Understanding Benefits by Generation: What Small Businesses Need to Know

Across every generation of today’s workforce, employee burnout has become a growing concern that companies cannot afford to overlook. A recent Forbes survey revealed that overall job satisfaction hovers around just 5.5 out of 10, with millennials reporting the lowest average at a concerning 4.6. To reduce turnover and build a thriving culture, it’s essential to understand why employees choose to stay, and one key factor is a thoughtfully designed benefits package. 

While every company faces unique challenges, small businesses in particular often need to operate with leaner resources and teams. With limited personnel and resources, it becomes even more critical to offer benefits that are both compliant and personalized to the generational needs of your workforce. Overlooking benefits can result in higher turnover due to employees finding better benefits elsewhere, which reinforces why proactive planning matters.    

According to SHRM, nearly 70% of employees say health insurance is a key reason they stay with an employer, and nearly 60% cite retirement plans. Beyond health insurance, each generation has unique benefits they value more than others. This blog will help you understand these generational needs and help you craft a stronger benefits package that fosters a great place to work.  

Gen Z 

Gen Z is rapidly emerging as a major component in the workplace.  By the end of 2025, they’re expected to make up 27% of the global workforce; a shift that’s already shaping new expectations for work and culture. However, they’re also entering the job market during a time of economic uncertainty, rising mental health concerns, and shifting cultural norms.  

Burnout is especially high for this generation. A recent UKG study of nearly 13,000 Gen Z workers found that a staggering 83% report feeling burned out, with 1 in 3 considering quitting their job as a result.  

To understand how to engage and retain Gen Z, companies need to understand what they value. This includes:  

• Flexibility: This ranks high on their list, with remote and hybrid options seen as essential rather than optional. 
• Mental health support: This generation is more open about emotional wellbeing and expects their employers to proactively support it.
• Student loan forgiveness: As many Gen Z workers are recent graduates, student loan assistance is a highly valued benefit that can significantly influence their employment decisions.  

It is critical to meet these workers where they are as they continue to grow. However, making the necessary adjustments to accommodate those with limited resources can be challenging. With the right HR technology, companies can take small steps to address these needs. For example, leveraging technology that monitors signs of burnout and notifies managers with recommendations on how to support employees. Additionally, HR technology could provide a scheduling solution that allows employees to input their work preferences can help ensure they have a healthy work-life balance. Leveraging HR technology can also help guide you on how to create the most robust health plans, including mental health support.  

Millennials 

Representing the largest generation in the workforce, millennials make up 34% of today's working population. Shaped by rapid technological change and economic challenges, many millennials are now navigating key life milestones such as buying homes, raising children, and building long-term financial stability. They are doing so while striving for meaningful and purpose-driven work. This generation places a strong emphasis on flexibility, financial wellbeing, and benefits that support their new and growing families.  

• Flexibility: Flexibility is especially important for working parents or caregivers managing multiple priorities.
• Healthcare: Millennials value comprehensive benefits, including preventive care, maternity and pediatric coverage, and mental health services.
• Financial wellness support: With many still managing student debt or saving for long-term goals, millennials appreciate tools and programs to reduce financial stress and increase visibility. They’re especially motivated by benefits that support economic resilience and future planning. 

Similar to Gen Z, offering scheduling transparency, especially for parents, can reduce daily stress and improve work-life balance for your people, and ensure operational coverage. HR technology can help team members to seamlessly plan their days with confidence. For financial wellness, offering tools such as early paycheck access or calculators that show how changes (like adding a dependent or adjusting retirement contributions) affect take-home pay can enhance both financial security and employee trust.

Gen X 

Gen X makes up roughly 27% of the 2025 workforce and often juggles caregiving responsibilities for both aging parents and children. As they actively plan for retirement, Gen X professionals value flexibility, financial stability, and continued growth. They also serve as a bridge between younger and older generations in the workplace, making their support especially important.

Businesses can support Gen X by offering: 

• Robust retirement plan options: With retirement on the horizon for many in this generation, Gen X values financial security and tools that support confident planning, including access to educational resources and clear retirement planning tools.
• Flexible schedules for caregivers: Gen X employees often manage the demands of work alongside caring for children or elderly family members. Having schedule flexibility allows them to meet these responsibilities without compromising performance.
• An emphasis on continued learning and growth opportunities: Many Gen X professionals are in key leadership or mentorship roles and are eager to continue building their skills. They value access to training that keeps them sharp, adaptable, and equipped to lead in evolving environments. 

To meet your Gen-X workforce where they are, using technology that offers learning and upskilling opportunities is crucial. Benefits plans that include attractive retirement options and flexible scheduling are also key to meeting their needs.

Baby Boomers 

As the oldest generation of workers, baby boomers comprise 12% of the 2025 workforce. Many are nearing retirement or beginning to transition out of full-time professional roles and into part-time or advisory roles. To help baby boomers continue to thrive, you should offer benefits that match their life stage and prepare for what’s next: 

• Strong retirement planning: Structured financial tools and resources that help them approach retirement with clarity and confidence.
• Robust healthcare packages:  This generation values benefits that help them manage possible conditions, stay active, and access care easily.
• Learning opportunities: As technology evolves, many of baby boomers appreciate support in adopting new tools that help them stay productive and connected. 

In Summary 

While many benefits, such as flexibility, healthcare, and financial wellness, are universally appreciated across generations, the reasons behind these preferences vary. These differences are shaped by their unique life experiences, career stages, and personal goals. To build inclusive benefits that meet the needs of a multigenerational workforce, your organization must consider these factors and create solutions that address them.  

This will allow your company to foster greater satisfaction, retention, and productivity, as well as create an environment for your people that makes them feel supported and valued. If you’re ready to take the next step in better managing your employees’ benefits packages, check out UKG Ready® Benefits.