Employers can no longer afford to overlook the trend of personalized benefits in the multi-generational workforce. (Photo: Shutterstock)
In recent years, there has been a shift in employee benefits, largely driven by new generations, including millennials and Gen Z, making up a large percentage of the workforce. To attract and retain top talent, your benefits package needs to rise to the occasion.
Employers can no longer afford to overlook the trend of personalized benefits in the multi-generational workforce. In fact, MetLife reports that 86 percent of millennials value having benefits personalized to meet their individual circumstances and age. With this generation making up over one-third of the workforce, and baby boomers closing in on retirement, it is imperative for employers to understand the changes that need to be made with their existing benefits packages.
This is where fringe benefits come into play. These benefits are supplemental to an employee's salary and often include items like stipends for travel expenses or educational programs. They are not always related to money. Snacks in the break room, gym memberships and lunch every Friday are added values that can help employers stand-out in the workforce and retain top talent. They may seem small, but these benefits can go a long way in keeping office morale high and employees happy, motivated and satisfied with their job.
|What do these new generations want in a fringe benefits package?
In conversations with millennial and Gen Z workers, I have found they are often seeking the following offerings:
- Flexible paid time off (PTO)
- Ability to work remotely
- A team-based, collaborative environment
- Alignment with community and causes that align with their values
- Ability to choose from a menu of insurance product options
- Digital communication methods and “self-service”
- Career development and personal development opportunities
In addition, benefits such as tuition reimbursement, accident insurance, pet insurance, PTO purchase and paid family leave are popular among younger generations.
|The communication of benefits has become as important as offering them
Not every employee will place as much value on these, but millennial and Gen Z employees are driving these Netflix-inspired benefits packages. As an employer, it is essential to offer a multitude of choices, but leverage the technology platforms to communicate and administer these options to employees.
The way in which we communicate to these groups is almost as important as the benefits offerings themselves. Millennial and Gen Z workers are the first generation of 'digital natives' meaning they grew up with mobile and in the always-connected world.
This is driving a communications shift, where “old school” tactics like email and formal meetings are being phased out and replaced with newer cutting-edge technology that allows younger generations to consume their benefits and make updates in real-time. The ability to pick and choose from a wide array of benefits in a modern and instantaneous way is increasingly valued in the workforce.
Avoid dated methods like packets of paper that will end up forgotten in the corner. Instead, utilize technology or even mobile-friendly avenues to make the experience easy and relatable to this new generation. Shorten in-person meetings to key in on the high points, and then direct attendees to online resources where they access additional resources. Be sure to provide ample education and tutorials on how to use digital decision-making platforms and self-service systems. And communicate using multiple mediums, including video and mobile-enabled formats. Videos should be short and sweet, clearly articulating key information.
|Helpful tips for providing benefits that employees want
Ease into implementing new workplace benefits don't flip the switch in one year! Providing to a multi-generational workforce means varying levels of adoption depending on employees comfort level and learning paces.
Employers should also be open to asking for feedback from workers on new or desired benefits. Release a survey to learn more about what your workforce prefers, how they prefer to receive and utilize offerings and the best ways to communicate with them. This will help to create a long-term strategy and put efforts behind what the employee population values most, including an understanding of the benefits that are top-of-mind.
Providing benefits that will please all five workplace generations is not an easy task but, these steps will help to reach your goal to meet employees needs and attract and retain the best and brightest talent. To learn more about benefits millennials value employers should utilize outside resources including networking events and webinars.
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