Back to top

Offering health benefits can help attract and retain Millennial 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 two 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.
    • 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 two 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 program plan designs.
  • 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 time of enrollment allowing employers to save on health benefits. 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.

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. Garmin is a trademark of Garmin Ltd. or its subsidiaries, registered in the USA and other countries.

The Self-Funded Program through Allstate Benefits provides tools for employers owning small to mid-sized businesses to establish a self-funded health benefit plan for their employees. The benefit plan is established by the employer and is not an insurance product. Allstate Benefits is a marketing name for: Integon National Insurance Company in CT, NY and VT; Integon Indemnity Corporation in FL; and National Health Insurance Company in CO, WA and all other states where offered. For employers in the Allstate Benefits Self-Funded Program, stop loss insurance is underwritten by these insurance companies in the noted states.

Related Articles:

Three women collaborating using post-its on a board.
Two women having a conversation in front of a laptop.
A florist helping a customer.

We are Allstate Benefits

From innovative group health coverage to our industry-leading portfolio of group supplemental insurance products, we have the experience, knowledge and service you need, and a name you know and trust.

Learn more about us

Allstate Benefits Logo.
Allstate Benefits Logo.

you're in good hands

ECC Monitor: OK