Unlimited free time, flexible working hours, free refreshments and lunches…simply everything for free. This was what employers thought the younger generations wanted. Many employers almost provided it. However with the development of the economy and the entry of the young generation into the labor sector, priorities have changed.

More than half of the respondents from the Y and Z generations (read more in the previous article) would be more determined to stay with their employer for a longer period of time if they offered them health financial benefits.
A study from the Sofi company revealed that because of the corona, up to 59 % of people feel that it is now more important than ever for their employers to offer health packages( e.g. sufficient disinfection, face masks, home office).

The well-being of employees also contributes significantly to the company’s success. If employees experience financial stress, they are more likely to have migraines , cardiovascular disease, insomnia and absence from work. For the younger generations of the workforce , about 57% of the Millennials and 61 % of Generation Z stated that they would feel less stressed by their overall financial situation if the employer offered them a financial plan.

What should an employer include in the compensation package for his employees? Big surprise: it´s not about free food or bean bags.

Plan with corresponding benefits

The shocking finding in the IRI (Pension Insurance Institute) study showed that half the millennials expect to help their parents financially during their parents retirement years – at the time when most millennials will also build their own families and try to save money on their own pension.

In addition, only 55% of millennials believe that social security will provide them with a meaningful income that makes pension savings even more critical in their eyes.

Financial advice

According to the data, the young generation cannot plan financially. Due to the covid 19, working income has fallen by as much as 35% to millennials and 30% to Generation Z. Managing money is challenging and worrying for many of them. However, having someone to help employees budget , invest and save reasonably is a huge benefit that these generations are looking for.

The study found that up to 57% of young people in the Z generation do not know how much money they have in their savings accounts. It’s pretty hard to make a budget and financial plan when you don’t even know how much you´ve saved. You should consider involving financial advisors who represent your company to help employees plan their budgets. Alternatively, you can consider offering online financial planning courses as a means of educating your employees.

It´s time to keep up with the changing needs of the workforce. Generation Y and Generation Z make up the majority of the workforce and it is up to employers to be best prepared to meet their needs.