the pandemic not occurred. Despite government stimulus efforts, many workers remain financially vulnerable. Rising costs and stagnant wages have made it increasingly difficult for individuals to build a financial safety net, and many workers report having to dip into their savings just to cover daily expenses, leaving them with little to no cushion for unexpected emergencies. Without adequate savings, financial setbacks such as medical bills, car repairs, or sudden job loss can quickly spiral into long-term financial distress. 

 

Employers are Feeling the Pain of Financial Stress 

It isn’t just employees who are feeling the pain. Poor employee financial wellness has far-reaching consequences for both workplace productivity and company profitability. Recent research conducted by Graystone Consulting and Morgan Stanley sheds light on how this struggle is impacting employers’ bottom lines.   

Financial concerns have surpassed work, health, and family issues as the number one source of stress for employees. Notably, even among those earning $100,000 or more annually, 52% still report feeling financially stressed, highlighting that financial worries are not limited to lower-income workers. 

This stress manifests in tangible ways that affect business operations. One in five employees admits that financial concerns hinder their job performance, and nearly half of financially stressed employees spend at least three hours per week handling personal financial issues during work hours. Over the course of a year, this distraction adds up to more than 156 lost work hours—or nearly 20 full workdays—resulting in a hidden cost of approximately $3,922 per employee in lost productivity. 

The ripple effects extend beyond productivity. Employees facing financial strain are nine times more likely to experience workplace conflicts and are twice as likely to be actively seeking new job opportunities. Perhaps most shocking, 40% of workers are planning to postpone retirement due to financial instability, leading to significant business costs in wages, healthcare, and workers’ compensation. Even a one-year delay in retirement can drive workforce costs up by 1.0%–1.5%, with an estimated $50,000 incremental expense per delayed retirement case.  

These financial pressures reinforce the urgent need for employers to take proactive measures in addressing employee financial wellness. 

 

What Employers Are Doing 

With financial stress becoming a growing workplace concern, both employers and employees are aligned in recognizing the need for financial wellness benefits. A PNC Bank survey found that 96% of employers believe these benefits enhance employee satisfaction and retention, and 80% of employees would remain with an employer that provides strong financial wellness support. 

Despite this awareness, implementation has been slow. According to a Transamerica Prescience survey, only 47% of employers are expected to adopt comprehensive financial wellness programs by the end of 2026. However, there remains significant uncertainty about how these programs will be structured and funded. While some experts (34%) predict that employers will absorb the costs, others (17%) expect employees to bear the financial burden, and 24% foresee a cost-sharing approach. Additionally, opinions vary on the format of these programs, with some employers leaning toward automated financial assistance tools, while others prefer a mix of digital and human coaching.  

These uncertainties highlight the fact that, while financial wellness benefits are widely recognized as necessary, there are still more questions than answers when it comes to their implementation. 

 

Meaningful Change Starts with Better Information  

With financial stress becoming a growing workplace concern, both employers and employees are aligned in recognizing the need for financial wellness benefits. A PNC Bank survey found that 96% of employers believe these benefits enhance employee satisfaction and retention, and 80% of employees would remain with an employer that provides strong financial wellness support. 

Understanding where employees need the most help is the first critical step toward improving their financial wellness. Employers must gain a clear picture of the unique financial challenges their workforce faces before implementing support initiatives. By identifying specific areas of need, organizations can tailor their financial wellness programs to have the greatest impact. Here are three actionable steps employers can take to assess these needs effectively: 

1. Conduct Comprehensive Employee Surveys: Develop and distribute anonymous surveys designed to capture detailed insights into employees’ financial well-being. The survey should cover key areas such as budgeting habits, debt levels, savings goals, and financial literacy. Including open-ended questions allows employees to share personal challenges and suggestions for potential support options. Analyzing this data will provide a clear understanding of the most pressing financial issues within the workforce. 
2. Facilitate Focus Groups and One-on-One Interviews: Host focus groups and confidential interviews with employees across different departments and seniority levels. These discussions can reveal deeper insights into financial pain points and the types of resources employees would find most valuable. Be sure to create a comfortable environment that encourages honest feedback. Insights from these sessions can guide the customization of financial wellness programs to ensure they address the actual needs of the workforce. 
3. Leverage Existing HR and Benefits Data: Review existing data from HR systems, such as benefits utilization rates, retirement plan participation, and requests for financial assistance programs. This data can highlight gaps in current offerings and provide clues about where employees may need additional support. For example, low participation in retirement plans could indicate a need for more accessible retirement education or matching programs. By combining this data with insights from surveys and interviews, employers can design targeted, effective financial wellness initiatives. 

