As the workforce landscape evolves, catering to distinct generational preferences becomes pivotal in benefits offerings. Employees’ lack of awareness about provided benefits poses a significant challenge for employers.
In response to changing dynamics, employers must broaden their range of benefit options to align with diverse generational expectations. The pandemic-induced rise in hybrid and remote work has transformed workforce dynamics, reshaping post-COVID-19 needs and expectations. Patrick Leary, head of LIMRA Workplace Benefits Research, emphasizes the role of benefits in attracting and retaining talent in a competitive job market.
LIMRA and Ernst & Young’s research indicates that employers anticipate a surge in demand for nonmedical benefits such as paid family leave, emergency savings, and financial wellness programs. Traditional offerings remain crucial, with an expanding focus on holistic packages. Medical insurance is a consistent expectation, while benefits like dental, vision, life insurance, and paid family leave are highly valued.
The study highlights a pronounced shift toward employee well-being, particularly among younger generations. Mental, physical, and financial health programs, along with tuition assistance and caregiving benefits, are of significant interest to them. Employers are gearing up for the expectation of more diverse benefit choices in the future.
Navigating this landscape, companies face the task of customizing communication to effectively engage and educate varied generational segments. Digital platforms are viewed as successful channels for guidance, with over 90% of workers from all generations agreeing on their efficacy.
Strikingly, digital capabilities are emerging as a decisive factor for employers when selecting carriers. Integration with benefits technology platforms outweighs cost considerations for 59% of employers seeking insurance carriers. Almost half of the employers would switch carriers if integration with their technology platform was lacking. In this evolving benefits landscape, digital integration is instrumental for both employees’ engagement and employers’ decision-making.
