Rethinking Work-Life Balance: What You Need to Know

In today’s workplace, balance should reflect culture, and vice versa. Organizations that prioritize work-life harmony are building resilient, engaged teams. And as HR and total rewards (TR) professionals, you’re not just the stewards of benefits — you’re the ones who need to truly exemplify the standards you want to put in place. So, when it comes to work-life balance, how can you advocate for this in your organizations? And, what does work-life balance even look like in an always-connected world?

That is what the latest research from ARAG Legal Insurance set out to understand. The 2025 Work-Life Balance Study was initiated in response to the company’s 2024 findings, which identified work-life balance as one of the top three stressors for employees.

To gain deeper insights, ARAG surveyed 1,600 U.S. workers across generations, roles and industries, as well as HR/TR professionals who are shaping workplace policies. The goal was to understand how work-life balance is defined, experienced and supported in today’s work environment. The results offer guideposts for HR/TR leaders to create more responsive benefit strategies that align with the evolving needs of a diverse workforce.

The new study had four primary findings:

1. Some primary themes help define work-life balance for employees: clear separation of work and home life, flexibility to help manage both, stress management support, and quality time with family and friends.
2. Generational differences can shape those expectations.
3. More than half of surveyed workers cited poor work-life balance as the reason for leaving an employer.
4. Benefits that support mental health, caregiving and financial well-being are key to sustainable balance.

The New Definition of Work-Life Balance

With four generations in the workforce (Baby Boomers, Generation X, millennials and Generation Z), the definition of work-life balance isn’t “one size fits all.” But when asked the question, “What does work-life balance mean to you?” some common themes emerged from worker responses:

• Separation of work and personal life (diligently maintaining clear boundaries between job responsibilities and home life);
• Flexibility (providing a level of autonomy to adjust schedules when the two worlds intersect);
• Stress management (utilizing available tools and programs to help manage day-to-day and avoid burnout); and,
• Quality time with family (recognizing priorities and the need to decompress).

Additionally, the study showed each generation has distinct expectations when it comes to what defines work-life balance. Respondents in Generation Z prioritized mental health, flexibility and clear boundaries. Millennials sought open communication and policies that support flexibility. Those in Gen X favored structured hours and family time. And, Baby Boomers leaned into traditional schedules and family-first policies.

For HR/TR leaders, this means designing benefits and policies that are responsive to diverse needs. Balance goes beyond paid time off (PTO) — it’s about autonomy, support and trust.

The Cost of Imbalance: Stress, Turnover and Lost Productivity

Even with 83% of surveyed workers reporting job satisfaction, stress remains a silent productivity killer. Mental fatigue and burnout topped the list of workers’ distractions. More than half of respondents (57%) said they work beyond scheduled hours. And when things at work get out of sync enough, 54% of workers cited poor work-life balance as the primary reason for leaving their jobs.

These numbers signal to HR/TR leaders that they must proactively address the root causes of stress at work to reduce turnover and absenteeism.

Benefits that Support Balance

As you’re evaluating your benefits package, consider these offerings as a way to positively impact your employees’ work-life balance. The survey showed three main categories of benefits were identified as helpful in finding this harmony:

1. Wellness benefits. Generous PTO, mental health services and stress management programs were viewed as essential. Employees want to feel empowered to disconnect and recharge. As one surveyed HR leader noted, “Burnout is real. Our mental health workshops have improved morale and productivity.”
2. Family and caregiving support. Paid caregiver leave, emergency childcare and eldercare support are no longer viewed as optional. With 51% of caregivers for aging parents reporting high stress, these benefits are seen as critical for retention — especially among millennials and Gen Z. Often referred to as the “sandwich generation,” these employees find themselves caring for aging parents and grandparents while also raising their own children.
3. Financial and legal counseling. Financial and legal stress undermine focus and overall well-being. Offering financial planning tools and legal insurance can help employees manage life’s complexities with confidence.

How to Influence Work-Life Balance as a Leader

While 75% of surveyed employees rate their work-life balance as good right now, only half feel their manager supports it. This is where you can influence others across your organization. Train managers to model healthy boundaries. Make sure to communicate policies clearly and consistently. And with that, encourage the use of benefits without stigma.

As one surveyed HR leader put it, “We don’t just offer flexibility; we live it. That’s what makes a difference.”

Balance Is a Business Strategy

Work-life balance is no longer a nice-to-have. There is a strong business case to investing in employees’ well-being. When employees feel supported, they are generally more engaged, more loyal and more productive. And, HR/TR professionals are uniquely positioned to drive this transformation.

So, stop thinking of balance as a buzzword and start treating it like the priority it is — for healthier teams, stronger cultures and more resilient organizations.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Employee Experience
• Well-Being