A benefits wishlist for millennial employees
Did you know: 63 percent of millennials would struggle to cover an unexpected expense of $500. With millennials becoming the new core of today's workforce, many employers are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list. Read the following article to learn more.
Millennials are the new core workforce. Their concept of work is different than the standards set by previous generations. They bring bold, new approaches of what work should be, how and where it should be performed, and what the rewards for work should be.
While this has made some employers uncomfortable, millennials are not likely to change their ways. Employers must reassess their concepts to bring out the best of the unique millennial personality.
When I look at the U.S. workforce, I see a dramatic shift in the attitudes, personalities and attributes of millennials, which makes up the majority of the workforce. Millennials bring many positive attributes to the table, including a preference for flat management structures, multiple degrees, technological skills, energy and self-confidence. They also have high expectations for themselves, prefer to work in teams, are able to multitask and seek out challenges.
However, millennials have the highest levels of stress and depression of any generation. About 20% of millennial workers have suffered work-related depression. Millennials want their own living space, but they’re less likely to become homeowners because of student loan debt. Only 6% of millennials feel they're making enough to cover basic needs, according to an Economic Innovation Group national survey of millennials. As a result, 63% of millennials would struggle to cover an unexpected $500 expense. This generation wants to live within their means, but they’ve never been taught how — they need and want to be educated on how to achieve financial independence.
Think about your corporate strategy for attracting millennials. Here are just a few of the ways companies are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list.
Working with meaning. Millennials want to have meaning in their work. Past generations may have worked simply because they needed to pay the bills. Millennials want to get paid too, but they also want to know that their employer is doing more than making and selling products or services. They aspire to social causes and want to know why the organization exists and how they can personally participate and contribute in that culture.
Continued personal growth and career advancement. Millennials want to be coached and have work-life balance. They want management feedback, even if it’s negative. Regular pay increases and promotions are important to them too. It shows that you’re invested in their career path and value their contributions.
Flexible hours and the ability to work remotely. They want flexible hours and the option to work from a location of their choice. This flexibility also contributes to their desire for no added workplace stress. Technology has made it possible to connect 24/7 from anywhere on any device. If you have yet to adapt your culture to accept this new norm, you’ll likely be missing out on this generation of candidates.
Technology. Millennials are smart-device people. Who better to move your organization forward than the individuals who grew up knowing how to download and use an app, or create a widget that solves a problem? They think technology-first and is required for any organization looking to remain competitive.
Financial wellness. A robust financial wellness program that includes self-directed education, competitions, games and rewards will pique millennial interest. Products and services like financial coaching, cashflow tracking, early wage access and credit resources that address their financial challenges will keep them engaged. Above all, a financial wellness program must be tailored to each individual employee to achieve maximum participation and behavioral change.
Employers must be vigilant in order to keep the best and brightest talent. They should also be proactive in managing their employees on a personal level, especially millennials. Otherwise, they are likely to be disengaged and move on — and that will cost money.
As managers and leaders of the organization, it is your responsibility to ensure that millennials understand their future in the company and to communicate that they don’t have to go somewhere else to advance. Employers and leaders have a responsibility to provide millennials with a desirable place to land, and a culture that encourages them to thrive. Don’t give millennials reasons to leave your organization. We need to support them, engage them, reward them and give them reasons to stay.
SOURCE: Kilby, D. (6 November 2019) "A benefits wishlist for millennial employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-employee-benefits-do-millennials-want
Strategies for communicating with all five generations in the workforce
Did you know: Thirty-eight percent of Americans work for a boss who is younger than they are. According to the Labor Department and U.S. Census Bureau data, there are more employees over the age of 85 working than ever before. Read this article for strategies for communicating with all five generations in today's workforce.
The age gap in today’s workforce is getting increasingly wide. Just look at the Democratic primary for the nation’s highest office.
With Pete Buttigieg, 37, and Sen. Bernie Sanders, 78, running for president, the age range of the job applicants for the biggest job in the U.S. now spans four decades. There are also more workers over 85 working than ever before, according to Labor Department and U.S. Census Bureau data.
