The “Millennial effect” is particularly apparent in benefits, with Millennials showing unprecedented benefits preferences compared to previous generations.
With Annual Enrollment fast-approaching, here are three ways HR/benefits pros can distill the data on Millennials to drive greater benefits engagement, understanding, and informed choice among this powerful demographic group.
Millennials have come of age in an on-demand world – there isn’t anything anymore in our day-to-day lives that we can’t have (food, clothes, media, entertainment) specifically curated for when, where, and how we want it. So, it’s no surprise that these young people are looking to curate their benefits the same way. Put simply, choosing between one HMO and one PPO is not going to satisfy them.
The Employee Benefit Research Institute finds that 45 percent of Millennials would prefer to receive a defined dollar amount from their employer and then choose their benefits from a list of options; another 24 percent are even bolder, seeking to take the total per-employee amount employers earmark for benefits to purchase their own plans outside the workplace.
While giving employees total autonomy over benefits selection may not be an option at your organization (nor is it entirely advisable, given Americans’ level of health literacy), you can still make Millennials feel empowered in the benefits selection process:
Although we often assume older generations are most risk-averse in financial dealings, studies show that Millennials are more worried about financial risks and save more than older generations. Bank of America Merrill Lynch finds that 82 percent of Millennials are investing in retirement savings, compared to 77 percent of Gen Xers and 75 percent of Baby Boomers.
HR pros can engage this interest in fiscal responsibility by outlining what financial benefits are available to employees and providing opportunities to learn more about financial planning.
Now. Just because employees are interested in financial planning doesn’t mean they understand how to do it. Educating employees on how to make the most of their paycheck can go a long way in appealing to Millennials (and all generations).
Millennials in particular seem eager for opportunities and resources that go beyond traditional benefits that are available at enrollment. For example, a PwC study finds that training and development is viewed by Millennials as most valuable. This means that while benefits packages remain critical, HR pros must think beyond enrollment and ensure they’re offering resources and opportunities that help employees grow their skills and careers.