Explore how an inclusive benefits plan with opportunities for personalization can help accommodate all generations in the workforce.
With five generations in today’s workforce, chances are you’ve seen it all: Employees early in their careers, just building emergency savings. Those in the sandwich generation, possibly caring for kids and elders. And senior team members, approaching or even phasing into retirement.
| 5 generations in the workforce | ||
|---|---|---|
| More likely to want their employer to add benefits |
Gen Zers | Born 1997–2012 |
| Millennials | Born 1981–1996 | |
| More likely to be concerned about being able to retire |
Gen Xers | Born 1965–1980 |
| Boomers | Born 1946–1964 | |
| The silent generation | Born 1928–1945 | |
Shaping one benefits plan that’s a perfect fit for everyone is a tall order. The good news is, you don’t have to.
In many cases, it’s more effective to offer flexibility and options. When that’s not possible, you may have opportunities to personalize your communication around a given benefit.
“You can offer the same benefit to different ends of the multigenerational workforce. It means something to both, but they use it differently.”
Nate Schelhaas SVP, Benefits and Protection, Principal®
Let’s look at some specifics, benefit by benefit.
Health insurance
84%
Eighty-four percent of employees consider health care benefits “extremely valuable.” Older employees are more likely to say these benefits are keeping them in their jobs.
Health insurance is the most valued benefit across generations.
Employers commonly take a tiered approach—offering two or three health insurance plans—allowing employees to choose the level of coverage that suits their medical and financial circumstances.
A bonus step: Personalize the communication about choosing and using health insurance for employees with varying family situations and priorities.
Retirement plans
81%
Eighty-one percent of employees consider retirement benefits “extremely valuable.” Older employees are more likely to say these benefits are keeping them in their jobs.
Employees of all ages value retirement benefits.
Still, if employees don’t understand that they’re eligible or that they need to take action to enroll, they’re unlikely to participate. That’s the case for 35% of gen Zers.
Additionally, offering more robust retirement and bonus plans to key employees is a common way to help attract and retain senior leadership.
Financial wellness programs
While people of all generations benefit from financial education, needs differ by life stage.
“A 25-year-old may have student loans, while a 55-year-old may be saving into their retirement account to catch up on savings,” says Nate Schelhaas, senior vice president of Benefits and Protection. “Understanding what your employees want is critical.”
Topics that more than half of employees want in an employer-sponsored financial wellness program:
Gen Zers/Millennials
- Saving for retirement
- Insurance
- Debt reduction
- Credit resources
- Budgeting
- Homeownership
Gen Xers
- Saving for retirement
- Insurance
Boomers
- Saving for retirement
- Debt reduction
- Credit resources
Mental health and wellness benefits
Younger generations may be more vocal about mental health, but it matters to employees across generations. This isn’t the place to focus on one group more than another.
Employees who say mental health and wellness should be top of mind for employers:
73% of gen Zers and millennials
75% of gen Xers
55% of boomers
Caregiving benefits
It’s easy to think of younger generations as the beneficiaries of family planning and childcare benefits—from adoption and infertility coverage to paid parental leave and childcare assistance. But consider serving a broader group by expanding this category and reframing it as caregiving benefits.
Compared to individuals caring for children, individuals caring for elders are more likely to value not only caregiving benefits but also Paid Family and Medical Leave and life insurance. People caring for both children and elders—the “sandwich generation”—value these benefits even more.
Time off and flexibility
Everyone needs time off and flexibility. A millennial employee without kids might love traveling. A “sandwich generation” caregiver—who’s almost twice as likely to feel burnt out than a noncaregiver
This is an opportunity to create core policies that give all employees enough time off and flexibility, while also working with individuals on work arrangements that fit their unique circumstances.
You might:
- Allow employees to adjust their start and end times.
- Give employees freedom to step out for appointments or family emergencies.
- Allow employees to compress their workweeks (for example, working four 10-hour days).
- Expand your paid time off policy (and encourage employees to use it!).
- Work one-on-one with individuals who are ready to phase into retirement, reducing their work hours over time.
Employees who say it’s more important than ever to offer flexibility:
94% of gen Zers and millennials
93% of gen Xers
86% of boomers
Group insurance
To accommodate differing priorities when it comes to group insurance, consider ways to offer flexibility in your plans.
For example, you could provide plans for life, accident, and disability, with voluntary add-ons for critical illness, supplemental life, or long-term care insurance.
Younger generations may prefer keeping their premiums down. But be sure to share targeted education and anecdotes to help inform their decisions.
Whatever employee benefits you land on, continual evaluation and communication are essential.
Regularly review benefit usage, survey employees on benefit needs and satisfaction, and update your offerings accordingly to keep up with your evolving multigenerational workforce. When something changes, be transparent about your decision-making and clear about how employees can make the most of the benefits available to them.
What’s next?
Visit our small business resource center for additional content, webinars, and tools. Or contact a Principal® financial professional to work through your business needs one on one.
