# Benefits Not Designed To Motivate Today’s Workforce
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2016-12-20
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Research Reveals Generation Gap in Companies' Benefits
Meta Description: Discover why almost half of Gen Z and a third of Gen Y feel their companies' benefits don't cater to them. Learn how adapting to younger generations
URL: https://financedigest.com/benefits-not-designed-to-motivate-todays-workforcehtml

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- Almost half of Gen Z think their companies’ benefits don’t appeal to their generation; a third of Gen Y believe the same
- Baby boomers are the most positive about their company’s benefits
- Research shows companies that adapt to younger generations can retain staff more effectively

Unattractive benefits packages can hamper a company’s ability to retain and motivate [younger generations](https://www.financedigest.com/british-monarchys-fashion-mantle-passes-to-younger-generation.html "British monarchy’s fashion mantle passes to younger generation"), according to research from Bupa.

The study of 2,000 employees finds that 46% of Gen Z (under 25s) [say their companies’](https://www.financedigest.com/french-unions-unanimously-sign-wage-agreement-with-edf-company-says.html "French unions unanimously sign wage agreement with EDF, company says") benefits fail to appeal to their generation. Just behind that, over a third (37%) of Gen Y feel the same way. These two groups are also the most likely to want change. About half of Gen Z (51%) and Gen Y (46%) employees wish their employers would ‘seriously reconsider’ how they reward staff.

Employees’ opinion of their benefits increases with age, 77% of employees aged over 55 believe their benefits appeal to their generation, [falling slightly for 45-55 year](https://www.financedigest.com/u-s-weekly-jobless-claims-fall-layoffs-lowest-in-more-than-21-years.html "U.S. weekly jobless claims fall; layoffs lowest in more than 21 years") olds (75%) and 34-44 year olds (68%).

**Patrick Watt, Corporate Director, Bupa UK said:** “Today’s under 35s have changed the workforce dramatically, meaning benefits can be out of touch.  Companies who act now to [create reward packages](https://www.financedigest.com/infant-formula-packaging-market-is-expected-to-create-an-incremental-opportunity-of-us-3-bn-by-2027-tmr.html "Infant Formula Packaging Market is expected to create an incremental opportunity of US$ 3 Bn by 2027 | TMR") that reflect the needs and preferences of their younger employees will steal a march on the competition by retaining and motivating the new generation of talent.”

The study identified three further themes:

**Engagement deficit –** Employees’attitudes towards their benefit packages is linked to how engaged they are. Employees who are “always engaged” in their work are the most likely to appreciate their benefits (85%) dropping to 50% for employees that don’t feel engaged.

**Pay vs Perk –** When it comes to tailoring benefits for different age groups, 44% of Gen Z [say they are motivated more if a company treats them well rather than a pay rise](https://www.financedigest.com/fortum-says-rising-costs-of-nordic-power-trading-are-worrying.html "Fortum says rising costs of Nordic power trading are “worrying”") – compared to 39% of employees as a whole.

Gen Y are most likely to consider leaving if the benefits they appreciate were taken away (53% vs 40% overall). What’s more, their happiness (56% vs 46% overall) and engagement (49% vs 42% overall) would be most affected by the loss of these perks.

**Retention challenge –** Young employees are the most likely to move job in search of better benefits. About a third of Gen Z (33%) and Gen Y (29%) employees intend to leave their [job in the next](https://www.financedigest.com/britains-next-buys-failed-furniture-retailer-made-com-400-jobs-axed.html "Britain’s Next buys failed furniture retailer Made.com, 400 jobs axed") 12 months for an organisation with better benefits. This compares to just over one in ten (13%) for employees aged 55 years or older.

Patrick Watt, adds: “The modern workforce is set to move between jobs more often that previously, but companies can help ensure they don’t lose their [top talent](https://www.financedigest.com/techie-turn-offs-top-7-things-that-put-talent-off-applying-for-tech-roles.html "Techie turn-offs: Top 7 things that put talent off applying for tech roles") by considering tailored, personalised reward packages that engage different generations in different ways.”


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