Personalizing Employee Benefits for a Multigenerational Workforce

An increasingly multigenerational workforce will test employers' ability to meet diverse expectations and deliver what employees need and want.

The one-size-fits-all approach to employee benefits has become outdated and ineffective. Employees are demanding more personalized workplace experiences with tailored benefits that address their unique healthcare, career and financial needs.

By leveraging data-driven approaches, including statistical modeling, workforce segmentation, and quantitative analysis, employers can develop a strategic understanding of their workforce. Do parents value flexible schedules more than onsite childcare? Are employees struggling with debt and financial insecurity? What most influences a decision to stay or leave an employer?

Recently, OneDigital researchers surveyed 2,000 U.S. employees across various career levels, ranging from entry to executive positions, representing different life stages, including single parents, married with children, and dual-income households. The goal was to identify the critical benefit value drivers within each workforce subgroup.

Below are key highlights from OneDigital’s 2024 Employee Value Perception Study (OneDigital Study):

Dissatisfied, Career-Focused Contributors

Compared to employees at other career stages, intermediate and advanced-level contributors with 3 to 12 years of relevant experience had the lowest levels of job satisfaction. These contributors were less satisfied with their employers' benefits, their current roles, and with the company overall.

Compared to contributors in other career stages, intermediate and advanced contributors also placed a very high value on having flexibility over where and when they worked.

When choosing an employer, contributors at these levels ranked career success factors including an employer's brand or reputation, and autonomy or having control over how they perform their work, as being highly important.

Employers can consider tailored approaches as a way to boost job satisfaction and drive engagement. Customized training programs can provide intermediate and advanced-level employees with opportunities to develop relevant skills and expertise and enhance their ability to contribute more effectively to the company's growth. Employers can also support job happiness through work culture measures such as making sure these employees feel they are in a safe environment where they won't be punished for asking questions, making mistakes and raising concerns.

Despondent, Anxious Executives

The OneDigital Study also uncovered a pronounced state of financial insecurity among executives with at least 15 years of relevant experience.

An alarming 36.4% of these senior-level employees, who have significant influence over the competitive standing of their companies, said they are considering taking out a loan from their retirement account.

This group of employees experienced the highest levels of anxiety when it came to their financial futures:

39% report feeling despondent because of debt, 46% of them said they are forging medical treatment or medication because of cost, and 47% worry that an accident could devastate their financial futures. Not surprisingly, 46% of executives said mental health support is a 'must-have' benefit going forward.

Employers have an opportunity to move beyond transactional arrangements to win over the hearts and minds of anxious employees by offering financial counseling, access to financial advisors, and mental health support.

Supporting Single Parents

Compared to employees at other life stages, single parents did the most to protect their financial futures. They were the most willing to allocate resources towards financial security benefits such as life insurance, disability insurance, and dependent care flexible spend accounts.

An overwhelming number of single-parent employees also ranked flexible schedules as a 'must-have' employee perk going forward. They also highly valued remote-working options and mental health support.

Employee benefits that promote financial protection and act as a safety net can enhance financial security among employees at this life stage. Financial protection products, including disability insurance and life insurance, can be complex. Employers should provide appropriate access to a financial advisor to provide professional advice.

Single, Childless and Dissatisfied

OneDigital researchers also found unique preferences, priorities and needs among single and childless employees.

Compared to employees at other life stages, single and childless employees are more likely to have lower levels of satisfaction with their current roles, employee benefits and their employer overall. Single and childless employees are also the least likely to consider one of their coworkers to be a friend outside of the office. However, these employees tended to have the highest levels of confidence when it came to their health and financial outlooks.

Employers must stop trying to replicate competitors' benefits packages or relying on what worked in the past. Instead, employers must leverage insights-generation tools and research to develop a more strategic understanding of their employees. This will support their ability to accurately assess and anticipate employees' most pressing benefits. Check out how employers are Responding to Escalating Healthcare Costs to Focus on What Matters Most to Employees.

Personalizing your benefits offering is essential, but if your employees don’t recognize the value of your program, it can greatly undermine your investments.
 
Download OneDigital's 2024 Emmployee Value Pereption Study to explore the disconnect in value perceptions and how top level organizations are taking action.