The leaders of tomorrow
Generation Z will provide an additional obstacle to traverse in the war for talent as these under 20s enter the workforce hoping for a completely different way of working to their baby boomer and generation X colleagues.
Regarding the benefits they most value now younger employees are more likely to want benefits in the form of information, than their older colleagues, with 37% valuing mortgage advice (17% for 30s and over) and 42% valuing financial advice (17% for 30s and over).
University students and aspirational entrepreneurs represent the future of business leadership and by 2035, could be the people making the decisions on corporate benefits, pensions and financial education.
As part of the research, DAM carried out a focus group with undergraduate business students at Hult International Business School. The ten participants in the focus group agreed that when considering saving for retirement, ‘now is always better than in the future’. One said: ‘We need homes and food to eat, that’s why people are worried about buying a home more so than pensions…’
However, the group was in agreement that financial education is one of the most important lessons people can learn – and, for them, a key consideration in deciding where to work. The group expects their future employers to explain the offered benefits to them as part of the interview process.
Students agreed: “The mindset is shifting. Benefits should be considered that will appeal more to [generation z and millennials]… Employers should encourage year-round open feedback from staff. This would allow them to tailor benefits… I don’t think I will focus too much on pensions for years to come as would rather invest in housing and strongly believe that this will generate more security for my future… More discussion around pensions and their alternatives needs to be generated. I believe employees should have as much control as possible over making these important decisions.”
In a business environment where every penny counts to both employer and employee, it would be corporate suicide to axe the employee benefits provision, as the figures show this is a core component of an overall engagement strategy.
Still, with employee benefits representing a significant cost to employers, it’s crucial that businesses listen to staff needs and wants; tailoring their package to suit their workforce. Then they must take the lead in educating their people on the value of their packages; specifically how employees can best use their benefits throughout their entire careers.
Not only will this result in a better return on investment and attract the savvy employees of the future, you also fulfil your duty of care as an employer.
Click here to download the Employee Benefits 2035: a design for the future report.