How employers can offer all-inclusive support to millennial employees this open enrollment season
As millennials approach a critical juncture in their lives, it’s vital that employers support and benefits that address their needs comprehensively.
The past year and a half has been trying for all of us; however, for millennial employees in particular, many were forced to put major life plans on hold. According to MetLife’s latest open enrollment survey, however, millennials are now looking to revisit those plans, with more than four in five (81%) expecting to make a major life change in the next year.
As millennial workers take steps towards new life stages—whether that’s buying a home (24%) or bringing home a pet (22%)—they are going to require benefits that match their evolving lifestyles. This is why millennials are looking at their benefits through a new lens this year, with nearly two-thirds saying this year’s open enrollment is more important than last year’s (a 6-percentage point increase from 2020), and two in three saying they plan to elect new benefits this year, compared to about one in three baby boomers.
Related: Designing benefits for a multigenerational workforce
As millennials approach this critical juncture in their lives, it’s vital that employers support this cohort in selecting benefits that address their needs comprehensively. Here are three considerations for employers who are looking to support millennial employees this open enrollment:
Millennial employees’ needs and interests are changing.
As millennials’ lives evolve in stride with their plans, their benefit needs are going to shift in kind. In fact, many say that a range of certain benefits are more attractive to them this year, including life insurance (39% more interested than last year), dental insurance (31% more interested than last year), and legal plans (29% more interested than last year).
Employers should also be aware that millennials are 50% more likely to get a pet than have a child in the next 12 months, which might be why one in five millennials is more interested in pet insurance this year than last. This open enrollment season, employers should plan to communicate with their employees about the value of voluntary benefits—which millennials may not immediately consider when electing their benefits—as these can help meet their new needs and assist in providing a solid foundation for them in the year ahead.
Millennials’ finances are a top concern.
Compared to other generations, finances are more of a concern for millennials this open enrollment season. In fact, MetLife’s open enrollment survey found that more than half of millennials expressed anxiety over their financial futures, compared to 45% of employees overall. To help, employers should underscore the ways in which different benefits can not only support employees around the events they plan for, but also—and perhaps more importantly—the ones they don’t.
For instance, financial planning—a benefit that millennials are 34% more interested in this year than last—can assist these employees in getting their financial house in order before any unexpected costs. Additionally, HSAs and FSAs can help to ease this generation’s worry about affording the cost of health care and living expenses should they arise from an unforeseen event. Feeling prepared and protected with the right benefits can help to thwart millennials’ financial worries and empower them to feel financially prepared for what is to come.
Millennials are looking to employers for support more than ever.
Faced with preparing for major life changes that might require specialized services or push them out of their comfort or knowledge zone, millennial employees are looking to their employers for support in key areas that extend well beyond open enrollment. In fact, most millennials say they expect support from their employers in undergoing a medical treatment (89% vs. 80% employees overall), creating a will or planning an estate (76% vs. 59% employees overall), and buying a new home (66% vs. 62% employees overall).
However, considering one in four millennials (24%) say they spend more time scrolling through social media than selecting their benefits, employers can first support these employees by ensuring that they understand the range of options already available to them, and how—in some cases—voluntary benefits can also help to support their goals. Take hospital indemnity insurance, for example. Some millennials may not have considered the wide-ranging benefits of this offering, but it can do wonders to offset additional hospitalization costs should they arise.
Above all, employers should communicate to their millennial employees that while they can and should use this open enrollment season to plan for their major life changes, it is just as essential that they select benefits that help them to prepare for what they can’t plan for in the year ahead. By knowing that this group of employees is making adjustments in their personal lives, feeling financially stressed, and looking for more support than ever before, employers can help them to elect coverage that is all-inclusive, preparing them for every aspect—planned or unplanned—of their year ahead.
Marquis Smallwood is vice president of Workforce Engagement at MetLife.
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