Personalize benefits with data insights

Two-thirds (67%) of organizations surveyed reported wanting to infuse more personalization into their benefits package. Data points underscoring the need for customizing voluntary benefit offerings based on gender, generational and other demographic differences include:

• Women rate their wellbeing lower than men in all areas of wellbeing
• Younger employees seek more resources overall from their employers and notably more mental health resources
• Lower-income employees prioritize support for day-to-day expenses
• Nearly 40% of millennials are parents and prioritize family-forming benefits, childcare and education support.

Support organizational goals with benefits

In the Gallagher survey, 86% of employers said voluntary benefits are key to their wellbeing strategy. On average, employers provide 13 voluntary benefits (up from 11 in 2022) and plan to add more. However, the value is not in the number of offerings but in the targeted and selective support they offer employees.

Still, wellbeing priorities change. In a 2020 Gallagher survey of employers, the top voluntary benefits offerings were supplemental life/accidental death and dismemberment (AD&D), critical illness and legal services. The 2024 survey revealed that, based on changes in voluntary benefit offerings, the fastest-growing benefits were long-term care, emergency savings and caregiving.

Increasingly, employees see voluntary benefits as an essential part of a comprehensive benefits package and recognize that their employer offers a better value than if they buy similar services directly. To ensure benefit investments drive maximum impact and align with workforce priorities, benefits managers need the right data and insights.

Understanding your population, including generational differences, provides insights that allow for a more targeted benefits strategy that supports organizational goals.

Emphasize wellbeing to attract and retain

Organizations know that supporting employees' wellbeing journeys is essential for competing for and retaining talent. Gone are the days when a traditional health insurance plan and retirement savings account were sufficient to attract and retain good employees. Today's workforce — particularly younger generations — expects a holistic approach to their wellbeing (and that of their dependents) and values work-life balance.

Employee expectations can't be ignored if employers want to compete in the talent market. Voluntary benefits provide a differentiated value proposition that helps engage employees and increase satisfaction.

Gallagher employee research showed pay, job satisfaction and trust in senior management are the top drivers of employee engagement. Close behind is a belief in their employer's commitment to supporting wellbeing and a benefits package that meets personal needs. With nearly two in three employees (63%) indicating they would change jobs for better benefits, a total rewards package emphasizing wellbeing is a substantial component of a winning retention strategy.

This insight is timely, as 46% of surveyed workers report actively considering a job change in 2024, up from 35% in 2022. Younger workers are significantly more likely to seek a job change (53% for Gen Z), suggesting employers may want to target this demographic to increase employee commitment and engagement through wellbeing benefits.

Employers appear to agree. In the Gallagher survey, the top-cited strategy to attract and retain talent was increased wellbeing investment, followed by increased job satisfaction (65%) and support for mental health (59%).

Related: Tips for engaging a multigenerational workforce

Align communications to employee preferences

However, offering targeted voluntary benefits designed for a multigenerational workforce is insufficient. According to the Gallagher survey, 55% of employees don't understand their benefits, with the percentage increasing as the average age decreases. The younger the employee, the less likely they are to stay or to understand their benefits, and the more likely they are to consider another job for what are perceived to be better benefits.

While employers acknowledge the need for communication around voluntary benefits, their preferences for online platforms, webinars and videos are potential blind spots. Given the lack of understanding of voluntary benefits, it is more important than ever to personalize messaging using a mix of employee-preferred, high-touch and high-tech solutions.

On the high-touch side, survey findings showed that employers and employees agree that professional benefit counselors help employees better understand, choose and use their benefits, helping drive desired outcomes for employers and their diverse workforce.

Eighty percent of employees want to speak with a professional benefit counselor about their benefits, and approximately 50% of employers agree they could benefit from using professional benefit counselors.
Innovative employers are using new, high-tech messaging solutions, including:

• TikTok-style videos that engage and deliver brief, targeted messages.
• Social media channels to create buzz around programs and priorities through podcasts and other popular messaging formats.
• Interactive quizzes with opt-in personalization that ask a series of light-hearted questions to help identify an employee's specific worries or priorities and conclude with personalized recommendations.

A data-driven approach to voluntary benefit offerings helps organizations better understand the needs and expectations for employee wellbeing based on age, gender and other demographic differences. These insights bring a strategic focus to the organization's total rewards program, ultimately driving attraction and retention.