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.