Holistic financial well-being benefits for a multi-generational workforce

For the first time ever, employers have as many as five generations in the workplace, and as retirement funds suffer the consequences of a faltering economy, it’s likely that trend will continue. According to the Bureau of Labor Statistics, by 2026, about two-thirds of people aged 55-64 are expected to remain on the job, and about 30% of people ages 65-74 will likely still be employed full- or part-time. Meanwhile, with some 90 million Gen Z’ers expected to enter the workforce this year, there have never been more generations working together all at once.

The fact that today’s workforce is more diverse than ever is undeniably beneficial for organizations and their employees. But it’s also not without some challenges, especially when it comes to managing people across a wide spectrum of ages and generations. With few guide rails to navigate this unprecedented situation, organizations are left trying to balance the needs and desires of generational cohorts, each with diverse expectations and demands.

But the reality is, successfully managing a multi-generational workforce can be as simple as adopting a human-centered approach, being aware of potential differences and working hard to accommodate them. Here are some tips.

Understand each generation’s experience in the workforce

Baby boomers entered the workforce during a period of consistent 3% economic growth. By virtue of their age, they have gained the most experience and typically hold higher-level positions as a result. Millennials and Gen Z’ers, on the other hand, entered the workforce during challenging times: a recession and a pandemic, respectively. This has led to a dichotomy where younger generations are more educated while the older is more experienced.

Simply being aware that different generations come into the workplace with varying perspectives can be enlightening and treating them all the same can be a mistake. Be careful not to downplay a lack of experience among younger generations or over-emphasize formal education to the detriment of older employees. There’s incredible value in all generations, and even more value when they’re brought together.

In addition to varying perspectives across generations, there is a spectrum of differences within each. While shared generational experiences generally hold true, there are populations that have been left out of long-term wealth building or career opportunities, such as those in demographics experiencing racial, cultural, or gender disparities. Awareness is key to designing benefits, resources, and programs that will meet the needs of employees and create an equitable workplace among all generations and demographics.

Ask about employees’ needs and expectations 

Each generation carries a bit of a stereotype. Gen Z’ers are known for being fast-paced, Millennials are known as the job-hopping generation, and Gen Xers seem to have more transferable skills than any other generation. But with these differences come different expectations, and employers cannot guess what strategies will work in a multigenerational workforce. Nor will they be able to ask one or two people from each generation to get a definitive answer for the whole group.

Open communication is the only way to identify the needs of workers. While that doesn’t necessarily mean that every need will (or should) be met, it offers a starting point to understand generational expectations. Ask employees directly what they need to feel supported and empowered to do their best work through surveys, one-on-one meetings, and other feedback methods. Don’t be afraid to ask about their well-being, too. Many employees are likely facing challenges outside the workplace with family matters, health concerns, financial stress, and more – all of which can impact workplace performance. Providing support for the whole person is crucial.

You don’t need 5 different management styles, just effective communication 

While each generation may have different needs for support, motivation, and engagement, that doesn’t mean employers need to be proficient in five different management styles. Instead, effective communication and empathy should form the backbone of the management approach. While 9 out of 10 people agree that generational diversity in the workplace is positive, nearly 4 out of 5 also said it could be a source of conflict. There may even be situations where younger employees will supervise older ones, which many find difficult.

That’s why it’s important to arm managers with the leadership and communication skills they need to navigate diversity and understand what motivates older vs. younger generations. As an organization, prioritize transparency, empathy, and a human-centric approach that emphasizes the employee experience to build a culture where every generation feels heard and their needs are addressed.

Meet them where they are with solutions

It’s no surprise that employees will need different benefits at different stages of their life. Retirement planning alone may not feel relevant for younger employees struggling with student loan debt, but it feels essential for older employees. From student loan support to childcare assistance to mental health benefits and volunteer time, there are many ways companies can evolve their benefits to offer more relevant support to workers.

Related: Financial wellness: Tailoring a program to specific employee needs is key

This not only helps to retain great talent, but attracts new candidates, too. In fact, an increasingly popular category – holistic financial well-being benefits – has proven to be attractive across all generations, with recent research confirming that three out of four employees struggle with at least one source of financial stress. This support can range from helping employees pay off student loan debt or enjoy a financially secure retirement to helping them find the right tools to navigate their own unique path to financial independence.

Regardless of their age or stage in life, investing in employee well-being will always pay dividends in terms of hiring and retention, employee engagement, and performance. When people feel understood, appreciated and nurtured as human beings by their employers, they’re much more motivated and loyal. But with a diverse workforce, understanding what employees really want and need, rather than making assumptions, is essential. Maintaining a transparency and open communication culture is the key to delivering on employee expectations in a multigenerational workforce.

Barrett Scruggs is VP of Workplace Financial Well-Being at SoFi at Work.