Tips for engaging a multigenerational workforce

Over the past few years, organizations have navigated one workplace shift after another, from remote and hybrid working models to artificial intelligence and more. Now, companies are tasked with yet another pivotal change – a shift in the generational makeup of the workforce. While millennials and Gen X maintain their strong foothold in the workplace, Gen Z is positioned to overtake baby boomers this year. Employers are tasked with supporting a multigenerational workforce experiencing different life moments where they expect employer-provided resources to offer support.

As age diversity grows more pronounced in the workforce, expectations around workplace benefits appear to be rising in parallel. MetLife data shows that employees want more benefits support – the average number of benefits employees consider to be a “must-have” increased from 7.8 in 2022 to 8.3 in 2023. Not only this, but employee benefit satisfaction has reached a ten-year low.

To keep pace with rising expectations across today’s multigenerational workforce, employers must consider generational nuances not only when creating benefit strategies, but also in driving benefits understanding and utilization. Here are three key ways that companies can evolve their approach to benefits to address the multigenerational needs of today’s workforce and improve employee satisfaction.

Align benefits packages with varying generational preferences

A good place for employers to start is pinpointing the varying life needs that exist between different generations, as this will help inform the types of benefits support and communication most relevant to each employee group.

For instance, MetLife’s data finds that while Gen Z is interested in benefits that promote short-term financial health (e.g., emergency savings or debt repayment programs), millennials are more interested in benefits that ease day-to-day stressors, including fitness (70%) and home office benefits (64%). While, Gen X is interested in benefits that support life events, such as caring for elderly/sick family (48%), and baby boomers are most interested in a paid sabbatical program (53%). By recognizing these variances, employers can prioritize their benefits packages and experiences accordingly and, ultimately, make the most worthwhile investments for their organization.

Deploy relevant, year-round communication

While benefits needs and priorities vary from generation to generation, all employees want more from their employers when it comes to benefits communication. MetLife’s data found that half (50%) of employees say they would feel more cared for if their employer improved benefit communications. Open enrollment is a good time to clarify what benefits are available, but communications shouldn’t stop there – employees often face challenges when trying to access and use their benefits at the time of need, or simply forget to use them. Shifting to an ‘always on’ communications plan that stretches beyond the initial enrollment period can help employees engage with their benefits throughout the year and utilize them to the fullest.

Employers should also consider the varying preferences for methods of learning that exist across generations to deliver more relevant and resonant communications. For example, while baby boomers prefer to learn about benefits through in-person conversations, Gen X employees look to online resources.

Provide tailored educational resources

Employers should also consider how benefit educational resources can be tailored to each generation, as MetLife’s data found that 62% of U.S. employees are not confident they know about all the benefits or workplace perks they are offered and 45% do not fully understand their benefits package. When employees lack understanding of their benefits, it can lead to uninformed decisions at open enrollment and decreased benefit utilization throughout the year.

Related: Is employee education worth the investment?

To start, employers should recognize that different knowledge gaps may exist between generations. For example, Gen Z employees who aged out of their parents’ insurance may be selecting benefits for the first time at open enrollment and, therefore, may also be unsure about which benefits they should pick and how to best use them. To address these knowledge gaps, employers should focus on providing individualized educational resources and tailored learning opportunities. As half of employees say having a better understanding of their benefits would make them more loyal to their employer, the business impact is clear.

Final thoughts

This year will be a defining year for employers as supporting a multigenerational workforce becomes a key requirement for keeping employees of all ages happy, engaged, and loyal. Generational nuances across Gen Z, millennials, Gen X, and baby boomers can help inform more effective benefit strategies for HR decision-makers and benefits managers. While employees within each generation have unique (and evolving) needs, these insights can provide a roadmap for employers interested in improving benefit understanding and utilization within their workforce through more relatable, human-centric benefits experiences. In turn, employers can improve talent outcomes, all while supporting employees as they navigate varying life junctures.

Jamie Madden is Senior Vice President of Workforce Engagement and Benefits Connectivity, a unit within MetLife’s National Accounts Financial Wellness & Engagement Organization.