New ARAG Research Shows What’s Keeping People Up at Night

As the generational breakdown in the workforce continues to shift and skew younger, employers are being tasked with meeting new demands for employee benefits to help resolve employees’ fears.

Over the last several years, the workforce has seen substantial shifts. More and more Boomers are retiring, and Gen Z is entering the workforce to replace them. And with this comes a difference in the wants and needs of employees—and how their employers should help.

So how can employers and brokers work to meet the needs of this broad employee base as it continues to skew younger and benefit needs grow more diverse?

Recently, ARAG completed the Multigenerational Workforce Study 2024 to find the answers to this nuanced question. The study garnered responses from employees across different generations, including Generation Z, Millennials, Generation X, and Baby Boomers.

In this study, we set out to learn about what employees are struggling with and how employee benefits can help resolve their fears. Here’s what we learned about each generation.

Generation Z

Members of Gen Z are the youngest members of today’s workforce. They’re between the ages of 19 and 27 and have just started to enter the working world. However, by the end of 2024, this group is expected to outnumber Baby Boomers.

As this group is just beginning their careers, a large part of Gen Zers have not had to take advantage of employee benefits—only 26% of Gen Z says they’re very or extremely familiar with employer benefits. In addition to this, 72% report being covered by their parents’ insurance, and 54% still reside in their parents’ home.

When surveyed on their top concerns, the worries that keep them up at night, Gen Z responded with the following:

1. Financial stability
2. Work-life balance
3. Future uncertainties
4. High stress and anxiety

Millennials

No longer the “babies” of the working world, millennials have nicely settled into their careers. Millennials are between the ages of 28 and 43 and are more likely to identify as caregivers.

This group is more familiar with employee benefits—31% rate themselves as very or extremely familiar with employee benefits, and 66% are very or extremely satisfied with them.

However, when we asked about their top concerns, Millennials responded similarly to Gen Z:

1. Financial stability
2. Future uncertainties
3. Work-life balance
4. High stress and anxiety

Generation X

The smallest generation represented in the workplace, members of Generation X range from ages 44 to 59. As they’ve worked their way through their career, they’ve spent quite a bit of time reviewing employee benefits – 32% are very or extremely familiar with their employer benefits and 73% are very or extremely satisfied with them.

As this group may be starting to think a bit more seriously about retirement, their top concerns tend to reflect this:

1. Financial stability
2. Future uncertainties
3. Own health issues
4. High stress and anxiety.

Baby Boomers

Finally, we get to the Baby Boomers. At the ages of 60 or above, this group was previously one of the largest cohorts in the workplace, however as they have started retiring, their prominence has shrunk.

This group is the most familiar with their employee benefits—34% are very or extremely familiar—and 70% are very or extremely satisfied.

However, as this group is nearing retirement, or has possibly entered retirement, they rated the following topics as their top concerns:

1. Financial stability
2. Future uncertainties
3. Own health issues
4. Family health issues

Managing Competing Priorities in the Workplace 

So what does all this mean? How can we work to meet the demands of all of our employees when their top concerns—and the reasoning behind each concern—varies?

Our study shows how each generation faces unique challenges—and there’s room for improvement in expanding employee familiarity with employer benefits. But despite this, there are key steps you can take as an employer as you evaluate your benefit line-up for your upcoming open enrollment.

Consider offering voluntary benefits that can be tailored to alleviate employee stress, regardless of someone’s age. For example, a financial wellness benefit could help Gen Z and Millennials address their student loans or desire to start saving for their first home, while it can help Gen X and Baby Boomers plan for their nearing retirement.

Or offer a legal insurance plan, like ARAG legal insurance, which addresses legal situations that employees may face throughout their life. Whether your employees have been caught speeding, a contractor ghosts them mid-remodel or true love doesn’t work out, ARAG legal insurance can help protect them. ARAG is also there for your employees for the more foreseeable legal issues – like adding their newborn to their will or reviewing contracts.

Learn more about ARAG and other Pinnacle Partners to see how you can tailor your Total Rewards to meet the evolving needs of your workforce.

Businessolver partners with service providers, carriers, and technology vendors to help our clients deliver a holistic benefits experience for their employees. We partner with ARAG Legal Insurance to make it easier for our clients to offer professional legal help to their employees. Learn more about our partnerships here: https://www.businessolver.com/solutions/partnerships-integrations/