Finding the Right Benefits for Multigenerational Workforces
Quick look: With new employees starting their careers and others delaying retirement, the workforce as we know it is changing, and personalized benefits have taken on new significance. However, one worker’s “must-have” may be negligible to another. Here’s how brokers, with support from a professional employer organization (PEO), can help their clients design dynamic benefit packages for a multigenerational talent pool.
Today’s workforce spans five generations, from Baby Boomers to Gen Z, each with unique needs and expectations when it comes to employee benefits. For small and midsize businesses (SMBs), offering a one-size-fits-all benefits package is no longer effective.
That’s where professional employer organization (PEO) brokers can play a vital role. By connecting clients with tailored, Fortune 500-level benefits through a PEO, you can help them attract top talent, increase retention, and remain competitive.
As turnover rates continue to drop, this is a great opportunity for employers to strengthen their benefit offerings to attract and retain staff when the talent market inevitably shifts. Brokers who understand what each generation values the most and how to leverage a PEO partner can deliver maximum results and high-impact solutions to clients.
Which benefits does each generation want?
What’s important to one set of employees may be less attractive to others. A “one-size-fits-all” approach is destined to fall flat with today’s workforce. Each group has its own priorities and flexible, custom benefits packages can better meet the diverse needs of employees. Here’s a look at what different generations typically value:
Baby Boomers (born 1946-1964)
With many Baby Boomers nearing retirement, this group often wants robust healthcare benefits, including ancillary medical coverage, and financial planning resources to smooth their transition.
Gen X (born 1965-1980)
Stability and work-life integration are key for Gen X. Strong retirement plans, financial wellness tools, and caregiving support rank high on their list.
Millennials (born 1981-1996)
Now the largest segment of the labor force, Millennials tend to prioritize work-life balance, family planning support, and legal plans to guide them through major life milestones like homebuying or estate planning.
Gen Z (born 1997-2012)
Gen Z values holistic health and activities outside the office, making ample paid time off and mental wellness benefits crucial. Over 13 million Gen Zers carry student loan debt, which clients can help them tackle by offering a student loan repayment program. This generation also leads pet ownership growth, making pet insurance a standout perk.
5 ways brokers can help SMBs broaden their benefits
For SMBs, meeting the needs of a multigenerational workforce can feel overwhelming, but it doesn’t have to be. Here are five ways the right PEO partner can help brokers equip their clients with inclusive, meaningful benefits that make every worker feel supported, without the stress.
1. Access to customizable, high-quality benefits
The right mix of offerings ensures talent feels understood, appreciated, and more likely to stay long-term.
Through the group buying power of a PEO, businesses gain access to Fortune 500-level benefits that appeal to every generation. For instance, ExtensisHR offers:
- Comprehensive medical, dental, and vision insurance
- Flexible savings accounts (FSAs) and health savings accounts (HSAs)
- 401(k) plans
- Financial wellness training on budgeting, investing, etc.
- Voluntary benefits, including pet insurance, legal services, and supplemental critical illness and accident coverage
- A student loan repayment program
- Family-forming support
- And more
2. Guidance implementing flexible work-life balance policies
Whether it’s hybrid work, flexible hours, or paid time off, PEOs can help clients create workplace policies that cater to multiple generations’ lifestyle expectations.
A PEO like ExtensisHR provides each client with a dedicated, SHRM-certified HR Manager who supports them in developing compliant, scalable strategies that match these needs.
3. Employee-driven insights
Every workforce is unique, and the benefits that appeal to one person may not be a great fit for another. A PEO’s human resources (HR) experts can help SMB leadership craft surveys asking staff to rank the types of benefits they find most attractive. Clients may then use these preferences as a guide to create personalized benefit packages.
4. Support while prioritizing benefits
Deciding which benefits to roll out first and which to plan for the future can be a challenge. Brokers and their PEO partners can assist clients in evaluating their options and implement those benefits based on workforce needs and available resources.
5. Deeper insight into industry trends
By keeping an eye on trending perks, new coverage options, and evolving employee expectations, a PEO’s team provides clients with a valuable perspective on which benefits will likely resonate with their staff.
ExtensisHR: helping you and your clients keep up with the changing world of work
In today’s modern workplace, benefits that cater to each stage of life aren’t a perk, they’re a competitive necessity.
Adapting to changing workforce dynamics and benefits preferences can be tricky for many SMB employers. When brokers align their clients with a PEO like ExtensisHR, they reduce the strain on their internal HR teams while providing access to an expert support team and Fortune 500-level benefits. Offloading HR management also frees company leadership to focus on more revenue-generating tasks while paying greater attention to employees’ needs.
Additionally, ExtensisHR offers affordable access to tools like 15Five, an employee engagement platform that includes functionality to survey staff on their opinions about their current benefits plans and potential improvements.
As workers delay retirement and new employees begin their careers, multigenerational workplaces are here to stay. By partnering with a PEO, especially one with a broker-friendly philosophy like ExtensisHR, you can help clients deliver benefits designed to help them and their staff succeed, and grow your book of business at the same time.
Looking to connect your clients with next-level employee benefits? Learn more about ExtensisHR’s benefits solutions, or contact us today to discuss a partnership.
