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Worried about their futures, young workers are taking a surprisingly strong interest in employee benefits.

Nearly 60 percent of all companies are taking measures to understand employees’ different generational needs when it comes to benefits, up five percent from last year alone. That’s according to MetLife’s 10^th Annual Study of Employee Benefits Trends, released on March 19. It’s no wonder more employers are thinking generationally about employee benefits: Research by LifeCourse Associates has long shown that Millennials think very differently from older generations about planning for the long term and protecting themselves from risks—and about the role their employers should play in helping them do that. The MetLife survey reveals in new detail how recession-strapped young workers are approaching financial risks, and how they want workplace benefits to help them to navigate those risks.

One might assume older workers would be the most risk-averse when it comes to their finances.  After all, they generally have more income and assets to protect than do young adults—and are more likely to have larger families (or any family at all).  Turns out, it is Millennial workers who are the most risk-averse on every measure.  According to MetLife, Millennials are the most worried about every kind of unforeseen financial risk, from sudden income loss (72 percent “very worried”) to uncovered medical costs (63 percent) to illness and disability (65 percent)—in each case, a remarkable 14-15 percent higher than Boomers.  Millennials are even the most likely to be very worried about the financial consequences of their own premature death (54 percent vs. 39 percent of Boomers).

Millennials are also the most risk-averse when it comes to investing, once again the precise opposite of what one would expect based on age, and contrary to what investment advisors recommend for young adults. Eighty-one percent of today’s young workers prefer “guarantees that offer stable but somewhat lower returns” over “a higher degree of risk because the returns could be greater.” That’s 6 percent higher than for Gen Xers, 7 percent higher than for younger Boomers—and even 3 points higher than older Boomers, who are just a few years from retirement. Recent surveys have shown that Millennials indeed invest more conservatively than older workers.

And, as they have since childhood, Millennials are planning ahead for the long term and aiming to meet their life milestones “on time.” Young workers are by far the most worried about having enough money to buy a home and to pay off debts. This is expected, given their life stage, their high levels of student debt, and their consequent struggle to buy homes (see SI: “Why Young Adults Aren’t Buying Homes”). Yet this generation’s long-term planning goes even further. A remarkable 56 percent are “very concerned” about having enough money for their children’s college education.  That’s higher than any other age bracket, including Gen Xers (52 percent) and younger Boomers (44 percent), who are far more likely actually to have children to save for.

Burdened with such strong financial concerns, seeking guidance and long-term security, to whom do Millennials turn? Enter the new “in loco parentis” employer. Young Boomers regarded long-term benefits as a relic of the old regime and seldom paid much attention to them.  Young Gen Xers never met a long-term benefit they didn’t want to cash out—which, with the introduction of “total rewards” packages, they often did. Millennials are reversing this trend.  They are accustomed to trusting institutions. They want employers to provide comprehensive benefits that support them, guide them, and protect them from life risks.  Nearly half (49 percent) of Millennials strongly agree that they worry less about unexpected health and financial issues because of workplace benefits, compared to just 36 percent of Gen Xers, 35 percent of younger Boomers and 32 percent of older Boomers.

It should therefore be no surprise that benefits are a powerful tool for recruiting and retaining young employees. Millennials are the most likely to sign onto a company because of the benefits. Fifty-six percent agree that the benefits offered were an important reason why they came to work for their employer, a remarkable 25 points higher than older Boomers. And the benefits keep them there: 63 percent of Millennials say that benefits are an important reason why they have stayed with their employer, more than any other generation.

Millennials’ conception of benefits goes far beyond the usual insurance offerings. LifeCourse’s Why Generations Matter report found that it was Millennials who most valued employee support services like financial planning, tax prep assistance, and hands-on relocation assistance (61 percent of Millennials wanted this, compared to 44 percent of older Boomers).  The MetLife survey similarly found that more Millennials “strongly value” education programs on individual finances and retirement planning (51 percent vs. 39 percent of Boomers).  Paradoxically, all of these benefits would seem to be more attractive to older workers who have more complex taxes, broader investment portfolios, and larger families. Yet it is once more the young who most value their employers’ guidance and support.

In addition, both Millennials and Xers are more interested than Boomers in voluntary benefits that they can purchase and pay for on their own—though for very different reasons.  Xers love choice, and prefer to opt in or out of benefits to fit their individual needs, rather than receiving a predetermined corporate package.  Millennials highly value the corporate package, and want to add voluntary benefits on top of it.  When asked about individual voluntary benefits, Millennials were the most likely to say they would be interested in actually purchasing them, from auto and home insurance to life insurance, disability insurance, and critical illness insurance.