 

The state of employee financial wellness in 2025 presents both a challenge and an opportunity, underscoring the pressing need for meaningful action. As organizations increasingly acknowledge the direct link between financial well-being and overall business success, the coming years will be pivotal in not just recognizing these issues but in actively addressing them through comprehensive financial wellness initiatives. 

Supporting Working Parents Through Employee Discount Programs

For the more than 30 million working parents in the U.S., the past five years have been marked by rapid change and adaptation. The COVID-19 outbreak in 2020 dramatically reshaped daily life, forcing a convergence of professional and parental responsibilities within the home. Although this shift presented formidable challenges—balancing Zoom meetings with homeschooling and managing work deadlines amidst family demands—it also offered unexpected benefits. Working parents gained more quality time with their children, and the flexibility of remote work allowed for more adaptable childcare arrangements. For parents of the millions of babies born between 2020 and 2024, this blended dynamic of work and family life is all they’ve ever known.  

However, as more companies begin implementing return-to-office plans, this new normal may be coming to an end and many working parents are discovering that the level of support they’ve grown accustomed to is no longer guaranteed. While HR leaders continue to champion enhanced childcare benefits, their efforts are hitting a roadblock at the executive level. According to a recent KinderCare survey, nearly 80% of Fortune 500 CHROs report difficulties convincing the C-Suite to expand employer-sponsored childcare offerings, with the primary obstacle being concerns about return on investment (ROI).  

But the data tells a different story.  

 

The ROI of Childcare Benefits 

Despite hesitation from the C-Suite, HR leaders strongly advocate for the expansion of childcare benefits, recognizing their critical role in workforce stability and engagement. Findings from the same KinderCare survey highlight just how valuable these benefits can be: 

• 86% believe that offering childcare benefits is instrumental in attracting top talent. 
• 85% report that these benefits play a critical role in reducing employee turnover. 
• Nearly two-thirds identify them as a key component of their talent acquisition strategies. 

Beyond expert opinions, quantifiable data reinforces the value of these benefits. An analysis conducted by Moms First and the Boston Consulting Group revealed that childcare benefits can yield an impressive ROI of up to 425%. Drawing on HR data, employee interviews, and surveys from five participating companies, the study demonstrated measurable gains in employee retention, enhanced productivity, and decreased absenteeism. Additionally, these benefits contribute to higher morale among working parents, fostering greater employee engagement and long-term loyalty.  

However, even with clear evidence showing the substantial ROI of childcare benefits, HR leaders still face other challenges in their efforts to support working parents. 

 

Other Barriers to Expanding Childcare Benefits 

While concerns about ROI remain a significant hurdle, HR teams also face the ongoing challenge of managing limited benefits budgets. With a finite pool of resources, they must make tough decisions about which programs to prioritize, often having to weigh childcare benefits against other pressing employee needs – particularly healthcare.  

According to a recent Mercer survey, despite escalating healthcare costs, most employers are committed to maintaining or selectively enhancing health benefits in 2025, with a particular focus on areas such as reproductive health and GLP-1 medications. While these investments are essential for employee well-being, the rising costs associated with healthcare often divert resources away from other critical benefits, including childcare support. 

However, benefits teams are not without viable alternatives, and employers can still make a meaningful impact in supporting working parents through creative and cost-effective strategies. 

 

Leveraging Employee Discount Programs to Support Working Parents 

For companies unable to expand formal childcare benefits, employee discount programs offer a practical and flexible solution to ease the financial burdens faced by working parents. The U.S. Department of Labor’s National Database of Childcare Prices reports that families spend between 9% and 16% of their median income on full-day care for one child. This can often equate to costs comparable to or exceeding monthly rent. The high costs are a major burden for working parents, particularly those in lower-income brackets, where childcare expenses can consume an even larger portion of their earnings.  

Employee discount programs frequently partner with local and national childcare providers, offering significant savings on daycare, after-school programs, tutoring, and babysitting services. These discounts can translate into thousands of dollars in annual savings, making a tangible difference in financial stability for many families. Additionally, the flexibility of these programs allows parents to choose options that best align with their schedules and caregiving preferences, ensuring a personalized approach to childcare support that wouldn’t be possible with one universal offering. 

