Employee benefits: What do different generations value?

17 de March, 2023

Nowadays, organizations are made up of professionals from different generations. This diversity adds value to the business and the company, as people at different stages of life have more diverse experiences, skills and points of view.

At the same time, this multigenerational environment can pose a challenge for human resources managers, who need to be able to respond to different needs and expectations, particularly with regard to extra-salary benefits.

It is essential that organizations and their managers recognize the importance of making the benefits they offer more flexible. Only in this way can they remain competitive in attracting and retaining talent with heterogeneous interests.

Which generations make up the labor market?

Today, organizations can be made up of employees from four generations:

• Baby Boomers: people born between 1947 and 1964;
• Generation X: people born between 1965 and 1979;
• Generation Y (Millenials): people born between 1980 and 1996;
• Generation Z: people born between 1997 and 2010.

These people were born – and have lived – in very different socio-economic contexts. The job market itself is very dynamic and has become increasingly competitive. And these factors end up resulting in different professional priorities and expectations.

In this sense, your company’s benefits plan should be flexible, covering the different areas valued by employees.

What benefits do the different generations value?

1 – Baby Boomers

People of this generation are more focused on aspects related to their retirement and also health care.

For this reason, these workers tend to value benefits related to these areas: health insurance or extra-salary benefits that allow them to have greater liquidity in medical expenses, dental services or opticians, for example.

2 – Generation X

One of the main differences between people from this generation and the previous one is that they generally still have children of school age. For this reason, education support benefits are highly valued.

At the same time, they may have family members in nursing homes or helped by home care services, so social support benefits are also very useful.

Finally, people from this generation tend to prioritize their work-life balance, valuing aspects such as flexible working hours or additional vacation days, for example.

3 – Generation Y(Millenials)

The Millenial generation is typically going through the stage of starting a family, so childcare benefits play an important role in this age group.

This was also the first generation to show great interest in greater flexibility in the workplace, particularly in the possibility of working remotely.

Another important aspect is professional development. Career plans, as well as training and skills development opportunities, should not be overlooked by human resources managers.

4 – Generation Z

This is the generation made up of younger people, some of whom are already starting to enter the job market. Like Millenials, they also value flexible working hours and the possibility of hybrid or remote working. After all, they are the first digitally native generation.

This is a generation that places a lot of importance on well-being, both physical and mental, so wellness programs and health benefits should be considered.

In addition, issues such as diversity, fairness and inclusion are central to Generation Z people, who expect companies to play an active role in promoting these values.

As we can see, people at different stages of life can be expected to have different priorities and interests.

In this context, defining a comprehensive and flexible extra-salary benefits plan that recognizes this multigenerational reality will put your company in a better position to ensure employee satisfaction and motivation.