If your benefits package hasn’t changed much in the last five years, there’s a good chance it’s only landing well with part of your workforce. A 22-year-old graduate and a 55-year-old operations director might sit in the same office, but what they want from their employer is often completely different.
Getting this right matters now more than ever. With recruitment costs rising and retention under pressure, the benefits you offer will directly affect whether people stay or start looking elsewhere.
Why a One-Size-Fits-All Approach Doesn’t Work
Most UK workplaces now employ people from at least three generations, and sometimes four. Baby Boomers, Gen X, Millennials and Gen Z all bring different priorities to the table. A generous pension contribution might be the single most valued perk for someone in their late fifties. For someone in their mid-twenties, it can feel abstract and far away.
The mistake many employers make is defaulting to a standard package, often built around pensions and private medical insurance, and assuming it covers everyone. It covers some people well, but it leaves others feeling like the benefits aren’t really for them. And when employees don’t see themselves in the package, engagement drops.
What Company Benefits Does Each Generation Tend to Value?
It’s worth being careful with generational generalisations. People are individuals, and a 30-year-old with two children will have different priorities to a 30-year-old who’s single and renting. That said, there are some broad patterns worth paying attention to when designing your benefits offering.
Younger Employees
Gen Z and younger Millennials often prioritise flexibility, sustainability and financial wellbeing. They’re more likely to value benefits that make an immediate difference to their monthly outgoings. Things like discounted electric vehicle schemes, cycle-to-work programmes and mental health support tend to resonate strongly. Many in this group are also deeply motivated by an employer’s environmental credentials.
Mid-Career Employees
Older Millennials and Gen X tend to be juggling mortgages, childcare and career progression. They’ll often gravitate towards benefits that ease the cost of family life, such as childcare support, enhanced parental leave and salary sacrifice options that reduce their tax bill. They’re also the group most likely to value private medical insurance, particularly if they have dependants.
Older Employees
Baby Boomers and older Gen X are typically more focused on retirement planning, health and financial security. Enhanced pension contributions, health screenings and phased retirement options carry real weight here. This group often values stability and certainty in their benefits more than variety.
How a Salary Sacrifice Scheme Appeals Across Age Groups
One of the reasons salary sacrifice has grown so quickly is that it works for people at very different life stages. The basic principle is simple: employees give up a portion of their gross salary in exchange for a non-cash benefit, and because the deduction happens before tax and National Insurance, everyone saves money.
The Benefit-in-Kind rate for fully electric vehicles sits at just 4% for the 2026/27 tax year. Compare that with rates of up to 37% for petrol and diesel cars, and it’s easy to see why EV salary sacrifice has become one of the most attractive employee benefits available right now.
For a detailed look at how these schemes work and what’s included, our guide on what you can salary sacrifice covers the main options.
How to Build Flexibility Into Your Benefits Package
The simplest way to cater to different generations is to offer choice. A flexible benefits platform, sometimes called a “benefits menu”, lets employees pick the perks that suit their circumstances. Instead of giving everyone the same fixed package, you set a budget per employee and let them allocate it across a range of options.
This doesn’t have to be complicated. Even offering three or four salary sacrifice options alongside your core benefits (pension and any private medical cover) will give your team more control. Common additions include EV schemes, cycle-to-work, additional holiday purchase and technology schemes.
The key is making sure whatever you offer is clearly communicated. A benefit nobody knows about is a benefit nobody uses. If you’re introducing a new scheme, it’s worth investing time in proper launch communications.
Don’t Overlook Wellbeing Benefits
Financial perks get a lot of attention, but wellbeing benefits are increasingly what employees say they care about most. This is true across all age groups, though the specifics vary. Younger workers tend to place more emphasis on mental health support. Older employees often prioritise physical health benefits like screenings and physio access.
What connects these is the broader message it sends: that the employer genuinely cares about the people who work there. Benefits like salary sacrifice for electric vehicles also have a wellbeing dimension that’s easy to miss. Cutting someone’s monthly outgoings by several hundred pounds, giving them a reliable new car and removing the admin of insurance and servicing all reduce day-to-day stress.
How to Get Started
If you’re reviewing your benefits package, start by asking your employees what they actually want. A short, anonymous survey will tell you more than any amount of benchmarking data. You’ll likely find that the answers vary by age, salary level and personal circumstances, which is exactly the point.
From there, look at which benefits offer the best value for both the business and the employee. Salary sacrifice schemes are particularly attractive here because many of them, including EV schemes, are cost-neutral for employers. The employer actually saves on National Insurance contributions, so the benefit pays for itself.
The businesses that get this right will attract better candidates, and keep the good people they already have, across every generation.