Deciding which employee benefits to offer has always been challenging, but it’s even tougher today since your workforce spans several generations with different needs and priorities. As you structure core offerings and consider supplemental ones, it’s vital to evaluate the demographics of the workforce segments you want to motivate, retain, and attract, and choose benefits they’ll value the most. Many employers adopt a one-size-fits-all approach because it’s quick and expedient, but a targeted strategy can be more cost effective for your organization, more rewarding for your most valuable employees, and a far superior way to achieve your long-term organizational goals.

Did you know?

In a Barclays study, 6 out of 10 employees stated that a comprehensive benefits package was essential when considering a job offer. ¹

As a starting point, understand what generations, in what percentages, comprise your current workforce and those workers you want to hire. The breakdown below provides a basic description of each generation and pinpoints what employee benefits matter most to each. Take some time to compare your current benefits and those you’re considering to those listed here.

Generational Overviews and Preferred Benefits²

Baby Boomers (1946-1964)

In terms of work-life balance, this generation tends to prioritize work to a far greater degree than younger workers. The 2008 recession impacted the financial lives of Baby Boomers and upended their retirement plans. Many are having to work longer and retire later than they had hoped.  Members of this generation commonly care for aging relatives, which adds to their financial pressures and may further delay their proposed retirement date. They’re concerned about aging and want to maintain good health to remain in the workforce as long as necessary.  

• Key Characteristics: Strong work ethic | Experienced | Focused on health & aging | Concerned about Retirement
• Preferred Benefits: Voluntary Benefits, Comprehensive Health Coverage, Dental & Vision, Caregiving Benefits, Retirement Benefits, HRAs, HSAs, FSAs, Workplace Flexibility, including Part-Time Options

Generation X (1965-1980)

Compared to previous generations, this group is far more focused on achieving good work/life balance.  They tend to have dual caregiving responsibilities, looking after and supporting aging relatives as well as children through and beyond their college years. As a result, their ideal work/life balance favors life, not work, which is opposite of Baby Boomers. 

• Key characteristics: Values work/life balance | Prioritizes flexibility | Concerned about financial debt |​ Saving for college & retirement
• Preferred benefits: Voluntary Benefits, Comprehensive Health Coverage, Dental & Vision, Caregiving Benefits, Retirement Benefits, HRAs, HSAs, FSAs, Paid Parental & Elder Care Leave, Affordable Family Healthcare, Financial Wellness & Education

Millennials (1982-1996)

This generation comprises the majority of today’s workforce. They are extremely tech-savvy, having grown up during the dot-com boom and with the internet. Their finances were negatively impacted by the COVID-19 pandemic as was their mental health. Many have student loans to pay that have significant balances. The oldest members of this generation may have school-age kids to care for and educate. Having reached their early forties, they’re challenged by saving for college and retirement simultaneously. At the same time, they may have elderly parents to look after and help financially. 

• Key Characteristics: Goal oriented | Highly educated | Value autonomy | Value good mental health | Concerned ​about student debt
• Preferred Benefits: Voluntary Benefits, Comprehensive Health Coverage, Dental & Vision, Mental Health Resources, Freedom to Choose Benefits, Retirement Plans, Student Loan Debt Assistance, Financial Wellness & Education, Unique Benefits like Pet Insurance & Fertility Resources

Generation Z (1997-2012)

Like Millennials, this generation understands how financial matters can take a toll on health and well-being. They’ve watched their predecessors work hard yet lose their livelihood during recessions and seen them struggle to pay off student debt. As a result, Generation Z’s primary focus is well-being.  Members of this generation are very aware of workplace stressors and expect employers to offer mental health, employee assistance, and similar benefits to offset job pressures.  

• Key characteristics: Entrepreneurial | Prioritize emotional well-being | Value good mental health
• Preferred benefits: Voluntary Benefits, Comprehensive Health Coverage, Dental & Vision, Mental Health Resources, Retirement Plans, Student Loan Debt Assistance, Financial Wellness & Education, Tuition Reimbursement

Not sure where to start?

If you’re unsure how to optimize your current HR, Employee Benefits and/or Technology lineup so that it attracts and retains the talent you need, we can help. For more information on developing a successful multi-generational benefit plan, contact us today.

Sources:

A number of articles, documents and internal consultations were used to create this article, including:

1. Employee Benefits: What Each Generation Wants – Glassdoor US
2. Workplace Benefit Trends By Generation In 2024 – Forbes Advisor.
3. Benefits Toolkit – Multigenerational Workplace Benefits – Zywave

---

• Category: News