Here’s another fact: Today 38% of Americans work for a boss who is younger than they are, said Lindsey Pollak, author of “Remix: How to Lead and Succeed in the Multigenerational Workplace,” at the Atlantic’s Aging Up conference on Wednesday.
“This is the first time in our country's history that we have five distinct generations in the workplace,” said Pollak, who has spent more than 10 years researching and studying millennials. “They are the largest generation in the workplace. You've heard a lot from millennials today, but all of the rest of us are here too.”
“To succeed in this environment, however you approach it, you have to think about all of those generations,” she said.
How can employers win the war on talent with such a diverse age range in the modern workforce? Pollak uses the example of a music remix to frame various engagement strategies — an idea she got based on her interview of a DJ. For example, playing a remix of a classic song at a party could entice both the younger and older generations to get on the dance floor, she said.
“[The DJ] said the trick is to play a remix because the older people at the party recognize the classic and say I know that song. And they come and dance,” Pollak said. “The younger people recognize the remix… and they come and dance. So the solution to a five-generation workplace is not either-or. We did it the millennial way or we do it the boomer way. It's always about, how can we bring everybody together?“
Pollak offered three examples of how employers can appeal to multiple generations. The first centers on recruitment. Employers should recruit from across generations. One example was a solution by a pool and beach club in Galveston, Texas, which began recruiting older workers after they experienced a downturn in teenage applicants, she said.
“[The beach club] looked around and said, who really comes and swims here every day? It's the people over 50 who want a low-impact exercise,” she said. “And so they started putting up posters saying, do you want to turn your passion into a career?”
The idea worked. Lifeguard staff became people over 55 including one 83-year-old lifeguard, Pollak said.
A second strategy involves communication, she said. Asking employees about their preferred communication style is one key way to ease multigenerational differences.
“The simple [strategy] here is to not look for the one way that everybody wants to communicate. There isn't one. It depends on your personality. It depends on the work that you do. It depends on your personal preferences,” she said.
The solution is to simply get in the habit of asking everyone at work how they prefer to communicate. Asking employees their communication style of preference — whether that be over text, a phone call or social media — can help improve communication.
Employers should look for mentoring opportunities, along with reverse mentoring experiences, where younger workers can help guide older workers on new skills, she said.
“Mentoring is an example of a classic practice that should never go out of style. There is nothing old fashioned or outdated about mentoring,” she said.
Mentoring also goes in both directions. Junior staff may be more proficient using various apps, for instance, and be good candidates to train other colleagues. To have a successful multi-generational workforce, employers should consider input from employees in a variety of age groups.
“Think of yourself as having a multigenerational board of advisers,” Pollak said. “What if you had a person from each generation who was advising you on how to look at the world and how to think about your job and your career?”
SOURCE: Siew, W. (31 October 2019) "Strategies for communicating with all five generations in the workforce" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/strategies-for-communicating-with-all-five-generations-in-the-workforce
A 16-Year-Old Explains 10 Things You Need to Know About Generation Z
What was life like when you were a teenager? The world has been focused on understanding and adapting to Millennials. Now Generation Z is beginning to graduate and enter the workforce. Read this blog post for 10 things the world should know about Gen Z.
Think about what life was like when you were 16. The clothes you wore, the places you shopped. What was most important to you then?
Whenever I speak to an organization eager to learn about Generation Z, I always ask that question. I get responses that include everything from the fleeting fashion trends of the day (bell-bottom jeans, anyone?) to the time-honored tradition of getting a driver’s license.
What I hope to achieve as a 16-year-old in 2018 is probably not all that different from what anyone else wanted when they were my age. It’s the way people go about reaching their goals that evolves over time—and that’s what also forms the basis of most generational clashes.
For the past several years, the world has been focused on understanding and adapting to Millennials, the largest and most-educated generation in history. Born between 1981 and the mid-1990s, this group has inspired important dialogues about generational differences and challenged all industries to evolve to meet their needs. In the workplace, Millennials have helped drive a greater focus on flexibility and collaboration and a rethinking of traditional hierarchies.
