Why Millennials Overwhelmingly Prefer Workplace Benefits over Extra Salary
Dec 13, 2018 | Employee Benefits Communication|
Millennials know the value of workplace benefits and often will gravitate toward organizations that offer the most comprehensive benefits packages over the highest salaries.
Every employee values workplace perks but does its importance outweigh being paid more?
In an article published by the Bristol Herald Courier about employee communications and millennial engagement, “the Bureau of Labor Statistics states employees clearly see value in workplace perks — by a 4 to 1 margin (80 percent vs. 20 percent), they would choose a job with benefits over an identical job that offered 30 percent more salary but no benefits." Accommodable work environment, flexible schedules, work/balance features– these are all benefits employees are looking for when applying to your company. Millennials are the majority group that prefers workplace benefits add-ons compared to their senior counterparts.
Millennial engagement is dependent on a workplace that values quality of life and when millennials find it, they tend to stay with that company long term. When considering a position, we tend to ask questions like, “Do you allow employees to work remotely? How many personal days do I receive every year? Can I negotiate my working hours?" These are all benefits that we think will provide the proper work/life balance and employers need to take note.
An overall survey states 401(k)s and health insurance were at the top of the list for which benefits Americans value the most, coming in at 56%. Next is paid time off and pension at 33%. Lastly, flexible hours, remote opportunities come in at 21%. (Herald Courier) Now, this is not to say that we put a proper salary at the bottom of our list, but engagement can be improved when we are offered these options that we believe work best for us!
So, why do millennials favor benefits over higher pay? Let’s discuss.
1. Workplace benefits even out, moneywise
We all know money talks. Millennials are especially exposed to the many expenses that come with becoming an adult, including paying off student loans, living expenses, transportation, child care and more. When a job offers a stellar benefits package, it really evens the odds. We will take a lower salary because we know these benefits will save us money in the end. If the health insurance plan is great, that is less money towards medical bills every year. If the flexible schedule and remote working features are available, it saves money on transportation! These benefits mean a lot because they ultimately make living life easier and less expensive.
2. Higher pay doesn’t automatically mean happier employees
If your company offers great pay but doesn’t include benefits, millennial engagement will decrease exponentially. We believe money is important, but we also believe being content with where you are working is far more valuable. Millennials value the flexibility and opportunity to make work fit within their lifestyle. We could be paid $100k a year but if we are working 12-hour days and paying an absurd amount for health insurance, it won’t be worth it for us. We believe our mental and physical state determine how well we can do our job and if those options aren’t available, we won’t be able to do our job efficiently.
3. Workplace benefits provide employee longevity
When your company shows that you want your employees to understand the benefits offered and you provide them several options to choose from, your credibility as an employer will help staff remain onboard longer. Millennials are the first to see right through phony perks that don’t directly benefit them so if they see that you are doing the bare minimum, it might turn them off. Keep your benefits package updated always and see what other progressive companies are doing for their employees!
Listen to your employees
Overall, keeping an open mind to different workplace practices and providing some money-saving benefits will make any millennial employee excited to work for you! Every employee is an individual, and their needs differ depending on their lifestyle. You must consider this when building your benefits package. Make your benefits worth it, keep your employees’ happiness in mind and make sure you educate everyone on the options you offer – this is the winning formula for maintaining a strong workforce!