Optimising employee benefits for a multi-generational workforce

With the disruption of life as we know it over the past few years and a pandemic-era trend known as the Great Resignation in full swing, many employees across the globe are voluntarily resigning from their current jobs. Locally, this trend is more specific to professional and specialist roles that entail scarce skill sets in South Africa's job market. It is fuelled by this sector's intention to seek out more meaningful work and better opportunities that offer more work-life balance, flexibility, career development and a healthier workplace culture.

We have reached the lowest job satisfaction rate in 20 years, according to a MetLife study, which also shows that 80% of employers feel that meeting the needs of their employees across all life stages is a vital benefit objective. With four different generations constituting most workforces today, each with their own set of expectations, finding a one-size-fits-all benefits package is no easy feat.

Now although there are ways to offer varying benefits packages to meet different employee needs, you may not do so in a way that discriminates by age, race, gender identification or other differentiators. Some organisations offer tiered benefits packages based on the job level of their employees, which is considered a legitimate way of offering different benefits without encountering legal issues. It is, however, always best practice to have access to an attorney who is well-versed in HR law, to help ensure your organisation complies with the necessary regulations.

So how do you offer a benefits package that supports your employees wherever they are in life's journey?

Every employee, regardless of their generation, wants traditional benefits like time off, healthcare insurance, and retirement planning. How businesses structure additional benefits over and above these, will vary. Thinking about your employees' life stage and generation can be a great help when structuring your benefits offering.

By understanding the different needs of each generation, you can gain a foothold in creating a meaningful benefits package that personalises your employees' work experience and makes them feel more valued. From the oldest to the youngest, here are the different working generations and the employment benefits that they value the most:

Baby Boomers

Born between 1946 and 1964, much of the Boomer generation is retired or headed for retirement, so they don't make up a huge percentage of the workforce. The benefits that interest them the most are:

• Healthcare benefits
  With healthcare costs escalating, health insurance is valued across all generations. Having a greater likelihood of encountering chronic health issues, it is most significant to Boomers.

• Retirement benefits
  As Boomers are the closest working generation to retirement, there's no question as to why they consider retirement benefits to be of crucial value.

• Other types of wellness benefits such as gym memberships
  This generation also appreciates wellbeing rewards that help them keep active and maintain a healthy lifestyle as they age.

Generation X

Employees in the Gen X group were born between 1965 and 1980. With their wealth of experience and in-depth knowledge, they form the backbone of the current workforce. They too are drawn by healthcare benefits. While most Gen Xers have settled their student loans, a significant portion of this generation is in the process of raising families, paying for their children's education or taking care of their aging parents' financial needs. Many find themselves in a difficult financial position having to care for other generations, which is why employers should consider offering financial wellbeing programmes to help them save for retirement. Benefits such as childcare or dependent care assistance are a great help to this group. Having to double as caregivers, these employees would make good use of additional benefits such as:

• Dependent care assistance plans
  These deduct a portion of an employee's salary to help pay for elder care costs.

• Respite care
  This offers short-term relief for primary caregivers when an employee needs to rest, take time off or go into work.

• Flexible work options and schedules
  This allows caregiver employees to work from home when necessary, have flexible hours and make use of paid time off.

• Support groups
  These enable employees to speak to counsellors and fellow co-workers dealing with similar responsibilities and the related emotional stress that surrounds them.

Business experts say that although Gen X employees are not known to ask for flexibility, they may need it. Work-life balance is essential for them in handling their many family and personal responsibilities. Employers who can support this will help raise the performance of their Gen X employees while keeping them more engaged.

Millennials

Millennial employees were born between 1981 to 2000. They are known to job hop more often than any of the other generations, which is why it is important for employers to offer a relevant mix of benefits that will keep them motivated and help raise job satisfaction. Because they are still younger in age, their healthcare benefits may not be used as much as older generations, but there is a great need to encourage millennials to practice more preventative care, which will help them maintain their health as they age. Added employee benefits such as these are of interest to Millennials:

• Student loan repayment assistance and financial advice
  In partnering with their employers to reduce their debt and better manage their finances, these employees will have fewer financial worries and will be able to add more value in the workplace.

• Flexible work options and schedules
  This is a priority for most millennials because they value their independence and prefer not to be locked into a 9-to-5 business schedule.

• Career advancement opportunities
  Another crucial factor for Millennials is their desire to grow their careers and develop their skills. In fact, 87% of Millennials shared that job development is important to them, in a report by Gallup. Organisations that invest in career and skills development will have an easier time attracting and retaining Millennials.

Generation Z

Born between 2001 and 2020, this tech-savvy generation is still very young. Being the latest generation to join the workforce, the economic strain of COVID-19 and the financial setbacks they experienced through retrenchments has given them a renewed value for job security and traditional benefits such as healthcare insurance and retirement planning. Gen Z values these benefits:

• Student loan repayment assistance
  Like their millennial counterparts, Gen Zs value financial assistance with regard to their skills development and education.

• Flexible work options and schedules
  From working on site to working remotely, they also appreciate flexibility in their work schedules and work styles.

• Mental health benefits and benefits that support diversity, equity and inclusion
  These benefits and practices are regarded highly by Gen Z.

While traditional security and protection benefits form the bedrock of most company offerings, the key to evolving your employee benefits strategy is to offer more choice and flexibility in the workplace. In doing so, you will be able to weather these changing times and meet the different needs and preferences of a multi-generational workforce. By moving beyond wellness to a more holistic strategy that acknowledges and supports the interconnectedness of worker wellbeing, engagement and workforce productivity, you will have a benefits strategy that appeals to the broadest age group possible, better drives your organisation's value proposition and, in turn, grows your bottom line.

Choosing a more holistic benefits offering like Discovery For Business' Employee Benefits, helps to ensure that no matter what stage of life your employees find themselvesin , they will be covered, rewarded and made to feel highly valued.