Of course, any analysis of generations relies on generalities that can’t possibly describe every person or situation. It’s important to remember that generations exist on a continuum—and that there is a large degree of individual variation within them. The point of this type of research is to identify macro trends among age groups that can help foster workplace harmony. Essentially, it’s a way of attempting to understand people better by getting a sense of their formative life experiences. The generation to which one belongs is among the many factors, such as race, religion and socioeconomic background, that can shape how a person sees the world.
But there’s little doubt that gaps among the U.S. generations have widened dramatically. For example, an 8-year-old boy in the United States who grew up with a tablet will likely have more in common with an 8-year-old in China who used a similar mobile device than he will with his 70-year-old U.S. grandparents.
In thinking about the generations, a key thing to understand is that these groups are typically categorized by events rather than arbitrary dates. Generation Z’s birth years are generally recognized as 1996 to 2009. The start year was chosen so that the cohort would include only those who do not remember the Sept. 11 terrorist attacks. The belief is that if you were born in 1996 or later, you simply cannot process what the world was like before those attacks. For Generation Z, the War on Terror has always been the norm.
Like all other generations, mine has been shaped by the circumstances we were born into, such as terrorism, school shootings and the Great Recession. These dark events have had profound effects on the behavioral traits of the members of Generation Z, but they have also inspired us to change the world.
Earlier this year, XYZ University, a generations research and management consulting firm where I act as the director of Gen Z studies, surveyed more than 1,800 members of Generation Z globally and released a study titled “Ready or Not, Here Comes Z.” The results were fascinating.
We discovered key characteristics about Generation Z and what the arrival of my generation will mean for the future of work. At 57 million strong and representing the most diverse generation in U.S. history, we are just starting to graduate from college and will account for 36 percent of the workforce by 2020.
Needless to say, Generation Z matters. And it is more important than ever for HR professionals to become familiar with the following 10 characteristics so that they know how to engage with my generation.
1. Gen Z Always Knows the Score
Members of this generation will put everything on the line to win. We grew up with sports woven into the fabric of our lives and culture. To us, the NFL truly does own a day of the week. But it’s more than just professional, college or even high school teams that have shaped us; it’s the youth sports that we played or watched throughout our childhoods. This is the generation of elite young teams and the stereotypical baseball mom or dad yelling at the umpire from the bleachers.
Our competitive nature applies to almost everything, from robotics to debates that test mental fortitude. We carry the mindset that we are not necessarily at school just to learn but to get good grades that will secure our place in the best colleges. Generation Z has been thrown into perhaps the most competitive educational environment in history. Right or wrong, we sometimes view someone else’s success as our own failure or their failure as our success.
We are also accustomed to getting immediate feedback. A great example is the online grading portals where we can get frequent updates on our academic performance. In the past, students sometimes had to wait weeks or longer to receive a test grade. Now, we get frustrated if we can’t access our scores within hours of finishing an exam—and sometimes our parents do, too.
2. Gen Z Adopted Gen X’s Skepticism and Individuality
Generations are shaped by the behavioral characteristics of their parents, which is why clumping Millennials and Generation Z together is a mistake. In fact, when it comes to each generation’s behavioral traits, Millennials are most similar to their parents—the Baby Boomers. Both are large, idealistic cohorts with influences that will shape consumer and workplace behavior for decades.
Members of Generation Z, on the other hand, are more akin to their parents from Generation X—a smaller group with a skeptical, individualistic focus—than they are to Millennials. That’s why many generational traits are cyclical. Just because Millennials and members of Generation Z are closer in age does not necessarily mean they share the same belief systems.
3. Gen Z Is Financially Focused
Over the past 15 to 20 years, HR professionals have been hyper-focused on employee engagement and figuring out what makes their workers tick. What drives someone to want to get up in the morning and come to work for your organization?
As it turns out, workplace engagement matters less to Generation Z than it did to previous generations. What’s most important to us is compensation and benefits. We are realists and pragmatists who view work primarily as a way to make a living rather than as the main source of meaning and purpose in our lives.
