FROM EMPLOYEE BENEFITS SYSTEM
We argued that although millennials are unlikely to be loyal to a single employer, employers can build greater employee buy-in by harnessing their preferences to be connected, involved and evolving. We also highlighted the importance of developing good habits at the outset and acknowledged the complexities of the environment millennials are joining – with many unlikely to find permanent employment for the first portion of their career.
New insights
In their study on financial education, Lusardi, Keller and Keller speak about ‘teachable moments’ – those times when lessons reap substantial pay-offs simply because they represent moments when individuals have a significant vested interest in understanding the issues. The first job is full of teachable moments as the employer bears the responsibility for inculcating good savings and spending habits that may well remain with these employees for the rest of their lives.
Getting this understanding right requires curbing the tendencies of young workers to put immediate self-interest ahead of longer-term interests of both the employee and their employer. The current generation of young workers appears to place retirement savings and benefits nearly dead last in financial priorities. However, we can illustrate the immediacy of benefits which only pay out in future with tremendous effect by:
- Developing a critical variation on the simple employment contract by illustrating trade-offs between satisfying immediate consumption needs and longterm consumption demands.
- Providing a platform where employees can see what’s on offer in terms of group discounts, training and employee wellness programmes. This becomes a key aggregation source that allows an employee to fully grasp the depth and completeness of what their employer is capable of providing them, above and beyond a simple salary.