Of course, the financial demands of raising a child extend far beyond daycare and babysitting costs. Parents are faced with a constant stream of expenses that can quickly add up, and employee discount programs can provide much-needed relief by helping working parents manage these ongoing costs more effectively. Let’s look at a few examples: 

• Diapers: The annual cost of disposable diapers for one child averages around $840. This recurring expense can quickly add up, especially for families with multiple young children. Employee discount programs can offer partnerships with major diaper brands and retailers, providing bulk purchase discounts or coupons that ease this financial burden over time. 
• Formula: With an average yearly cost of $1,700, formula represents another significant financial commitment. For families with infants who rely exclusively on formula, these costs can be even higher. Discount programs often include savings on both regular and specialized formula types, helping families manage the cost while ensuring their babies receive the nutrition they need. 
• Toys: Families spend approximately $580 per year on toys, totaling close to $6,000 by a child’s tenth birthday. Beyond just entertainment, toys contribute to a child’s cognitive and social development. Discount programs can help manage these costs effectively by offering deals on educational toys, seasonal items, and even subscription services that deliver age-appropriate toys regularly. 
• Essential Gear: High-cost items like car seats and strollers, which can exceed $500, are non-negotiable for safety and mobility. These items also need to meet strict safety standards, often making the most reliable products the most expensive. Employee discount programs can provide exclusive deals on trusted brands, bundle offers, or seasonal sales, offering significant savings without compromising on quality and safety. 

 

Maximizing the Impact of Discount Programs 

To fully leverage the benefits of employee discount programs, employers should take a strategic approach that goes beyond simple implementation. This involves actively promoting the program, regularly evaluating its effectiveness, and ensuring it aligns with the evolving needs of working parents. A well-managed discount program can significantly enhance employee satisfaction, reduce financial stress, and contribute to a more supportive workplace culture. Let’s go over a few tips: 

1. Promote Awareness: Proactively raise awareness among working parents about the availability and advantages of the discount program. Often overlooked in benefits communications, these programs can be underutilized simply because employees aren’t aware of them. Use targeted communication channels, regular reminders, and onboarding materials to keep the program top of mind. 
2. Gather Feedback: Actively seek feedback from employees to pinpoint the areas where support is most needed. Conducting regular surveys or focus groups not only helps tailor the discount program to better meet parents’ needs but also generates valuable insights that can strengthen the case for broader childcare benefits. 
3. Measure and Communicate Impact: Consistently track and analyze the program’s effectiveness through key performance indicators such as reduced absenteeism, lower healthcare costs, improved productivity, and higher employee retention rates. Presenting this data clearly and effectively can help build a compelling business case for the C-Suite, highlighting the tangible ROI of supporting working parents. 

By creatively utilizing employee discount programs, companies can provide meaningful support to working parents, fostering a more engaged, productive, and loyal workforce. 

Empower Your Employee Caregivers with Discount Programs

Employee leave requests rose in 2024 for the third consecutive year, according to a recent report by AbsenceSoft. While injury and illness recovery (57%) and managing mental health challenges (47%) topped the list of reasons, caring for an aging parent (37%) emerged as the third most common driver. This trend underscores the growing pressures on employees balancing work with caregiving responsibilities. 

More than 48 million Americans currently serve as unpaid family caregivers, a number that is poised to grow as the Baby Boomer generation continues to age. With approximately 10,000 Baby Boomers turning 65 each day, the demand for caregiving is set to reach unprecedented levels over the coming years. 

Employees who are also caregivers face a unique set of challenges that significantly impact their physical, mental, and financial well-being. Studies show that caregivers experience higher rates of physical and mental illness compared to non-caregivers, yet they often place their own health needs on the back burner. Financially, the situation is just as demanding. U.S. caregivers contribute an estimated $600 billion in unpaid labor annually, while also shouldering substantial out-of-pocket costs to ensure their loved ones receive necessary care. 

As caregiving responsibilities continue to rise, employees are increasingly looking to their employers for meaningful support and resources to help them manage these competing demands. 

 

The Growing Impact of Caregiving on Employers

Employers are increasingly feeling the impact of caregiving demands, and the effects extend well beyond accommodation requests. The growing trend of employees juggling work and caregiving responsibilities presents significant challenges to workforce stability and productivity. According to a recent report from AARP and S&P Global: 

• 67% of family caregivers have difficulty balancing their jobs with caregiving duties. 

• 27% of working caregivers have shifted from full-time to part-time work or reduced their hours, and 16% have turned down promotions. 

• 16% have stopped working entirely for a period of time, and 13% have changed employers to meet caregiving responsibilities. 

