communicating benefits to employees based upon...
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Dan SchawbelPartner & Research Director at Future Workplace
Founder of Millennial Branding & WorkplaceTrends.comNew York Times bestselling author of Promote Yourself and Me 2.0
Communicating Benefits to Employees Based Upon
Generation and Lifecycle
What Is An Employee Benefit?
Changing Demographics @ Work
0% 20% 40% 60%
2020
2015
2010
The American Workforce by Generation
Baby Boomers Gen X Millennials Gen Z
Bureau of Labor Statistics, Business and Professional Women’s Foundation
By 2025, Millennials will account for 75% of the Global Workforce
Generational Employee Benefits
26%20%9%
If pay was comparable, what is the top reason you would go back to work for a former employer?
Baby BoomersGen XMillennial
Kronos and WorkplaceTrends.com
Employee benefits are more important to Boomers.
CompensationHealth & Wellness
FlexibilityCareer
AdvancementRetirement
Outline
Pay Generational Comparison
53%56%56%
Baby BoomersGen XMillennial
Generational Compensation Needs
All generations equally care about their base salary.
Millennial Branding & Monster
As Jerry Maguire Would Say…
Why Compensation?
▪ Employees can look up salary information.
• PayScale.com, Salary.com, etc.
▪ The economy has pressured people to focus more on money.
▪ Millennials openly talk about salary at work.
• They want equality.
• They are closing the gender pay gap.
Pay fair market salaries or you won’t be able to compete.
Compensation
4%
5%
7%
9%
10%
12%
13%
13%
14%
18%
18%
20%
20%
29%
51%
Inadequate technology
Inadequate healthcare
Inadequate voluntary benefits (life insurance,…
Distrust in my direct boss
Inability to have a flexible work schedule, i.e.…
Business instability
Location/commute from home to office
I want to work for myself
Distrust in leadership
Poor office culture
I want to make a difference/align myself to a…
Work-life balance issues
I am not challenged in my current role
Better job title
Increased salary
What is your biggest reason for considering a job change?
WorkplaceTrends.com & Staples Advantage
8%
14%
19%
21%
21%
22%
24%
26%
27%
31%
47%
Office perks (i.e. gym on site stocked…
Company leadership
My direct boss
My coworkers
Healthcare and benefits
Possibility of bonus
Flexible schedules i.e. telecommute
Recognition
Work culture
Doing work that has a positive impact…
Salary
What motivates you to do your best at work?
WorkplaceTrends.com & Staples Advantage
Compensation
Compensation
2%
3%
4%
6%
6%
7%
14%
14%
17%
27%
Office perks (i.e. gym on site, stocked…
Work culture
Trust in direct boss
Ability to have a flexible work schedule i.e.…
Location/commute from home to office
Trust in leadership
Satisfaction with title and work…
Adequate healthcare and benefits
Work life balance
Increased salary
When looking for a new job, what is most important?
WorkplaceTrends.com & Staples Advantage
Compensation
9.30%7.40%
3.70%5.40%
2.30%
67.10%
4.70%6.80% 7.60%
2.90%4.30%
2.30%
71.70%
4.50%5.90% 6.70%
2.90% 3.90% 3.30%
72.40%
4.90%
Boss Commute Company Coworkers Job Pay Schedule
What Would You Change Most About Your Job?
Baby Boomer Gen X Millennials
PayScale and Millennial Branding
Salary Is Important Across Generations
PeopleFluent
Salary is more important than employee benefits.
60.70%
44.90%39.60% 39.10%
62.60%
38.70%
25.50%28.50%
Salary Interesting,Challenging
Work
CareerOpportunity
Culture
What do you consider when looking for a job?
Millennials Other Generations78.10%
48%40.80%
35.80%
27.20%
40%
What would make you leave your job?
Employment Motivation
Gen Z Millennials
Opportunities for advancement 34% 30%
More money 27% 38%
Meaningful work 23% 15%
A good boss 7% 7%
Fast growing company 6% 6%Nothing, I'm currently happy with my job and career path here 1% 2%
Nothing, I'm currently looking for another job 1% 1%
What incentive would motivate you to work harder and stay at your future employer longer?
