The top 5 benefits, according to each generation

If employers are going to invest in new benefits, they should know which ones will best meet the needs of the different demographics in their workforce. 

The Bureau of Labor and Statistics reports that the annual cost of benefits per employee is $23,696 in the private sector and $26,226 for civilian workers, and 78% of employees said benefits packages are a reason they are more likely to stay with an employer. Essentially, every benefit counts, so it's good to have a handle on what employees of different ages and life stages want. 

"The workforce today comprises [multiple] generations, each with distinct experiences, yet within this generational framework lies a diverse range of individuals with unique needs and perspectives," says Kristina Welke, head of strategy, solutions and marketing for New York Life Group Benefit Solutions (NYL GBS). "By understanding these generational nuances and offering a flexible benefits package, employers can create a more engaging and supportive workplace for everyone."

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NYL GBS looked at feedback from 1020 working adults across all five age brackets and found a few common threads: All generations prioritize retirement savings, though more older employees (77% of Gen X and 84% of baby boomers) ranked it as a must-have compared to younger workers (61% of Gen Z and 73% millennials). Unsurprisingly, flexible work arrangements also ranked among the top five most-wanted benefits for each group. 

Larger gaps existed in benefit categories such as mental health support, with younger workers placing more emphasis on these resources (42% for both Gen Z and millennials versus 37% of Gen X and 28% of baby boomers). Likewise, long-term care was a clear priority for older generations (39% of Gen X and 66% of baby boomers) but did not rank among millennials or Gen Z. 

Welke recommends organizations hone in on what employees across all life stages need to thrive — ideally, every benefit should connect to real-life circumstances workers face. 

"[Companies] can focus on clearly communicating the value of their benefit offerings by connecting them to the real-life challenges employees face and demonstrating how different benefits can help employees achieve their personal and financial goals," she says. "For example, against a backdrop of rising healthcare costs, employers can showcase how benefits like supplemental health insurance can help provide a financial safety net and cover unexpected out-of-pocket costs not typically covered by health insurance plans."

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To gain insight into which benefits should get the most attention from employers, Welke reminds employers that in today's evolving workplace, they should frequently check in with employees and gather data so they have the insights they need to add the right benefits to their comp packages. 

"There are many tactics employers can use, including engagement surveys, online forums and other digital tools, but at the core, there needs to be a desire throughout the organization to put employees' voices at the center of decision-making," she says. "When employers tailor benefits to employees' needs and keep a constant pulse on their sentiments, this delivers improved outcomes for people and businesses."

Here are the benefits that made each generation's top five most-wanted lists, according to NYL GBS.