Clearly, as the population continues to age, employers will have to implement policies and benefits designed to retain this critical segment of employees in the workforce. But that’s easier said than done. 

 

Barriers to Offering Caregiver Benefits

Despite the growing need, many employers face significant challenges in implementing caregiver benefits. Rising healthcare costs, ingrained workplace norms, and the lack of regulatory mandates create obstacles that make it difficult to introduce new support programs. While employers recognize the importance of offering these benefits, balancing financial constraints and cultural shifts within the workplace can be a complex task. Here are some of the primary challenges they must navigate: 

• Cost: Subsidized eldercare, paid caregiver leave, or access to caregiving resources can be expensive to implement and maintain. For smaller companies or those with tighter budgets, these costs may seem prohibitive compared to more traditional benefits. A report by Mercer highlighted that the cost of employer-provided healthcare has grown by an average of 6.5% annually, leaving many organizations struggling to balance budgets while also considering the addition of new benefits like caregiving support. This financial strain and focus on cost containment underscores the difficulty employers face in expanding their benefits offerings. 
• Cultural Stigmas: Some workplaces still harbor cultural stigmas around discussing caregiving responsibilities. Employees may worry about being perceived as less committed or capable if they admit to caregiving challenges, reducing demand for benefits and deterring employers from offering them. According to the Harvard Business Review, nearly 60% of employees feel uncomfortable discussing caregiving responsibilities with their employers, highlighting the critical need for cultural shifts that normalize these conversations.
• Lack of Regulation or Mandates: In the U.S., there is no federal mandate requiring comprehensive caregiver support. Without a regulatory push, many organizations deprioritize these benefits in favor of compliance-focused initiatives. Comparatively, countries like Germany and Japan have implemented national policies to support caregiving, illustrating a gap that leaves U.S. employers to navigate this complex issue largely on their own. 

 

Leveraging Employee Discount Programs to Support Caregivers

For companies unable to provide dedicated caregiving benefits, an employee discount program can serve as a meaningful and cost-effective way to assist employees. While they can’t replace a purposeful employee caregiving strategy, these programs can offer immediate assistance that addresses many of the unique challenges caregivers face. Here’s how these programs can help: 

Elder Care  

The median cost of an in-home health aide in the U.S. is $5,148 per month—a significant financial burden for many employees. Discount programs can provide access to reduced costs for elder care services such as home health aides, senior transportation, or respite care. These savings can help employees manage the high cost of providing quality care for aging loved ones without sacrificing their own financial stability. According to Genworth’s 2023 Cost of Care Survey, long-term care costs have increased by 4-5% annually, underscoring the importance of financial relief for employees. 

Child Care  

More than 37% of caregivers also care for children or grandchildren under the age of 18, making them part of the “sandwich generation.” Juggling the needs of children alongside caregiving responsibilities for older relatives can be overwhelming. Discounts on childcare services, including daycare, after-school programs, and summer camps, can help ease both the financial and logistical challenges these employees face, giving them valuable time to focus on other responsibilities. 

Medical Supplies and Equipment 

Not all medical supplies and equipment—such as walkers, wheelchairs, specialty beds, or adaptive devices—are covered by insurance. These uncovered items can cost caregivers thousands of dollars annually, and The National Alliance for Caregiving notes that 45% of caregivers use their personal savings to cover these costs. Discount programs that offer reduced prices for essential medical equipment or partnerships with suppliers can make a significant difference, helping employees ensure their loved ones have what they need without creating unmanageable financial stress.  

Financial Planning Tools 

Roughly 90% of physical caregivers are also financial caregivers, responsible for managing their loved ones’ expenses and navigating complex financial decisions. Given the high costs associated with caregiving, access to financial planning tools, workshops, or consultations through a discount program can empower employees to better manage their budgets, reduce financial strain, and prepare for future expenses more effectively. Studies indicate that caregivers who receive financial guidance are 27% more likely to feel confident about their ability to manage caregiving costs. 

Health and Wellness Resources 

The physical toll of caregiving is significant, with three-fifths of caregivers reporting fair or poor health, chronic conditions, or disabilities. Encouraging caregivers to prioritize their health is crucial. Discounts on gym memberships, fitness equipment, or wellness retreats can motivate employees to stay active and focus on self-care. Additionally, partnerships with wellness coaches or nutritionists can provide caregivers with personalized guidance to maintain their physical well-being. A recent study by the Caregiver Action Network revealed that caregivers who engage in regular physical activity report a 40% improvement in overall mental health. 

