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Offering Health Benefits Can Help Attract and Retain Millennials and Gen Z Workers

The American workforce is increasingly reliant upon Millennial and Gen Z workers as Baby Boomers – the generation born between 1946 and 1964 – continue to retire in record numbers.

The greatest percentage of American workers are Millennials – those born between 1981 and 1996. In 2022, Millennials comprise 35% to 50% of the U.S. workforce. This generation will remain a major part of the global workforce for years yet to come.

And Gen Zers – those born from 1997 to 2012 – are the youngest workers. Gen Zers outnumber Millennials, and by 2030, they will comprise 30% of U.S. workers.

Young co-workers collaborating at a table.

In order for companies to compete for the best talent and thrive in the next decade and beyond, they need to offer benefits that Millennials and Gen Zers value. But what do these generations consider important?

What do younger workers value?

Millennials as a group tend to have different work values than the generations that came before and after them. They seem to be motivated less by benefits and status. Instead, they value flexibility in their schedules, a feeling of accomplishment with meaningful work, and opportunities to learn and develop their skills.

They want to work in a technologically advanced environment and are more likely to seek services through the internet.

But even for this generation, health insurance is an important benefit. According to a study from Zippia, Millennials list health insurance (41%), the ability to work remotely (31%) and retirement plans (30%) as the most important benefits when choosing a job.

Gen Zers, on the other hand, have different attitudes toward work. They tend to be more pragmatic than Millennials and are driven by security.

According to a Concordia University study of Generation Z in the workforce, health coverage is equally as important as salary, with 70% listing salary as their top motivator and medical insurance as the most important benefit.

Allstate Benefits can help

Allstate Benefits can help your small- or mid-size business attract younger workers now and in the next decade with our portfolio of cost-effective health benefit options for groups ranging in size from 2 to 500. We offer the following funding arrangements:

  • A Self-Funded Program that includes:
    • PPO plans that pay benefits for both in-network and out-of-network services, with secured network savings.
    • Advantage plans that pay benefits for emergency and in-network services only. Savings come from eliminating the high cost of out-of-network services.
    • Copay plans without high deductibles or out-of-pocket expenses.
    • Reference-based pricing options that pay based on a multiple of the Medicare reimbursement rate (or a derived equivalent), delivering great savings potential!
  • A fully insured product for groups with 2 to 50 employees that includes:
    • Plans that are fully complaint with the Affordable Care Act. Coverage for medical, pharmacy, pediatric vision, and pediatric dental are included with every plan option.
    • PPO plan designs that pay benefits for both in-network and out-of-network services.
    • HSA and non-HSA options.

In addition, our self-funded value-added features can help keep costs down and create a more robust benefits package for employees:

  • Telehealth services, which offers members access to virtual Urgent Care for minor illness and injuries, and virtual Talk Therapy (ages 18+) for mental health counseling services. According to a survey by Harmony Health IT, 41% of Millennials prefer to receive health care virtually.
  • Group dental and vision plans, which can be paired with most Self-Funded Programs.
  • Wellness program by Vitality, which helps keep employees engaged and on the path to wellness by tracking and rewarding healthy behaviors.
  • Activity Tracker Credit Program, which allows employees to connect popular fitness devices, like Fitbit® activity trackers, Garmin® wearables, and the Apple® Health app, to Allstate Benefits at enrollment. Use of fitness wearables is growing fastest among Millennial and Gen Z.

Learn more about how Allstate Benefits can help attract and retain the best employees. Call your Allstate Benefits – Group Health sales consultant at 877-225-5077.


Apple is a registered trademark of Apple Inc. Fitbit is a registered trademark of Fitbit, Inc. and its affiliates in the United States and other countries.

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