Cities interested in boosting economic growth must attract and retain Millennial professionals. The preferences of the Millennial generation – unlike generations prior - focus on healthcare and workplace flexibility.
The Data
The Millennial generation currently makes up one-third of the U.S. workforce and is projected to account for 75 percent by 2025. Therefore, investing in economic growth is hand-in-hand with attracting Millennial professionals for municipalities.
A recent study from Bentley University analyzed what Millennials look for when applying to and selecting job opportunities. The survey revealed Millennials value healthcare benefits over frequent pay raises and promotions when comparing employment opportunities. In addition, the data showed:
- 51 percent would rather talk with a colleague in-person rather than text or email
- 77 percent consider flexible work hours important for a productive work environment
- 66 percent would like to start their own business rather than strive for a CEO position
- 89 percent check work email after work, making themselves available all the time
It is understood that Millennials are motivated by more than just pay incentives. Public employers that cannot match private sector salaries can attract Millennial talent with health and wellness benefits to support a better work/life balance.
What to Offer
Understanding the unique needs and concerns of Millennials, many employers are offering financial wellness programs as part of a comprehensive benefits plan to workers. A survey from FinFit, LLC, revealed about half of employers are interested in offering short-term loans to help employees cover unexpected emergencies or healthcare expenses. Other healthcare benefit program add-ons focus on:
- Improving financial literacy and economic stability
- Helping employees cover the cost of healthcare coverage premiums or deductibles
- Providing more health insurance plans options
Another FinFit survey found when workers feel more stable financially, absenteeism drops and productivity rises. When employees are worried about their personal finances or healthcare costs, they are distracted at work. About 78 percent of employers believe offering an emergency lending program and financial education tools would enable employees to be more productive.
Encouraging Good Behavior
Just as Millennials want affordable healthcare coverage, employers want to save as much as possible when offering extensive benefits packages. Therefore, many employers are offering wellness programs that encourage healthier lifestyle choices in employees, which in turn can reduce healthcare costs.
According to The Obesity Society, employers should offer incentives for participation in wellness programs rather than penalize nonparticipants. In fact, employees who were offered financial incentives were 33 percent more likely to participate in wellness programs. When developing programs, The Obesity Society recommends:
- Customize rewards for employees who engage in healthy habits
- Avoid using BMI as a basis for financial incentives
- Ensure incentive programs are matched with health plans that cover services related to the healthy habits
- Create opportunities for healthy behaviors in the workplace such as healthy food options or access to workout facilities
It is also important for employers to provide employees with literature and resources to assist them in deciding what healthcare coverage would meet their needs. A recent whitepaper discussed a variety of technology solutions available to individuals during the open enrollment period. These tools can answer employees’ questions on coverage and options while saving employers time and money.
Building A Strong Workforce
Gov1 has kept a close eye on recruitment strategies many cities are implementing to attract top talent.