Communicating Benefits to Employees Based Upon Generation and Lifecycle Dan Schawbel

Transcription

1 Communicating Benefits to Employees Based Upon Generation and Lifecycle Dan Schawbel Partner & Research Director at Future Workplace Founder of Millennial Branding & WorkplaceTrends.com New York Times bestselling author of Promote Yourself and Me 2.0

2 What Is An Employee Benefit?

3 Changing Work The American Workforce by Generation Baby Boomers Gen X Millennials Gen Z % 20% 40% 60% By 2025, Millennials will account for 75% of the Global Workforce Bureau of Labor Statistics, Business and Professional Women s Foundation

4 Generational Employee Benefits If pay was comparable, what is the top reason you would go back to work for a former employer? Millennial Gen X Baby Boomers 9% 20% 26% Employee benefits are more important to Boomers. Kronos and WorkplaceTrends.com

5 Outline Compensation Health & Wellness Flexibility Career Advancement Retirement

6 Pay Generational Comparison Generational Compensation Needs Millennial Gen X Baby Boomers 56% 56% 53% All generations equally care about their base salary. Millennial Branding & Monster

7 As Jerry Maguire Would Say

8 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.

9 Compensation What is your biggest reason for considering a job change? Increased salary Better job title I am not challenged in my current role Work-life balance issues I want to make a difference/align myself to a Poor office culture Distrust in leadership I want to work for myself Location/commute from home to office Business instability Inability to have a flexible work schedule, i.e. Distrust in my direct boss Inadequate voluntary benefits (life insurance, Inadequate healthcare Inadequate technology 20% 20% 18% 18% 14% 13% 13% 12% 10% 9% 7% 5% 4% 29% 51% WorkplaceTrends.com & Staples Advantage

10 Compensation What motivates you to do your best at work? Salary Doing work that has a positive impact Work culture Recognition Flexible schedules i.e. telecommute Possibility of bonus Healthcare and benefits My coworkers My direct boss Company leadership Office perks (i.e. gym on site stocked 8% 14% 31% 27% 26% 24% 22% 21% 21% 19% 47% WorkplaceTrends.com & Staples Advantage

11 Compensation When looking for a new job, what is most important? Increased salary Work life balance Adequate healthcare and benefits Satisfaction with title and work Trust in leadership Location/commute from home to office Ability to have a flexible work schedule i.e. Trust in direct boss Work culture Office perks (i.e. gym on site, stocked 7% 6% 6% 4% 3% 2% 14% 14% 17% 27% WorkplaceTrends.com & Staples Advantage

12 Compensation What Would You Change Most About Your Job? Baby Boomer Gen X Millennials 67.10% 71.70% 72.40% 9.30% 6.80% 7.40% 7.60% 5.90% 6.70% 5.40% 3.70% 4.30% 2.90% 2.90% 3.90% 2.30% 2.30% 3.30% 4.70% 4.50% 4.90% PayScale and Millennial Branding Boss Commute Company Coworkers Job Pay Schedule

13 Salary Is Important Across Generations 62.60% 60.70% What do you consider when looking for a job? Millennials Other Generations What would make you leave your job? 78.10% 44.90% 38.70% 39.60% 39.10% 25.50% 28.50% 48% 40.80% 35.80% 27.20% 40% Salary Interesting, Challenging Work Career Opportunity Culture Salary is more important than employee benefits. PeopleFluent

14 Employment Motivation What incentive would motivate you to work harder and stay at your future employer longer? 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% Millennial Branding, CareerArc

15 Gen Y/Z Global Motivators More Money UK Germany Sweden Opportunities for advancement China Brazil Meaningful work Canada Randstad & Millennial Branding

16 Outline Compensation Health & Wellness Flexibility Career Advancement Retirement

17 Healthcare Generational Comparison Generational Healthcare Needs Millennial Gen X Baby Boomers 37% 39% 47% Older generations desire healthcare benefits the most. Millennial Branding & Monster

18 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

19 The Impact of Obamacare In % 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

20 Healthcare Coverage What is the most important employee benefit that you expect from your employer? Gen Z Gen Y 19% 18% 16% 15% 11% 14% 14% 14% 12% 12% 11% 13% 6% 5% 4% 4% 4% 2% 2% 2% 1% 1% Gen Z says healthcare coverage is the #1 employee benefit. Randstad & Millennial Branding

