Meeting the Needs of a Modern Workforce with Flexible Employee Benefits

Learn how to create an appealing benefits package for a growing working population.

Mar 12, 2025

As the working population in the UK continues to grow and diversify, offering standout employee benefits that cater to multiple generations has never been more important. With a constantly evolving workforce, businesses must adapt their perks to meet the changing needs of employees across all age groups.

Millennials, born between 1981 and 1996, and baby boomers, born between 1946 and 1964, represent two distinct generations. Naturally, the difference in age means that professionals from these groups are at different life stages and, as a result, are likely to find different employee benefits appealing.

Currently, Millennials and Gen Z make up approximately 47% of the UK workforce (1), while Baby Boomers still account for a significant 31% (2). This highlights the need for employee benefits that attract all demographics, helping to drive retention, engagement, and overall workplace satisfaction.

But how can this be done?

By implementing flexible employee benefits, companies can ensure that every member of their workforce, regardless of age, location, or interests, has access to perks that truly matter to them.

In this guide, we’ll explore how businesses can create a benefits package that meets the diverse expectations of both younger and older generations, ensuring long-term success in an ever-changing workplace.

Supporting an Aging Workforce

In the UK, a variety of factors have led to a significant increase in older generations remaining in the workforce rather than retiring. Between 2000 and 2020, the number of people aged 50-64 in employment rose by over 3 million. Similarly, the number of individuals aged 65 and over in employment nearly tripled, reaching 1.4 million (3).

With this notable rise in older workers, it’s crucial to consider how their employee benefit needs and expectations may differ from those of younger generations. For instance, older employees may place a higher value on wellbeing initiatives and preventative health screenings rather than benefits like fertility treatments or mortgage advice, which tend to be more relevant to younger workers.

As we age, the likelihood of facing health challenges increases, and older generations are typically mindful of this. Therefore, offering benefits that provide professional healthcare advice and exclusive savings on medical services can be incredibly valuable to them (4). Furthermore, Baby Boomers and subsequent generations may prefer companies that offer flexible working hours and robust retirement savings options, which allow them to plan for the future while maintaining a healthy work-life balance.

Tailoring benefits to meet the specific needs of older employees not only enhances their job satisfaction but also helps companies foster a more inclusive and supportive workplace for all age groups.

Keeping the Next Generation Engaged

As Generation Z and Millennials continue to enter the workforce, understanding what they seek from employers is becoming increasingly important. Flexible working arrangements, excellent savings opportunities, and comprehensive healthcare are now seen as standard benefits that companies must provide (5).

One of the key differences between these younger generations and Baby Boomers is their approach to career progression. Gen Z, in particular, is 13% more likely than previous generations to view their current roles as stepping stones rather than long-term careers (6). This shift in mindset means they are more inclined to seek new job opportunities in order to climb the career ladder.

Younger generations also face unique challenges compared to their older counterparts. The ongoing cost of living crisis has had a profound impact on their financial independence and delayed major personal milestones, such as buying a home. In fact, research suggests that Millennials and Gen Z have 86% less buying power than Baby Boomers did at the same age (7). As a result, exclusive discounts on everything from everyday essentials to luxury purchases are likely to be highly valued, alongside more affordable access to services like gyms and wellness programs.

In addition, companies can offer their people valuable perks such as mortgage advice and financial wellbeing resources. This can be incredibly useful to young employees looking to improve their money management and allow them to take the next step.

To attract and retain younger talent, companies must offer benefits that support their unique financial and career needs, helping them thrive both personally and professionally.

The Power of Choice: How Flexible Benefits Transform Workplaces

So how can flexible benefits help?

Flexible benefits offer a versatile, all-encompassing perk that employees can use for a variety of services, purchases, or support—no matter their life stage. These benefits can include salary sacrifices, discounted healthcare options, or financial perks such as vouchers or coaching. By providing a range of options, flexible benefits empower employees to personalise their perks according to their individual needs, fostering a more engaged and satisfied workforce.

A well-designed flexible benefits package enables businesses to support the diverse needs of a multigenerational workforce, boosting engagement, retention, and productivity. By allowing employees to select the benefits that best align with their lifestyles, companies create a more inclusive and attractive workplace. Many of these perks, like salary sacrifices, are also cost-effective for businesses, enabling them to enhance their benefits offering without significantly increasing costs.

Beyond individual preferences, flexible benefits can also encourage intergenerational collaboration in the workplace. Programs such as mentorship opportunities, professional development funds, and training allowances help bridge the gap between generations. Younger employees can gain valuable insights from experienced colleagues, while older employees remain engaged and up to date with modern workplace trends. This fosters a culture of continuous learning, collaboration, and innovation.