Benefits 'should be tailored to age groups'

New research has found the younger generation of the UK workforce are less likely to participate in employee benefit programmes than their older colleagues.

Research by Mercer has found that 47 per cent of employees in their 20s are likely to participate in flexible benefit schemes.

Participation from people in other older age groups were found to vary from between 67 per cent and 70 per cent.

The firm claims that lower benefit take-up among the younger generation of the workforce is due to a number of schemes being more relevant to people with dependants.

It has called for businesses to offer flexible benefit packages which reflect the age of the employee.

Tony Morgan, principal at Mercer, said: "Employers need to think more about the needs of generation Y in making benefit provision for their employees.

"Considering their lifestyle needs, more should be done to support them in meeting the financial burdens they face - in particular, the need to pay off student loans and secure their first homes."

Recent research by Right Management found that executives in firms need to help their workforce adapt to changes.