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Pleasing employee palates: a la carte benefits

By Elaine Varelas, 3/7/2005

Don't you just love ordering a la carte? In the mood for a five course meal? You bet! Need a suit jacket a size bigger than the pants? No problem. Want call waiting, but not three-way calling on your phone service? You got it.

Americans love to pick and choose what works best for us. Having a choice is so much more satisfying than being told what we need. Remember the good old days of a la carte benefits? Why hasn't this area of human resources kept pace with other trends? After all, the landscape of corporate America is more diverse than ever before, and today's employees have different requirements and priorities when it comes to their lives and careers. The challenge for human resource professionals is to develop benefits programs that help recruit and retain workers of all types, diversities, and generations.

I know it sounds daunting, but I'm not talking about individualizing benefits programs, just offering choice. When it comes right down to it, all employees want the same things - recognition, affiliation, time, and money - just presented in different ways.

A great way to start offering more flexible benefit options is by broadly categorizing employees and their benefit desires by some identifiable traits, and then working with a steering committee to determine what's valuable to each cross-section. For demonstration purposes, I am going to use age. Today's workforce includes individuals from three separate generations, and while not every worker from the same generation will want identical benefits, people in each of these groups will most likely share similar characteristics in and out of work.

As you might do with your steering committee, let's take a look at the most prominent generations in a typical workplace and try to broadly identify what is important to each group:

  • Baby Boomers (born 1946-1964): The first wave of Baby Boomers is approaching retirement age, so their priorities are often financial. They are interested in a competitive salary, as well as retirement and tax planning. Boomers have a strong work ethic and are loyal to their organizations. They appreciate public recognition for a job well done, and would be honored to attend a dinner with the CEO or receive a longevity award at a formal ceremony. When it comes to affiliation, those in their 40s and 50s enjoy spending time with their colleagues at holiday parties and company barbecues, or just catching up by the coffee machine or water cooler.


  • Generation X (born 1965-1980): Employees in their 30s, and even some in their 40s, don't expect to be "lifers." Instead, they plan to work at several different companies for a few years at a time. Gen X employees are interested in technology, but to a lesser extent than the generation which follows. Many have young families and want transportable technology so they can work from home or anywhere else. While work is important to Gen X'ers, lifestyle usually takes precedence. Flexible schedules and vacation time are key to this group, as is a family medical plan. Like the generation that succeeds them, Gen X workers are interested in community service and want to work for companies that are socially responsible.


  • Generation Y (born 1981 and after): While Boomers are loyal to the organization, Gen Y workers are loyal to their skills and value job training to keep those skills updated. Technology is also important: they want the latest in laptop computers, software, games and wireless technology. While Boomers are kibitzing face-to-face, you are more likely to find a member of Gen Y text messaging a friend in the cubicle next door, and he or she would rather die than spend an evening at a boring company banquet.

Obviously, you can't pigeonhole employees based solely on age. That's what is so appealing about offering a choice of benefits. Would your employees rather attend a holiday party or spend the day building homes for Habitat for Humanity? An extra week of vacation or its equivalent in salary? An awards ceremony or a training seminar? Letting employees play a role in choosing their benefits gives them more control over their work lives. This route will not work for all organizations, but for a company whose culture embraces individuality, change or innovation, it could be a huge benefit in itself. Just be careful that organizationally, value judgments are avoided - whatever people choose is okay.

Giving your employees a choice in putting together their benefits packages will take a lot of planning and hard work. But that work will pay off when you look at the increase in your company's hiring and retention numbers. Just as you wouldn't serve a high-fat and sugary meal to South Beach dieters, you wouldn't push generic benefits packages on your employees with a "be happy you are getting these" attitude. By offering a choice of benefits, you're sure to please any employee palate.

Elaine Varelas is Managing Partner of Business Development at Keystone Partners, a career management firm headquartered in Boston, and has over 20 years of career development and HR experience. She also serves on the board of directors for Career Partners International, the world's largest career management partnership. E-mail her at .


 


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