By expanding the accessibility of available benefits and tailoring communication to different cohorts of employees, HR leaders can get the most out of their benefit offerings and support employee well-being.
By Stephanie Doherty
Having more employee benefits isn’t always better, especially when considering the pace at which the workforce has changed just within the past few years. And employees are reaching their breaking point: A study by the Society for Human Resource Management (SHRM) found that close to 50% of employees felt overwhelmed by their benefit options and may stick purely to the basics when it comes to what their employers offer.
50% of employees feel overwhelmed by their benefit options.
While employees are struggling with benefits overload, HR teams have grappled with return to office planning, shifting workforce expectations, talent shortages, and increased competition for skilled employees. And those employment challenges are predicted to persist in 2025, too.
HR teams have their work cut out for them. Today’s workforce is primarily comprised of four different generations: baby boomers, Gen X, millennials, and Gen Z. This multigenerational workforce results in a variety of beliefs and attitudes, from how to effectively communicate at work to what motivates them on the job. Not only does HR need to figure out the right benefits mix to recruit and retain their best talent, but they also must ensure that employees stay engaged and remember those available benefits when they’re needed most.
So, what happens when HR leaders are faced with an influx of benefits, a generational mix in the workforce, and an unpredictable future on the horizon?
One approach to consider is an optionality strategy that’s tailored toward the generations that can ebb and flow regardless of what macroeconomic conditions may present. For example, younger employees who are recent graduates may be more interested in short-term focused benefits. Meanwhile, older professionals may be more interested in long-term voluntary benefits.
More and more HR teams are strategically adopting greater optionality as it relates to employee benefits versus personalization to accommodate the varied preferences of a traditional workplace.
Optionality Makes Way for Personalization
To understand financial wellness and job satisfaction, and to identify measures where employers can provide more support for employees, Purchasing Power recently conducted research surveying employees in key U.S. industries, including manufacturing, retail, healthcare, education, and the public sector.
Purchasing Power learned that these employees would like to have access to voluntary benefits like low-interest installment loans (25%), medical deductible financing (18%), and employee purchase programs (17%). Meanwhile, the retail workforce would like access to financial counseling (31%) and medical deductible financing (29%).
Rather than identifying a handful of traditional and voluntary benefits that can cover all of employees’ needs, HR professionals should research voluntary benefits that offer a range of options that meet the needs of a multigenerational workforce rather than a small number of employees.
Monitor and Tailor
Once an updated program is put in place, employers can regularly monitor employee engagement and identify gaps. HR teams should first check in on enrollment and benefits engagement data. In addition, benefit brokers may have additional insights into the usage and traction of the program’s offerings as well as trending benefits with other organizations.
Beyond quantitative measurement, HR teams should proactively check in with people leaders and employees to understand the sentiment around the benefits they offer. This can be done through face-to-face meetings, small focus groups, or pulse surveys.
Personalize and Promote
Despite emphasizing the value of optionality in benefits programs, it’s important for HR teams to find ways to personalize and promote benefits. This can be done through strategic internal communications and highlighting how some program offerings are better aligned with various groups’ needs through announcements or lunch and learn sessions.
By taking extra care to expand the availability and options of benefits programs while tailoring communication and proactive outreach to employee groups, HR teams can position their organization as one that truly cares about the well-being of its workforce, further reinforcing its commitment to employee well-being.
If HR has learned anything over the past five years, it’s that benefits have become just as important as salary, and employees are looking to employers to get it right. To attract and retain talent, it’s critical to align benefits programs with the workforce’s varying needs.
Stephanie Doherty is chief people officer at Purchasing Power.
