Creating Wealth for Millennials Through Employee Benefits
Monday, March 26, 2018
Posted by: Gary Hotze
Kristin McWilliams, Sales Executive, HBS
Brian Migdow, Sales Executive - Employee Benefits Solutions, firstname.lastname@example.org
The Horton Group
The landscape of the workforce is dramatically shifting to one that by the year 2020, nearly 50% of all employees actively working will consist of the millennial generation.
A common challenge that most professional service firms are undertaking is the competition for talent at an all-time high. Specifically, the technology industry is growing at a rapid pace, and the competition for talent has never been more important regarding how a company presents its’ culture to a prospective millennial employee. One of the many challenges that the millennial generation faces are creating personal wealth. There are many ways to achieve these personal goals for employees by structuring your benefits plans to align with their needs.
Health Savings Accounts (HSA)
Health savings accounts paired with high deductible health plans have taken a substantial uptick in the past few years as they have helped combat rising healthcare premium costs. Particularly with the millennial generation, these plans are incredibly attractive. Average millennial employees are healthy and only utilize their insurance for preventative medical exams (i.e., physical, gynecologist visit, etc.). From an employer perspective, offering these plans is on average 15-20% less in premium cost from a traditional PPO. With these savings, contributing money annually to fund an employee’s HSA is a wise investment of value for employees and allows them to fund for future medical costs that they will incur in their lifetime as well.
Loan Repayment Programs
It is no secret that the amount of student debt in this country is already at an alarming number hovering around $1.2 trillion and increasing every day. One of the more creative ways that employers have been able to attract millennials is to offer loan repayment programs by either partnering with an insurance carrier or vendor. Student debt is a tremendous burden on millennials and ultimately leading to the delay of personal savings which is critical for life, family, and retirement.
401k programs have been an important value-add for most companies, historically. While contributing a portion of an employee’s savings percentage is very important to helping incentivize an employee to save by offering “free” money, it is equally important to provide financial coaching for your staff. Financial coaching with the right 401k partner is incredibly valuable to a generation that is looking for advice and guidance on their financial well-being. Professional advice can be expensive when seeking it on an individual level, whereas this is a value-added resource that an employer can bring to its’ employees.
While all of the above are a great place to start looking outside the box when creating an employee benefits program, there are a wide array of services and products to tailor directly to the needs of the culture within your company. Technology firms that are competing for this talent need to be taking a more proactive approach as the millennial talent that they are looking to attract has evolved significantly from previous generations.