How to design benefits that work for every generation in your workplace

From Baby Boomers to Generation Z, each group in today's multigenerational workforce brings unique experiences, perspectives, and priorities to work. Having different generations in the workplace provides opportunities for greater learning, innovation, and collaboration, but it also brings its challenges. One of these challenges is designing employee benefits packages to meet the diverse needs of these generations.

Tailoring your benefits' offerings to meet the needs of these different generations is essential for fostering an inclusive and engaged workforce. While Baby Boomers may be prioritizing retirement planning and menopause support, younger generations may be more focused on student loan assistance, professional development, and family planning support.

With the majority of workers viewing benefits as "extremely important" when considering jobs, it's crucial for organizations to offer benefits that support employees at every stage of their professional and personal journeys. By understanding how generational differences show up in the workplace and key generational preferences, you can design inclusive and comprehensive benefit programs that meet each employee where they are, attracting and retaining top talent of all ages.

Understanding the multigenerational workforce

Today's workforce is primarily comprised of four different generations: Baby Boomers, Generation X, Millennials, and Generation Z. Millennials now make up the biggest generational share of the labor force at 36%, with Gen Xers coming in next at 31%. As 18% of the total workforce, Gen Z employees have recently surpassed Baby Boomers, whose numbers have declined to 15% as more enter retirement. The silent generation has almost entirely left the workforce at this point.

This age diversity influences workplace culture and expectations, and it's always changing as the generational makeup of the workforce evolves year over year. As millennials and Gen Z make up more of the workforce, understanding their generational priorities will be essential for both recruitment and retention. With these different generations in the workforce, HR leaders face the challenge of balancing distinct generational needs and varied priorities through their benefits program, seeking to design inclusive programs with broad appeal that are also customizable and flexible.

Generational preferences in workplace benefits

While generational preferences do exist, all generations in the workforce value standard benefits, including affordable health insurance, paid time off, financial assistance, work-life balance, and retirement planning. Additionally, everyone seems to value job prestige, recognition, and respect. However, the weight each generation places on these benefits may differ. Because different generations have grown up and entered the workforce at distinct cultural times and have vastly different life experiences, they often have differing priorities, values, and perspectives when it comes to benefits.

Baby Boomers (Born 1946–1964)

Now the oldest generation in the workforce, Baby Boomers often have more traditional priorities and perspectives in the workplace. Raised in a post-World War II and resource-scarce society, Baby Boomers often value more traditional benefits around financial wellness and healthcare. As employees, Baby Boomers tend to be optimistic and competitive workers who value job security. In terms of benefits, they place a lot of emphasis on retirement planning and financial wellness programs, including 401(k) matching, stock options, pensions, and financial literacy coaching. They also value healthcare benefits, especially when it comes to menopause and ongoing care support.

Generation X (Born 1965–1980)

As the next-oldest generation, Gen Xers tend to prioritize work-life balance and independence. Work-life balance benefits they look for include hybrid and flexible work arrangements. Additionally, many workers in this “sandwich generation” are experiencing dueling care costs and financial pressures as they care for both aging parents and their own children. Like Baby Boomers, Gen Xers are also prioritizing menopause and ongoing care support as they and their loved ones navigate this phase of life, as well as retirement planning and financial wellness for their own future stability.

Millennials (Born 1981–1996)

Despite their reputation as lazy and entitled, millennials currently make up nearly 40% of the total workforce and data shows they are more likely to be "work martyrs" than other demographics, with nearly half of them identifying as such and viewing work martyrdom as a positive trait. In contrast to older generations, however, millennials have placed more emphasis on mental health benefits and wellness programs, especially because nearly half of all millennials report feeling stressed or anxious most or all of the time. More so than prior generations, millennials also tend to be emotionally driven employees, so tapping into those emotions through meaningful and purpose-driven work can bring greater company loyalty.

