As the modern workplace evolves, small business owners everywhere need to understand the needs of the new generations, including what millennials look for in benefits packages. Without benefits packages that appeal to all age groups, you risk losing potential employees to larger corporations.
In this article, we will break down just what millennials look for in employee benefits, and how they are preparing for retirement.
These days, the millennial generation is choosing to live with their parents longer. This is partially because they have witnessed the subprime mortgage crisis, which has helped them understand the importance of saving.
Saving for retirement is one of the biggest concerns for millennials–even above student loan debt. Millennials are particularly consumed with saving because of the reduced retirement benefits, stagnant wages, and under-funded pensions that come with the modern workplace. Because most millennials are covered by their parents’ health insurance until age 26, they tend to be drawn towards benefits packages that will lessen their tax liability and tax defer their income.
Contrary to the Baby Boomers and Gen Xers that work and then wait for recognition, the newer generation tends to be more proactive in advocating for themselves and asking for raises as well as better benefits.
Statistics state that 1 out of every 6 millennials have at least $100,000 in savings for retirement. Despite this statistic, 35% of millennials believe that they are not saving enough, and 46% have asked for a raise (this is a 10% increase from previous generations).
When you partner with a Professional Employer Organization (PEO), you can help address the unique needs of your millennial workers and offer financial security to all of your employees. Delta Administrative Services offers small business owners Fortune 500 benefits without the Fortune 500 price, as well as benefits administration and on-site enrollment. Contact DAS today to learn more about how we can help you evolve with the modern workplace.