Best Benefits for Employees’ Different Life Stages

Businesses know that benefits are essential to support employees’ well-being and keep them engaged. But often, employers aren’t sure of the benefits that employees value most. Added to the problem is that each demographic group of employees in the workforce has different benefits needs. However, understanding the stages of employees’ lives from a Baby Boomer to Gen Z can help you recognize workers’ needs. Review the best benefits for employees’ life stages because when a company builds a benefits package that aligns with their associates’ priorities, it may keep them engaged long term.

Graduate, Early Employment

The newest generation of workers – largely Gen Z and younger millennials has redefined what they want from their career. This generation prioritizes:

• Mental and emotional well-being
• Authenticity and transparency
• Work-life balance
• Social and environmental responsibility

The youngest workers are working at their first full-time job. They face many new decisions as they consider living independently, getting married or buying a home. Most are unfamiliar with employee benefits and may be unsure if they need them. This generation faces many significant challenges, so they are more proactive than previous generations about their mental health care. Companies that offer benefits like teletherapy, mental health apps, and employee assistance programs will be more attractive to these younger associates.

Gen Z prioritizes a healthy work/life balance, and among in-office employees, remote flexibility ranks second only to flexible hours on their benefits wish list. Young workers also may be taking care of aging parents, and they appreciate flexible work schedules and employer support to take time off to handle caregiving responsibilities. Gen Z employees are also interested in continuous learning opportunities to strengthen current skills. As a result, companies should consider offering opportunities for them to broaden their knowledge and develop expertise in new areas.

Developing family

Employees with a young family often are overwhelmed by the challenge of balancing work and family commitments. Finances may be tight as they stretch their paycheck to cover basic living expenses, especially if they are paying off student loans. Financial stress is prevalent among employees, with 60% expressing concern over their debt levels. Tips from professionals and proven systems help them pay off bills, save for their children’s college expenses, and participate in a 401(k) retirement plan.

Employer-covered healthcare is the number one benefit employees want their company to offer. This helps cover unexpected costs and provide preventive care. Many grew up going to the dentist and eye doctor for regular checkups and exams under their parents’ coverage. So, they consider dental and vision coverage as essential benefits to help them take care of their own children’s teeth and eyes.

Pet insurance is also a consideration. Many of these employees with young children may welcome a pet into their family. While the new house pet provides a lot of love and comfort, veterinarian bills can add up. Workers appreciate pet insurance to help cover some of the costs.

Balancing the demands of a growing family, caring for older parents and pursuing professional dreams can be overwhelming. That’s why employees want to work for employers who support work-life balance. These younger employees often want access to counseling services available through an Employee Assistance Program.

Established family

At this stage in life, employees are focused on providing a solid foundation for their older children. They value dental insurance to help with oral health costs, such as orthodontia and mouthguards for sports. Employees also want vision coverage to assist with purchases of prescription eyewear, contacts and sports glasses. Employees in this group may also notice changes in their teeth and eyes. This means that they may need to see the dentist more regularly and talk with their eye doctor about a stronger vision prescription or LASIK. In fact, 63% of employees rank dental insurance as a top-three benefit, and 31% rank vision as a top-three benefit.

Many employees in this age group are also looking for childcare support and other family-focused perks. Some employers offer unique benefits such as college planning assistance, tutoring, and even tax-optimized strategies. Family-friendly policies are only beneficial if employees feel comfortable using the options available to them. It may be helpful to ensure leadership sets an example by using the benefits, having open conversations about family matters with their team members, and supporting the maintenance of a family-friendly company culture.

Midlife transition

Employees in this age group are interested in robust health benefits to help them with changing medical needs that can come with aging. These employees often have more financial responsibility than their younger colleagues do, and are thinking about saving for retirement, paying for their children’s or grandchildren’s education. Retirement savings benefits are a critical component of employee compensation, designed to help workers build financial security for their future while providing immediate tax advantages. These benefits typically include employer-sponsored, tax-advantaged accounts like 401(k)s, 403(b)s, or IRAs, often featuring automatic payroll deductions and matching contributions. 

Dental and vision insurance are essential to keep their teeth and eyes healthy. They may have more crowns and root canals and need regular eye exams to watch for signs of eye disease. More older employees are interested in volunteer perks so they can take time during the workday to help with community needs. They appreciate well-being fitness programs and perks to help them keep active as they age.

Retirement

Historically, retirement meant a time when most people stopped working. Today, that’s not necessarily true. A Gallup poll found that 74% of respondents intend to work past the age of 65.

As employees head into retirement, their primary benefit needs focus on their health and finances. Although people 65 years old and above are eligible for health care coverage through Medicare, that may not be enough for some individuals. Employer-provided health insurance can cover expenses that Medicare doesn’t, such as certain prescriptions and specialty care. Retirees also appreciate financial assistance to help them with decisions on budgeting and using their retirement savings.

Embracing the unique needs of every generation

Offering benefits to a multi-generational workforce (ranging from Gen Z to Baby Boomers) requires moving away from a one-size-fits-all model toward personalized, flexible, and modular benefits packages. The most effective strategy is to provide a solid foundation of core benefits—such as healthcare and retirement—while enabling employees to customize optional, voluntary benefits to fit their specific life stage.

Sources and References:
SA Journal of Industrial Psychology
Thatch
Johns Hopkins University
Enrich
Forbes
ADP
Employee Fiduciary
United Way
Gallup