At the last count businesses are now employing as many as four generations. When it comes to employee benefits, meeting the individual, and shared, needs of these different age groups is a big challenge.
Baby boomers, Generation X, millennials (Generation Y) and Generation Z are all working side by side but they naturally have different mind sets, aspirations and personal needs. And while each generation comes with a label, behind each label there are individuals with different wants and needs too.
Employee benefits planning for the future of work will need to be viewed through a multigenerational lens
Millennials will make up 75% of the UK workforce by 2025, according to Deloitte. But figures from the Office for National Statistics tell us that almost three quarters of the workforce (71%) plan to continue working beyond 65. The multigenerational workplace is here to stay.
Where are employers at?
89% of employer respondents in Aon’s Benefits and Trends Survey 2019 thought that they would need to change their benefits packages to meet the needs of future generations joining their organisation. While 50% did not think that their current offering was meeting the needs of all generations in their workforce.
Meanwhile, research by Gallagher adds further insight on the scope of the benefits challenge facing employers. It found that 67% of UK businesses are finding it difficult to create a standardised, flexible benefits package that appeals to an increasingly diverse workforce.
A quick straw poll by Employee Benefits found that 52% of readers thought that offering a broad range of employee benefits is the best way to tailor rewards to different generations.
- 38% thought that providing flexible or agile working was the most effective way to meet the needs of a multigenerational workforce.
- 6% opted for health and well-being
- 3% opted for a diversity and inclusion programme
Crafting your strategy
A one-size fits all approach won’t appeal across the ages. That’s for sure. Take a more granular approach and tailor benefits to meet the individual needs of your employees at the right stage in their life.
Improve benefits communication – all employees regardless of age want to communicate and feel engaged in the workplace. Open communication can also help you better understand any causes of intergenerational conflict and put fixes in place.
Do you know which benefits different generations and individuals value most?
You’ll need a well-crafted, consistent communications plan to improve employee engagement and fine-tune your offering Aon’s Benefits and Trends Survey 2020 found that while 97% of employers see communication and engagement as important, less than half of businesses (57%) have a strategy.
Invest in a benefits platform – workers of all ages will expect the convenience of digital tools and the autonomy to choose the benefits and perks that best fit their lifestyle, health and wellness needs. Choose a benefits administration platform that makes it easy for employees to access their benefits and includes communication / feedback tools to keep everyone connected and up to date.
Analyse your employee data – analysing the masses of data you collect on your employees will give you valuable, actionable insight to:
- Understand which benefits work best
- Understand the big strategic issues and spot persistent or emerging trends
- Personalise your offering to meet the needs and wants of different groups and individuals
- Improve uptake and employee outcomes
- Make more confident, data-driven decisions about new benefits
- Save money on benefits that never get used
Talking about your generations
If your business is rethinking how your benefits offering can better meet the needs of your current team, and help you prepare for future generations, let’s talk to see how we can help.