Millenial Makeover: Better Benefits for Gen Y
Take a fresh look at your benefits strategies to attract and retain today’s younger workers By Chris Shealy, Public Sector Manager – South Carolina Colonial Life Profile of a Gen Y employee
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hen you look across the room at a faculty meeting, do you see a lot of young faces? If so, you’re not alone: Generation Y — those born in 1980 and later — is literally taking over the workplace. These 20- and 30-something workers already make up 25 percent of the U.S. civilian labor force1 — and that percentage is going to grow rapidly as Baby Boomers begin to retire in large numbers over the next several years. Most importantly to you, they’ll also bring with them new expectations about their jobs, their futures and the workplace. Do you understand what makes these younger employees tick? And are your current benefits enrollment strategies on target for this age group? If you want to attract and retain the best and brightest in your school system, it’s time to take a serious look at how benefits you’re providing them are communicated and enrolled.
32 PALMETTO ADMINISTRATOR • FALL 2013
Gen Y, also known as the Millennials, is the first generation to come of age at the start of the new millennium. They were raised in a technology-rich environment, with computers at home and school and the Internet an integral part of their lives. (No wonder some of our area’s newer schools opening now are issuing touchscreen tablet computers to students and going totally paperless.) Gen Y is generally considered more openminded than other demographic groups and comfortable embracing cultural differences. Diversity shapes their thinking, from their home life to their school life to pop culture. They’ve spent the majority of their education working in groups, so they’re adept at communicating and sharing ideas and information among their peers. Gen Y employees thrive on change, innovation, teamwork, immediate feedback and regular rewards and recognition. They’re expressive, creative and socially attuned. However, Gen Y tends to struggle financially more than other age groups: • They’re not always financially responsible. Just 58 percent pay their monthly bills on time.2 • They aren’t saving enough. Only 29 percent of Gen Y workers are investing in IRAs, 401(k)s and other vehicles that produce longer-term wealth.3 • They’re in debt. Generation Y has an average debt load of $28,930. That included $12,140 in car loans, $7,538 in lines of credit and $4,113 in credit cards.3 One-fifth of them carry a credit card balance of more than $10,000.2 • They aren’t counting on Uncle Sam. Sixty-seven percent of Gen Ys believe government plans, such as Social Security, will not be available to them when they retire, forcing them to rely more heavily on a combination of employer-sponsored retirement plans such as 401(k)s and personal investments to meet living expenses when that time comes.4 • They may not be homeowners. They Gen Y employees are the least likely generation to own their own homes, and a majority of Millennials recognize they are not saving as much as they should.5