In 2015, the millennial generation surpassed Generation X to take over the American workforce. Today, more than 33 percent of employees are from Generation Y, making them the largest share of workers, according to the Pew Research Center. As a result, it's crucial for companies to attend to this group's needs in order to improve overall satisfaction as well as recruitment and retention efforts.
One way to better the workplace for the millennial generation is to design a benefits package that is relevant to them – while also keeping workers of other generations in mind as well. Triton Benefits has a closer look at what elements should be included in these programs:
Giving millennial employees different healthcare choices can result in improved satisfaction.Multiple options
It's no longer enough to provide a single plan that eligible employees have to enroll in. Millennials want to be able to pick and choose the items included in their benefits programs, depending on what's most important and worthwhile for them, according to Forbes. For example, a relatively healthy member of Generation Y may need more money to put toward vision than general coverage. It's up to employers to design their offerings so these workers have multiple options to choose from, instead of relying on fixed plans. Some businesses have already started this movement by giving employees the choice of a health savings account, which enables people to spend the funds however they see fit. Additionally, companies need to implement better strategies for giving employees access to healthcare information. Forbes recommended mobile applications that detail benefits instead of the print-out cards used primarily in the past.
"Generation Y employees consider retirement more important than salary increases."
Retirement
Company leaders would be surprised to hear that millennial employees are more interested in saving for retirement than getting a salary increase. A report from Fidelity showed millennials have displayed the greatest improvement in savings rate compared to any other generation. This group is putting away 7.5 percent of their annual income today, as opposed to 5.8 percent in 2013.
While compensation boosts are still crucial to millennial success and ability to take care of high student loan costs and pay for expensive housing, businesses should turn their focus toward retirement. A good place to start is providing a 401k match of some kind, Inc. magazine suggested. While organizations don't have to put in the same amount of money as employees into their savings, even the smallest bit will make a difference in the eyes of Generation Y.
Wellness
While millennial employees want options to choose from when deciding how to allocate their funds for health care, these workers also want a workplace that encourages health in a variety of ways. Companies should develop wellness options when creating their benefits packages. Health screenings or a monthly allowance to use on exercise classes enable people to find their own way to keep themselves in strong condition. In addition to providing resources to support wellness, employers could also share incentives with millennials to encourage health even more. A points or rewards system incentivizes Generation Y workers and makes implementing wellness behaviors more fun and worthwhile, according to Entrepreneur.
The popularity of certain benefits components differs from workplace to workplace. Organizations need to ask their millennial employees what elements are most important to not only their health, but their workplace satisfaction. Gaining this valuable insight will help business develop a comprehensive benefits program that not only keeps millennial workers happy, but can increase recruitment and retention rates.