Like other generations, they also value financial literacy and financial assistance, especially in the form of student loan repayment. Fertility and family benefits are also important to this generation, including fertility planning, pregnancy and adoption support, parental leave policies, and childcare assistance. As millennials get older and transition into perimenopause, menopause benefits will become increasingly important too.

Generation Z (Born 1997–2012)

The youngest and most diverse generation in the workforce, Generation Z are more value-oriented and invested in social causes than previous generations. Along with millennials, these younger employees are drawn to meaningful work, social responsibility, and sustainability-related perks. Since they are early in their careers, they also tend to value professional development opportunities and career mobility and advancement. 

Additionally, as they think about starting families of their own, Gen Z employees are increasingly interested in fertility, preconception, and trying-to-conceive (TTC) benefits. A recent Maven report found that 50% of Gen Z have left or considered leaving a job because the company didn't offer adequate reproductive health benefits, compared to 35% of millennials and 16% of Gen X. Lastly, technology-driven solutions for benefits access are especially important to these digital natives who grew up with the Internet, including virtual care options and intuitive, online platforms.

Strategies for designing inclusive benefits programs

Conducting regular needs assessments

Creating and iterating on inclusive benefits programs begins with surveying employees to learn what they actually want and need. Annual employee surveys and more frequent, informal feedback opportunities help identify evolving needs. From these employee surveys, HR leaders can analyze generational trends to refine a more data-driven benefits strategy. 

Offering flexible, customizable benefits

Due to various generational differences, it's important to offer customization and flexibility in your benefits offerings whenever possible. Giving employees options and choice in their benefits packages can allow different generations to tailor their benefits to their specific needs. And you don't need to tackle this customization on your own. Partnering with vendors like Maven Clinic gives employees virtual options to access reproductive health care on-demand, ensuring that employees are getting the help they need, no matter what phase of life they’re in

Communicating benefits effectively

Once these tailored benefits are in place, it's important to communicate them to the different generations in the workplace. Each generation has preferred communication styles, from Baby Boomers' preference for face-to-face communication to Gen Z's proclivity to use online communication channels. Tailoring not only the benefits but also the communication about them will ensure employees of all generations can understand what benefits are available to them and how they can utilize them.

Leveraging technology for benefits engagement

Beyond Gen Z and the digital natives, companies should leverage technology for streamlined benefits access and management. Platforms like Maven centralize benefits access, enrollment, and care to streamline the process for employees and HR teams alike. Making benefits information and access navigable through technology is increasingly important when appealing to younger generations.

The ROI of a generationally inclusive benefits program

Personalized benefits help improve employee engagement and retention, which in turn lead to greater productivity and less attrition. When employees are satisfied with their benefits, they are 13% more likely to stay at the company long-term, leading to better morale and lower turnover costs. A LinkedIn study found that companies who offered flexible working arrangements saw 137% higher headcount growth.

Good benefits often lead to greater employee engagement, and engaged employees have a real and positive impact on companies' bottom lines. A Gallup report on employee engagement found that engaged employees were 17% more productive than their less engaged counterparts, leading to 21% greater profitability for the company. Increased morale and company loyalty also comes with financial advantages, as the cost to replace an employee can range from 50% to 200% of their annual salary. By reducing turnover costs, companies boost both employee morale and their own bottom lines. 

Partner with Maven to build better benefits for all generations

In order to design inclusive benefits that support employees of all ages and generations in the workplace, understanding generational differences is key. From Baby Boomers to Gen Z, different generations might have vastly different needs and priorities when it comes to benefits support. 

Maven is a women's and family healthcare company, providing 24/7 clinical, emotional, and financial support all in one place. We know the pathways to parenthood are as diverse as the workforce—and as the generations in the workforce change, we change with them. Maven can work with employers to personalize care for their dynamic team to ensure that every employee from Boomers to Gen Z workers have access to on-demand comprehensive care. Interested in learning more about what Maven can do for you? Let's chat. 

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