Millennial Branding , CareerArc
Gen Y/Z Global Motivators
▪ More Money
• UK
• Germany
• Sweden
▪ Opportunities for advancement
• China
• Brazil
▪ Meaningful work
• Canada
Randstad & Millennial Branding
CompensationHealth & Wellness
FlexibilityCareer
AdvancementRetirement
Outline
Healthcare Generational Comparison
47%39%37%
Baby BoomersGen XMillennial
Generational Healthcare Needs
Older generations desire healthcare benefits the most.
Millennial Branding & Monster
The Impact of Obamacare
▪ 2016 is when Obamacare goes fully into effect.
▪ Premiums are expected to increase
substantially.
• Blue Cross of North Carolina have already raised their rates by 35%.
▪ The tax penalty of not having insurance:
• $95 in 2014
• $325 in 2015
• $695 in 2016
The Impact of Obamacare
▪ In 2016….
• 95% of companies with 100 or more employees will need to be insured.
• Companies with 50 to 99 employees will need to start insuring full-time workers.
• What impact could obamacare have on employers?
• Lay off workers to save money
• Put more pressure on current workers
• Additional work for the HR benefits department
Healthcare Coverage
16%15%
14% 14%
12%11%
6%
4% 4%
2%
1%
19%
11%
18%
14%
12%13%
5%
2%4%
2%1%
What is the most important employee benefit that you expect from your employer?
Gen Z Gen Y
Gen Z says healthcare coverage is the #1 employee benefit.
Randstad & Millennial Branding
Global Employment Benefits For Gen Y/Z
▪ Healthcare ranks highest in:
• US
• South Africa
• Canada
• Turkey
▪ 401(k) plans:
• Germany
• India
▪ Paid Holiday’s:
• UK
• Sweden
▪ Training and development:
• China
▪ Workplace flexibility:
• Brazil
Randstad & Millennial Branding
Wellness Programs
40% of Gen Y/Z’s feel that it's very or extremely important that their company has a wellness program.
Elements of a wellness program include:
Health screenings
Gym
Incentives for being health
Walking/standing desks
Benefits to companies:
Tax credits
A company gains an average of $5.81 for every dollar invested in health management programs.
Reduces health care costs by 26%.
Reduces sick-leave absenteeism by 26.8%.
Randstad & Millennial Branding, National Business Group on Health
Employers plan to spend $693/employee on programs in 2015
(up from $594 in 2014).
21%
36%
43%
Is the availability of a wellness program a selling point if you were to
look for a new job?
Yes Somewhat No
Staples Advantage & WorkplaceTrends.com
Wellness Programs
39%
34%32%
26%24% 24%
21%19%
13%
Gym onsite Gymreimbursement
Healthy Snacks Yoga/fitnessclasses
Massages Wellnesscoach/services
Wellnesscompetitions
Wearabledevices
SmokingCessation
What do you look for in a wellness program?
Staples Advantage & WorkplaceTrends.com
Wellness Programs
Nearly 50% of companies do not offer a wellness program.
Case Study: Johnson & Johnson
What they do?
• HealthMedia® - a web-based program
• 28 on-site fitness centers
• Reimbursement for exercise expenditures
• Pedometer program
• Seasonal fitness challenges
• Healthy cafeteria choices
Benefits
• Employer branding
• Retention
Results:
• Saved $250 million on health care costs over the past decade.
• An ROI of $2.71 for every dollar spent.
http://hbr.org/2010/12/whats-the-hard-return-on-employee-wellness-programs/ar/6https://www.jnj.com/sites/default/files/pdf/healthy-people-20130328.pdf
CompensationHealth & Wellness
FlexibilityCareer
AdvancementRetirement
Outline
Flexibility Generational Comparison
28%18%17%
Baby BoomersGen XMillennial
Excluding pay, what is the top reason why you would leave your current company?
Millennials want it but it’s more of an issue for Boomers.
Kronos and WorkplaceTrends.com
Flexibility
16%
9%
24%34%
17%
. Does your company offer flex-timing or telecommuting?
