The workforce's youngest employees have taken a more proactive role in researching benefits that offer financial protection over the last two years, according to online studies by Harris Interactive on behalf of Unum.
"Members of this generation are entering the workforce and building careers during a time of economic uncertainty and intense debate over health care reform," says Barbara Nash, vice president of corporate research for Unum. "They're clearly taking an increased interest in how they can build and protect their financial lives."
Based on the studies, which took place in August 2008 and August 2010, 44 percent of young employees said they are extremely or very familiar with life insurance, an increase from 31 percent, while 43 percent said they are extremely or very familiar with retirement accounts, also a jump from 31 percent. Twenty-four percent of young employees said they are extremely or very familiar with disability insurance increased, up from 16 percent.
Most young employees, 68 percent, cite the workplace as the most reliable source for benefits information; however, they are also more likely to research information about financial protection benefits online than they were only two years ago, the study revealed.
In fact, the percentage of those who used the Internet to research benefits providers grew from 32 percent in 2008 to 44 percent in 2010, and the percentage of those visiting consumer advice websites hit 27 percent, an increase from 21 percent. Online forums and blogs also grew as information sources from 7 percent to 12 percent.
While electronic sources grew in popularity, young employees became less likely to rely on friends and family as a benefits information source. Between 2008 and 2010, the percentage of young employees who relied on parents for benefits information declined from 60 percent to 42 percent, and the percentage of those who turned to friend fell from 30 percent to 21 percent.
The survey also discovered the scope of a provider's benefits was an important selection factor for 55 percent of generation Y in 2010, which is an increase from 44 percent in 2008.
"This generation of workers is a large and influential group coming of age at a time when the benefits landscape is changing quickly," Nash says. "Understanding what drives their decision-making and how we can meet their benefits needs on their terms is critical."
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