THE BEST BENEFITS FOR A MULTIGENERATIONAL WORKFORCE IN 2025

It’s no secret that most of today’s workforce is checked out. According to Gallup’s 2025 report, only 31% feel engaged. Outdated benefits are a big reason why. When employees don’t see value in their benefits, they disengage, pick up second jobs or leave for better offers.

We surveyed 327 employees across 8 industries ranging from healthcare to quick service restaurants for our ZayZoon’s Top Benefits Report and 91% said that benefits are important or very important in their decision to accept a job.

For PEOs, this creates both risk and opportunity. Standard, one-size-fits-all packages no longer meet workforce expectations. If your offerings don’t evolve, you risk diminishing your value to clients and falling behind competitors.

In this article, we’ll break down the benefits employees across generations value most in 2025—and how you can help clients deliver them.

FLEXIBILITY AND TIME

Flexibility and work-life-balance now outranks salary as a top reason people choose and stay at a job in 2025. Paid Time Off (PTO) and hybrid or remote work tied for most important benefits for today’s employees, with 25% of employees ranking each as their number one benefit. Nearly half said they would take a 5% pay cut for more flexibility.

For Gen Z, flexibility is the baseline. PEOs can help clients stay competitive by offering benefits that make flexibility real for all generations. Clear PTO programs, hybrid or remote options, commuter support and simple and unified access to all benefits.

HEALTH AND WELLNESS

Wellness now sits at the heart of retention strategies. Yet many benefit packages still fall short. 85% percent of employees say mental health support is important, but many employers still underdeliver.

What health and wellness benefits makes employees stay looks different across generation, Payroll Integration’s Employee Benefits Trends for 2025 report states what each generation prioritizes:

Baby Boomers: Comprehensive health coverage and prescription drug benefits

Gen X: Preventive care, mental health services and family healthcare plans

Millennials: Telehealth options, wellness programs, and cost-effective solutions

Gen Z: Digital-first healthcare, mental health support and flexible spending accounts

Across generations, wellness perks like gym memberships, HSAs and everyday savings on prescriptions, groceries and insurance reduce stress and boost loyalty.

FINANCIAL BENEFITS

Financial stress looks different across generations. A Gen Z worker might be juggling student loans and cash flow between paychecks. A Gen X parent might be saving for college while caring for aging parents. If benefits don’t meet those real needs, employees feel unsupported and start looking elsewhere.

Financial wellness is now a baseline expectation—not a bonus. That means offering:

Earned wage access (EWA): 82% of Gen Z want it. Employers offering it report better morale (67%) and productivity (74%) across generations

Discounts and perks: Savings on everyday expenses help employees stretch their income

Financial education: Budgeting, credit, and investing tools reduce stress and allow employees to remain focused at work

“The traditional focus on financial wellness, which was almost exclusively around the 401(k) plan, it’s just not sufficient anymore. Our employees are asking for help with all aspects of their financial life,” said Kevin Cammarata, Vice President of benefits at Verizon to CNBC.

Offering a mix of short-term relief and long-term planning tools helps clients improve retention and keep employees focused.

REWARDS AND RECOGNITION

Recognition fuels engagement across age groups. ZayZoon’s Motivating and retaining Gen Z report found that half of Gen Z employees don’t feel heard or valued. That gap matters for everyone, employees of all ages who receive recognition are 20x more likely to be engaged.

Recognition programs give PEOs a simple way to help clients keep employees motivated. Scalable tools like instant shoutouts, gift cards and peer-to-peer recognition feeds make it easy for clients to show employee appreciation in real time.

The payoff is clear:

Morale: Employees are 18x more likely to produce great work if they are recognized

Attendance: Doubling recognized employees cuts absenteeism by 22% per year

Retention: Employees who are not regularly recognized are twice as likely to leave within a year

FAMILY AND LIFESTYLE SUPPORT

Employees don’t leave their personal lives at the door, and benefits that acknowledge that reality make a difference. Childcare assistance ranks third among employee priorities, 86% of employees with children more likely to stay if their employer offers it.

Pet insurance is another growing request, with 12% of employees naming it as a desired benefit. These lifestyle perks signal empathy and help clients stand out as modern employers. The diverse range of different family and lifestyle support engages all generations.

PROFESSIONAL DEVELOPMENT

Employees of all ages want growth on their own terms. Some prefer brushing up on core skills, others want management training and many look for new certifications or digital tools to stay ahead. A blended approach makes this possible.

When people feel they’re building the skills they care about, whether that means a Boomer refreshing expertise, a Gen X manager stepping into leadership, a Millennial mapping a career path or a Gen Z employee learning continuously, they are far more likely to stay and grow with the company.

When you give employees choice in how they grow, you make it easier for clients to keep their best people of all ages and prepare their teams for what’s next.

KEY ACTION ITEMS

The most effective PEO benefits strategies involve active employee engagement rather than passive benefit administration. Today’s workforce expects employers to take an active role in their wellbeing rather than the same old benefits offering and hoping for the best. Here is how you can take that active role:

Regular pulse surveys: Capture evolving preferences better than annual surveys, as life circumstances change frequently

Avoid platform fatigue: Employees get lost when every benefit requires a separate login—43% of people reporting excessive time switching between applications. Find offerings that bundle multiple benefits into one login. A single, mobile-friendly hub makes it easier for employees to engage. The easier benefits are to use, the more they drive retention.

Remember: the goal isn’t treating every generation identically, but ensuring every employee accesses benefits that meaningfully impact their lives. That’s how you build truly inclusive client offerings that drive retention and engagement across all generations.