Taking a Generational Approach to Employee Benefits

How do you remember your first TED Talk? The one with Ted and his pal Bill that was “most excellent” or the one where Bene Brown tells us to “dare greatly?” Whether you’re picturing two young guys in late 80s’ grunge or the acclaimed speaker on a big stage, it likely depends on your age.
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While most of us may consider ourselves young at heart, we’re likely products of our generation and bring our generational values to most everything we do from parenting and financial planning to socializing and volunteering. These generational values transcend to the workplace as well. 

By Jacob Colmenero, MarshMcLennan Agency

Four generations in one workplace
Today, most workplaces, especially medical organizations, include four generations of employees: Baby Boomers (born 1946-1965), Gen X (born 1966-1980), Millennials/Gen Y (born 1981-1996) and Gen Z (born 1997-2012). While these team members may work under the same roof or corporate Zoom account, they live in different worlds. Each generation has varying value systems, concerns and expectations for life and the workplace.
 
In a recent global survey of employers and employees conducted by MarshMcLennan Agency, employees shared that their unique economic challenges, health care issues, values and work attitudes shape their expectations for workplace experiences and benefits packages. According to 95% of employers, benefits are more important than ever and, in some cases, of equal importance to pay increases.
 
By breaking down these expectations by generation, we can learn a lot about taking a customized approach to employee benefits and experiences that keeps employees engaged and validated.
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​Boomers’ valued benefits
The Woodstock generation may have been carefree and without financial worry when they were younger, but as they approach retirement, Boomers in the workplace today value 401(k) matching and financial planning support. According to Inc’s “Different Motivations for Different Generations of Workers” study, 71% of this aging generation also prioritizes health insurance, and 84% seek wellness perks, such as gym membership discounts. Boomers may be working longer than previous generations, but they are seeking more work flexibility, with many seeking part-time roles. “Flexibility” tops 33% of Boomers job search priorities, surpassing all other generations.
 
Gen X valued benefits
The last generation to really know what it was like to live without a cell phone or the internet often has the motto, “Work to live, not live to work.” Gen Xers prioritize flexibility for family time as many may be balancing caring for their own children as well as elderly parents. The Ernst & Young “2022 EY US Generation Survey: Addressing diverse workplace preferences” reports 64% of Gen Xers expect flexibility in the workplace. They also are highly independent and entrepreneurial, finding fulfillment in control of their careers and roles. Additionally, Gen Xers report fair pay and benefits in boosting their job satisfaction, with 60% saying financial stability is a major concern and key stressor in New York Life’s study “Gen Xers are the most worried about their financial health.”
 
Millennials’ valued benefits
From idols ranging from Beyonce to Bernie Sanders, Millennials are a diverse group deeply affected by shifts in the world’s economy, political landscape and culture. As a result, their relationship with work and money differs from other generations. Millennials value purpose over profit, with half willing to accept lower pay for more meaningful work, according to HR Dive’s “Millennials seek meaning at work — and employers can help” report. They also prioritize learning and seek managers as coaches, not just bosses. With higher student loan debt, Millennials struggle to buy homes and manage living costs. A MetLife report finds 43% consider student debt assistance a crucial benefit.
 
Gen Z valued benefits
The generation who grew up watching YouTube is just starting to enter the workforce, carrying much anxiety about their own future and the world’s. Gen Z seeks well-being benefits for their overall health, with 61% saying they would consider changing jobs for better mental health benefits according to SHRM’s “2023 State of Mental Health & Well-Being in the Workplace.” They also worry about daily finances and retirement security. Despite carrying stress around money, Gen Z, over other
generations, evaluates companies based on their social awareness and impact. A Deloitte and NEW study finds 77% of Gen Z say it is vital to work for a company whose values align with theirs.
 

Customizing your benefits’ approach
As you consider how your benefits could address generational needs and values, focus on understanding your different segments of employees, offering employees choices, centralizing tech options and HR support to streamline delivery and save money, and offering empathy to all employees no matter how their generational values may differ from your own. In the words of Bill and Ted, “be excellent to each other,” and excellence is sure to award your workplace.
 
 
Jacob Colmenero of MarshMcLennan Agency’s Employee Health & Benefits department works with healthcare organizations and FQHCs across the Northwest to help design employee benefits packages for their unique workforces. To connect with Jacob, please email [email protected] or call 541-779-1321.
 


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