Innovative Ways Companies are Attracting (and Keeping) Top Talent Across All Generations
It’s safe to say that each generation wants something a little different when it comes to benefits and pay at work. This is because each generation is shaped by something a little different and enters the workforce during different economic periods. But it’s also safe to say that benefits, pay, and perks are a major consideration when weighing a job offer.
Who Makes Up Your Workforce
In order to offer an attractive benefits package to a multi-generational workforce, it’s important to understand your workforce. Let’s start by taking a look at a recent generational breakdown of the workforce, according to the Department of Labor.
Millennials make up the largest share of the workforce, sitting at 36%, with Gen X coming in a close second at 31%. With more and more Baby Boomers retiring, Gen Z has overtaken Baby Boomers, coming in at 18% of the workforce and Baby Boomers at 15%.
But it's not just the generational share of the labor force that you should understand. Educational attainment has shifted significantly across generations, with younger workers generally achieving higher levels of formal education than their predecessors.
While Baby Boomers have the lowest rate of Bachelor's degrees at 20%, each subsequent generation has shown an increase, with Gen Z already reaching a 33% attainment rate despite only recently entering the workforce. Advanced degrees follow a similar pattern, though the differences are less pronounced, ranging from 14% for Baby Boomers to 16% for Millennials. (DOL.gov)
What each Generation Wants
Now that you have an understanding of who makes up the workforce and the level of education each generation has, let’s break down the benefits that each generation wants. Knowing this information will help you develop a benefits package that will match the wants and needs of your workforce.
Baby Boomers
This generation, born between 1946 and 1964, is the oldest generation in the workforce, with many of them approaching retirement over the next several years. This means that many Baby Boomers will be particularly interested in benefits such as additional health insurance and better retirement benefits, such as retirement planning or investment advice, 401(k) matching contributions, dental plans, and long-term care insurance.
Some companies have even implemented some more innovative benefits programs, such as the “snowbird program,” which allows older workers to move seasonally between two different locations, allowing them to work where the climate is warmer in the winter. Other companies have offered “grandternity leave” which allows grandparents to take off a few days to a few weeks to help welcome a new grandchild and to support their children during this time.
When it comes to pay, Baby Boomers are often at the top of the leadership roles, receiving higher pay, which would allow for better retirement benefits as well.
Generation X
Gen X was born between 1965 and 1980 and is currently known as the “sandwich generation.” They are often filling multiple roles–employee, parent, and caretaker of elderly parents or relatives. So, tailoring benefits to align with these caring responsibilities can assist with recruiting and retention. Some of these benefits might include assistance with childcare costs or assistance with their kids’ university admissions. Other companies offer services to help their employees manage the administrative side of caring for elderly relatives. Innovative benefit solutions could include 'family care concierge services' - where a dedicated support team helps employees coordinate everything from finding elder care facilities to scheduling their children's after-school activities, essentially providing a personal assistant for their complex family logistics.
But beyond offering this type of assistance, Gen X also appreciates flexibility in hours and the option to work remotely when needed. They are also looking for wellness programs that help them deal with the stress of balancing so many roles.
As for pay, Gen X is often in leadership roles or looking to move into leadership roles. So, offering higher earning potential and other options, such as leadership training, is a plus for their career advancement aspirations.
Millennials
While many older generations still seem to think of Millennials as kids, this generation is actually in their 30s and 40s, born between 1981 and 1996. According to Mercer, 79% of Millennials consider themselves caregivers. The growing cost of healthcare is a huge concern for many Millennials. Employers can win over this generation with generous coverage for them and their families. Not only are they looking for great health benefits, but low-cost plans as well.
Additional paid leave and financial support to those going through fertility treatment is a benefit that appeals to Millennials. Forward-thinking organizations might consider offering 'passion project sabbaticals,' where employees could take a paid 1-2 month break every few years to pursue personal growth projects or volunteer work while maintaining their position and benefits.
Millennials, like many in Gen X, often value workplace flexibility, including options for remote work and flexible schedules. While compensation remains important, many Millennials also place high value on finding work that aligns with their values and where they feel they can make meaningful contributions. Because this generation makes up the largest share of the workforce, employers who offer great work environments, meaningful growth opportunities, and competitive pay will see top-quality Millennial talent seeking them out for jobs, and will have better retention rates.
Gen Z
Born between 1997 and 2012, Gen Z represents the newest generation in the workforce. This generation tends to value benefits that provide immediate financial impact, such as employee discounts, memberships, and support paying off student loan debt. Companies could consider implementing 'skill-banking programs,' where employees earn additional paid time off or bonuses by completing certified training in emerging technologies or sustainable business practices - effectively getting paid to learn while building their career portfolio.
Gen Z is also much more likely to feel stressor burnout than older generations. So, it’s no surprise that many in this generation are seeking jobs that offer mental health days or mental health support and therapies. On top of that, they prefer jobs that offer comprehensive health insurance, vision and dental benefits, maternity leave, and telemedicine programs or virtual mental health counseling.
When it comes to compensation, Gen Z often prioritizes transparency in pay structures and clear paths for advancement. They tend to seek companies that offer competitive base salaries combined with performance-based incentives and professional development opportunities that can lead to increased earning potential.
How To Give Everyone What They Want
You can see that there are some big differences between the generations in the workforce, which means a rigid approach to benefits just won’t work. Instead, employers should have a clear understanding of their workforce demographic and, when crafting their benefits strategy, offer a flexible framework that promotes inclusivity and shows each employee that they are valued. There are benefits that each generation will find valuable, such as generous leave packages, flexible work arrangements, or paid volunteer days. When it comes to offering other more personal benefits, employers should get creative to meet employees where they are, and support the things most important to them.
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