The cultural climate of the workforce has undergone some significant changes in recent years, and businesses need to be able to think on their feet regarding how they adapt. With Gen Z now making up a greater portion of the workforce, alongside an aging population that’s choosing to work past the age of 65, businesses are face to face with a truly multigenerational workplace. This has set in motion a new challenge: addressing the varied benefit needs of employees at various life stages. From Gen Z to baby boomers, each generation prioritizes different aspects of their health, financial stability and work-life balance, shaping their expectations for employer-provided benefits.
According to the Arizona Commerce Authority, 650,151 small businesses make up 99.5% of the Grand Canyon State’s total business, employing 1.1 million people. Small businesses typically struggle to afford the same benefits that larger corporations can provide. However, through multi-employer groups, SMBs can leverage their combined buying power, making benefits more affordable. Additionally, these groups can provide access to more product offerings, like modern platforms and resources that remove the stress and confusion from benefits administration and management.
Employers that succeed in driving their talent to engage with relevant benefits packages are better positioned to attract and retain top talent. In fact, 73% of employees would be more motivated to stay with their current company if it offered better health insurance options.
Here’s a look at the top benefits priorities for each generation in the workplace:
- Gen Z (ages 11–26) values mental health care and flexible wellness programs. With burnout being a common concern, mental health coverage — such as teletherapy or employee assistance programs is critical. Student loan repayment programs are also highly appealing to a cohort facing educational debt.
- For millennials (ages 27–42), financial health is often top of mind. Many in this group are balancing new and growing family responsibilities in addition to long-term financial planning. Health insurance with family coverage, flexible spending accounts (FSAs) or health savings accounts (HSAs) and childcare assistance are key benefits for this generation. Additionally, student loan assistance is a highly valued benefit as millennials are the most burdened by student debt.
- Gen X (ages 43–57) often juggles responsibilities for aging parents and children, making them the “sandwich generation.” They seek flexible health coverage and family-friendly benefits such as dependent care FSAs. Employers should consider offering college savings plans, such as 529 plans, to help Gen X employees prepare for their children’s education.
- As baby boomers (ages 58–77) approach retirement, their primary concerns include maximizing retirement savings and managing healthcare costs. Catch-up contributions to 401(k) plans, retirement planning tools, long-term care insurance and Medicare supplemental insurance are key.
Lifelong Benefits Education
Beyond preventive care, employees need year-round access to benefits education to make informed decisions about their health and financial future. Platforms that educate and allow for self-service options give employees a greater sense of control in their healthcare and retirement planning. By offering financial planning tools like Medical Expense Reimbursement Plans, employers can help employees prepare for future healthcare costs and ensure a more secure retirement.
Creating a Competitive Advantage
Benefits continue to stand as a key differentiator for employers. Providing benefits tailored to the diverse needs of a multigenerational workforce equates to higher engagement, retention and employee well-being. By recognizing the specific concerns of each generation, employers can create a benefits strategy that empowers their workforce and drives retention.
As vice president of Customer Success at Vimly Benefit Solutions, Ed Sayed is responsible for the Customer Support and National Account Client Services teams. Sayed focuses on developing the strategic framework to scale operations, enhancing processes and methodologies.