Obviously, we’d prefer to operate in an enjoyable environment, but financial stability takes precedence. XYZ University discovered that 2 in 3 Generation Zers would rather have a job that offers financial stability than one that they enjoy. That’s the opposite of Millennials, who generally prioritize finding a job that is more fulfilling over one that simply pays the bills.
That financial focus likely stems in part from witnessing the struggles our parents faced. According to a study by the Pew Charitable Trust, “Retirement Security Across Generations: Are Americans Prepared for Their Golden Years?,” members of Generation X lost 45 percent of their wealth during the Great Recession of 2008.
“Gen X is the first generation that’s unlikely to exceed the wealth of the group that came before it,” says Erin Currier, former project manager of Pew’s Economic Mobility Project in Washington, D.C. “They have lower financial net worth than previous groups had at this same age, and they lost nearly half of their wealth in the recession.”
Before Generation Z was decreed the ‘official’ name for my generation, there were a few other candidates, including the ‘Selfie Generation’ and ‘iGen.’
Employers will also need to recognize that members of Generation Z crave structure, goals, challenges and a way to measure their progress. After all, the perceived road to success has been mapped out for us our entire lives.
At the same time, it’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
4. Gen Z Is Entrepreneurial
Even though they witnessed their parents grapple with financial challenges and felt the impact of the worst economic meltdown since the Great Depression, members of Generation Z believe there is a lot of money to be made in today’s economy. Shows like “Shark Tank” have inspired us to look favorably on entrepreneurship, and we’ve also seen how technology can be leveraged to create exciting—and lucrative—business opportunities with relatively low overhead. Fifty-eight percent of the members of my generation want to own a business one day and 14 percent of us already do, according to XYZ University.
Organizations that emphasize Generation Z’s desire for entrepreneurship and allow us space to contribute ideas will see higher engagement because we’ll feel a sense of personal ownership. We are motivated to win and determined to make it happen.
5. Gen Z Is Connected
Before Generation Z was decreed the “official” name for my generation, there were a few other candidates, including the “Selfie Generation” and “iGen.”
I find those proposed names both condescending and misleading. While it’s often assumed that Generation Z is focused solely on technology, talking face to face is our preferred method of communication. Sure, social media is important and has undoubtedly affected who we are as a generation, but when we’re communicating about something that matters to us, we seek authenticity and honesty, which are best achieved in person.
“Gen Z has the power of technology in their hands, which allows them to communicate faster, more often and with many colleagues at one time; but it also brings a danger when it’s used as a crutch for messages that are better delivered face to face,” says Jill Katz, CHRO at New York City-based Assemble HR. “As humans in the workplace, they will continue to seek empathy, interest and care, which are always best received face to face.”
XYZ University’s research found that cellphones and other electronic devices are primarily used for the purpose of entertainment and are tapped for communication only when the face-to-face option isn’t available.
However, successfully engaging with Generation Z requires striking a balance between conversing directly and engaging online. Both are important, and we need to feel connected in both ways to be fully satisfied.
6. Gen Z Craves Human Interaction
Given that members of Generation Z gravitate toward in-person interactions, HR leaders should re-evaluate how to best put the “human” aspect back into business. For example, hiring processes should emphasize in-person interviews more than online applications.
A great way to engage us is to hold weekly team meetings that gather everyone together to recap their achievements. Although members of Generation Z don’t necessarily need a pat on the back, it’s human nature to want to feel appreciated. This small gesture will give us something to look forward to and keep us feeling optimistic about our work. In addition, we tend to work best up against a deadline—for example, needing to have a project done by the team meeting—due to our experience facing time-sensitive projects at school.
7. Gen Z Prefers to Work Independently
Millennials generally prefer collaborative work environments, which has posed a challenge to conventional workplace cultures and structures. In fact, many workplaces have eliminated offices and lowered cubicle walls to promote more interaction. Yet recent studies indicate that totally open offices may actually discourage people from working together. The noise and lack of privacy could prompt more people to work at home or tune others out with headphones. Since different types of work require varying levels of collaboration, focus and quiet reflection, ideal workplaces incorporate room for both togetherness and alone time.
