In a four-generation workforce that includes baby boomers, Generation X, millennials, and Generation Z, millennials are considered the largest and most influential group in the labor market today. By 2025, they are anticipated to make up nearly 75% of the workforce.
Also referred to as Generation Y, millennials are often painted as a uniquely lazy, privileged, and entitled-acting group of employees. However, research indicates that millennials are similar to other generations and put in longer hours than any other generation, averaging more than 40 hours per week.
It’s also a common stereotype that millennials desire fun perks over standard benefits, like medical insurance. However, millennials are very practical in nature and desire similar benefits compared to other generations, including healthcare, advancement opportunities, a fair wage, and job stability. And, like every generation that came before them, the employee benefits package is a significant consideration when contemplating job offers.
Standard benefits that matter across all generations, including millennials, are:
- Affordable health insurance
- Paid time off
- Financial assistance
- Work-life balance
- 401k and retirement planning
Regarding financial assistance, student debt loan assistance is the preference for millennials. In addition to the above benefits, the following employer offerings are also important to millennials:
- Opportunities for advancement and growth
- Team collaboration
- Mental health benefits
Read on for more insights regarding the millennial workforce and employer benefit specifics to help you attract and retain the candidates and employees that make up this generation.
Defining Millennials
Millennials were born between 1981 and 1995 and, as previously stated, currently make up the majority of the workforce. As is the case with any generation, the benefit needs of millennials have changed from the time they entered the workforce until now. As they’ve gotten older, with many now reaching and surpassing the age of 30, they desire affordable healthcare and financial assistance as much as paid time off.
As employers attempting to recruit millennials, it’s helpful to appreciate that millennials are emotionally driven employees, and when you tap into their emotions, they’re more likely to be loyal to the company and brand. Millennials are also more likely to accept peer-driven advice more than expert-driven advice, and they value digital accessibility to information. When advertising information about your company and benefits platform, these traits should be kept in mind, including how you communicate and share the information.
Employee Benefits for Millennials
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Affordable Health Care
As with most employees from other generations, health insurance matters to millennials. Many millennials are uninsured due to the cost of medical insurance. One in five millennials can’t afford routine medical expenses, like doctor’s visits and prescriptions. Another 26% have difficulty paying for such routine expenses. Therefore, employers that offer to pay at least a portion of health insurance for millennials will stand out as an option.
Health care insurance options to offer include standard medical insurance and dental and vision insurance. Offering a Flexible Spending Account (FSA) or Health Savings Account (HSA) is also common among employers. These accounts are popular since they provide a tax-advantaged way to cover out-of-pocket approved health-related expenses, including healthcare premiums, physical therapy, medications, and more.
Many employers are also offering supplemental health insurance options, like intensive care, critical illness, long-term care, and hospital indemnity insurance. Additional health-related benefits many companies offer include on-site health clinics, free flu and COVID vaccine shots, gym memberships, weight loss programs, on-site gyms, nutrition programs, stress management programs, and meditation rooms.
Student Loan Debt Repayment
An organization that offers student loan debt repayment benefits makes them a highly desirable employer for millennials and is a way to attract and retain top-tier talent. Of the more than $1.2 trillion in student loan debt belonging to Americans, millennials share most of the burden. Nearly two-thirds of millennials have a minimum of $10,000 in student loan debt, and more than a third over $30,000. Moreover, it’s projected that many will still be paying off debt of more than $30,000 in 20 years. As a result, millennials have put off some common aspects of life, such as getting married, having children, and buying a home, until their debt is hopefully paid down or zeroed out.
Various financial institutions, like Fidelity, partner with companies to offer loan repayment programs. In a 2015 American Student Assistance survey, 76% of respondents indicated they’d likely choose a company that offered a student loan assistance program.
Work-Life Balance
Before COVID, millennials appreciated work-life balance. With COVID, work-life balance has become an expectation vs. just another desirable benefit. Employers more than ever appreciate that helping employees maintain their well-being, which includes reducing stress, benefits both the employee and the company. Less stress and improved health lead to increased productivity and morale.
