Tailored to Taste: Designing Benefits for a Multigenerational Workforce

Imagine you’re running a diner and trying to create a menu designed to please everyone. Your youngest customers want chicken strips and fries. The hip 20-somethings want avocado toast. The middle-aged crowd loves steak and veggie burgers, and the retirees crave meatloaf.

Would a strict, fixed menu work? Not if you want to attract a diverse group of customers.

The same holds true for your benefits offerings.

A one-size-fits-all approach to employee benefits is no longer palatable for today’s workforce. Our recent research on benefits enrollment trends reveals just how important it is for employers to tailor their benefits to meet the needs of a diverse, multigenerational team.

Employers can leverage insights into generational priorities to create flexible, personalized benefits programs that attract and retain top talent.

The Recipe for Generational Success

You can’t open a diner and not know how to make a good cup of coffee or fry an egg.

Just like in a diner, where everyone expects the basics to be available and done right, certain benefits are non-negotiable. Core offerings like health insurance, short-term disability, and wellness programs remain essential to everyone, with consistently high enrollment rates across all generations. For example:

• Short-term disability enrollment rates are 72% among Gen Z, 80% among millennials, 82% among Gen X, and 82% among boomers.
• Wellness programs are also valued across the board, with 76% of boomers and 70% of millennials enrolled.

However, while the basics unite us, it’s the extra ingredients that create loyalty. The flavors of benefits change depending on the generation:

• Gen Z — This group prioritizes lifestyle-forward perks like pet insurance (47%) and identity theft protection.
• Millennials—Known for balancing wellness and financial security, millennials are highly engaged with Health Savings Accounts (HSAs), with 78% enrollment.
• Gen X and boomers — Older generations focus on health and retirement benefits, such as HSAs (≥83% enrollment for both) and vision insurance (69% for boomers).

Each generation brings its own preferences to the table, and understanding these can help you refine your offerings.

Beyond Basics: Cooking Up Nontraditional Benefits

As tastes evolve, diners look for something beyond the staples. Enrollment trends show a rising appetite for benefits that reflect modern lifestyles. Nontraditional benefits like pet insurance and identity theft protection are growing in popularity, especially among younger employees.

• Pet insurance enrollment increased by 40% among Gen Z and millennials over the past three years.
• Identity theft protection saw a 35% rise in enrollment over two years, signaling employees’ growing concern over digital security.
• Financial planning benefits, such as debt management support, have also gained traction, seeing a 25% growth among Gen Z and millennials seeking assistance navigating student loans and other financial challenges.

Just like signature dishes and specialty offerings you wouldn’t expect to see at other restaurants, nontraditional benefits send a message to your employees and candidates that you understand their diverse needs. Adding these perks to your “menu” can make you stand out in a crowded employment environment.

Special Order: Customizing the Experience

Think of benefits customization like special orders at a diner. Having benefits the way you like is critical for satisfaction. Empyrean’s enrollment data serves as a roadmap for designing benefits packages that resonate. For example:

• Older generations are increasingly exploring newer benefits like critical illness insurance. Gen X has a 34% enrollment rate, emphasizing the need for financial safety nets during medical emergencies.
• Gen Z employees are meanwhile showing a growing interest in nontraditional benefits like identity theft protection, which has seen a 35% rise in enrollment among workers in this generation, and vacation benefits, with a 39% enrollment rate, reflecting their desire for lifestyle-oriented options.

Empyrean's enrollment data underscores the importance of tailored benefits programs. For instance, the increasing rates of enrollment in traditional and nontraditional demonstrate how aligning benefits with generational preferences can boost enrollment overall, leading to a better employee experience.

Five Steps to Serve a Winning Benefits Menu

Creating a benefits menu that resonates with a multigenerational workforce can feel daunting, but it doesn’t have to be. Here are a few considerations for benefits leaders:

1. Season with Communication — Use data-driven storytelling to make benefits relatable and engaging. For example, explaining the trends in your own enrollment data (if available) gives real-life applicability to employees. Demonstrating the value of each benefit through statistics and real-life success stories can make your program resonate with employees.
2. Prep Financial Literacy Tools — Educate employees on the “why” behind benefits like HSAs. Highlight examples, such as how HSAs can be used to cover unexpected medical expenses or save for future retirement healthcare needs. Use workshops or interactive tools to show employees the long-term financial advantages of these accounts.
3. Offer a Tasting Menu for Wellness — Tailor wellness offerings to meet generational needs. For instance, include mindfulness and mental health apps for Gen Z and fitness reimbursement programs for millennials. Highlight these benefits through targeted communications to ensure employees feel they have options that suit their lifestyle.
4. Introduce Nontraditional Pairings — Use real-world examples to illustrate the value of nontraditional benefits. For instance, legal insurance can provide support during estate planning or housing disputes, while hospital indemnity plans can help employees manage unexpected medical costs. Tailored case studies can also bring these benefits to life for your workforce.
5. Use Personalized Plating — Craft your benefits communications to address the unique needs of each generation directly. For instance, highlight how financial planning tools like HSAs and retirement savings align with Gen X's goals of stability and preparedness. For Gen Z, showcase benefits like identity theft protection or vacation perks, linking these offerings to this group‘s digital-savvy and lifestyle-oriented priorities. Tailored messaging ensures employees see the personal value in your offerings.

Focusing on strategies that align with your employees' diverse priorities can help you craft offerings that engage, support, and retain top talent.

Designing Benefits That Hit the Spot

Just like a diner’s menu, your benefits program should cater to a variety of tastes and priorities. From the essentials everyone expects to the unique flavors that make your offerings stand out, it’s about finding the right mix of options to satisfy your entire workforce. A data-driven approach can reveal what most resonates across generations.

Your workforce deserves benefits that feel personal, relevant, and thoughtful. With the insights from our latest report, Employee Benefits Evolution: New Research on Enrollment Trends That Will Define 2025 , you’ll have a solid starting point to craft benefits programs that leave a lasting impact on your employees.