If you’re a benefits leader for a business in Connecticut, you may have a Gen Z developer working down the hall from an executive board member who’s part of the Silent Generation. Not only are they from different generations, but they also have different priorities and expectations when it comes to health insurance.
Connecticut has been recognized for making steps to accommodate the diverse range of employees in today’s workforce. From its progressive telemedicine laws to its parental leave options, employers across the Nutmeg State are embracing the preferences of younger generations like Millennials when it comes to their health care. As an employer, you can be prepared to meet the range of expectations that each generation has for their health care. But first, it’s important to understand the lifestyles and characteristics that make up each of the five generations in today’s workforce.
Understanding all five generations in the workforce To better understand the needs of each generation, here’s a little more about each:
The Silent Generation consists of workers born before 1946, and although they only account for 2% of the current workforce, they are among the highest users of health care—along with Baby Boomers, who currently make up 25% of the workforce. The Boomers were born between 1946 and 1964, and generally prioritize word-of-mouth recommendations when it comes to their health care choices.
Generation X—born between 1964 and 1980—accounts for 33% of the multi-generational workforce. Gen-Xers are more active in pursuing information about their own health and have more in common with Millennials than with Boomers. When it comes to information, Millennials—born between 1981 and 1996—expect accessibility, as they are the first generation of “digital natives”. They value efficiency and are emotionally driven when it comes to brand loyalty. 35% of the workforce are Millennials, and that number will grow to 75% by 2025.1 Gen Z—born in 1997 and later—represent 5% of the workforce, are highly tech savvy, but still defer to their parents for most decisions related to their health care.
Where they get their information
Members of the Silent and Baby Boomer generations are much more likely to trust their providers exclusively about their personal health. More than any other generation, Boomers value personal relationships with their providers, so coverage with an extensive network of providers is attractive to this generation in particular.
Unlike the generations before them, Gen-Xers tend to seek out and rely on multiple sources of information to make decisions about their health care. While Millennials are primarily peer-driven rather than expert-driven when seeking advice, Gen-Xers rely on recommendations from traditional sources like primary care providers (PCPs) and social forums that provide peer recommendations.
What this means for your business
Offering employees attractive health benefits is essential to attracting and retaining top talent. According to the Harvard Business Review, about 60% of people report that benefits and perks are a major factor in considering whether to accept a job offer. The publication also reports that 80% of employees would choose additional benefits over a pay raise.2
“Benefits can be a key differentiator when deciding where to work—sometimes even more than pay.”
How they prefer to receive care Because the Silent and Baby Boomer generations value the opinions of their providers, they look to them for advice and care more than other generations do. Studies show that 39% of Baby Boomers go to the doctor between 3 and 6 times per year, and another 22% go more than 7 times annually.
Gen-Xers also visit the doctor frequently—not just for themselves, but as caretakers for both their parents and children. Millennials, on the other hand, are currently the lowest utilizers of traditional health care in today’s workforce, and only 58% say they trust their PCPs. Along with their Gen Z counterparts, they are more likely to take a holistic approach to their health that focuses on diet, and incorporates technology-driven support for well-being through apps focused on meditation and sleep quality, and using wearables. In fact, 40% of Millennials report that telemedicine is an “extremely or very important option” when it comes to their care.
What this means for your business
Offer more than one health plan with a range of traditional and alternative benefits.
How they spend their time and money
Baby Boomers value their time and money and put convenience at a premium. Gen-Xers operate as the chief decision makers in their households and are also responsible for the health needs of their aging parents. As a result, convenience and ease are extremely valuable. They shop for health care the same way they shop for retail goods, and have no time to waste. Personalized offerings are attractive to Gen-Xers with this detail in mind.
Millennials also expect ease when it comes to making health care decisions, and appreciate comparison tools that they can use to make informed choices. When given a choice of health plans, Millennials are most likely to enroll in a high-deductible health plan (HDHP), according to a 2017 survey conducted by Benefitfocus.
What this means for your business
Offer a range of health plans with flexible spending options that cater to the needs of all generations—and consider including a health savings account (HSA) (possibly even partially funded by their employer) when offering your employees the option of an HDHP.
What they all have in common
Whether they are a part of the Silent Generation or Gen Z, employees in today’s workforce want to feel informed and confident about their health care decisions. Accessible health care for a good value is a priority for workers of every generation. And Connecticut is already making strides to keep up with the changing priorities and preferences of this diverse workforce.
When it comes time to choose health care coverage for your workforce, you can feel confident selecting health care that offers your employees options, and gives you ample resources to help educate them on how to make the most of the plans you provide.
1GetHapi.org/employer/millennials-health-benefits
2hbr.org/2017/02/the-most-desirable-employee-benefits
