How to Tailor Your Benefits for a Multigenerational Workforce

These days, most organizations cater up to five generations in their workforce, from Traditionalists to Gen Z. With such a wide age range, a one-size-fits-all benefits solution doesn’t work for a multigenerational workforce. What your Baby Boomers need isn’t going to be the same as what Gen Z needs. To truly offer an inclusive workplace, here are the benefits that each generation in your workforce desires. 

Baby Boomers

Baby Boomers were born between 1946-1965 and still represent 25 percent of the workforce even though most are retired. This generation is one of the least tech-savvy compared to the following generations, yet they have the most experience since they have been in the workforce for the longest. 

One word that comes to mind when it comes to Baby Boomers is traditional. This generation is used to working a traditional 9-5 job in an office. Like their work preferences, Baby Boomers favor traditional benefits such as health insurance, vision insurance, dental insurance, and pension programs. Additionally, workplaces with a large Baby Boomer population could benefit from additional healthcare benefits for their aging population, such as a flexible spending account (FSA) or health savings account (HSA). Note that on top of the annual HSA maximum,  employees who are 55 and older can also contribute an additional $1,000 catch-up contribution. 

Gen X

Folks who fall under Gen X were born between 1965-1980 and make up 33 percent of the workforce. Gen Xers are more tech-savvy than Baby Boomers, and many have families. Because Gen X is sandwiched between generations, they are likely caring for both their Traditionalist or Baby Boomer parents and their Millennial children simultaneously. 

Because of this, Gen X favors dependent care assistance benefits, complete with a dependent care flexible spending account (DCFSA). This type of account is a tax-advantaged plan that allows employees to allocate pre-tax dollars toward eligible dependent and childcare expenses. Organizations can allocate a certain amount of money at the beginning of each year that will be deducted pre-tax from employees’ paychecks every month. 


Millennials, born between 1981-1996, are currently the largest generation in the workplace at 37 percent. This generation has several needs regarding their benefits, from health insurance to student loan repayment, to mental health. Many millennials are building families, so benefits they favor are great health insurance, dependent care, and fertility benefits. 

Additionally, this generation is concerned with their overall well-being—physical, mental, and financial. Millennials are concerned about the rising cost of living, student loan debt, and wealth inequity, so they expect assistance from their employers. The ability to work remotely helps ease the cost of living concerns, while a life planning account (LPA) can offer student loan benefits. 

Burnout is another concern for Millennials and Gen Z alike, so they are increasingly looking to employers to offer benefits to support a healthier work-life balance and their mental health. Other benefits important to Millennials include flexible work and career growth opportunities. 

Gen Z

By 2025, Gen Z, born between 1997-2012, will comprise about 27 percent of the global workforce. Like Millennials, Gen Z wants support for several benefits from their employers, focusing on work-life balance and well-being.  

Gen Z workers will leave jobs where they don’t feel happy or supported even if the pay is good. They seek learning and development opportunities and a workplace that supports a work-life balance more than compensation. Additionally, Gen Z workers want a flexible and remote work environment that respects taking PTO and unplugging from work. 

Burnout is a huge issue among Gen Z, with 58 percent of workers experiencing it; hence, why Gen Z workers seek mental health benefits and other wellness programs that support greater work-life balance. Compared to Baby Boomers and Gen X, Gen Z wants their employer to offer mental health benefits in addition to traditional healthcare benefits. 

One size does not fit all 

When you have a multigenerational workforce, you need to meet your employees where they are in their current state—not where you think they are or where they were a year ago. Make your benefits flexible to evolve and change as your workforce does. Learn about how PTO Exchange can offer your multigenerational workforce flexible benefits by requesting a demo today. 

Published on Dec 01, 2022 by Rob Whalen

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