Managing the needs of a three-generation workforce

A shift is under way in today's workplace. Two massive generations - Baby Boomers and Millennials - with varying needs are testing the abilities of the most adroit HR department with Generation X adding complexity. With nearly 6,000 employees in Chicago, Bank of America is one local company that is looking to address the challenges of managing the three-generation workforce.

Here are three questions to consider as we look at the evolving needs and interests of today's workforce:

How do Millennials & Baby Boomers change the equation?

Millennials, ages 20-34, are now officially America's largest living generation and predictably the largest generation in the U.S. labor force. According to census data, Millennials make up 27.2 percent of the population in Chicagoland.

They have their own priorities while facing a unique set of financial challenges. Many are balancing student loans with the need to start retirement savings. Unlike their boomer colleagues, they value flexible working hours and training programs within the workplace.

Baby boomers, born from 1946-1964, differ from other generations - with more seniors working compared to before the turn of the century. A recent Pew Research Center study suggests almost 20 percent of Americans aged 65 or older are full- or part-time employees. In 2000, that number was less than 13 percent.

Boomers are rewriting retirement rules. In a recent Bank of America Merrill Lynch retirement study, 72 percent of pre-retirees, age 50-plus, say ideal retirement includes work in some capacity. They remain on the job for many reasons, both financial and personal, which in return means employers must address the unique needs of people in these later stages.

Why must the HR manager and CFO adapt?

The three-generation workforce is a unique demographic phenomenon - with two massive generations at opposite ends of the age spectrum - signaling important changes for companies looking to attract and retain the best talent.

What's clear for the HR manager and the CFO: they're dealing with three very different generations born between 1946-1997 experiencing a wide range of financial challenges. Because of this, HR teams must broaden the conversation they're having with employees to encompass financial matters beyond simply encouraging people to take advantage of a 401(k).

How can employers address the needs of the multigenerational workforce?

Companies must address financial and physical wellness together. In the Bank of America Merrill Lynch workplace benefits survey, 90 percent of large firms said they believe workplace financial solutions will become a standard element of benefits packages in the next decade. And one in four large firms said they currently offer or are considering incentives to encourage employee participation in workplace financial solutions, like debt management, budgeting and college savings.

Employers rethinking or expanding their benefits for a multigenerational workforce are looking at benefits holistically, as part of a complete package, rather than in silos.

Standard health care programs will also need to be retooled. According to the Bank of America Merrill Lynch 2016 CFO Outlook, the top three benefits programs that U.S. companies use to attract and retain skilled talent include: health care insurance (97 percent), retirement funding (94 percent) and bonuses or other compensation incentives (87 percent). Additionally, 65 percent offer wellness programs, 55 percent provide education funding, 49 percent offer flexible work hours and 29 percent offer financial counseling services.

Companies need to manage health care expenses while growing and maintaining a competitive workforce. As a first step, CFOs and HR teams need to identify opportunities for cost savings and efficiencies, such as through Health Savings Accounts (HSAs).

The workforce is changing and managers need to adjust to meet evolving needs and will need to be even more flexible to attract, support and retain their best employees - whether they're 22 or 62.

• Paul Lambert is Chicago Market President for Bank of America. Contact him at (312) 325-2622