Adapting Employee Benefits Insurance to Meet Diverse Workforce Needs
Looking to keep your top employees?
Here’s the problem: Today’s workforce is nothing like it was just a decade ago. It has grown so much more diverse, you now have five generations of employees with completely different benefit needs and expectations.
A shocking 49% of employees will leave their job within the next 12 months over a lack of benefits. We’re talking nearly half your workforce hitting the road.
Here’s the good news: By working with a leading group health insurance broker, you can create Employee Benefits Insurance Services that not only work for every type of employee but help you attract and retain the best talent.
Let’s take a look…
What you’ll discover:
- Why Diverse Workforces Need Different Benefits
- How Generational Differences Impact Benefit Choices
- The Top 4 Strategies For Adapting Your Benefits Package
- Creating Flexible Benefits That Actually Work
Why Diverse Workforces Need Different Benefits
Let’s get one thing straight…
Your 22-year-old Gen Z marketing assistant needs a completely different set of benefits than your 55-year-old Gen X director of operations. Your millennial employee who is a single parent? They want something else entirely.
Your youngest workers are just beginning their careers and families. They have different benefit needs than your older staff members who are near or in retirement.
Here’s what each generation actually wants:
- Gen Z: Mental health support, student loan assistance, and flexible work options
- Millennials: Family benefits, financial wellness, and career development
- Gen X: Healthcare flexibility, eldercare support, and retirement planning
- Baby Boomers: Comprehensive health coverage and pre-retirement resources
Most companies mistakenly assume all their workers want and need the same things. They don’t.
84% of employers now offer a choice between traditional health plans and high-deductible health plans, because they have finally woken up to this fundamental truth.
Different people need different benefits.
How Generational Differences Impact Benefit Choices
Want to know something that will shock you?
The generation gap shows up in every single benefits decision your employees make.
Generation Z is much more likely to choose a high-deductible health plan because they want lower monthly premiums. Baby Boomers overwhelmingly choose traditional PPO or HMO plans because they want more predictable costs.
Here’s where it gets even more interesting…
These decisions aren’t just driven by age. They’re driven by life stage and financial priorities.
A single millennial with no kids and no debt has very different needs than a 30-something millennial who just had a baby. Your benefits package needs to account for this dynamic.
The Top 4 Strategies For Adapting Your Benefits Package
Ready to start creating benefits that actually work for your diverse workforce? Here are the four strategies successful companies use:
Strategy 1: Offer Tiered Benefit Options
Stop trying to create a single perfect benefits package that will appeal to every employee. It can’t be done.
Instead, offer tiered benefits that allow employees to choose the options that are right for them. This is the most important concept you must understand.
This means multiple levels of health plan options with varying deductibles, coverage, and premiums.
Life insurance benefits at different levels based on an employee’s family situation.
Optional add-on coverage for dental, vision, and additional health perks.
Flexible spending accounts, health savings accounts, and other financial tools.
Strategy 2: Include Non-Traditional Benefits
Your benefits packages can’t be all business anymore. Today’s diverse workforce has all kinds of non-traditional benefits they expect:
- Student loan repayment assistance for your younger employees
- Eldercare support for Gen X staff members who are taking care of aging parents
- Mental health resources that go way beyond a basic EAP program
- Financial wellness coaching to help with debt management and budgeting
This type of support shows your employees that you understand and care about the challenges they face outside of work.
Strategy 3: Implement Flexible Work Benefits
Here’s something most employers completely overlook: Flexible work benefits are no longer just about the ability to work remotely.
Your benefits package should include flexible work perks like:
- Flexible PTO policies that allow employees to take time off when they need it without excessive red tape
- Sabbatical options for long-term employees
- Generous family leave policies that exceed state and federal minimums
- Professional development budgets that employees can use to further their careers in the direction they choose
Different generations value different types of flexibility. Some employees want location independence, others want schedule flexibility, and some just want career development options.
Strategy 4: Use Data To Drive Decisions
Stop guessing at what your employees want and need. It’s time to start measuring and using that data to guide your decisions.
Survey your employees regularly to understand:
- Which benefits they actually use
- Which benefits they wish you offered
- How satisfied they are with current benefit offerings
- What would make them more likely to stay with the company longer
Use that data to refine and improve your offerings year-over-year. The benefits you offered in 2020 to your 2020 workforce won’t work for your 2025 team.
Creating Flexible Benefits That Actually Work
Want to know the secret to creating benefits that work for everyone?
Make them flexible without making them complicated.
Start with a core set of benefits everyone needs and wants:
- Health insurance
- Basic life insurance
- Retirement contributions
Then offer optional tiers of benefits employees can choose from as needed:
- Health and wellness tier (extra coverage, wellness programs, mental health support)
- Family support tier (childcare assistance, eldercare resources, family leave options)
- Financial wellness tier (student loan repayment assistance, financial coaching, extra retirement contributions)
- Personal development tier (education reimbursement, conference attendance, skill development)
The key is clear and straightforward communication about these options. Employees need to know they exist and how to choose the best options for them.
Consider naming benefits champions from different generations to help communicate options to their peers.
Making Benefits Education Work For Everyone
Here’s where most companies go wrong: They create great benefits but do a terrible job of explaining them to employees.
Your communication methods must account for generational differences and preferences:
- Gen Z and Millennials prefer digital resources and mobile-friendly platforms
- Gen X employees want detailed comparisons and practical examples
- Baby Boomers appreciate in-person sessions and printed materials
Use all available communication channels:
- Emails
- Webinars
- Video tutorials
- One-on-one consultations
Pro tip: Frame all your benefit communications around real scenarios. Show employees how benefits would actually help them in specific, relatable situations.
Measuring Success In Your Benefits Program
How do you know if your new strategy is working?
Here are the metrics you need to track:
- Benefits utilization rates by generation and employee group
- Employee satisfaction scores for various benefit categories
- Retention rates, particularly among high performers
- Recruitment feedback on how competitive your benefits are
You should also monitor benefits that are underutilized, employee feedback during performance reviews, exit interview comments, and industry benchmarks.
Regular measurement and review allow you to adjust before a small issue becomes a retention problem.
Wrapping Up The Future Of Employee Benefits
Adapting employee benefits insurance to the needs of your diverse workforce isn’t about offering more options. It’s about understanding that your employees have different priorities based on their stage of life and careers.
Companies that get this right will:
- Attract better talent who see benefits as a competitive advantage
- Keep employees for longer because their needs are met
- Build deeper loyalty through care and support
- Save money by offering benefits employees actually use
Companies that don’t? They’ll scratch their heads wondering why great talent is leaving for companies who “get it.”
Your workforce is more diverse than ever before. Your benefits strategy needs to evolve to catch up with them.
Start by surveying your employees, analyzing your current offerings, and identifying where the gaps lie. Work with experienced partners who know flexible, cost-effective solutions for every situation.
Remember: The goal isn’t to make everyone happy with the same set of benefits. The goal is to give everyone options that work for their particular situation.
That’s how you build benefits that truly benefit your business and your people.
