How to Generate Benefits Adoption Across Multiple Generations

We all know that the competition for top talent is fierce. Today’s employees are taking a closer look at what you’re offering, but what they want varies depending on their current stage of life. Finding the right mix of employee benefits can go a long way in recruiting and retaining the best of the best.

The Benefits Generations Want

Human resources (HR) managers need to understand what each generation needs to offer a competitive package. While not every employee on your payroll wants the same thing, some common themes recur.

Every generation values health insurance and paid time off as top benefits, but there are clear differences in other areas. When looking at your benefits mix, it’s important to remember life stages.

Boomers

While many Baby Boomers are headed for retirement, nearly 20% of those age 65+ are still employed, about double the number from the 1980s. This group prioritizes benefits that provide long-security, including:

Health Insurance: Baby Boomers value comprehensive health insurance plans due to increased health concerns as they age.
Retirement Benefits: With many Boomers nearing retirement or already retired, 401(k) plans, pensions, and other retirement benefits are highly prioritized.
Flexible Work Arrangements: To support transitioning into retirement or managing caregiving responsibilities, Baby Boomers value flexible working options like part-time roles or remote work.

Gen X

Generation X employees are looking for stability and growth opportunities, with an increased emphasis on balancing their personal and professional lives.

Gen X prioritizes these benefits in the workplace:

Work-Life Balance: Gen X values work-life balance, often due to responsibilities for both aging parents and children.
Health and Wellness Programs: Wellness programs that include mental health support, fitness programs, and comprehensive health plans are important to this generation.
Career Development Opportunities: Gen Xers often look for opportunities for skill development and career progression, including professional training and mentorship.

Millennials

Millennials are trying to advance in their careers, but are still managing student debt. Besides healthcare, the benefits Millennials prize the most include:

Student Loan Assistance: Many Millennials prioritize benefits that can help with student loan repayment due to the high debt load this generation often carries.
Flexible Work Arrangements: Millennials highly value flexibility in where and how they work, including remote work options and flexible schedules.
Professional Development: Opportunities for advancement, continuous learning, and career development are key benefits Millennials seek.

Gen Z

The American Psychological Association says Gen Z adults are dealing with significant stress levels, higher than other generations. Generation Z is looking for a healthy work environment and culture. Top benefits include:

Diversity and Inclusion Initiatives: Gen Z places a strong emphasis on workplace culture and values, particularly around diversity and inclusion.
Mental Health Support: Benefits that support mental health, such as counseling services and mental wellness programs, are highly valued by Gen Z.
Financial Wellness Programs: As new entrants to the workforce, Gen Z values guidance on financial management, including saving and investing.

Allow Customization of Benefits

A growing trend in HR is offering customization of benefits. With differing priorities based on life stages, customization enables employees to create a personalized benefits plan that fits their needs. Companies offering such plans see greater adoption.

This doesn’t mean employees get to pick their plan in most cases. Instead, it gives them options and allows them to tailor participation. For example:

Flexible spending accounts (FSAs)
Health savings accounts (HSAs)
Childcare subsidies
Wellness initiatives
Tuition reimbursement programs
401(k) matching

With healthcare continuing at the top of the list for every generation, offering a range of options is crucial. Younger workers typically use fewer services and may benefit from a low-cost option with higher deductibles. Older workers who use healthcare services more frequently are more likely to think about total healthcare costs, opting for higher monthly premiums with lower deductibles.

Telemedicine is a growing trend as well across all generations. Virtual provider visits can lower employer benefit costs and provide additional options for employees.

Choosing the Right Benefits

Choosing the right benefits mix to appeal to each of the generations in your workforce can be challenging. It’s a delicate balancing act to find the right benefits and keep employer costs under control.

Resourcing Edge is a Professional Employer Organization (PEO) that can help. With services covering payroll, benefits, compliance, technology, HR, and recruiting, Resourcing Edge can help you put together a competitive benefits mix and handle benefits administration.

Regardless of the size of your company, you can offer a mix of benefits that rivals any Fortune 500 benefits package — and do so affordably.

Contact the employee benefits experts at Resourcing Edge