Group Insurance Benefits Companies Should Be Offering Millennials
Group Insurance Benefits Companies Should Be Offering Millennials
Companies are finding it increasingly difficult to procure and retain top talent in the long term, especially given the expectations of the younger generation (Millennials and Generation Z). Studies show the importance of offering group life, health, and retirement insurance benefits.
One of the most demanding challenges facing companies today is retaining the skills of younger generation employees, making the kind of group benefits they offer more important than ever – and these are different from what they were in the past.
The rapid technological and societal changes and crises in the last half century have yielded a generation of employees who are almost unrecognisable from their predecessors (Baby Boomers (1946 to 1964) and Generation X (1965 to 1980).
Millennials (born between 1981-1996) and older Generation Z (1997 – 2012) have witnessed an economic recession, a pandemic, and now, global unrest following the war in Ukraine. So, it is unsurprising that they show far more interest than older generations in a broad spectrum of employee benefits to protect them from various life risks.
What Kinds of Insurance Are Younger Employees Looking For?
What Kinds of Insurance Are Younger Employees Looking For?
According to a study conducted by Health Affairs, Millennials have more medical debt than any other age group. So, it is no surprise, with medical debt keeping many Millennials from achieving life goals, that 40% of Millennials cited health insurance as a most desired benefit — more than any other generation. As Millennials continue to age, good health insurance is likely to remain a priority in the job hunt.
Another study by the Concordia University of Generation Z in the workforce showed that health coverage is equally as important as salary, with 70% listing salary as their top motivator and medical insurance as the most important benefit.
In a sign of these challenging times, mental health benefits are also increasingly in demand. Depression rates are higher for Millennials than for any other generation, with stress and burnout being part of the reason. In a survey of 2,500 employees of American organisations between August 30 and September 9, 2022, fully 73% of Generation Z employees and 74% of Millennial employees have utilised mental health benefits offered by their employers.
One recent study found that Millennials are the most likely to be influenced by the pandemic to purchase life insurance, which reveals its growing importance to a generation arguably not sufficiently aware that they won’t live forever. Forty-five per cent of Millennials said they are more likely to buy life insurance due to COVID-19, compared with 15% of Baby Boomers and 31% of Gen Xers.
In addition, they not only saw their parents become members of the “Sandwich Generation,” caring for elderly family members while still raising children but are now entering this generation themselves and are aware of the need to protect their families in the event of their passing.
A recent study from Lincoln Financial Group (NYSE: LNC) and the Center for Generational Kinetics shows that traditional benefits like retirement plans are most important for attracting and retaining Gen Z and Millennials. Considering the prediction that many of them are likely to live to one hundred, retirement annuities should be high on the list of group benefit priorities.
In conclusion, employee benefits, such as health insurance, retirement plans, and life insurance, significantly enhance the overall compensation package offered by employers. By offering these critical benefits, employers can attract and retain top talent who seek physical and financial security and stability.
HFM’s slogan is “Your broker for life”. We form lasting relationships with companies that understand the importance of employee well-being. We offer a fully integrated approach, from screening and identifying risks on an ongoing basis, providing proactive, tailored, and relevant interventions, to insightful reporting for the employee and employer.
Contact us today for more information.