It’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
The emphasis on privacy will likely only intensify under Generation Z. Unlike Millennials, we have been raised to have individualistic and competitive natures. For that reason—along with growing research into optimal office design—we may see the trend shift away from collaborative workplaces toward more individualistic and competitive environments.
8. Gen Z Is So Diverse That We Don’t Even Recognize Diversity
Generation Z marks the last generation in U.S. history where a majority of the population is white. Given the shifting demographics of the country, we don’t focus as much on someone’s color, religion or sexual orientation as some of our older counterparts might. To us, a diverse population is simply the norm. What we care about most in other people is honesty, sincerity and—perhaps most important—competence.
Indeed, we have been shaped by a society that celebrates diversity and openness. A black man occupied the White House for most of our lives, and we view gay marriage as a common and accepted aspect of society.
9. Gen Z Embraces Change
Compared to teenagers of other generations, Generation Z ranks as the most informed. We worry about our future and are much less concerned about typical teen problems, such as dating or cliques, than we are about becoming successful in the world.
The chaos and unrest in our political system have inspired us to want to get involved and make a difference. Regardless of which side of the aisle we are on, most of us are informed and passionate about the issues facing our society today. Witness, for example, the students of Marjory Stoneman Douglas High School in Parkland, Fla., who organized a political movement around gun control in the wake of a mass shooting at their school.
Social media allows us to have a voice in our political system even before we can vote. This opportunity has forced us to develop critical-thinking and reasoning skills as we engage in sophisticated debates about important issues that might not even affect us yet.
“Gen Z has a strong ability to adapt to change,” says Paul Carney, an author and speaker on HR trends and a former HR manager with the Navy Federal Credit Union. “For those of us who have spanned many decades in the workplace, we have seen the rate of change increase and it makes most of us uncomfortable. Gen Z are the people who will help all of us adapt better.”
According to numerous polls, the political views of Generation Z trend fiscally conservative (stemming from our need for financial stability) and socially liberal (fueled by diverse demographics and society).
10. Gen Z Wants a Voice
Given how socially aware and concerned its members are, Generation Z seeks jobs that provide opportunities to contribute, create, lead and learn.
“One of the best ways I have seen leaders engage with Gen Z is to ask them how they would build a product or service or design a process,” Carney says. “Gen Z has some amazing abilities to bring together information, process it and take action. When we do allow them to share ideas, great things happen.”
We’re also an exceptionally creative bunch. Managers will need to give members of this generation the time and freedom to come up with innovative ideas and accept that, despite our young age, we have valuable insights and skills to offer—just like the generations that came before us and those that will follow.
No primary care doc, no problem: How millennials are changing healthcare
Do you have a primary care physician? Forty-five percent of 18- to 29-year-olds reported that they do not have a primary care physician. Read this blog post from Employee Benefit News to learn more.
Millennials, and Generation Z behind them, are changing the way they access healthcare. In fact, 45% of 18- to 29-year-olds say they don’t have a primary care physician. Instead, they’re opting for on-demand healthcare.
Traditionally, individuals and families see primary care physicians several times a year and build relationships with their doctors over time. Visiting the same primary care physician when an illness strikes, or for an annual wellness checkup, can help the doctor notice changes in a patient’s health and catch issues before they become more serious (and costly).
But for millennials, having a primary care physician isn’t necessarily a priority.
That’s in part because they seem to prefer on-demand healthcare options, such as urgent care, drug store clinics and telemedicine services, which are easily accessible and typically include shorter wait times. The number of urgent care centers reflects the trend — they’re projected to grow by 5.8% in 2018, according to the Urgent Care Association.
Then there is employers’ shift away from health maintenance organizations, which often required that each employee choose a primary care doctor at the start of the plan. HMOs also require a referral from the primary care physician to see specialists. Recent research shows that most often, employers offer preferred provider organizations (84%), while 40% offer consumer-directed health plans and 35% offer HMOs.
Finally, physician shortages are leading to longer wait times for appointments. The U.S. population continues to grow and age, which may lead to a shortage of 120,000 primary and specialty doctors by 2030, according to the Association of American Medical Colleges.