Yes just flex-timing Yes just telecommuting Yes both
Neither On an as needed basis
WorkplaceTrends.com & Staples Advantage
A third of companies don’t offer flexible options.
It Doesn’t Matter
Workplace Flexibility
The new work reality
• The average workweek is 47 hours
• Answering business email on vacation and after 11 PM
• More than 50% feel overworked and burnt out yet 86% are still happy and motivated.
Employees benefit
• More productive
• 12% increase in productivity
• Better experience
• 63% say that having a remote boss is a better experience.
Companies benefit
Lower real estate costs
More productivity more value generation
Staples Advantage, Cisco, Stanford
69% believe office attendance is unnecessary on a regular basis.
When you work
How long you work
Where you work
The Importance of Flexible Work
Less barrier between
personal/professional
Employer expect employees to be
available 24/7
Companies to invest more in work flex
programs in 2015
New trend of unlimited vacation time: GE, LinkedIn, Hubspot, Virgin
64% expect employees to be reachable on their personal time.WorkplaceTrends.com & CareerArc
Flexible Options
3. Flexibility Options
Reduced hours
Restructured hours
Variable hours
Leave options
Remote work / telecommuting
Flexibility Options
37% of workers telecommuted in 2015, up from 9% in 1995.
Case Study: Aetna
Wall Street Journal
What did they do?
• All workers (35,000) can work from home after they
have proved their worth.
Benefits
• Culture of trust
• Lower turnover
• Improved productivity/health
• Decrease costs
Results
• Real-estate and related costs are 15% to 25% lower
• Annual savings of about $80 million.
CompensationHealth & Wellness
FlexibilityCareer
AdvancementRetirement
Outline
Millennials Need More Training
3%34%55%
Baby BoomersGen XMillennial
Generational Development Needs
37% of leaders say their development programs are good/very good.
WorkplaceTrends.com & Saba
Career Advancement
58%64%
72%
48%
62%
72%
Baby Boomers Gen X Millennials
Besides pay, what do you value most in a job?
Opportunities to learn new skills Opportunities for career advancement
Millennial Branding & PayScale
Younger employees require more career support.
How Millennials Learn Differently
▪ What’s the same across generations
• Formal workshops
• Training courses
• Online learning
• Developmental assignments
▪ What’s different about millennials
• Don’t provide feedback to superiors as often
• Collaborate with peers to learn
• Social learning (social networks, wikis, and blogs)
• Mobile development (smartphones or tablets)
7% of companies have strong programs to build millennial leaders.Deloitte
Real-time Feedback
Millennials want instant gratification.
Employee benefits
Helps them improve.
Shows that you care.
Example) Adobe’s “Check-in” approach
Abolished the annual performance review.
Expectations are set annually but feedback is
given along the way.
2% decrease in voluntary attrition globally
Achievers
Millennials more regular feedback instead of annual reviews.
The Most Effective Training
Mentoring /executive
sponsorship
Corporatesponsored
classes
Cross-functionalprojects
Online courses Rotationalprograms
25%
14%
37%
10%
14%
18%20%
34%
14%14%
What type of learning and development program would be most beneficial to your success at your company?
Gen Z Gen Y
Millennial Branding & Randstad
Case Study: Intel
What did they do?
• Created DOT, an employee development
opportunity tool.
• Connects talent to short-term needs to match
development goals.
Benefits
• Fosters collaboration.
• Good for employee career development.
Results
• 178 assignments in 2010 and 2,371 in Q1
2013.
• 36 employee profiles in 2010 and 2,933 in
2013 so far.
Mentoring Programs
They seek career support
Knowledge transfer
Reverse mentoring
Examples
• PepsiCo Conn3ct: An executive sponsorship and support program.
• Campbell Soup “Bridge Network”: connect promising young professionals with entrenched Baby Boomer executives.
