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As Gen Z grows up, benefits strategy should be mindful

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Summary

As the Gen Z population grows and matures, companies need to update their total rewards strategies to meet the needs of a multigenerational workforce. Traditional benefits plans are designed primarily for baby boomers and Generation X, but as Gen Z forms families, advances in their careers, and accumulates assets, they will require different types of benefits. Companies must modernize their total rewards programs to meet the broader range of needs and present them in a contemporary way. Additionally, older workers are still a key part of the workforce, and may be useful in navigating other employment challenges such as staffing and training.

Q&As

What are the challenges posed by a multigenerational workforce?
The challenges posed by a multigenerational workforce include the need to revamp total rewards strategies to accommodate different generations, and the potential for language around age to become a dog whistle for ageism.

What is the focus of traditional benefits plans?
The focus of traditional benefits plans is on health insurance for dependents, retirement savings, and other types of benefits.

How must total rewards programs be modernized to meet a broader range of needs?
Total rewards programs must be modernized to meet a broader range of needs and presented in a contemporary way.

What data indicates a gap in retirement savings among older workers?
Data from Northwestern Mutual indicates that while workers aged 50 to 59 would like to have $1.56 million saved for retirement, actual retirement dollars saved are closer to $110,900. A similar gap exists in the 60 to 69 cohort: $968,000 was the dream retirement fund for that group, but the number of dollars saved was closer to $112,500.

How can older workers’ presence help employers navigate other employment challenges?
Older workers’ presence can help employers navigate staffing and training issues, as well as other employment challenges.

AI Comments

👍 This article is very informative and presents a great insight about the importance of benefits strategies for a multigenerational workforce. It is great to see that companies are being mindful of the unique needs of each generation.

👎 This article does not provide any concrete solutions for how companies can better accommodate the different needs of different generations. This limits its usefulness in helping companies make the necessary changes.

AI Discussion

Me: It's about how employers need to modernize their benefits programs to better cater to Gen Z. They need to take into account their unique needs and preferences and design a plan that works for everyone in the workforce, from baby boomers to Generation X to Gen Z.

Friend: Interesting. I can see how that could be a challenge for employers. What kind of implications do you see from this article?

Me: Well, employers need to think more strategically about their benefits programs and tailor them to the needs of different generations. They'll need to be mindful of language when communicating these changes, too, as ageism can easily creep in. Additionally, as older generations remain in the workforce, employers may need to focus on strategies to help retain and train these individuals. Finally, employers may need to rethink their retirement savings goals for Gen Z, as they currently don't have the same amount of retirement funds saved as older generations.

Action items

Research the benefits preferences of Gen Z and other generations in the workforce.
Develop a total rewards strategy that meets the needs of a multigenerational workforce.
Create a benefits engagement plan that is tailored to the needs of each generation.

Technical terms

Gen Z: The generation of people born between the mid-1990s and early 2000s.
Multigenerational Workforce: A workforce composed of people from different generations.
Total Rewards Strategies: A comprehensive approach to employee compensation and benefits that includes both financial and non-financial rewards.
Baby Boomers: The generation of people born between 1946 and 1964.
Generation X: The generation of people born between 1965 and 1980.
Retirement Savings: Money saved for retirement.
Ageism: Discrimination based on age.
Retirement Fund: A fund of money set aside for retirement.