Quick Hits - October 1, 2025 - American Society of Employers - ASE Staff

Quick Hits - October 1, 2025

Healthcare costs to increase 9.5%: U.S. employer health care costs are projected to rise 9.5% in 2026, exceeding $17,000 per employee, according to Aon. This marks the third consecutive year of elevated health care cost trends near double digits.  The continued rise in chronic conditions, such as musculoskeletal and cardiovascular disease, alongside an increase in high-cost conditions like cancer, remains a primary driver of escalating medical costs in the U.S. Simultaneously, hospital workforce expansion is enabling greater patient throughput, further contributing to higher levels of health care utilization.  Prescription drug spending is also rising, driven by greater use of costly brand name and specialty medications. Notably, demand for GLP-1 therapies has surged, as uptake accelerates for treatment of diabetes, obesity, and other chronic conditions. Both employer and employee cost increases are the highest in the last five years, when average annual increases were 5.8% for employers and 3.9%  for employees. On average, employers are responsible for about 81% of the plan cost, with employees covering the rest.  The analysis indicates that employees are expected to pay $4,920 for health care coverage in 2025. This cost is made up of $2,967 in premiums from paychecks and $1,953 in out-of-pocket expenses like deductibles, copays, and coinsurance.  Source: CCH 9/17/25

Are you stagnating in your job? 43% of workers said there are “little to no growth opportunities” at their current job in a SurveyMonkey survey of more than 3,500 full-time employees conducted in late July and early August. Generation Z led in dissatisfaction, with only 28% saying they were satisfied and content with their current situation. 38% of millennials and 47% of Gen X workers agreed. Gen Z was also most likely to jump ship for another company, SurveyMonkey found. More broadly, survey results showed workers are financially stressed, with 3 in 4 engaged in or considering side hustles and two-thirds saying money is a main driver for career choice. The results also report hustle culture is back in other ways, with more than half saying long hours and being “always on” is pervasive at their company.  Source: HR Dive 8/26/25

In down times training should be an investment: Training programs play a vital role in enhancing employee skills and boosting engagement. By investing in these programs, you not just equip your team with valuable knowledge but likewise promote a culture of continuous learning. Training sharpens employees’ skills, leading to 87% of learners acquiring immediately applicable knowledge. Training boosts employee confidence, with 90% of learners feeling more assured in their roles. Organizations investing in training see improved talent retention, as 70% of employees seek companies that support professional growth. Customized training programs align with strategic goals, enhancing team collaboration and innovation. Well-trained employees reduce operational mistakes and turnover, resulting in significant cost savings for organizations. Given the economic situation, training programs get cut first.  But if salary budgets have flat to little growth, training programs for employees can emphasize that the employer is spending to invest and can offset other economic issues impacting employees. Many employers use ASE training and development specifically for this purpose. Make sure budget is left for employee development this budget cycle.  Source: Small Business Trends 9/1/25

Are you providing lactation support for your employees? Pumping emerged as one of the most significant challenges for breastfeeding parents, with navigating pumping equipment and finding places to pump as two major obstacles, according to a survey by Mamava and Medela. These hurdles highlight the importance of dedicated lactation spaces in workplaces and public areas equipped with amenities like cleaning supplies and secure storage for milk and equipment. For employers in particular, investing in these resources represents a tangible opportunity to reduce some of the biggest challenges parents face. Yet although 76% of respondents work either full- or part-time, less than half (44%) feel supported at work, and one in three lack reliable access to a lactation space. Even more concerning, only 55% are aware of their protections under the PUMP for Nursing Mothers Act, a 2022 federal law requiring employers to provide lactation accommodations. The data points to an urgent need for employers to improve both physical infrastructure and employee education around rights and resources. In addition to dedicated lactation rooms and hospital-grade pumps, employers should consider flexibility for new parents, especially for those managing pumping schedules.  Source: EBN 9/4/25

Reminder--PWFA applies to lactation as well: The PUMP for Nursing Mothers Act requires covered employers to provide lactation accommodation for the first year after the baby is born. But the EEOC’s position is that lactation accommodation is also required under the PWFA. Generally, if an employer is complying with the PUMP Act, it should also be in compliance with the PWFA as it applies to lactation accommodation. But employers who are not covered by the PUMP Act, or employers who are covered but whose employees want to continue nursing beyond the first year, are required by the Pregnant Workers Fairness Act to provide lactation accommodation. Clear as mud, huh? The EEOC has published a helpful chart comparing and contrasting employer obligations under the PWFA and the PUMP Act.  Source: Constangy 8/1/25

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