At The Benefits Trust, we have long been proponents of the need for customized benefits plans. Benefits plans should allow you to create groups within your group, and should be tailored to support your business goals and align with your organization’s compensation philosophy.
An excellent recent article in Benefits Canada, titled “The next generation of benefits plans”, contends that “going forward, smart employers will customize their benefits to stay relevant to employees of all ages”.
This article analyzes new trends in the workplace as baby boomers and gen Xers are joined by gen Y coworkers. By 2020, roughly 40% of the workforce will be comprised by millennials.
Employers need to understand the new demographic and offer the right incentives if they want the best talent of the new generation on their team.
The article outlines the four biggest group benefit trends brought about the changing needs of employees:
1. Personalized Perks
70% of gen Yers prefer a flexible benefits plan over a traditional one.
“They’re likely to be more interested in health savings accounts (HSAs) and personal savings accounts, where employees are allotted funds to spend on health-related expenses at their own discretion,” says Marilee Mark at Sun Life Financial Canada.
2. Plain Speak
Easy-to-read contracts and clearly articulated benefits are essential.
Young employees are more comfortable with technology. They prefer the convenience of paperless mobile apps and online services for managing their benefits plans.
Another paperless trend that both gen Yers and baby boomers support is the ability to order prescriptions online and have the drugs delivered.
4. Prevention over Cure
Employee focus is shifting from curing medical issues once they occur to preventing them before they happen.
“Progressive employers are now thinking of benefits … as a means to develop a more engaged, healthy and productive workforce,” says Mark.
Meeting Divergent Employee Needs
A traditional plan cannot address these trends.
Ultimately, smart employers need to customize benefits plans to meet the needs of the groups within their group. Gen Yers have different priorities and needs than their gen X or baby boomer counterparts.
Flexible plan design means employers can define the groups within their group, perhaps segmenting employees based on demographic, seniority with the company, role, earnings, and so on. You can create a plan that works for you and your employees, rather than choosing a rigid off-the-shelf product.
Stay competitive in the gen Y hiring market with the next generation of benefits plans.
>> The Benefits Trust can help you and your advisor design a custom benefits plan for your organization. Contact us to get started!
More on custom benefits from The Benefits Trust:
- Want to Retain Your Best Employees?
- Phasing in Employee Benefits by Seniority
- Flexible Benefits: Hybrid Plan Design
- Upcoming System Upgrade - June 23, 2021
- Mitigating Risk in Your Client’s Benefits Plan Design – Part 1 - September 24, 2020
- Case Study: Freeing Yourself From the Commodity Mindset - August 27, 2020