Benefit advisors have a lot to consider when it comes to marrying technology to modern employee expectations on behalf of their clients. Newcomers and veterans alike have watched a rapid evolution of benefit selection technology in recent years, and most of us in the industry acknowledge the days of transactional technology experiences—where employees simply accessed a portal and selected a health care benefit—are gone.

Employees now want personalized experiences that match their desired communication needs and health care priorities. Yet helping employers meet these expectations can be challenging considering the dynamics of multi-generational workforces with varying health concerns and preferences to consider. For instance, the health care priorities and expectations of millennials, who now comprise the largest percentage of the workforce, can be different than baby boomers.

There is no one-size-fits-all approach that meets the needs of all generations in the workforce—baby boomers, Generation X, millennials and the up-and-coming Generation Z. Benefit advisors must help companies meet evolving consumer and generational expectations related to education and communication about their health care options. And while it's easy to gravitate towards uniform benefit strategies, the reality is employee satisfaction can be linked to customized experiences.

The generational divide

We've all experienced the nuances of generation gaps in the workplace. While older and younger generations can often find common ground, the way they communicate, consume and respond to information is inherently different, and their health care priorities often vary significantly.

For instance, baby boomers are the most experienced health benefit consumers. Having spent many decades selecting and benefiting from health plans, they are more likely to know what to look for and to carefully evaluate the details from a more educated lens. Most at-risk of chronic illnesses like heart disease and diabetes, they are likely looking for a plan that meets their ongoing routine preventative care needs, such as regular cancer screening and frequent health check-ups, and ongoing disease management solutions.

While they no longer have to worry about paying for their dependents' financial and health care needs, due to the greater incidence of stay-at-home moms in the late 1960s, they are more likely to also be concerned about paying for their spouse's long-term health and financial needs both pre- and post-retirement. Even though baby boomers have recently been taken over by millennials in the workforce, their presence continues to grow as, according to the Employee Benefit Research Institute, they increasingly delay retirement to aid these financial constraints.

Right behind boomers are generation X. Ranging from late 30-year-olds to early 50-year-olds, these individuals seek plans that will cover their entire family's needs. Bearing in mind that their dependents range from pre-teens to early 30s, this generation presents a mixed bag of requirements. For those with children still at home, setting aside money to support their health care and financial needs is critical.

Being a more financially savvy and well-off generation, according to Shullman Pulse, this generation tends to make very intentional plans to save for their children's future. As a relatively knowledgeable benefit consumer, they rely on recommendations and online provider reviews to make highly-informed decisions. They also look for flexible health insurance plans that enable them to see their carefully-selected physicians and get the customized care they desire.

At the youngest end of the working spectrum, millennials, who currently make up the largest portion of the workforce, are most willing to take on risk. They are collectively healthier than their older colleagues, and are more likely to choose high deductible health plans (HDHPs) to allow them to drive down student loan debts. Their dependent needs vary greatly, from older millennials preparing for their children to leave home to mid-range millennials only now starting to have children. This plays a key factor when selecting a more personalized health plan. From family planning through to routine dependent health care, these millennials need a plan that will help keep costs to a minimum.

From a decision-making standpoint, millennials often rely on peer recommendations and expert guidance when it comes to their benefit selections. Mid-range millennials, for example, may require more education when it comes to family-oriented decisions. In general, they seek concise information presented in a smart, intuitive manner, and are open to engaging with benefit platforms via text or smart devices— think one-pagers versus lengthy informational handouts.

Meanwhile the up-and-coming generation Z is considered to be the first generation of digital natives. These under 17-year-olds are soon to enter the workforce. When they do, they will likely look for employers to have responsive, high-tech communication methods that adapt to their preferred communication lifestyles. This includes mobile apps and remote logins.

When it comes to their health, many of them are likely to remain on their parents' health plans for a few more years. When they do select health choices, they are going to be less focused on good benefits and more on wellness. The combination of Generation Z's tech-savviness coupled with their health needs will be an industry game-changer, and employers need to be prepared.

To address these differences, employers need customizable platforms that effectively educate and empower employees in the way they desire to make the best decisions. Beyond the technology itself, this also requires a comprehensive and adaptable communications strategy. For example, employers are wise to develop flexible support and education channels – including chat, call center or bot – while continuing the traditional enrollment meetings and webinars that can provide more detailed education experiences.

Industry workforce trends

Interestingly, benefit advisors would be wise to note the common generational variances seen in certain industries and to recommend programs tailored to their clients' employee mixes.

For instance, labor unions, religious organizations and farm supply wholesalers are categorized as jobs where the largest percentage of older workers are found. In contrast, millennials are more likely to gravitate towards careers such as financial advisory, software development and mechanical and engineering roles.

To achieve the best health care benefits experience, employers should first assess their demographics and company culture. Benefit advisors can then steer employers to customizable benefit platforms that target the communication and education needs of the largest populations.

Next-generation employee benefit experiences

We've seen a lot of positive growth and change in the benefits industry over the past 10 years as it relates to how employers educate and empower employees about their health care options. Technology has played and continues to play a significant role in improving the overall experience, and that evolution will progress into the next decade.

Benefit advisors must stay on the cutting edge of new developments that address the evolving needs of a multi-generational workforce. Platforms will continue to adapt to address personalization, moving away from a simple rules-based approach to decision support to more intelligent, preference-based functionality that considers the desires and health needs of the individual.

Much like recent developments with 401k offerings, health care options will likely begin to automatically grow and change with an individual as they age. Case in point: employees used to choose from a laundry list of options annually to identify the best 401k investment option. Now, new lifestyle offerings automatically consider personal risk as an employee gets closer to retirement.

As insurance carriers continue to embrace technology, health care options will likely move in the same direction. These technological advances continue to cut out the “noise” of benefit enrollment and improve employee experience and satisfaction.

Multi-generational workforces remain the norm – and now the employee benefits experience can be customized to the information-seeking styles and nuances of each. Cookie-cutter approaches to enrollment and health care benefit education will fall short of employee expectations and satisfaction going forward. The best strategies take a comprehensive and customizable approach to addressing communication and educational needs.

Instant Insights /

Building better benefit experiences for a multi-generational workforce

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