Unlocking the Diversity Within

Tailoring benefits for maximum impact

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n plan sponsor or retirement plan committee discussions about participant benefits, it may be simplest to refer to, or consider, retirement plan participants as one unified group. 

However, delving into data from PLANSPONSOR’s annual Participant Survey reveals the diversity present in an entire participant group. Employees can be put into many subcomponents, each with separate needs, preferences and expectations. Recognizing and responding to this diversity becomes important for employers seeking to enhance their employee benefits programs. For an employer, experts say understanding the composition of its workforce and customizing benefits structures accordingly is key. By breaking the whole into various parts, the employer can go beyond the one-size-fits-all approach and instead create messages, communications or benefit offerings that appeal to specific demographic groups. This targeted approach may provide a meaningful connection between the benefits provided and the individualized needs of employees.

This strategy may be particularly helpful at a time when the workforce is frequently characterized by generational, cultural and lifestyle differences. Generation Z may prioritize flexibility and professional development opportunities, Millennials and Gen X might value health care benefits and retirement plans and student loan debt repayment, and those nearing retirement may find a different priority. Companies can leverage this insight to create benefits packages that cater to the diverse needs of their workforce, thereby encouraging employees to value—and stay longer at—the company. 

To gain insight into the drivers behind participant retirement plan decisions, the PLANSPONSOR Participant Survey, now in its 10th year, delves into participant behaviors and preferences to see how attitudes have evolved from 2022. —Judy Faust Hartnett