Building a benefits package that offers plenty of choice for employees can be challenging. Today's diverse workforce — spanning three generations from millennials to baby boomers -— look at work, life, money and finances in totally different ways. Matching voluntary benefits to the three generations in the workforce allows employees to customize their selection based on their wants and needs. 

Traditional voluntary products can fill in the gaps in core benefits left by scaled-back benefits, higher deductibles and more consumer-driven health plans. The non-traditional voluntary products in the marketplace provide a wide array of benefits employees can choose from to enhance their lifestyle, protect their well-being and improve their financial wellness. Looking at non-traditional voluntary benefits by purpose helps employers prioritize offerings. Purposes can be classified as buying and banking options; lifestyle and convenience options; personal care and improvement options; and financial safety nets. 

Buying and banking benefits give employees alternative ways to save, spend or borrow. They help employees who are underserved by traditional financing options or who want access to services that aren't generally available to them otherwise. These options include pay cards, short-term loans, employee purchase programs, employee discount programs, credit union and flexible spending accounts. 

Lifestyle and convenience benefits allow the employee to take advantage of cost savings that they wouldn't get otherwise because they are getting these benefits from their employer. Plus, by paying for these through payroll deduction, they have the convenience of one less bill to worry about. Among the lifestyle and convenience benefits are child care, elder care, pet insurance, auto insurance, adoption assistance, auto insurance, cyber security insurance and legal assistance.        

When employers offer personal care and improvement benefits, they show that they care about the whole employee while also encouraging them to be proactive about their physical, mental and financial health. Among the personal care and improvement benefits are financial counseling services, wellness programs, employee assistance programs and tuition assistance programs. 

Financial safety nets offer protection from financial crises that can be potentially devastating for employees. Included in this category are home warranty insurance, homeowner's insurance, identity theft protection and long-term care insurance. 

While some of these benefits appeal to all three generations, others can be more generation-specific. So based on their employee demographics, employers can decide on offerings. 

What matters to employees 

Here is a breakdown of the three generations that reflects their view on their job and their financial situation, as well as some of the non-traditional voluntary benefits that help address their situations. 

Baby boomers (born 1946 – 1964)

Boomers' work ethic is driven and committed, and they believe that rewards come after paying one's dues and building a career. Their greatest fear is losing their pension, savings or job and being unable to retire. Keys to job retention for boomers are salary, job security and health benefits. They want to count on medical insurance and back-up care for their parents. Some boomers are in second careers. Some still have grown children living at home and/or are helping them out financially until they can support themselves. 

For the most part, if there's something boomers want, they are able to buy it. However, many will question whether they should buy it or save that money instead. They are trying to be financially responsible and scaling back from a materialistic lifestyle. Even if they are high earners, boomers worry about retirement — both having enough money for retirement and wondering when the right time is to retire. 

Non-traditional voluntary benefits that would appeal to boomers include:

• discount programs

• financial counseling

• legal assistance

• auto insurance

• home warranty insurance

• homeowners' insurance

• long-term care insurance

• wellness programs 
  

Generation X (born 1965 – 1979)

Gen Xers' work ethic is balanced and flexible, with a "work hard, play hard attitude." They believe in accumulating skills by taking on differing projects. Their greatest fear is being overshadowed by millennials and being overlooked for promotions. Keys to job retention for Generation X are salary, autonomy, independence and promotion. Their benefits needs include income protection, family support, customizable plans, automatic retirement management and retirement education. 

This generation's financial stressors come from multiple angles. They are raising children, preparing for care of their aging parents and trying to save for their own financial futures. The rapidly-changing retirement, Social Security and health care landscape hits them the hardest. Because of these factors, they appear to be having the toughest time financially. They find it difficult to meet their household expenses on time each month and are the most likely to carry balances on their credit cards. 

Non-traditional voluntary benefits that would appeal to Gen Xers include:

• discount programs

• employee purchase programs

• FSAs

• financial counseling

• wellness programs

• EAP

• child care

• cyber security insurance

• homeowners' insurance

• ID theft protection

• long-term care insurance 

Millennials (born 1980 – 2000)

Millennials' motivation is that professional fulfillment matters more than salary. They expect rapid promotion and meaningful work or they seek other opportunities. They often juggle many jobs and move from job to job frequently. Their greatest fear is silence, unplugging, routine and eternal internship. Keys to job retention for millennials are personal relationships, multiple tasks and fast rewards. Their benefits needs include portable benefits, forced savings, financial education and concierge services. 

Key values for millennials include future financial security and better quality of life. To improve their financial situation, they need a better job or a promotion and expert advice on how to make the most of their money in addition to beginning a 401(k) or other retirement plan. 

In general, millennials are very highly educated. One-third of millennials have four-year college degrees, but that comes with a high price tag. The average millennial has $29,000 in student loan debt alone.  Not surprisingly, they are also more worried about getting rid of or incurring additional debt than their day-to-day expenses. 

Non-traditional benefits that would appeal to millennials include:

• employee purchase programs

• discount programs

• tuition assistance

• employee assistance program

• wellness program

• FSAs

• financial counseling

• ID theft protection 

A benefits package that includes a portfolio of voluntary benefits helps employers acquire and retain a talented, productive workforce while helping fulfill the diverse benefits needs of employees. By recognizing the value in voluntary benefits and adding to their voluntary offerings, employers can not only provide for their employees' financial wellness, but can retain a loyal, motivated workforce as well. And in the process, employees can have it their way.