Why younger workers are driving future benefits actions 

For most employers, the immediate pressure to engage younger generations currently outweighs the focus on older workers, according to REBA’s Benefits Trends for 2025 Research.

With rising turnover rates among younger employees, worrying numbers of young people economically inactive, and a falling population trend, the research found a focus on strategies to attract and support younger generations is important to the majority (89%) of employers.

Whereas, just one in 16 employers (6%) say it is very important to purchase benefits for older workers.

Priorities, expectations and job design for younger employees may differ significantly from previous generations and, as such, designing benefits to attract and support younger workers is critical for long-term business health. 

The Institute of Student Employers (ISE) found in its Student Development Survey (2023) that the retention rate for graduates after three years was 79% in 2011, dropping to 70% in 2023. The data suggests that common reasons for leaving include dissatisfaction with pay (40%) and progression (18%).

Benefits will therefore need to be designed to help meet graduates’ unique needs and values to make employers more attractive to this crucial segment of the workforce.

Demographic population shifts show up strongly in the REBA’s Benefits Trends for 2025 Research as a driver of change for businesses, but more especially for benefits. 

Demographic population shifts was ranked as the second most important issue predicted to cause change to employee benefits strategies over the next decade, second only to legislation.

This reminds us that, while being aware of future trends such as the ageing workforce is important, acting on the here and now to meet current objectives is still vital for most employers.