As more millennials become the dominant generation in the workforce, HR execs will have to re-examine the company’s benefits design to see if they’re offering benefits packages that are important to this group.
Millennials — who have surpassed Generation X as the largest age group in the U.S. labor market — want a different approach to choosing their benefits. They want the ability to select exactly where and how their healthcare dollars are spent.
In fact, a recent Mercer report found that 70 percent of 18 – 34 year olds want increased flexibility when it comes to their benefits choices.
And in order to have a competitive edge and attract the best talent, employers will have to re-think how their benefits are structured so that millennials can see that the company offers a choice in which benefits are right for them.
Millennials Were Raised on Personalization
This generation’s desire to have flexible benefits plans all stem from the customized and personalized consumer experience that many millennials have come to know.
In fact, consumer companies realized early on that if they don’t offer a personalized experience, consumers would never use their product or service. And as a result, many millennials grew up in the new digital age where the ability to personalize various consumer products, software, etc., is commonplace.
Today, millennials expect that same customizable, personalized experience in their benefits, and HR execs need to adopt this philosophy when building their health plans.
Traditional Benefits Packages Won’t Work
The standard traditional, fixed benefits package will turn off millennials. They want the ability decide how they’re going to spend their healthcare funds.
Mercer advises that “consumer-directed health plans with employee-controlled health savings accounts (HSAs) paired with a robust selection of voluntary benefits,” are one way to offer increased flexibility and added control for this group.
Another option is to “strike a healthy balance by considering a choice of plan designs within a product category, or perhaps core/buy-up options,” according to a BenefitsPro report.
What’s Good for Millennials is Good for the Entire Workforce
Restructuring the benefits design may seem like an arduous task — especially to meet just one subset of the employee population. But this push by millennials to have personalized and customized benefits is not only good for this generation but for all employees.
By offering solutions that are tailored to the individual health needs of each employee, employers reduce wasteful spend on health insurance plans that go unused, and hopefully see an overall reduction in healthcare costs.
Jiff’s enterprise health benefits platform can help provide a personalized, mobile-first experience for health benefits programs. Learn how we use personalization to drive engagement in health benefits programs.