Mental Health Resources 

Caregiving often leads to “caregiver burnout,” a state of physical, emotional, and mental exhaustion caused by the constant demands of managing another person’s well-being. This burnout can negatively impact not only the caregiver’s mental health but also their overall productivity at work and quality of life. Offering discounts on counseling services, mental health apps, or wellness programs can be a lifeline, helping caregivers build resilience, cope with stress, and regain balance in their lives. Providing access to virtual therapy or support groups can also make it easier for caregivers to seek help within their busy schedules. 

Everyday Essentials 

According to a study by the TIAA Institute and the University of Pennsylvania School of Nursing, the average caregiver’s uncompensated expenses total more than $7,000 annually. These costs often include groceries, household goods, and other essentials. Discount programs that offer savings on these everyday items can alleviate some of the financial strain, allowing caregivers to redirect their limited resources toward other critical needs. 

 

Educating Employees About Discount Programs

To truly maximize the impact of an employee discount program, employers must take intentional and proactive measures to ensure their workforce is both aware of these benefits and confident in how to use them. It’s not enough to simply offer a discount program—it requires consistent communication, clear guidance, and active promotion to highlight its value and accessibility. By fostering awareness and engagement, employers can transform their discount program into a powerful tool that directly supports caregiving employees. Here are a few actionable strategies: 

1. Assist Employees Requesting Accommodations. When employees request accommodation for caregiving reasons, make sure they’re informed about how the discount program can help them. Personalized guidance during these discussions can make a significant difference. 
2. Connect with Employee Resource Groups. Proactively engage with relevant employee resource groups to share information about the benefits of the discount program and how it supports caregivers. These groups can also serve as a valuable channel for gathering feedback to improve the program. 
3. Incorporate Caregiving Benefits into Communications. Given the expected increase in caregiving responsibilities over the coming years, include information about how the discount program can assist caregivers in your standard benefits communications plan. Use newsletters, intranet updates, and dedicated webinars to ensure employees are aware of these valuable resources. 

By leveraging employee discount programs and raising awareness about their benefits, employers can better support employees who are also caregivers, enhancing both retention and employee well-being in the process. 

How PerkSpot Makes Gift Giving Easy

Gift giving can be can be time-consuming and sometimes challenging depending who you’re shopping for. Finding the perfect gift requires thoughtful consideration, research, and sometimes a little bit of creativity. Not only that, but gifting is year round with holidays and special occasions like graduation. With an employee discount program like PerkSpot, not only will you save money but you’ll also save time with gift guides and buying guides at your fingertips. We’ve taking a closer look at just how hassle-free gift giving becomes when you partner with PerkSpot.  

Endless Gift Options to Choose From 

One of the advantages of shopping through an employee discount program like PerkSpot, is the extensive variety of gift options. Whether you’re looking for electronics, rental cars, home décor, or even experiences like theme parks and travel, PerkSpot has it all. With access to hundreds of big-name brands, you can easily browse through a diverse range of products and services, ensuring that you find the perfect gift.  

Exclusive, Unbeatable Deals 

What makes PerkSpot differ from our competitors? Our offers are exclusive and unmatched in the market, meaning you can’t find them anywhere else. These discounts can be a lifesaver, especially when you’re shopping for multiple gifts or looking for high-end items that might otherwise be out of your budget. With PerkSpot, you can stretch your gift-giving budget further, allowing you to give something you might not have had the means for without it.  

Convenience and Time Savings 

Shopping for gifts can be a time-consuming task, especially during busy holiday seasons or special occasions. We understand the value of your time and simplify the entire process. By providing a personalized platform where you can explore brands and make purchases from the comfort of your own home, we eliminate the need to visit multiple stores or spend hours browsing online. Not only that, but our member’s receive weekly email communications with weekly perks, hand-picked gift guides, and tips to help them save. 

Versatility for Various Occasions 

Whether it’s a birthday, anniversary, graduation, or holiday celebration, PerkSpot has an unmatched deal for you. Our flexibility ensures that you can find the right gift for any event, ensuring that your gestures are well-received. From fresh flowers to a personalized watch, no matter the occasion you will find what you’re looking for.  

The way we approach gifting has been simplified with employee discount programs. With tons of options, exclusive discounts, convenience, and versatility, PerkSpot simplifies the process, making it easier and more enjoyable than ever before. Say goodbye to gift-giving stress and embrace the convenience of PerkSpot for a memorable and meaningful gift-giving journey. 

Interested in getting started today? Let’s meet and go over the details.