Employers who hope to attract, engage and retain Generation Y workers must understand their preferences and communication styles, particularly regarding workplace benefits, according to new findings by Colonial Life & Accident Insurance Company.
"The ability to recruit and retain younger workers is quickly becoming essential for employers to ensure long-term business success, especially as baby boomers begin to retire in increasing numbers," says Stephen Bygott, director of marketing programs and research at Colonial Life. "But Gen Y has different needs, expectations and preferences than previous generations, so companies need to take a different approach when it comes to designing and communicating their benefits packages. Those who don't consider changes could risk losing their competitive edge and may be left behind."
Compared to other generations, Generation Y tends to be less financially stable. In fact, only 58 percent of Generation Y workers pay their bills on time, 43 percent have high credit card debt and 70 percent aren't saving enough. Typically, they also frequently jump from job to job, with the average 26-year-old already having seven jobs.
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Although 60 percent of Generation Y say their benefits as the second most important factor in job satisfaction, most are underinsured, as they are the least likely of all working groups to enroll in employer-sponsored insurance, according to a recent survey by Harris Interactive.
The study also finds that Generation Y workers seem to favor personal communication concerning benefits. Regardless of their heavy tech reliance, Generation Y employees don't rely on online resources more than other generations, and they're even more likely to ask family or friends for information.
"Benefits communication emerged in the research as a clear opportunity for employers to more strongly engage Gen Y workers," Bygott says. "These workers give employers low marks for the effectiveness of their benefits communication, and Gen Y women in particular are much more likely to say the communication they receive about their benefits is not at all informative, including cost, what's covered and what they need."
To effectively communicate benefits with Generation Y employees, the study suggests implementing individual counseling, appropriate technology, multiple communication methods interactive content.
"As benefits decision-making continues to shift more toward employees, Gen Y workers will become more eager for the products and information they need to manage their personal financial security," Bygott says. "Employers have a tremendous opportunity right now to create a greater return on investment by evaluating their benefits offerings and communication methods to appeal to Gen Y. The result will be a more loyal, engaged and productive work force."
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