Work-life balance is not just a corporate catchphrase – it’s a defining factor in how employees effectively navigate between their careers and personal lives. A new study from ARAG® sheds light on what balance really means across workforce generations, and why it’s proving harder to achieve.
Drawing insights from 1,600 full-time workers – spanning Gen Z to Boomers – alongside perspectives from HR professionals, the 2025 Work-Life Balance Study reveals the pressures that disrupt equilibrium and the benefits that can help restore it. These findings offer HR professionals a clearer lens for designing programs that meet employees where they are – and evolve as they do.
How Employees Define Work-Life Balance in 2025
Work-life balance is dynamic, shaped by evolving life stages, job demands and personal priorities. Despite these differences, several consistent themes emerged when it comes to defining balance:
- Separation of Work and Personal Life: For many employees, especially those in Gen Z and Gen X, balance hinges on the ability to disconnect. They emphasize the importance of leaving work stress at work to be fully present in their personal lives. The emphasis is on protecting time and mental space outside of working hours.
- Flexibility and Control Over Time: Across all generations, flexibility is a cornerstone of balance. Employees value the ability to adjust their schedules – whether for caregiving, health appointments or personal needs – without fear of penalty. Millennials and Boomers, in particular, associate balance with having control over when and how they work.
- Mental and Emotional Well-Being: Balance also serves as a safeguard against burnout. Employees consistently cited the need for time to rest, pursue hobbies, and connect with loved ones. These restorative moments are seen as essential to maintaining emotional resilience and long-term engagement.
Generational and Gender Nuances on Work-Life Balance
The ARAG study reveals distinct priorities across the four generations in today’s workforce:
- Gen Z emphasizes mental health, social connection and firm boundaries between work and personal time. For this youngest cohort, balance means protecting emotional space and avoiding burnout early in their careers.
- Millennials seek harmony between professional ambition and family life. Paid time off and flexible scheduling are essential tools for maintaining a sustainable rhythm between career and personal life.
- Gen X leans toward structure and predictability. With many juggling caregiving responsibilities, they prioritize clear working hours and the ability to step away when family needs arise.
- Boomers value productivity and purpose at work but also recognize the importance of preserving energy for personal interests and time with loved ones. For them, balance is about sustaining engagement without sacrificing fulfillment outside the office.
And while both men and women value flexibility and mental health support, women are more likely to emphasize emotional well-being and time for family, viewing balance as a safeguard against stress and a pathway to deeper connection. Men, meanwhile, tend to focus on productivity and financial stability, often framing it in terms of performance and long-term security.
The Current State of Work-Life Balance
With these definitions in mind, it’s clear that many employees are struggling to find equilibrium. One in four rate their current work-life balance as fair, poor, or very poor and 57% say they regularly work beyond their scheduled hours.
The consequences can be far-reaching: over half of the employees surveyed (54%) have left a company due to work-life challenges. Employees point to persistent pressures—burnout, frequent interruptions, unrealistic workloads, and financial or family stress—as key factors that erode both productivity and personal well-being.
Benefits That Help Employees Achieve Work-Life Balance
The 2025 study makes it clear: benefits that support flexibility, mental health, caregiving, and financial wellness are foundational to a balanced work experience. For HR leaders, the challenge is to align benefit offerings with the realities employees face every day.
Here’s what employees say makes the biggest difference:
- Flexibility and Scheduling Autonomy
Flexible work arrangements, such as hybrid schedules, compressed workweeks or remote work options, were among the most frequently cited benefits. Employees consistently point to autonomy over when and where they work as a key factor in managing personal responsibilities, reducing stress, and staying productive.
- Mental Health and Burnout Prevention
With burnout cited as a major concern, organizations are expanding their mental health offerings. From free counseling sessions through Employee Assistance Programs (EAPs) to mental health apps and company-wide wellness days, these resources are helping boost morale and reduce absenteeism.
- Support for Caregivers
Whether caring for children, aging parents or ill family members, employees need support that acknowledges the complexity of their lives. Paid parental and caregiver leave, subsidized childcare and eldercare services, flexible policies and dependent care FSAs can be game-changing in helping caregivers stay present and productive.
- Financial Wellness Resources
Financial stress – particularly for employees living paycheck to paycheck – can derail focus and well-being. Employers are responding with budgeting webinars, student loan assistance programs, and financial counseling through EAPs and retirement vendors. This assistance not only alleviates stress, it also strengthens retention and loyalty.
- Legal and Life Planning Support Legal stress often flies under the radar, yet it quietly erodes productivity. Benefits like legal insurance and EAPs were praised for helping employees navigate legal challenges, such as divorce, estate planning and financial disputes, without adding emotional or financial burden.
Recommendations for Employers and Benefits Advisors
The 2025 Work-Life Balance Study underscores the need for designing benefits that reflect the diverse and evolving needs of today’s workforce. For employers and advisors, this means embracing a more personalized, flexible, and data-informed approach.
To build programs that resonate, organizations must listen. Engagement surveys, utilization of metrics and retention data offer critical insights into what is working and where to pivot. Advisors play a key role in translating this data into strategy.
When employers invest in meaningful work-life balance initiatives, the payoff is tangible. Abby Gibbons, Director of People and Culture at Quicksilver Scientific, noted, “Employees have expressed appreciation for greater flexibility. Our company has low turnover.” A benefits manager at a utility company added, “Providing time away from work with financial security has helped employees return better prepared to re-engage and contribute productively.”
And don’t underestimate communication. Even the most generous benefits fall flat if employees don’t know they exist. From onboarding to internal newsletters, consistent messaging reinforces an organization’s commitment to well-being.
By listening closely and acting with intention, employers and advisors can build benefit programs that support both the human and business sides of work.
Moving Forward
Work-life balance is no longer a fringe concern. It is a central pillar of employee well-being and organizational success. The 2025 Work-Life Balance Study confirms that employees across generations want more than just time off. They’re looking for flexibility, emotional support and practical resources that help them navigate the complexities of modern life.
Employers who respond with empathy and adaptability, by offering flexible schedules, mental health support, caregiving assistance, legal insurance and financial wellness programs, are seeing stronger retention, deeper engagement, and higher productivity.
For HR professionals and benefits advisors, the challenge is clear: build programs that reflect the full spectrum of employees’ lives. By doing so, organizations can foster a culture where work-life balance is not just an aspiration, it’s a lived experience.
Lisa Wolf is Director of People & Culture at ARAG Legal Insurance. With 20+ years of HR experience, Lisa oversees talent acquisition, organizational design and effectiveness, performance management, employee relations, compensation and benefits, succession management and team member learning and development. Lisa is fiercely dedicated to creating and protecting cultures where team members and organizations thrive.