Employers of millennials had best be prepared to provide their young employees with financial planning tools and advice — and they should pay them well enough so they don't worry about their finances.
That's what MetLife's 2016 U.S. Employee Benefit Trends Study found when it polled more than 2,000 decision makers and employees to find out what benefits practices were in place and what expectations were held regarding those benefits by the recipients.
Three-quarters of millennials answered "yes" to the question, "Does your employer have a responsibility for your financial well-being?" Comparatively, 62 percent of all responded "yes" to the question.
The contrast in expectations among generations was often eye-opening. For instance:
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44 percent of millennials said their employers ought to help them solve their financial concerns, while just 20 percent of baby boomers felt that way;
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48 percent of millennials don't understand life insurance, compared to 31 percent of boomers;
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62 percent of millennials had no clue about long-term disability insurance, compared to an ignorance rate of 43 percent among boomers (still not good);
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68 percent of millennials prefer one-on-one benefit counseling, compared to 57 percent of boomers.
The survey found the usual lack of understanding of many insurance products. Voluntary benefits continue to confuse large numbers of employees; only 47 percent could see a relationship between any voluntary benefits and a reduction in their out-of-pocket medical expenses.
The research did reveal some bright spots from an employer's viewpoint. For instance, employee loyalty — or at least stability — is on the rise compared to recent years (45 percent of employees saying they plan to work for their current employer 12 months from now, compared with 41 percent last year). That loyalty bridges all generational stages, yet another good sign.
But new strategies will have to continue to be rolled out to get the most from a millennial-heavy workforce, said Todd Katz, executive vice president of group, voluntary, and worksite benefits at MetLife.
"Today, millennials represent the largest share of the American workforce. While it's common knowledge that millennials are often more motivated by meaningful work than the size of their paycheck, [they] are looking to the workplace for guidance and support to achieve financial security," he said.
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