What employees across different age groups want when it comes to benefits

A recent study by Prudential has found that 9 out of 10 employees expected their employers to play a role in their holistic wellbeing. Employers too, have recognized that job satisfaction and talent retention go beyond mere compensation. According to the 2023 BEAT study by LIMRA, employees who are offered a wider array of benefits are more likely to remain loyal to their employers.

However, during open enrollment periods, employees often grapple with confusion and overwhelm due to the multitude of choices and the challenge of aligning benefits with their individual needs. Furthermore, today's workforce spans multiple generations, each with distinct learning preferences.

What's trending among employees?

Baby boomers or Gen X

Individuals from the baby boomer and Gen X generations have typically prioritized financial security and supplementary coverages when it comes to their employee benefits. To cater to the preferences of employees from these age groups, employers are advised to include a range of offerings in their benefits packages. These offerings may encompass options such as Term Life, Disability, Accident, Critical Illness, and Hospital Indemnity.

Millennials

Millennials constitute a substantial portion of today’s workforce, and their unique needs and aspirations are shaping the employee benefits landscape. At this juncture in their lives, financial protection is a priority, and they place significant value on supplemental benefits that support them during life's pivotal moments.

Recognizing the considerable student loan debt that many Millennials carry, employers are encouraged to explore offerings that resonate with this generation. These may include solutions such as Student Loan Assistance Programs, providing peace of mind through Life Insurance, offering flexibility with Paid Family or Medical Leave, and fostering financial stability with Emergency Savings Plans.

Gen Z

With the arrival of Gen Z into the workforce, a trend is the increasing interest in voluntary benefits. This emerging generation of workers seeks a range of offerings that extend beyond the traditional scope of employee benefits. In response to Gen Z's preferences, employers are finding value in providing options like Pet Insurance, Mental Health Treatment Plans, Paid Family or Medical Leave, and Tuition Assistance.

Benefits education for employees

While all employees are automatically enrolled in employer-sponsored coverage, the degree of variation comes into play when it comes to elective options.

“One of the main contributing factors that impact sign up is whether the enrollment event is done well,” said Sarah Oliver, head of Voluntary Product for Group Insurance (GI), a business unit of Prudential.

Employers must avoid pitfalls by ensuring employees receive the right level of benefits education and support, Oliver added. A well-thought-out approach that balances technology with human touch, tailored to employees' needs, leads to the best outcomes.

“It is important to remain conscious of factors like generational differences and multi-cultural population variations that require personalized approaches,” she said.