To many people, workplace diversity, equity, and inclusion (DEI) means inclusive hiring practices, diverse workforces, and employee resource groups and the like. After all, DEI is key to the ability to attract and retain talent.
In a tight labor market, prospective employees are increasingly looking for employers that share their values. A recent Glassdoor survey found that nearly a third of employees and job seekers would not join an organization that lacks diversity.
However, it’s just as important these days for organizations to assess and, if necessary, rethink their employee benefits packages for multigenerational staffs. With that said, here’s what you should know about tailoring employee benefits to a diverse workforce.
The fact is that traditional benefits plans are not crafted for what are increasingly diverse workforces. By putting together a tailored and flexible program, organizations can meet broader wants and needs.
Employees who hail from different generations possess disparate benefits needs. Let’s explore.
Appealing to Gen Z
Born between 1997 and 2012, these individuals cut their proverbial teeth on digital technology and are more apt than earlier generations to focus on their mental health and overall wellbeing. In addition, these employees are more likely to be interested in their organization’s culture and values.
For this group, employers would do well to set up wellness programs and establish an honest and transparent dialogue with their workers. These actions have been proven to help organizations lure and keep key talent, lessen burnout, and heighten employee satisfaction.
Appealing to Millennials
These employees, born between 1981 and 1996, comprise the largest generation in today’s U.S. workforce. They have been in the vanguard of recent trends such as remote work, a collective interest that developed even before the pandemic.
Note that because many members of this demographic cohort are starting and building families, they’re naturally more interested in health benefits such as fertility funds and dependent care assistance. In fact, research shows that more than 70 percent of millennials would consider changing employers for improved fertility benefits such as work flexibility, ample parental leave, or coverage for egg freezing and fertility treatments.
If you have a good number of millennials on your payroll, you also may want to think about offering benefits that reimburse them for student loan payments. Did you know that more than 14 million millennials owe on student loans? It’s true. So, it also may be a good idea to provide what’s known as a lifestyle spending account.
Appealing to Gen Xers
Born between 1965 and 1980, Gen Xers comprise some 33 percent of the nation’s workforce. Many of these tech-savvy employees are raising children while simultaneously taking care of parents.
Thus, many members of this group will likely be interested in affordable healthcare benefits, dependent care assistance such as a dependent care flexible spending account, and generous employee compensation.
Appealing to Baby Boomers
While some members of this cohort have retired – Boomers were born between 1946 and 1964 – many are still working. They generally offer employers a wealth of experience and keen insights.
To attract and retain Baby Boomers, consider traditional benefits (health, vision, dental) as well as additional ones like a health savings account or flexible spending account.
Baby Boomers who still wish to work – or need to – but who no longer want to toil all that hard, may be interested in job sharing, wherein two employees handle a single role. While the duality will cause a pay drop for the individuals involved, that’s offset somewhat by lower childcare and commuting costs.
Ultimately, tailoring employee benefits to a diverse workforce is just smart business, especially in a labor market in which employees have more choices. If you need help putting your benefits packages together, we recommend the HR consultant Mercer.