Today’s workforce is diverse, with employees who have different needs and priorities. Baby Boomers are nearing retirement, Gen Xers are balancing family and work, Millennials are managing student debt, and Gen Zers are just starting their careers. Each group brings a unique perspective.
Recognizing the value of voluntary benefits is key to attracting and retaining top talent. By providing these benefits, employers can meet diverse needs and stand out in a competitive job market.
Why employers should offer voluntary benefits
Each generation values different benefits, so employers should offer voluntary options to learn what matters most to their employees.
- Boomers: As they near retirement, Boomers focus on strong health coverage, retirement planning support, and wellness benefits. They also appreciate workplace flexibility as they transition to life after work.
- Gen X: Balancing family and work, Gen Xers value flexible work options and benefits that support their caregiving responsibilities. Retirement planning is a priority as they start to think more seriously about the future.
- Millennials: Facing financial pressures from student debt and rising living costs, Millennials look for benefits like student loan repayment, childcare support, and financial planning help. Flexible work arrangements and opportunities for career growth are also important.
- Gen Z: As they begin their careers, Gen Z focuses on mental health, financial security, and career growth. They value benefits like mental health coverage, tuition reimbursement, and flexible work arrangements.
Why voluntary benefits are important for employers
Voluntary benefits are a great way for employers to stand out. These optional benefits allow employees to enhance their packages, often at a low cost to the employer, and may include critical illness insurance, hospital coverage, or accident insurance.
So, why are voluntary benefits important? They allow employees to customize their coverage. Whether Boomers need comprehensive health coverage or Gen Z seeks mental health support, voluntary benefits offer the flexibility to choose what suits them best. For employers, this flexibility is a win-win!
Offering voluntary benefits is more than just a perk—it’s a strategic advantage. According to our 2025 Employee Health & Benefits Trends report, seventy-seven percent of employees say they’re more likely to work for an employer that offers voluntary benefits, and 60% say these benefits help them feel more secure about their financial future.
Meeting the financial needs of each generation
Every generation faces different financial challenges, and voluntary benefits help meet those needs. Today's workforce seeks benefits that address their specific financial concerns as they navigate various stages of life.
The role of benefits advisors
Despite the wide variety of benefits available, many employees struggle to navigate their options, especially during open enrollment. One in three employees reports that they don’t fully understand their benefits. This is especially true for younger employees experiencing significant life changes, such as getting married or starting a family.
Providing access to a benefits advisor can make a big difference. Among the generations, 62% of Gen Z, 77% of Millennials, and 63% of Gen X say they’d find it helpful to have one.¹ This support ensures employees get the most out of their benefits and feel confident in their choices.
Voluntary benefits are more than just an added perk—they’re a strategic asset. In a world where employees seek benefits that genuinely support their personal and financial well-being, voluntary benefits give employers a chance to differentiate themselves and cultivate a more engaged, loyal workforce.
Sources: 1. Aflac. Workplace Benefits Trends 2022–2023. Aflac, 2023.