For employers, it’s important to understand the reasons behind the shift to on-demand healthcare and educate employees to ensure they can get appropriate medical attention when they need it.
One crucial part of this education is helping employees understand when they should visit urgent care versus the emergency room, and reminding them that telemedicine is available. More than 95% of large employers and just over one-third of small- and mid-size employers offer telemedicine benefits. But adoption rates among employees remain low — only 20% of large employers report utilization rates above 8%, according to the National Business Group on Health.
Ensure your employees know that the service is available throughout the year and help them understand the cost if any is associated with the service. You may consider offering $0 copays for telemedicine visits to encourage employee use.
Encourage employees to get a wellness visit each year to help uncover health issues and take steps to prevent others. One way to do this without forcing employees to wait for an appointment or commit to a doctor is to bring the service in-house. Increasingly, large employers are adding this service to help employees stay healthy. In fact, one-third of employers with more than 5,000 employees and 16% of employers with 500-4,999 employees now have onsite clinics. Another 8% of midsize employers plan to add clinics in 2019.
Providing health assessments as part of a health and wellness program is another way to get employees, especially money conscious millennials, in front of a doctor. Younger workers are likely to embrace incentives or premium discounts that are tied to a physician visit.
Direct primary care is yet another employer option to provide easy-to-access primary care. With direct primary care, employers partner with primary care physicians to offer a designated doctor for their employees. The benefit for employees is more face time with a doctor and the opportunity to get personalized care.
Importantly, employees who have known chronic issues should see a primary care doctor regularly to help monitor and manage their condition.
The trend toward seeking on-demand healthcare at alternative sites isn’t likely to reverse direction any time soon. Instead, it’s up to employers to understand why it’s happening and educate employees of all ages on their options for care.
SOURCE: Milne, J. (7 January 2019) "No primary care doc, no problem: How millennials are changing healthcare" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/no-primary-care-doc-no-problem-how-millennials-are-changing-healthcare?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
Study Shows Impact of Generational Differences in the Workforce
Originally posted by Jennifer Busick on April 3, 2015 on safetydailyadvisor.com.
“This is the most comprehensive quantitative study performed on generations in the workforce,” says Warren Wright, vice president of LifeCourse Associates. Wright adds, “We now know what engages different generations.”
The study included Millennials (age 30 and under), Generation X (ages 31 to 51), and Boomers (ages 52 to 69) who are employed full-time. The survey was conducted through a nationally representative online panel of 1,250 respondents, and was tested again on 4,986 insurance industry employees 2 months later.
Key Findings
- Generations matter. Nearly three-quarters of respondents agreed, not only that there are important generational differences but also that they “sometimes” or “often” pose challenges in the workplace.
- Millennials crave mentorship. Nearly a third of Millennials “strongly” agreed that they want to work for an organization that provides an excellent mentoring program, far more than any other generation. Millennials also experience the largest gap between what they have and what they want when it comes to mentoring.
- Millennials want a social workplace. An overwhelming 68 percent of Millennials agreed that they like to socialize informally and make new friends while at work, about 10 points higher than any other generation.
- Millennials want to contribute. Nearly two-thirds of Millennials agreed that they like their employer “to contribute to social and ethical causes” that they think are important, vs. barely half of Boomers and older Gen Xers.
- Millennials and Xers want cutting-edge technology. High shares of both Millennials and Gen Xers “strongly agree” that they “like to work with state-of-the-art technology,” while Boomers rate this as significantly less important. Millennials rate their employers’ performance in this area the lowest.
- Boomers are mission-focused. Fully 56 percent of older Boomers and 50 percent of younger Boomers “strongly agree” that they want to be “100 percent dedicated to my organization’s mission.” That number declines sharply for older Gen Xers and continues to decline through Millennials, in a remarkable 19-point generational spread.
The report is part of LifeCourse’s new Generational Workforce Audit, a customized research tool to diagnose how generational engagement affects an organization’s bottom line. For more information, visit www.lifecourse.com.
Why It Matters
- Every generation in your workforce needs to be trained to work safely.
- Since the generations grew up in different eras, you must use a variety of different training methods to reach every generation effectively.