21 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

22 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%. Employers plan to spend $693/employee on programs in 2015 (up from $594 in 2014). Randstad & Millennial Branding, National Business Group on Health

23 Wellness Programs Is the availability of a wellness program a selling point if you were to look for a new job? Yes Somewhat No 43% 21% 36% Staples Advantage & WorkplaceTrends.com

24 Wellness Programs What do you look for in a wellness program? 39% 34% 32% 26% 24% 24% 21% 19% 13% Gym onsite Gym Healthy Snacks reimbursement Yoga/fitness classes Massages Wellness coach/services Wellness competitions Wearable devices Smoking Cessation Nearly 50% of companies do not offer a wellness program. Staples Advantage & WorkplaceTrends.com

25 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.

26 Outline Compensation Health & Wellness Flexibility Career Advancement Retirement

27 Flexibility Generational Comparison Excluding pay, what is the top reason why you would leave your current company? Millennial Gen X Baby Boomers 17% 18% 28% Millennials want it but it s more of an issue for Boomers. Kronos and WorkplaceTrends.com

28 Flexibility. Does your company offer flex-timing or telecommuting? Yes just flex-timing Yes just telecommuting Yes both Neither On an as needed basis 17% 16% 9% 34% 24% A third of companies don t offer flexible options. WorkplaceTrends.com & Staples Advantage

29 Workplace Flexibility The new work reality The average workweek is 47 hours Answering business 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 It Doesn t Matter When you work How long you work Where you work 69% believe office attendance is unnecessary on a regular basis. Staples Advantage, Cisco, Stanford

30 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

31 Flexible Options Flexibility Options Reduced hours Restructured hours 3. Flexibility Options Variable hours Leave options Remote work / telecommuting 37% of workers telecommuted in 2015, up from 9% in 1995.

32 Case Study: Aetna 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. Wall Street Journal

33 Outline Compensation Health & Wellness Flexibility Career Advancement Retirement

34 Millennials Need More Training Generational Development Needs Millennial Gen X Baby Boomers 55% 34% 3% 37% of leaders say their development programs are good/very good. WorkplaceTrends.com & Saba

35 Career Advancement Besides pay, what do you value most in a job? Opportunities to learn new skills Opportunities for career advancement 58% 64% 62% 72% 72% 48% Millennial Branding & PayScale Baby Boomers Gen X Millennials Younger employees require more career support.

36 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) Deloitte 7% of companies have strong programs to build millennial leaders.

37 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.

38 The Most Effective Training What type of learning and development program would be most beneficial to your success at your company? Gen Z Gen Y 37% 34% 25% 18% 14% 20% 10% 14% 14% 14% Mentoring / executive sponsorship Corporate sponsored classes Cross-functional projects Online courses Rotational programs Millennial Branding & Randstad

39 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 Q employee profiles in 2010 and 2,933 in 2013 so far.

40 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.

41 The Impact of Mentoring They would become better and more productive contributors to the company Manager Millennial 53% 47% 63% 37% Yes No They would become better employees than if they had not been mentored Manager Millennial 59% 41% 47% 53% Yes No Millennial Branding & American Express

42 Outline Compensation Health & Wellness Flexibility Career Advancement Retirement

43 Generational Retirement Needs Retirement Focus Across Generations Millennial Gen X Baby Boomers 14% 21% 21% Older generations rank retirement benefits slightly higher. Millennial Branding & Monster

44 T Rowe Price 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.

45 Millennials Are Better Savers Savings and investment behavior connected to life circumstances Employees who elected their plan under automatic enrollment The auto-enrollment generation is saving more. More risk-averse than both Gen Xers and boomers Vanguard

46 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

47 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 employersponsored plans or outside the workplace.

48 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.

49 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

50 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.

51 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.

52 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

53 Employee Benefits On The Rise Benefits are being mentioned more in employment ads.

54 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

55 2016 Workplace Trends Forbes.com/sites/DanSchawbel/2015/11/01/10-workplace-trends-for-2016

56 Thank You!