Flexibility and personalization will define benefit needs in 2026

• Key Insight: Discover how flexible, mix-and-match benefits replace one-size-fits-all plans.
• What's at Stake: Rising healthcare costs plus generational expectations threaten retention and budget predictability.
• Expert Quote: Employees want on-demand menus, says Heather Newton, urging flexible benefit design.
• Source: Bullets generated by AI with editorial review

As workplaces evolve and employee expectations accelerate, HR and benefits leaders are being challenged to rethink how they design, deliver and communicate support to their workforce. 

Rising healthcare costs, generational shifts, mental health needs and the pressure to balance personalization with cost containment are all converging at once. During Employee Benefit News' recent Leaders discussion, leaders from Bartaco and the Child and Family Center shared how these forces are reshaping their strategies for the next three to five years.

A clear theme emerged: Employees want benefits that reflect their real lives. That means flexible health plan options, meaningful wellness programs, expanded mental health support, accessible financial tools and development opportunities that help them grow personally and professionally. 

Watch the full conversation:

"I think especially with different generations, you have to have a menu," says Heather Newton, director of HR talent and training at the Child and Family Center. "Especially with more and more Gen Z coming into the workforce, they really want things that are on demand." 

But designing a modern "menu of benefits" is only half the work — employers must also find new ways to communicate these programs to a multi-generational workforce that engages with information very differently. Employers are rethinking how to make benefits visible, understandable and actionable.

"Hearing from actual people on what they're doing with [these benefits] and how it's helped them, it's really those personal connections that you're making," says Scott Rodney, Bartaco's director of HR and payroll. "I [also] use all of the benefits — I just feel like I want to be in their shoes and I want to relate." 

Read more: 2026 healthcare trends: The growing role of addiction and recovery support 

Cost pressures remain a constant challenge, especially for organizations navigating tight budgets or high-turnover industries. Both Newton and Rodney emphasized the importance of strategic partnerships, as well as the creative use of wellness funds, offering mix-and-match benefits that allow employees to personalize their experience while keeping employer spending sustainable. 

"We're doing wellness challenges, and we put all our benefits into the eight pillars of wellness, from financial to social to health to mental," Newton says. "There's a lot of areas that we offer support in and I think that's really key when you have so many generations in the workforce." 

Newton and Rodney shared their top takeaways for managing a multigenerational workforce, and building out a benefits menu that serves everyone. 

1. Lean into wellness with low-cost, high-engagement programs

Wellness challenges, gamified incentives and clear wellness pillars (mental, financial, physical, social) increase engagement without major spend. Utilize free or vendor-provided tools, like Calm, Headspace, wellness dollars and stipends, and pair them with creative prizes to drive participation.

"I think something I was really excited to bring to our organization was Duolingo," Rodney says. "Whether it's a line cook or a dishwasher where English is not their first language, I thought Duolingo was a great opportunity to give them a free benefit to learn English or another language that would help them in work or outside of work."

2. Elevate benefit communication through multi-channel, repeated touchpoints

Employees often miss benefits because they're overwhelmed or distracted. Using multiple channels — like orientation, manager touchpoints, HR workshops, all-hands meetings, and mobile timekeeping apps — reinforces offerings. 

"We have to really communicate in different ways," Newton says. "During new hire orientation, my payroll and benefits coordinator meets with all the new hires to explain the benefits and go over everything. And then we push out regular reminders like, 'Hey, don't forget if you are looking for childcare, we have this option.'" 

Read more: AI is helping leaders personalize their benefit strategy

3. Evaluate cost containment through partner collaboration and practical add-ons

Rising healthcare costs require strategic choices: Low-cost voluntary benefits like accident or hospital indemnity coverage, or consider "rainy day" protections like short-term disability. When selecting plans, weigh disruption reports and people-first considerations — not just cost.

"Short-term and long-term disability benefits are very underrated," Rodney says. "I always push and promote those because you never know what's going to happen and those are the type of benefits that are going to be there for the employee and they are very low-cost, considering what is paid out when they need to take that disability insurance." 

Check out more conversations with top leaders in our new interview series, right here.