- Make full use of a blended learning approach to ensure that employees of all ages can learn to work safely.
Tailoring voluntary benefits to meet employees' generational needs
Originally posted November 21, 2014 by Elizabeth Halkos on www.ebn.benefitnews.com
Well-designed benefits plans should be based on the desires and needs of employees in addition to supporting the employer’s business objective of providing a benefits package that aids in recruiting and retaining its workforce.
Once considered just a nice extra for a more comprehensive benefits package, voluntary benefits are now an essential element of the employee benefits program because they allow workers to customize their benefits and assist with the employee’s overall financial wellness.
There’s no doubt financial wellness is a concern for most of today’s employees. In a July 2014 Harris Poll on behalf of Purchasing Power, 80 percent of employees working full-time said they have financial stress today. Their stress is related to both long-term and short-term financial needs. Specifically, 67 percent indicated the stress is related to long-term financial needs (savings, retirement plan, etc.), while 60 percent said it was short-term related (everyday living expenses as well as unexpected financial needs such as a car repair, appliance replacement, or emergency medical expenses).
With such varying concerns among employees, employers need to know what voluntary products will most benefit their workers’ demographics. Today’s workforce spans three generations from millennials to baby boomers that look at work, life, money and finances in totally different ways. Likewise, they have different benefit needs and with voluntary benefits, workers can choose what suits their particular situations.
Traditional voluntary benefits are mostly self-explanatory. Let’s consider the growing list of non-traditional voluntary benefits in the marketplace today which give a wide scope of opportunity for meeting employees’ needs. Based on focus groups with employees from all generations, here are the non-traditional voluntary benefits that help address their financial situations.
Baby boomers (born 1946 – 1964)
Baby boomers are worried. For the most part, if there’s something baby boomers want, they are able to buy it. However, many will question if they should buy it or rather save that money. Instead, they are trying to be financially responsible and scaling back from a materialistic lifestyle. Baby boomers, even if they are high earners, worry about retirement – both having enough money for retirement and wondering when the right time is to retire.
Non-traditional voluntary benefits that would appeal to baby boomers include:
- Discount Programs
- Financial Counseling
- Legal Assistance
- Group Auto Insurance
- Home Warranty Insurance
- Wellness Programs
- Long-Term Care Insurance
Generation X (born 1965 – 1979)
Generation X is stretched thin. Gen Xers’ work ethic is balanced and flexible with a “work hard, play hard” attitude. This generation’s financial stressors come from multiple angles. They are raising children, preparing for care of their aging parents and trying to save for their own financial futures. They appear to be having the toughest time financially. They find it difficult to meet their household expenses on time each month and are the most likely to carry balances on their credit cards.
Non-traditional voluntary benefits that would appeal to Gen Xers include:
- Discount Programs
- Employee Purchase Programs
- FSAs
- Financial Counseling
- Wellness Programs
- EAP
- Child Care
- Cyber Security Insurance
- Homeowners’ Insurance
- ID Theft Protection
- Long-Term Care Insurance
Millennials (born 1980 – 2000)
Millennials are confused. They often juggle many jobs and move from job to job frequently. Their greatest fear is silence, unplugging, routine and eternal internship. Keys to job retention for millennials are personal relationships, multiple tasks and fast rewards. Their benefits needs include portable benefits, forced savings, financial education and concierge services. Key values for millennials include future financial security and better quality of life. To improve their financial situation, they need a better job or a promotion and expert advice on how to make the most of their money in addition to beginning a 401(k) or other retirement plan. The average millennial has $29,000 in student loan debt alone. Not surprisingly, they are also more worried about getting rid of or incurring additional debt than their day-to-day expenses.
Non-traditional benefits that would appeal to millennials include:
- Employee Purchase Programs
- Discount Programs
- Tuition Assistance
- Employee Assistance Program
- Wellness Program
- FSA
- Financial Counseling
- ID Theft Protection
By recognizing the value in voluntary benefits and adding to their voluntary offerings, employers not only can provide for their employees’ financial wellness, but can retain a loyal, motivated workforce as well.
