The workforce is more diverse now than ever. This diversity spans many demographics, including race, ethnicity, gender and age. According to the Brookings Institute, a nonprofit public policy think tank, the force of this trend will only increase as we enter the 2030s. For this reason, a one-size-fits-all approach to workplace benefits isn’t as effective or attractive to employees as it once was.
You can strengthen your HR strategy by offering a range of voluntary benefits that are as diverse as your workforce is. The best thing about voluntary benefits is they can be free or inexpensive for you as the employer.
In this article, we’ll explore how to select a suite of voluntary benefits that your workers will appreciate and are cost-effective for you.
Know which factors matter
Age
For millennial (born 1981-1996) and Generation Z (born 1997-2012) employees, popular benefits include:
- Tuition reimbursement
- Pet insurance
- Student loan reimbursement
- Professional development opportunities
- Wellness services
For Gen X (born 1965-1980) and Baby Boomers (born 1946-1964), the most in-demand benefits are:
- Long-term care
- Life insurance
- Family law and estate planning support
- Retirement planning support
Stage of life
Employees with families are often looking for child care benefits, flexible spending accounts and short- term disability insurance. Single workers are often interested in flexible benefits like gym or fitness studio reimbursements.
Income
Employees at the lower end of the pay scale may benefit from financial wellness programs or affordable legal services. More highly paid workers might favor stock options and equity compensation, or luxuries like concierge or personal assistant services.
Work model
Remote employees appreciate home office and internet allowances. In-person employees value meals and snacks, and commute expense reimbursements.
Communicate the value of your voluntary benefits
You might offer the best voluntary benefits in the world, but if your employees don’t use them, your efforts will be in vain. Underutilization is common in the world of voluntary benefits, and a lack of employee education is chiefly to blame. Consider the following methods to increase awareness of your organization’s perks:
- Send companywide Slack or Teams messages before your enrollment period begins.
- Set reminders about your enrollment period. You can send timed messages through your organization’s email application to periodically remind employees.
- Post fliers in high-traffic areas like your break room, kitchen, bathrooms and other communal spaces.
- Host benefits training with your Human Resources team or benefits provider.
- Offer one-on-one help with benefits selections.
- Host a Q&A on employee benefits. (While many employees will have questions about health coverage, it’s an opportunity to explain voluntary benefits as well.)
Choosing the right voluntary benefits isn’t about offering a long list of perks. It’s about tailoring your offerings to meet your employees’ needs. By choosing the right voluntary benefits for your people, you can foster satisfaction, engagement and loyalty.