Employers Don’t Need Slides or Ping Pong Tables to Attract Millennials

Based on U.S. Census Bureau data, the Pew Research Center determined that 56 million millennials worked or were looking for work in the United States during 2017. This made individuals who were then between 21 and 36 years old the largest group in the U.S. workforce.

Years earlier, employers began competing for available millennial talent by shifting their cultures to appeal to younger workers’ desire for socialization and fun activities. This often started subtly, with a transition to an open workspace or by providing free snacks. A few big-name firms went so far as to install slides, nap pods, ping pong and foosball tables, and in-office bars.

While fun, games and a positive organizational culture are certainly important factors for millennials deciding where to work, they do not top the list—especially since the arrival of COVID-19. To cite just one concern, many millennials left college with crippling student loan debt, which is nearing a national total of $1.64 trillion dollars. This puts millennials financially behind where members of older generations were when they entered the workforce. A higher cost of living widens the gap.

The lesson for employers is that while offering more-traditional benefits and perks does not bring the same excitement as setting up an office pool table, offering benefits and perks that employees truly value can be enough. Making simple enhancements to traditional offerings and adding new benefits tailored to today’s employee will be impactful in attracting millennials.

The Basic (Traditional) Benefits Millennials Expect

According to Pentegra’s 2018 Millennial Benefit Trends Report, millennials expect traditional benefits such as health insurance, vacation and retirement plans.

Robust health care coverage will be especially important for employees who have come through the coronavirus pandemic. But while millennials expect health insurance coverage, the Pentegra report notes that many younger workers are not savvy when it comes to signing up for health plans. Explaining the differences among available plans and the value of health care coverage in general are good ways for employers to show a deeper level of commitment to millennial employees, which can help improve retention amongst that demographic.

For millennials battling debt in the forms of student loans, personal loans and credit cards, an employer’s investments in financial wellness will be appreciated. Though it seems too standard to bear mentioning, offering a 401(k) plan with matching contributions may be a key factor for millennials who are looking for an organization that commits to helping them build for their future.

Here, though, Pentegra found that millennials are savvy when it comes to knowing the worth of a 401(k) and other retirement vehicles. Employers may be able to provide additional value by talking more openly about investing options.

The Not-So-Basic (Stellar) Benefits That Millennials Appreciate

Add-on benefits can make employers stand out. One such offering is identity theft protection. As everyone relies heavily on technology to stay connected during the COVID-19 crisis, cybercriminals attack, continuously developing more-sophisticated hacking techniques and phishing scams to steal both personal and proprietary data.

Making identity theft protection available to employees minimizes their risk while also protecting the employer’s data and maintaining productivity. Resolution services provided by the identity theft protection vendor should rectify issues swiftly, saving an employee who had their identity stolen hours or days of trying to solve the problem on their own.

Depending on the incident’s complexity, resolving an identity theft case can take up to 150 hours. At a time when most employers are competing to offer unique and personalized benefits packages, paying for identity theft protection is a sound investment that can attract top talent and provide peace of mind for the employer.

Another benefit that can help differentiate an organization is a student loan repayment program. Paying off large, long-term debts is a major stressor for millennials, who often find it necessary to put off major life events such as moving out of their parents’ house, getting married and having children.

Similar to a 401(k) match, student loan repayment assistance allows an employer to match all or a portion of the amount an employee pays each month. Such a programs has the potential to significantly improve millennials’ overall financial wellness and satisfaction with their work situation. Research has also shown that such programs can reduce the time an employee needs to pay off a student loan by four years.

One more benefit that can be greatly appreciated but which is not yet typically offered is pet insurance. An employer that offer pet insurance as an elective benefit demonstrates that it cares about every member of their employees’ families. Carrying pet insurance that their employer pays for or offers at a discount reduces employees’ stress over the cost of keeping pets. It can also enhance the firm’s reputation among potential job applicants.

Wellness Benefits

Over the past few years, millennials have increasingly focused on wellness and self-care. This trend is anticipated to continue in the wake of the pandemic. So, employers that offer comprehensive wellness benefits will certainly stand above the rest.

There are many ways to approach wellness in the workplace. Some employers offer standing desks, onsite gyms and healthy snacks. Others offer education on nutrition and support participation in weight loss support groups and prepared meal plans. Many employers also reimburse employees for maintaining gym memberships, participating in virtual fitness classes and consulting with nutritionists.

Mental health wellness benefits and programs will continue to gain traction, as well. And organizing a weekly “health hour” during which employees spend 60 minutes at the start of the workday, during lunch or at quitting time taking part in a fitness class or a mental health session is becoming more common.

With more people doing their jobs remotely, additional counseling, either virtual or in-person, may be required to address issues such as isolation. Regardless of the specifics, offering wellness programs to millennials communicates the message that the organization cares about the entire person rather than seeing them merely as a worker.

Work-Life Balance

Ryan Jenkins wrote in a Jan. 8. 2018, Inc. article that some millennials care more about achieving work-life balance than performing meaningful work or progressing in their careers. Despite this, Jenkins cited results from a 2016 American Psychological Association survey that showed just 53 percent of workers felt their employer valued work-life balance. Even fewer respondents (43 percent) indicated that their employer offered flexible work programs and policies.

Even after worksites fully reopen following the pandemic, millennials will view telecommuting as a valuable option. Compared to members of older generations, millennials are the biggest supporters of working from home. According to Global Workplace Analytics, more than 90 percent of millennials want to work from home, even if they are permitted to do so just one or two days a week.

In addition, younger employees desire flexibility within scheduled work hours. An employer can accommodate this in many ways, including day-shifting, instituting summer hours and establishing health hours.

Millennials have changed the workforce, and they expect organizations to care about workers. In addition to health insurance coverage and retirement plans, employees younger than 40 value nontraditional benefits that provide flexibility and peace of mind such as identity protection, telework and flextime. To remain competitive in recruiting top millennial talent in the post-pandemic environment, employers should forgo exotic perks and concentrate on providing flexibility and value.