Options employers offer to promote work-life balance include telecommuting, remote work, flexible work schedules, paid time off, paid holidays, personal holidays, sick leave, vacation, mental health days, childcare leave, parental leave, maternity leave, and work from home days. It’s also vital that employers walk the talk—it’s not good enough to offer work-life balance benefits, they need to be followed through with encouragement to use them. Employees need to feel they can utilize the benefits without backlash or being looked down upon.
Opportunities for Advancement and Growth
In Gallup’s How Millennials Want to Work and Live report, 87% of millennials indicated that job development was important, and 59% said that career growth was a critical factor they looked for when searching for jobs. Millennials even rank career advancement opportunities higher than salary for why they may be looking for a new job.
Offering mentorship programs, career coaches, training opportunities, a clear employee development plan, and regular performance discussions are advancement and growth options to garner the attention of millennials.
Team Collaboration
Cut-throat work environments are far from desirable for millennials. Instead, they want to work for organizations that promote and offer work team collaboration, inclusiveness, and diversity. An Intelligence Group study indicates that 88% of millennials want a collaborative work culture over a competitive one.
Since millennials appreciate tech-savviness from their employers, companies that promote technology to support team interaction and collaboration will catch a millennial's attention. Think Slack, Google docs, Team chats, project sharing applications, and internal social media platforms. Having face-to-face team meetings and get-togethers outside of work where the employees have the opportunity to interact with one another will also promote the collaborative team environment millennials prefer.
Mental Health Benefits
Though mental health benefits are technically a health-related benefit, employers' need for it as a benefit warrants it having its own category. Depression and anxiety were already costly conditions for employees and employers pre-COVID. Unfortunately, thanks to COVID, mental health challenges are on the rise and projected to worsen in the near future. Further, depression rates are higher for millennials than for any other generation. Stress, burnout, and isolation are part of the reason, and COVID exasperated the problem.
Fortunately, employers offering easier access to mental health benefits are rising. Employers can consider supporting their workforce include access to mental health professionals on-site or at a local clinic, free telehealth sessions, expanded mental health benefits as part of the standard medical insurance options, and expanded employee assistant program (EAP) mental health benefits.
401(k) or Retirement Plan
Millennials are at a point where stability and planning for their retirement matter. Based on a Sofi survey, 57% of millennials indicated they’d feel less stressed if their employer offered financial wellness benefits. Providing a 401(k) with an employer match is an attractive option for millennials, and offering an annual discretionary contribution will sweeten the deal even more. In the mentioned Sofi survey, respondents ranked receiving employer contributions to their 401(k) as having the second most impact on their personal financial situation.
Additional financial management benefits you can consider for millennials include financial planning sessions, deposits to an emergency fund, debt reduction coaching, and discount programs.
Assessing Employee Benefits for Millennials and Other Generations
Employee benefits are a top consideration when millennials are reviewing job offers. Health benefits, paid time off, a 401k or retirement plan, mental health support, the opportunity for advancement, and work-life balance are just a few of the benefits millennial employees appreciate receiving. What’s essential is that you’re showcasing these types of benefits if you offer them, and in cases that you don’t, seek opportunities to secure them when possible.
If you're in the process of reviewing your current employee benefits plans to better support and include millennials, KBI can help. We have decades of experience working with companies to support their employee benefit platform needs for all generations. Our tools and resources walk you through each step of the process, from evaluating and assessing to researching and purchasing benefits to meet your organization’s needs, legal requirements, and budget.
We look forward to working with you to forge a long-term partnership, so you have a trusted employee benefits resource team by your side—as needed, as well as throughout the year that goes beyond securing new benefits and open enrollment.
By Chris Freitas
Sources:
https://www.myshortlister.com/insights/millennials-in-the-workplace
https://file.asa.org/wp-content/uploads/2019/01/28203317/Life-Delayed-2015.pdf
https://www.sofi.com/blog/financial-wellness-benefits-survey-at-work