To connect with millennials

and Gen Z, know their story

Employers can't afford to overlook the unique requirements and inclinations of key
segments of the workforce when it comes to both traditional benefits and wellness
offerings and how they are defined.

By: Ryan Golden

HR professionals often discuss how to hire, support and retain younger

workers — often reflexively referred to as millennials — and one critical
component of these efforts is benefits. Employers can't afford to overlook the
unique requirements and inclinations of key segments of the multigenerational
workforce when it comes to the benefits offered and how they are
administered.

The so-called millennial generation (defined as those born between 1981 and
1996) is now the largest segment of the U.S. workforce, according to the Pew
Research Center. The needs of millennial employees are also generally
shared by their colleagues born after 1996, known by the "Generation
Z" moniker. But these two generations are more than curiosities — they are a
growing force to be reckoned with. Experts are advising employers to re-
evaluate their employee benefits strategies accordingly.
A world of difference
No two generations experience the same life events in the same order. That
applies when speaking of the differences between the lifespans of, say, the
generation called either traditionalists or the silent generation (born before
1946) and Gen Xers (defined as those born between 1965 and about 1980).
HR should apply this same thinking to their younger peers, said John
MacPhee, CEO and executive director of The Jed Foundation, a nonprofit
focused on the mental health of young adults.

"It’s important that we understand that things are changing fast, and the world
that emerging adults are growing up in today is quite different than even 10
years ago, arguably more than five years ago," MacPhee said during a
webinar presented by the Disability Management Employer Coalition. "There’s
heightened risks around sustainable employment [and] the gig economy — it
feels less settled."

This changing landscape has revealed key differences in how millennials

select and consume employee benefits, Emily Bailey, principal at OneDigital,
told HR Dive in an interview.

"It really does cause us to take a step back and better assess how we're
putting information out there," Bailey said. "[Younger generations] may not put
as much value on certain benefits that the boomers and other generations that
have been in the workforce for a while do."

Younger workers are particularly likely to forgo voluntary benefits like life
insurance and disability insurance regardless of sagacity, Bailey explained, in
favor of options that meet immediate concerns like tuition reimbursement.

Their preferences are also likely to impact delivery. Purchasing benefits, in the
eyes of recent grads, will be held to the same standards set by e-commerce
applications like Amazon, Bailey said. In short, millennials feel comfortable in
a system that offers choice while allowing for a thorough evaluation of each
option.

"That's not traditionally how we've presented employee benefit programs,"

Bailey said. "It's been kind of a one-size-fits-all approach, and I think that's
going to have to change and that's what we're working to really do."

Employers can’t afford to throw out a slew of options that don’t stick, though.
Offering decision-making tools is part of making the process easy to
understand and user-friendly, particularly for younger workers, Bailey said.
No time to save?

Financial experts recommend that millennials set aside between 15% and
22% of their pre-tax salary, according to Jennifer Brown, manager of research
for the National Institute on Retirement Security (NIRS), who spoke as part of
a panel during an NIRS’ annual Retirement Policy Conference. But many
younger employees are struggling to save even a single dollar. Literally.
An NIRS report authored by Brown found that two-thirds of working U.S.
millennials (birth years 1981-1991) failed to save for their retirement. A mere
34.3% participated in their employer’s retirement plan.

Breaking down the results of the report, the panel listed a variety of causes for
millennials’ lack of retirement plan uptake, ranging from low wages and part-
time/gig work situations to lack of trust in the financial services industry. A lack
of proper financial education also plays a role.

"Part of this participation rate is the lack of education and knowledge," said
panel participant and Pershing LLC VP Kathleen Johnson, "and that’s where
you have a great opportunity here."

But by far, the biggest obstacle appeared to be a lack of access; 40.2% of

millennial workers in the report cited eligibility reasons for their non-
participation, usually due to a lack of requisite hours or tenure length, Brown
added. A silver lining: millennials who were eligible for a retirement plan, and
had that plan offered to them by their employer, showed a 93% take-up rate of
said plans.

Mental health considerations are key

Wellness program popularity, combined with the industry standard

of employee assistance programs (EAPs), have given HR a potent tool to
combat stress, fatigue and other common mental health issues in the
workplace. Millennials may be in particular need of this care.

"People are leaving home later than they used to be," MacPhee said. "They’re
financially independent later. And as a result, adolescence is stretching out."
MacPhee says there are even empirical findings that support a type of
"quarter-life crisis," which results from the financial and social pressures
younger workers face.

"When we look at populations of employed individuals, we definitely see an

increasing need for information and programs to support health and
wellbeing," Bailey added. "There's a marked increase in the results showing
that employees and younger generations are looking for things like wellness
programs or wellness incentives."
Well-being programs have generally grown to be more holistic, embracing
basic physical fitness in addition to financial, mental and emotional health.
And the trend isn’t just impacting younger workers’ lives.

"It starts with leadership declaring that this is a priority," MacPhee said, adding
that all relevant departments and constituencies need to have established
policy in place to promote these programs.