How to tailor employee benefits across different generations – Part two

In part one, we looked at the diverse needs of the five generations in the workforce. This follow-up will explore how HR can create benefit packages that resonate with employees across all life stages – from Boomers in phased retirement to Gen Z employees in entry-level positions.

The changing value of benefits

Traditionally, most companies offered a standard set of benefits – such as pensions, paid time off, and health insurance – which were once seen as sufficient. But in recent years, the rise of optional and personalised benefits has transformed expectations, giving organisations a new way to stand out in a competitive talent market.

Research indicates that 65% of today’s talent consider employee benefits as a vital factor when evaluating job offers, with 70% of employees stating they are more likely to stay with a company that offers a well-structured benefits package. This highlights the necessity of competitive, personalised benefits for both the attraction and retention of top talent.

Yet, despite the value of benefits, there continues to be a disconnect between what employees value and what many organisations have on offer. One recent study indicated that only 12% of employees were ‘very happy’ with their package, whilst 23% felt neutral, and 29% expressed ‘dissatisfaction’ or strong ‘dissatisfaction’.

If over half of your organisation is either dissatisfied or indifferent about your benefits, you need to elevate your package to have the upper hand in today’s competitive talent market. HR leaders can differentiate by offering more relevant, responsive, and employee-focused benefit schemes that demonstrate genuine investment in their people’s wellbeing, no matter their age or circumstances.

What do employees actually want?

To cater to the needs of various generations in one workplace, benefits are becoming an increasingly important challenge. According to Mercer, over one-third of each generation believe their package isn’t well-aligned with their personal circumstances.

There is no one-size-fits-all solution. Here’s what each generation values most:

Generation Z

• Facing high levels of stress and burnout (recent data highlights how Gen Z are nearly 20% more likely than Boomers to have felt mentally unwell in the last year and are 11% more likely to be stressed in everyday life), making mental health support, such as counselling, a top priority
• Value placed on flexible hours, on-demand pay to deal with surging cost-of-living rates, and instant digital access to support
• Prefer benefits that reflect their personal values, such as climate action and inclusivity

Millennials 

• Often balancing work with childcare, rising living costs and eldercare
• Millennial’s and Gen X are currently referred to as the ‘sandwich generations’ (responsible for care of children and elderly parents), with 78% of Millennials (and 74% of Gen X) classifying themselves as ‘caregivers’, meaning many of these generations rely on flexibility
• Require help with student debit, childcare, family leave, and home buying support
• Look for career development opportunities and strong mental health tools

Generation X

• Also managing financial pressures while caring for both children and ageing parents
• Need benefits that support long-term financial planning and stress reduction
• Value flexible working to support relatives, as well as affordable family healthcare

Boomers 

• Continue to value traditional benefits, such as pensions
• Staying in the workforce longer, often seeking practical, cost-saving support
• Most value preventative care, for example 48% value cancer screenings and 41% want telemedicine
• Increasingly open to tech-enabled wellbeing solutions and flexible perks

Three key moves HR can make in 2025

1. Personalise the employee experience

Make use of customisable benefits portals which let employees ‘build their own package’, based on what matters most to them. AI-powered benefits platforms now offer tailored recommendations, helping HR shift from generic offerings, to benefits that truly excite all types of talent.

2. Promote financial wellbeing

With the ongoing cost-of-living crisis and the unaffordability of house ownership for younger generations, employers need to find ways to support the financial health and stability of their workforce. Many organisations now offer:

• Salary sacrifice schemes (which offer significant tax reductions) on travel, such as electric vehicles (EV’s) and bikes, as well as tech
• Budgeting tools and debt support
• Group ISAs and Lifetime ISA contributions
• Home deposit assistance benefits

3. Align benefits to ESG and purpose

Millennials and Gen Z who want employers who care and can prove it. Benefits that align with ESG goals (e.g. EV schemes) and employee purpose (e.g. volunteering days) are powerful tools for building trust, fostering an organisational culture that aligns with employee values, and differentiating your brand.

Redefining the purpose of benefits

More employees today, across all generations, are choosing where to work based on culture, flexibility, financial support, and values. Benefits are a staple of your organisational culture. When they are designed with meaning, care and offer personalisation, they don’t just support employees but elevate your employer branding, improve attraction and retention rates, and help future-proof your workforce.

By aligning your benefits strategy with the lived realities of your workforce, you’ll be better positioned to attract, retain, engage and motivate the talent who are pivotal to organisational success.

Looking to make your benefits package truly stand out? Tusker, the UK’s leading EV salary sacrifice provider with a 99% retention rate, offers a future-focused benefit that supports every generation’s financial wellbeing and commute, all while helping you reach your ESG goals.