Baby boomers, born between 1946–1964, have traditionally valued salary and dependably robust health insurance and retirement plans. While many opted for retirement during the pandemic, those remaining in the workforce now prioritize staying within budget, growing retirement income and wealth, remaining healthy through regular screenings and managing health conditions, and balancing work and personal commitments.

Gen Xers, born between 1965–1980, have traditionally valued salary, 401(k), job security and advancement, and work-life balance. Because this group is especially burdened by the competing responsibilities of midlife, post-pandemic concerns include caring for children and aging parents, decreased retirement contributions, higher financial stress and the need for increased emergency savings.

Millennials, born between 1981–1996, have traditionally valued benefit choice and flexibility, ability to work remotely, and work-life balance. Post-pandemic concerns, however, focus strongly on finances and needing to save while also paying off debt. They also value well-being benefits more than older generations and are 3 to 5 times more likely to use these types of programs than their elders.

Gen Z, born between 1997–2012, is the most flexible and tech-savvy generation. They typically value technology and are adept at utilizing newer benefits such as digital health tools, virtual benefits services, and remote work. But having experienced financial and career-related disruptions due to the pandemic, post-pandemic concerns involve mental health support, gaining additional job skills, advancing their career positions, and staying within budget. 

How do employers adapt to such a variety of personalities and priorities?

Across generations, the pandemic made people feel unsettled, unsafe, and often, physically or mentally unwell. All age groups have expressed the desire for more employer support for workers in certain areas of their personal well-being. These include: 

• Staying within their budgets
• Eating healthfully
• Balancing work and personal commitments
• Growing retirement income
• Managing or reducing stress

While traditional insurance coverage provides some protection from medical-related financial struggles, the workforce is demanding more. Studies show that employees are thinking about their current challenges and reviewing options to improve their overall well-being. For example:

• 79% of employees want benefits packages expanded and focused more on well-being
• 70% want continued remote work options and flexibility
• Many employees believe that resilient workers who feel secure in their personal lives are more productive (90%) and more engaged (91%) on the job
• Employees who understand their employer's benefits communications and receive frequent, clear messaging about their benefits experience a 156% increase in feeling valued and appreciated

Employers who find creative ways of providing access to tools that support these concerns may achieve better work results from their employees. Further, employers must provide easy-to-understand benefits explanations, along with publishing regular updates, "tips and tricks" guidance, and more. When employees do not fully understand their benefits package, they're unlikely to fully utilize it. This can affect employee productivity and waste employers' money on benefit plans that do not return enough value.

What do these trends mean for brokers and TPAs?

In the past, employers could provide traditional group insurance, start a 401(k), and basically be done. With the rising demand for both expanded benefits and more creative options, businesses need help. This is where benefits advisors and third-party administrators (TPAs) can provide immense value by helping employers carefully select plans and develop creative benefit programs that will appeal to the multi-generational, post-pandemic workforce. They can help manage the programs and participant communications to alleviate employer workload.

Related: The must-have benefits as we emerge from COVID-19

If brokers and TPAs aren't already doing so, they need to consider flexible benefit options such as: 

• Employee assistance programs that focus on physical and mental telehealth services
• Student loan repayment assistance to improve the financial security of those with substantial debt
• Emergency savings accounts to help employees better prepare for inevitable "rainy days" and a world in flux
• Lifestyle spending accounts to add flexibility or fill in gaps in the overall benefit program, and to meet specific employee well-being needs

Moving forward

The COVID-19 pandemic has changed the way we live and work. This shift has significantly changed employee wellbeing priorities to focus more on security, mental health, relationships, and overall wellness. In response, benefits advisors and tje employers they work with must become more patient and mindful of the needs of employees, while continuing to determine how to successfully operate businesses in an altered world. Benefits brokers and TPAs can lean into this paradigm shift by recommending options that answer employees' calls for security, flexibility, more robust benefits, and better communication. Carefully considering these options to craft a benefits strategy that helps employees regain a sense of security and wellbeing is not just smart business, it's the right thing to do. 

Bo Armstrong is a national conference speaker and author of numerous white papers and articles on the health care benefits industry. As DataPath's Chief Marketing Officer, Bo focuses on identifying emerging market trends within the benefits industry and advocating for customers and their needs within DataPath.