communicating benefits to employees based upon...

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%


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?


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?


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


FlexibilityCareer


Outline

Healthcare Generational Comparison

47%39%37%


Generational Healthcare Needs

Older generations desire healthcare benefits the most.


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.


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


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

http://hbr.org/2010/12/whats-the-hard-return-on-employee-wellness-programs/ar/6

https://www.jnj.com/sites/default/files/pdf/healthy-people-20130328.pdf


FlexibilityCareer


Outline

Flexibility Generational Comparison

28%18%17%


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


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.


FlexibilityCareer


Outline

Millennials Need More Training

3%34%55%


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


FlexibilityCareer


Outline

Generational Retirement Needs

21%21%14%


Retirement Focus Across Generations

Older generations rank retirement benefits slightly higher.


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



▪ Millennials



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


• Average student has $35,000 in loans

• $1.3 trillion overall


• 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


• New dads aren’t treated fairly when it comes to

paid time off.

• Competing for talent after bad publicity.


• 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


• 100% company-paid healthcare

• 26 paid vacation days after 1 year of employment

3. Acuity


• 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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