Beyond the standards: rethinking employee benefits in the era of multi-generational workforces

There is a statistic that tells us far more than it might seem: in 2023, 76% of employed people in Italy considered themselves in good physical and mental health; today that number has dropped to 63% (Health on Demand 2025, Mercer Marsh Benefits). Behind this change is a clear message: people are facing new challenges, and the current support system does not always keep pace. More than one in four employed people feel they cannot afford the healthcare they need, with greater difficulties among more vulnerable groups, such as women, low-income workers, and those on part-time contracts.

Stress levels are a key factor: 52% of working people in Italy report feeling stressed, a significant contributor to declining mental health and a trigger for seeking new employment. The study shows that almost one in two stressed individuals (47%) is actively looking for a new job.

Making matters worse, only 41% of workers feel that company benefits truly meet their needs. For specific segments of the workforce, access to benefits related to health, income protection, and family support remains low, reflecting a system that still treats benefits as rewards or applies them rigidly according to contractual categories.

Access to supplemental health coverage is 19% for employees with below-average income, compared to 30% for higher earners; similarly, coverage for critical illnesses is 9% versus 18%, life insurance 9% versus 14%, and accident insurance 23% versus 27%. On average in Italy, access to insurance or benefit plans related to health or family income protection is below 30%.

It is clear that many current solutions—and the ways they are offered—are no longer adequate. They are too rigid, too generic, too anchored in outdated models. Here lies a major opportunity for companies: to rethink benefits not as a standard formula but as a strategic lever to meet the real needs of a changing workforce. Providing more support to those who often have less—low- to mid-income workers, caregivers, employees with less stable contracts—and ensuring access to essential benefits such as health screenings, psychological support, flexible work arrangements, and financial literacy. It’s about reversing priorities to truly include the entire workforce.

Today, five generations coexist in the workplace, from the Silent Generation to Gen Z. It’s a quiet but profound revolution that reshapes expectations, vulnerabilities, and lifestyles. Longevity is not just a demographic milestone; living and working longer requires different forms of support throughout life. This fundamentally changes the role of corporate welfare. Benefits can no longer be thought of solely as rewards or support for major life events. They must be seen for what they are today: daily tools for well-being and equity, as well as instruments to recognize and retain employees. Those who receive more benefits show higher engagement: 73% of Italian workers with five or more benefits report a strong sense of belonging to their team and company, compared to 58% among those with up to four benefits.

In a context where care responsibilities—for children, elderly parents, or oneself—are increasing, and where mental and financial burdens weigh heavily, benefits become not only a crucial ally for quality of life and productivity but also a strategic tool for organizations. Personalization makes the difference: 73% of those able to customize their benefit package feel that the company cares for them, versus only 22% among those without this option (Health on Demand 2025). Choice is particularly important in a multi-generational workforce, where needs and priorities shift dramatically with age, career stage, and personal circumstances.

But this is not just a matter of perceived well-being. In an era of increasing longevity, people will have longer, more flexible, and often non-linear careers. They will face greater financial and health risks over their lifetime. As the World Economic Forum highlights in its Longevity Economy Principles report, financial resilience is a pillar of an inclusive, long-lived society. Companies can play a decisive role by offering financial education programs, accessible savings tools, caregiver support, and solutions to manage unexpected events. Economic well-being directly impacts mental health, productivity, and employee retention. Organizations that can support people through both growth periods and moments of vulnerability will be better positioned to attract and retain talent of all ages.

In an era of profound transformation, benefits are no longer just a “perk.” They are a tangible expression of how an organization sees, listens to, and values its people. Choosing to do it well, today, makes all the difference. For benefits to be truly effective, a clear strategy is needed, built on the real needs of employees and supported by thorough demographic analysis of the current and future workforce. Equally crucial is communicating benefits clearly and accessibly, helping employees navigate the options and find what best fits their life journey.