Posted on: August 19, 2024
Employers are searching for solutions to attract and engage millennial employees with their work. This challenge of retaining millennial employees is real. According to Gallup, millennial turnover costs the U.S. economy an estimated $30.5 billion each year.
More Prone to Turnover
A recent Gallup report on millennials finds that 21% have changed jobs in the past year—more than three times the number of non-millennials reporting a job change in that same timeframe. The report also found that only 50% of millennials (compared with 60% of non-millennials) strongly agree that they plan to be working at their company in one year. It only makes sense that 60% of these millennials (as opposed to 45% of the non-millennials surveyed) were actively hunting for new positions.
More Disengaged
Low engagement is a strong possible reason for high turnaround of millennials. A Gallup study revealed that only 29% of millennials were engaged at work, and another 16% were found to be actively disengaged, or out to do damage to their company. The study confirmed that when it comes to worker engagement, millennials pose the greatest challenge for employers; 55% of them are not engaged.
Different Benefit Needs
Millennials were born between 1981 and 1996, which means they have different benefit interests. Older millennials with families recognize the value of medical insurance, along with voluntary coverage, such as dental and vision. Younger millennials acknowledge the importance of preventive health care and well-being, but they want other benefits that fit their needs, such as pet insurance, flexible work hours, and extra vacation days.
Understanding who millennials are and offering benefits that appeal most to them can help give millennials a reason to engage and stay. This is important if employers are going to compete for and keep their millennial employees.
More Student Loan Debt
Millennials carry 47% of the outstanding U.S. student loan debt, with an average outstanding student loan balance of $42,600 per borrower in 2023. This financial burden often causes these employees to delay major life decisions, such as buying a car or home, getting married or having children. Employers that recognize their employees’ challenges and offer a benefit to assist them with student debt repayment gain a recruitment and retention edge.
BenefitEd: Flexible Help
With BenefitEd, we can customize Employer-Assisted Student Loan Repayment to meet the needs of employers and the employees they serve. Employers can decide which employees receive student loan payment assistance, how much, and for how long. We also offer products that allow employers flexibility to make contributions to help employees pay off their student loans or make payments to a 529 college savings plan for their employees without student loan debt. Offering BenefitEd provides employers a unique way to be a hero and connect with employees.
BenefitEd is an expert administrator of education benefits. Reach out to our team today to learn more about our customizable products to help you engage and retain your employees.