According to a recent study, by 2025, 3 out of 4 employees globally will be millennials. Even the present workforce houses over 40 million millennials, expected to grow exponentially. On the one hand, the entry of this new generation to the workforce is bound to bring innovation and direct business impact. However, also known as the job- hopping generation, average tenure for millennials is merely 2 years. And the cost to organizations is too high to be borne every two years. In fact, replacing every millennial employee costs an average $24,000.
Employee Benefits: The Secret Sauce
Invariably, organizations find themselves in a fix. Is there a way out? Yes! The secret recipe lies in implementing the correct employee benefits that millennials want. While fair compensation and monetary incentives have not lost relevance, millennials are showing an inclination towards other employee benefits. Let us quickly glance through the top 5 employee benefits millennials seek-
Work- Life Balance
To begin with, a healthy work- life balance is non- negotiable for the millennial employee. Unlike the baby boomers, millennials believe in giving each aspect of their life equal importance. In fact, most millennials are now adopting what the call ‘work life integration’. While some may just outrightly declare millennials to be lazy because they want to work less on the pretext of balance. However, what millennials want is the freedom to create schedules based on their priorities. Their idea of work- life integration is to see work and life as a continuum, which reinforce each other, instead of two competing arenas of one’s life. Therefore, any organization that seeks to attract and retain millennials has to offer the employee benefits of a work- life balance. Interestingly, over 16% millennials evaluate career opportunities on the basis of good work life balance.
Millennials are hungry for knowledge. Contrary to their predecessors, they are always on toes to acquire new skills and knowledge. And that’s their idea of the next set of employee benefits. Millennials seek workplaces that have faith in them and are willing to make an investment in their learning and growth. Since most millennials are in that phase where they can afford to expend time in learning, they seek organizations that offer the same. However, learning, here, needs to be seen in a broader light. Learning does not always have to be technical training, it can simply be more challenging roles and responsibilities. The bottom line for millennials is to expand their skill sets, whether it comes through learning of theory or through practical application, they are always on board.
Health & Wellness
Conscious about the fact that 75% of mental health problems attack by the age of 24, millennials give primary importance to health and wellness. For millennials, simply having an insurance policy is not enough as a part of employee benefits. They believe that organizations which genuinely care about employee health invest not only in health, but also well being. Millennials are increasingly opting for organizations that have robust health and wellness programs along with attractive benefits. Additionally, the focus on health and wellness is not limited to medical conditions for millennials. Rather, fitness like yoga classes and other activities are gaining great relevance for them. Therefore, employee benefits need to broaden their understanding of health benefits to incorporate a holistic understanding of health, including mental well being and fitness.
Work, Play & Fun
“All work and no play, makes Jack a dull boy”.- All millennials have grown up listening to this phrase which they hold close to their heart. As a part of the top most employee benefits, millennials believe constructive breaks for games and fun activities is imperative. While this point may add to the already ‘careless and lazy’ image of the millennials, aligning work with play and fun is one of the ultimate employee benefits to boost productivity and attract millennials. In fact, the opposite of work is not play, it is depression. And unless your employees are happy, no force in the world can hold them back from leaving. This work hard, play harder generation is not looking to cut corners and sit back. Rather, they believe in reaping the fruits of their efforts through indulging in fun activities.
Remote Working & Flexibility
One thing true about the millennial generation is that they don’t wish to be tied down, in any way. And this includes the rigid 9-5 schedule. In fact, 89% of Millennials would prefer to choose when and where they work rather than being placed in a 9-to-5 position. They despise the one size fits all approach and desire the freedom to map their own schedules, which adds to their productivity. Flexibility is not in terms of how much work they will do, but when they will do it. Some millennials might be night owls, while others may be morning chirpies and as employee benefits are concerned, you need to have personal approaches for both. Not surprisingly, 45% millennials would choose flexibility over pay.
In the same light, remote working is becoming attractive. Over 98% millennials agree that remote work should become a standard practice than a one off case. Therefore, employee benefits for millennials need to address flexibility as much as possible.
Employee Benefits: The Last Word
To cut a long story short, you can provide millions of employee benefits and would still lose your workforce like crazy. The idea is to catch the pulse and understand what employees want. If your target group is millennials, the greatest results would come from respecting their hunger for growth, freedom and flexibility. Just understand their needs and the most effective employee benefits will follow. At Recro, we attract and retain a large chunk of millennial employees. If you are a millennial, looking to work with futuristic technologies, drop us a message!