In 2017, 75% of our professional service clients changed their employee benefit plans to better align their firm with the expectations of prospective hires. Millennials and their younger Centennial/Generation Z counterparts face unique challenges entering the job market and expect robust benefit offerings, while senior staff are accustomed to status quo offerings.
Finding a broker that can help you strike a balance is more important than ever.
- Plan designs to address the unique tax implications of firm partnerships.
- Decisions of industry peers requires the ability to engage in thoughtful plan adjustments
- Substantial variations in employee compensation within job classifications require creative solutions to address employee contribution challenges.
- Firm capacity for human resource related matters is often limited and the ability to ease administrative burden is crucial.
If your firm hasn’t yet changed some of its practices or traditional benefit offerings to meet the needs of the millennial generation, it might be time.
According to Pew: ‘The generation born between 1981 and 1997 officially became the largest share of the U.S. workforce in 2015.’
In addition to a desire for regular communication and feedback, employees seek an understanding of how they can directly contribute to the overall success of their workplace. This generation is entering the workforce with a number of unique circumstances and expectations of their employer. What do those expectations look like?
- Compensation based on performance. Millennials want to be assured that if they work harder and better, they will be rewarded.
- More flexibility in work hours and locations.
- Marketable skills. Millennials want to learn highly valued skills while they are on the job
- Relationships with managers & decision-makers. They don’t want to feel like another rung in the ladder, and be able to voice their opinion to someone who counts.
- Personal credit when good results are achieved.
- A clear area of responsibility.
- The chance for creative expression. Millennials want the freedom to work their own way.
Meeting these needs might seem like a Herculean task, fortunately it does not mean having to lay out the red carpet when offering a benefits program. The younger generation has been shown to be a savvier consumer of medical insurance, and often least expensive to insure.
- An openness to alternative health plan options like HDHPs
- Greater awareness of the impact healthcare has on the economy and themselves.
- They are often on a budget, limiting their healthcare spending
- Technologically accepting and advanced
What’s the big deal with employee benefits? Although the number one reason an employee may leave their current place of employment is higher compensation (56%), 29% of employees who look for an external position are seeking better overall benefits. That’s one-third of employees who might leave their current employer because of the employee benefits package offered.
Introducing new benefits, or modifying existing programs can be a challenge. It is important to allow employees time to adapt to change, while continuing to roll out the highly sought out benefit options so many employees want to see.