Having a front row seat to the subprime mortgage crisis left a powerful impression on millennials. With over 1.2 million homes lost to foreclosure at its height, millennials (now ages 23 – 37) understand the importance of saving. Just like with marketing, employers need to understand their market: who are millennials and what’s important to them when deciding where they want to work?
Entering a job market defined by stagnant wages, under-funded pensions and reduced retirement benefits, millennials live at home longer and are coming out ahead. The 2018 Better Money Habits® Millennial Report offers insights that can help guide employer programs:
- 1 in 6 millennials have $100,000 or more in savings
- Finances stress them out with 35% saying they are not saving enough
- 46% have asked for a raise versus 36% of Gen X and 39% of Baby Boomers
Whether a small startup or a larger mature business, companies can partner with a PEO (professional employer organization) to sponsor programs that address millennials’ concerns regarding financial security.
Employers may be accustomed to Gen Xers and Baby Boomers who have worked and then waited for recognition. Millennials advocate for themselves and proactively request raises and other life enhancing benefits, including a retirement savings plan. Even though millennials may be saddled with student loan debt, saving for their retirement is a top priority. Also, with many remaining covered by their parents’ health plan until age 26, they are looking for a way to tax defer their income and lessen their tax liability.
MidwestHR, a leading CPEO in Illinois (certified professional employer organization), offers clients a 401K plan without any additional costs or administrative burden. This highly regulated benefit used to be considered out of reach for many companies, but working with a PEO changes the equation and levels the field. With millennial talent contributing more to their retirement savings compared to other generations, employers need to offer a 401K plan even if a company match component isn’t included.
MidwestHR can prepare companies for this type of important workplace trend. With a full team of employee benefit experts, we help companies put together a program that the next generation will truly value. Give us a call to get started.