Employee Benefits’ Preferences Vary By Generation And Gender

ENFIELD, Conn. – What employee benefit would most American workers choose if they could? It depends upon their generation and gender.

New research from MassMutual finds that preferences for healthcare insurance, retirement savings, vacation and other benefits largely hinge upon workers’ generation and gender, complicating benefit choices for employers. Overall, 47 percent of American workers age 18 and older prefer more vacation time, with 44 percent preferring better 401(k) matches, according to the 2015 MassMutual Generations@Work Study.

Upon closer inspection, however, Baby Boomers (ages 50-70) and Millennials or Generation Y (ages 15-35) opt for more time off from work while Generation X (ages 36-49) favors richer retirement benefits, according to the study. Men tend to prefer more time off while women focus more on health-related benefits.

“Given the varied preferences for employee benefits, the takeaway for employers is to offer as broad a menu of benefits as possible and consider offering new or expanded benefits on a voluntary or employee-paid basis,” said Elaine Sarsynski, Executive Vice President of MassMutual Retirement Services and Worksite Insurance. “At MassMutual, we’ve found that connecting to workers based on their age, gender and life stage drives greater satisfaction with benefits. Offering guidance tools help employees make the most of their benefits.”

Half of all Boomers surveyed (50 percent) and 48 percent of Millennials said they would opt for more vacation days if they could, according to the study. Nearly half of Gen Xers (47 percent) prefer better 401(k) matches, the survey found, with more vacation days coming in a close second (44 percent).

Generational Preferences

After choosing more time off, Boomers expressed preferences for financial benefits. Forty-three percent of Boomers would like better 401(k) matches, 38 percent would appreciate having free healthcare coverage, and 24 percent wanted more investment choices for their retirement savings, according to the study. Four in 10 (43 percent) want expanded healthcare benefits.

Breaking with Boomers, Millennials like the idea of flexible work schedules (43 percent) and reimbursements for education and tuition (30 percent). But many Xers joined their Boomer colleagues in wanting better 401(k) matches, most likely a reflection that few Xers have access to pensions and that many Boomers have not saved enough for retirement, according to Sarsynski.

He Said, She Said

Men’s benefits of choice were more vacation time (50 percent), better 401(k) matches (43 percent) and flexible work schedules (39 percent), MassMutual’s study found. Women’s preferences were more evenly spread between more vacation (44 percent), better 401(k) matches and flexible work schedules (40 percent), expanded healthcare premiums (37 percent) and free gym memberships (31 percent).

In addition, there were bigger disparities between men and women when it came to benefits such as free gym memberships (men: 20 percent; women: 31 percent), education/tuition reimbursement (men: 18 percent, women: 27 percent), and more investment choices for retirement (men: 18 percent, women: 11 percent), according to the study.

Study Specifics

The research was conducted on MassMutual’s behalf by KRC Research as part of an employee benefits education initiative. The study focused on 1,517 working Americans who were at least age 18 in a wide variety of jobs and industries.

According to the study, the benefits Americans would most like to receive from their employer were as follows:

 

Total      Gen Y      Gen X     Boomers   Men    Women   Hispanics

More vacation                    47%      48%         44%        50%         50%   44%        47%

Better 401(k) matches        44          35             47           43             43       40           41

Flexible work schedule      36          43             41           30             39       40           39

Expanded healthcare         38          28             37           43             32       37           34

No healthcare premiums    40          27             32           38             33       30           31

Free gym membership       21          28             25           23             20       31           26

Education/tuition               17

reimbursement                             30             19           15             18       27           23

Free lunch                          18          17             17           13             19       13           16

More investment choices   14          13             11           24             18       11           14

 

New Benefits Tool

Because benefit choices hinge on employee’s preferences, particularly as they relate to their personal financial needs and life stages, MassMutual is working to help workers make better choices, according to Sarsynski. Earlier this year, MassMutual launched MapMyBenefits^SM, an online tool that enables employees to prioritize their benefits choices, making the most of each benefit dollar based on their life stage, financial goals and personal finances. More recently, the insurer introduced BeneClick!^SM, a benefits exchange that enables workers to enroll online in a wide range of benefits, including their employer’s retirement plan, healthcare coverage, insurance protection products and others. The holistic approach to financial planning at the workplace combines retirement readiness, healthcare coverage and preparation for life’s unforeseen events.

 

Posted by Unknown

Tweet