If you have millennials on your payroll, then you need to read this

A new Harris Poll, commissioned by DailyPay, Funding Our Future, and the Center for Financial Security, illustrates how COVID-19 has impacted the finances and savings for millennials. And unfortunately, the news isn’t good.

More than half (52%) of millennials say that their savings have declined since the beginning of the COVID-19 pandemic and only about a third (35%) of millennials feel like they are on the right track to meet their retirement goals. Nearly half (44%) say they have either no savings (17%) or not enough savings to cover a $400 emergency expense (27%).

Living on the edge financially without an actionable plan to reach long-term retirement goals can add yet another layer of stress for our millennial staff members. So what types of benefits can we offer, to millennials in particular, that will make a real impact in their lives and on their wallets?

Here are four benefits you should offer immediately, that will not only resonate with millennials, but will also help promote employee satisfaction, productivity and retention.

1. On-demand pay

While the increasingly digitized post-COVID world may seem new to some of us, it is simply how millennials and gen z grew up. Natively they don’t just want, but expect every aspect of their life to be simple, secure and on-demand. This includes pay.  If you are not offering on-demand pay,  then you are missing out on the hottest benefit of 2020 and the forecasted hottest benefit of 2021.

From a financial wellness perspective, the benefit of having access to your earned income as you earn it has been a game-changer for millions of American millennials (and every other generation as well). With on-demand pay, millennials have choice and control over their payday, no longer having to wait for a scheduled payday to take care of a bill.  A whopping 78% of users for one on-demand pay provider indicated that the benefit helps them pay their bills on time and avoid late or overdraft fees, according to a 2020 DailyPay user survey. Some providers also offer employees free savings or budgeting tools to help build healthy financial habits, further boosting employees’ financial wellness.

2. Student loan assistance 

According to the aforementioned Harris Poll, 57% of millennials either currently owe or have previously paid off student loans.

The average student loan debt for recent college graduates is more than $30,000.  In addition to being financially crippling, student loans can be bad for your business- especially when it comes to millennial employees. In fact, a 2020 Workforce Institute at Kronos study found that employees aged 18-44 are more likely than those employees aged 45 and up to say financial stress distracts them from their work.

Luckily for employers, there are ways to pitch in and help without breaking the bank. For example, a student loan repayment assistance program enables employers to match the employee contribution. It’s an impactful way to let the younger staff members know you value them and their contributions to the company.

3. Financial literacy programs

A recent survey revealed that many employees turn to their employer for financial advice and counseling. Millennials need help formulating that long-term financial game plan and most don’t have access to high-priced financial advisors. However, employers can remedy this by offering one-on-one counseling sessions with a financial advisor,  educational workshops, 401k educational programs, and financial literacy apps.

According to MetLife’s 17th Annual U.S. Employee Benefit Trends Study 2019, 60% of employees say they would be interested in their employers providing a wider array of less traditional, non-medical benefits (financial counseling, anyone?), even if they have to cover some of the costs themselves. 58% of employees say that having some of those non-traditional benefits would reduce their stress.

It helps them pay their bills on time and avoid late or overdraft fees, as reported by a 2020 DailyPay user survey. Some providers also offer employees free savings or budgeting tools to help build healthy financial habits, further boosting employees’ financial wellness.

4. Flexibility

With so many people working remotely as a result of the COVID-19 pandemic, it’s no longer about work/life balance, it’s about work/life blend. For millennials, especially young parents, flexibility is a critical benefit. With flexible work hours, working millennial parents can save on the incredibly expensive child care costs, opening opportunities to allocate that money to savings.  A flexible schedule that includes remote work also cuts down on commuting costs and another major expense when money is tight.

Jeanniey Walden is Chief Innovation Marketing Officer at DailyPay.