As generational differences continue to cause shifts in the overall nature of the workforce, benefits managers may want to keep in mind that when it comes to employee benefits, there is no one-size-fits-every-age solution. “Fostering an age-friendly culture can help ensure inclusive workplaces that support employee well-being and business success,” said Lorna Sabbia, head of Workplace Benefits at Bank of America.

Workers of different ages face different challenges in several areas, including physically and emotionally, and both within and outside of the workplace. Considering how age and life stage impacts employees is an important part of providing a workforce where employees can bring their best selves to work. For example, 52 percent of Gen Zers say they don’t make enough money to live the life they want due to the high cost of living, while a larger percentage of Millennials have student loan debt than any other generation. Meanwhile, older generations face unique challenges like preparing more intensely for retirement or ageism – one study found that workplace ageism can cost an estimated $850 billion a year.  

By fostering a multigenerational, collaborative workplace culture, employers can create environments that encourage and support employees of all ages. Here are a few ways to do that.

Focus on generational differences regarding overall financial wellness.

According to Bank of America research, the top reasons that employees stay in their current job varies by age. For Gen Z and Millennials, the No. 1 reason is workplace flexibility, while for Gen X and Baby Boomers it’s adequate total compensation. “Gen Z and Millennials are seeking flexibility as they start their careers, start families and build their lives,” said Sabbia. “Older generations like Gen X and Baby Boomers are addressing a different set of financial considerations, like preparing for retirement or sending kids off to college.”  

These unique needs based on age group only reinforce the need for benefits that span the generational divide, including everything from student loan support to caregiving to impactful retirement education. They also drive home the importance of using data to measure how effective your benefits are for your employees. “Regularly gathering data from employees can help benefits managers make changes to their benefits offerings in line with employee needs and wants,” Sabbia added.

When it comes to offering competitive compensation packages, employers may want to consider generational gaps there, as well. For example, Gen X’s wage growth has been slow relative to younger generations over the last several years, according to Bank of America research. At the same time, however, Gen X is investing a significantly higher amount of their paycheck. Meanwhile, younger generations have also experienced a rising necessity share over the time, but they have enjoyed some of the fastest growth in wages and salaries in recent years, too.  

Besides Gen X, Gen Zers admit they aren’t on track to reach certain milestones, like saving for retirement (46%) or buying a home (50%), while 34% of Millennials admit to having “too many expenses” (47%) and “significant debt” (34%).

“Every employee is unique, and every employee is on a different financial journey,” said Sabbia. “Because of these reasons, it’s even more critical for employers to provide educational resources and financial tools to employees to help them balance their generations’ specific long-term and short-term financial needs.”

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