In a 2024 survey of employees, MetLife found that 79% of workers “want benefits tailored to their life stages, positions, and personal circumstances.” As the workforce evolves, offering these kinds of flexible, personalized benefits solutions is crucial to meet the diverse needs of employees — and keep them onboard. But flexible benefits can come with a steep cost in terms of efficiency. Given the changing dynamics, challenges, and solutions, how can HR teams manage these complexities and keep employees happy, without stretching their own time and resources too thin?
The Evolving Needs of Today’s Workforce
The modern workforce is a mosaic of diversity and complexity, encompassing five distinct generations: Traditionalists, Boomers, Gen X, Millennials, and Gen Z. Each group brings unique needs and preferences to the table, creating a multifaceted challenge for HR professionals.
According to a recent survey from Willis Towers Watson, 94% of employers believe that voluntary benefits will be important to their employee value proposition in the years ahead. This highlights a significant shift towards the need for customizable benefits.
- Flexibility and Choice: Employees are no longer content with one-size-fits-all benefits packages. They seek the flexibility to choose options that best suit their personal and professional lives.
- Control Over Benefits: Tailoring benefits to match life circumstances is essential for promoting higher satisfaction and retention. Employees want the ability to select benefits that resonate with their individual needs, whether it’s wellness programs, financial planning services, or more comprehensive healthcare options.
Diverse Benefit Solutions Needs for Different Employee Groups
Understanding the diverse needs of different employee groups is essential for creating an inclusive and supportive benefits program.
Generational Challenges
For the first time, today’s workforce includes five generations: Traditionalists, Boomers, Gen X, Millennials, and Gen Z, each with unique needs and preferences. Each generation has unique needs and expectations and managing benefits that fit them all can be complex.
Older workers, for example, might be most focused on healthcare and flexible work, while middle-aged workers might be saving for their retirement or their children’s education. In contrast, younger workers often focus on homeownership or repayment of their own loans. MetLife’s 2024 research found that Boomers are the generation least interested in employer recommendations for benefits tailored to their life stage and needs. Younger generations, however, may prioritize wellness programs, student loan repayment assistance, and flexible work arrangements.
Demographic and Life Differences
HR teams are also recognizing unique differences and needs that make a one-size-fits-all approach to benefits less palatable to today’s diverse workforces. For example, MetLife’s 2024 research has found that tailored benefits are more important to Hispanic (83%) and Black employees (83%) than to Asian (79%) and White (78%) employees.
Recognizing these preferences can help in designing benefits that cater to a diverse workforce. Additionally, employees with children may prioritize childcare support, while LGBTQ+ employees might look for inclusive health coverage options that recognize and support their unique health needs or ability to start families. By addressing these varied concerns, HR teams can ensure their benefits programs are inclusive and supportive for all employees.
Different Working Types
The rise of gig workers and remote/hybrid work models also presents unique challenges and opportunities for benefits administration. With gig workers making up 36% of the U.S. workforce, according to McKinsey, their benefits needs differ significantly from traditional full-time employees. Offering benefits that cater to this segment can enhance engagement and loyalty.
Similarly, remote and hybrid workers may value flexible working hours, home office stipends, and virtual wellness programs. Providing benefits that support remote work can improve productivity and satisfaction among these employees.
By recognizing and addressing these diverse needs, HR teams can design benefits programs that not only attract and retain talent but also foster a more inclusive and supportive work environment. This approach ensures that every employee feels valued and supported, no matter their background or working arrangement.
The Evolving Burden of Benefits Solutions on HR Teams
The task of managing a comprehensive benefits program that caters to the diverse needs of a modern workforce places a significant burden on HR teams. This challenge is compounded by several factors:
- Expanding Benefits Portfolio: As employee demands for personalized benefits increase, HR teams must manage a wider array of options. This complexity requires careful planning and continuous adaptation to ensure all employees feel supported.
- Competitive Hiring Environment: In a competitive job market, offering attractive and flexible benefits packages is not just a perk but a necessity to attract and retain top talent. Companies that fail to offer these benefits risk losing their edge in recruiting.