The Impact of Mentoring
They would become better and more productive contributors to the company
63% 37%
53%47%
Yes No
Manager Millennial
They would become better employees than if they had not been mentored
47% 53%41%
59%
Yes No
Manager Millennial
Millennial Branding & American Express
CompensationHealth & Wellness
FlexibilityCareer
AdvancementRetirement
Outline
Generational Retirement Needs
21%21%14%
Baby BoomersGen XMillennial
Retirement Focus Across Generations
Older generations rank retirement benefits slightly higher.
Millennial Branding & Monster
Delayed Adulthood
Postponing life choices
Moving out from parents/siblings house
Getting married and have children later
Purchasing cars and homes later
Factors
1. Economic collapse
2. Student loans
• $1.3 trillion outstanding
3. People are living longer
4. Advances in technology
2/3 believe they are more likely to win the lottery than receive SS.
T Rowe Price
Millennials Are Better Savers
▪ Savings and investment behavior
connected to life circumstances
▪ The auto-enrollment generation is
saving more.
▪ More risk-averse than both Gen
Xers and boomers
Employees who elected their plan under automatic enrollment
Vanguard
Generational Comparison
▪ Baby Boomers
• Total household retirement savings of $127,000
• 65% plan to work after age 65
▪ Gen X
• Total household retirement savings of $70,000
• 54% plan to work after age 65
▪ Millennials
• Total household retirement savings of $47,000
• 30% plan to work after age 65
transamericacenter.org
The Millennial Difference
▪ Openly discuss saving, investing, and planning for retirement with family and friends.
▪ Confident that they will be able to retire.
▪ Self-funding retirement through 401(k)s.
▪ Expect that they will need to financially support their aging parents
▪ All things being equal, they would switch employers for better retirement benefits.
70% are already saving for retirement either through employer-
sponsored plans or outside the workplace.
Now Trending: Goldman Sachs
What problem are they trying to solve?
• Need for advancement.
• Competing with tech companies for talent.
• Employee burnout.
What are they offering:
• After completing 2 years as an analyst, bankers
will be guaranteed a promotion.
• Brought up base pay to $85,000 for first year
analysts.
• Encouraged to take Saturdays off.
Now Trending: LinkedIn
▪ What problem they are solving?
• It’s expensive to keep track of vacation
liability.
• Saves companies $1,898 per employee.
• Giving more power to employees builds
trust.
▪ What they are offering?
• “Discretionary time off” - unlimited
vacation days as long as the work is
complete.
Project:Time Off
Now Trending: PwC
▪ What problem they are solving?
• Average student has $35,000 in loans
• $1.3 trillion overall
▪ What they are offering?
• For Associates & Senior Associates
(45% of employees)
• Will receive up to $1,200 a year for up to
6 years towards student loans.
Now Trending: Amazon
▪ What problem they are solving?
• New dads aren’t treated fairly when it comes to
paid time off.
• Competing for talent after bad publicity.
▪ What they are offering?
• New mothers can take 4 weeks of paid time off
and 10 weeks after that.
• New dads get 6 weeks of paid leave.
The Top 3 Best Places To Work
1. Google
• 97% of employees say they have unique benefits
• 110 days maternity leave
• 28 days vacation after 1 year of employment
• Health/wellness: dental, vision, mental, fitness center
2. BCG
• 98% of employees say they have unique benefits
• 100% company-paid healthcare
• 26 paid vacation days after 1 year of employment
3. Acuity
• 98% of employees say they have unique benefits
• Health/wellness: fitness center, massage therapy, local races, weight
watchers.
• 22 paid vacation days after 1 year of employment
Employee Benefits On The Rise
“Benefits” are being mentioned more in employment ads.
3 Things To Do Now
1. Align employee benefits to generational needs.
• Use surveys in order to discover how effective benefits are to your current employees.
2. Explain how benefits factor into compensation.
• Calculate the value of employee benefits for applicants.
• Show them their total salary number (including the value of benefits).
3. Communicate benefits internally/externally.
• Marketing materials
• Social networking sites
• Internal websites
• Recruiting team
70% of Millennials want to dictate which benefits they receive.Mercer
2016 Workplace Trends
Forbes.com/sites/DanSchawbel/2015/11/01/10-workplace-trends-for-2016
Thank You!
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