- High Administrative Load: HR professionals spend about 86% of their time on administrative work, according to EY. This leaves little room for strategic initiatives that could drive organizational growth and innovation.
- Complexity and Compliance: The need to stay updated with regulatory changes and ensure compliance adds another layer of complexity to benefits administration, further straining HR resources.
7 Tips for Offering Flexible Benefits Solutions
To effectively manage these challenges, HR teams can implement several strategies:
- Assess Employee Needs: Conduct Surveys and Polls: Utilize tools like Selerix Engage to gather direct feedback from employees about which benefits they value most. This ensures that the benefits offered align with actual employee preferences.
- Regular Reviews: Regularly review and update benefits offerings to keep pace with changing employee needs and market trends. This proactive approach helps in maintaining a relevant and attractive benefits portfolio.
- Leverage Technology for Benefits Administration: Use Advanced Platforms: Implementing benefits administration platforms like Selerix BenSelect can streamline the management of complex benefits portfolios. These platforms simplify the process of benefits selection and management, reducing the administrative burden.
- Automate Processes: Automate routine tasks such as data entry, enrollment, and compliance tracking. Automation not only increases efficiency but also reduces the risk of errors.
- Enhance Communication with Employees: Engage with Employees: Utilize advanced employee communication tools like Selerix Engage to keep employees informed and engaged with their benefits options. Regular communication helps in educating employees about the benefits available to them and how to maximize their use.
- Provide Clear Information: Ensure that employees have access to clear, concise, and easily accessible information about their benefits. Transparency and clarity can significantly enhance employee satisfaction and utilization of benefits.
- Partner with your Benefits Admin Provider: A great user experience will be table stakes for choosing the right platform for benefits provision. But be sure to look beyond the technology and ensure that there is a support team ready to help you configure and manage your software to meet your evolving workforce needs. The best support teams will not only answer questions but also offer advice and best practices. Make great support the cornerstone of your RFP process to ensure you’re not nickel and dimed with fees or left hanging when your team needs a hand.
The Future of Benefits Administration: BenSelect & Selerix Engage
Offering flexible benefits solutions is essential to meet the needs of an evolving workforce. By addressing common challenges and implementing practical solutions, HR professionals can reduce their administrative burden and focus on more strategic initiatives that contribute to the overall success of the organization.
To navigate this complex landscape, HR teams need reliable tools that can adapt to their evolving needs without additional costs or complications. This is where Selerix comes in.
Selerix offers a suite of solutions designed to streamline benefits administration and enhance employee engagement. Our platforms, Selerix BenSelect and Selerix Engage, are built to handle the complexities of today’s workforce.
- BenSelect: Flexibility and Customization Selerix BenSelect is a comprehensive benefits administration platform that allows for easy customization. Whether you need to adjust benefits packages, manage ACA data, or integrate new voluntary benefits, BenSelect adapts without additional costs, ensuring your program remains relevant and attractive to all employees.
- Selerix Engage: Robust Employee Communication Selerix Engage keeps employees informed and engaged through two-way communication tools. With features like reminders, workflows, push communications, and quick polls, Engage ensures that employees are always up-to-date and can provide valuable feedback.
- Exceptional Support One of the biggest differentiators of Selerix is our commitment to customer support. Our dedicated team of experts is here to assist you every step of the way, from implementation to ongoing support. Customers rave about our service, knowing they have a trusted partner in navigating the complexities of benefits administration. Take it from Jackeline Portela, Benefits Specialist from the Schertz-Cibolo-Universal City Independent School District in Texas, who recently shouted out our team of experts: “I am incredibly happy with Selerix’s customer service. I can address any concerns directly with the Selerix Support team, and I feel confident that they will help us in any way possible. The ease of use for both us as administrators and our employees is a huge benefit, especially in an educational setting where our teachers need to focus on their students, not get bogged down in managing benefits.”
By focusing on the evolving needs of today’s workforce and offering practical tips for HR professionals, this blog highlights the importance of flexible benefits solutions. Selerix BenSelect and Engage are positioned as valuable tools that can transform benefits administration and elevate employee engagement.
Contact us today to learn more about how BenSelect and Engage can benefit your organization and help your benefits evolve to fit your workforce.