Coming of age during the Great Recession has undoubtedly strengthened Millennials’ appetite for a benefits safety net. Two-thirds say that because of current economic conditions, they are counting more on employee benefits for help in achieving financial security (older generations agree, though by increasingly smaller shares). Yet the basic attitudinal drivers behind this appetite—risk aversion, long-term planning, and high institutional trust—have been with this generation for years. In a 2005 survey by Diversified Investment Advisors, 49 percent of Millennials said retirement benefits were a very important factor in their job choices, and 70 percent of those who were eligible were contributing to their 401(k) plan. A 2006 survey by the National Association of Collegiate Employers found that one of Millennials’ top criteria when choosing an employer was “good benefits package / stability (provides secure future).”

Since Millennials began entering the workforce, employers have routinely missed their focus on benefits, assuming that, like young Xers and Boomers, Millennials prefer high pay, flexibility, or prestige.  On a 2007 Michigan State University survey, young adults ranked “job security” and “good benefits” as two of the most important characteristics they look for in a job. Yet when corporate recruiters were given the same survey, they mistakenly supposed that young adults would rate job security and benefits far lower, while overestimating characteristics like pay and prestige.

Today, as the MetLife survey shows, employers are increasingly taking note of the generational differences that shape employees’ approach to benefits. An overall rise in Millennial-friendly benefits is likely not far behind.

In health care, a diverse staff can provide great value in meeting the needs of patients from a wide range of cultures — a lesson that carries over to other industries.

An immense challenge lies before the nation’s health care sector: diversifying its workforce. A 2012 study by executive search firm Witt/Kieffer, “Diversity as a Business Builder in Healthcare,” found that diversity is lacking in health care leadership. This is unfortunate because industry leaders surveyed in the study believe diversity in the workplace improves patient satisfaction and clinical outcomes. This impact on the customer likely has similar effects in other industries.

A key tenet of excellent health care — like any service-oriented industry that meets a customer’s needs — is the caregiver’s ability to understand patients’ needs. This includes their diverse cultural needs — since, as the study noted, minorities account for 98 percent of the population growth in the nation’s largest metropolitan areas during the last decade.

It’s all part of knowing who you serve. Where does a patient, or customer, come from? How about their culture, values and sensitivities? Are these just as important to how we meet their needs?

Knowing all this begins with hiring — and promoting — employees whose cultural backgrounds represent the patients the organization serves. This takes a commitment both internally with employees and externally in the communities served. Companies seeking to do this should take the following 10 steps:

1. Embrace diversity: This seems basic, but it’s critical and worth noting first. A diverse workforce is a true competitive advantage. Promoting a culture that values employees for unique skills, experiences and perspectives distinguishes an organization as all-inclusive, relevant and truly understanding of what customers want and need. In essence, it is a treasure trove of customer and business intelligence.

Internally, the more leaders understand and respect their employees’ differences, the easier it will be to make seemingly difficult conversations more comfortable. This is critical when serving a religiously, culturally or otherwise diverse customer base.

2. Create a visual of your team: Keep ethnicity and gender data on hand so that hiring managers can create a visual picture of the individuals on each team. When numbers and percentages fail, this mental image of who is on the team can help senior leadership see where diverse populations are underrepresented or underutilized and especially compare them to the customer population. Of course, this comes with the need to reassure the team that only the most qualified candidates should be hired.

3. Build a hit list of superstars: Ask existing staff to refer potential recruits, since great employees usually associate with one another or can easily spot a top performer. Not hiring immediately? Collect and build a list of superstars to hire in the future. Keep in touch with them in the meantime.

4. Network with diverse organizations: Develop relationships with ethnically diverse professional associations and organizations, as well as local community boards and civic associations. Attend their conferences, speak at their functions and reciprocate by inviting them to company open houses and job fairs. Also, connect with vendors and suppliers who share a value for diversity and alert them to job openings for which they may have a candidate.

5. Set diversity expectations with recruiters: When using outside recruiters, ask for a diverse set of candidates and examples of high-caliber recruits they have recently placed. If they cannot easily rattle off a litany of names, then find another recruiter.

6. Invite staff into the inner circle: Create an environment of inclusion where all staff members feel valued, embrace the company’s mission, feel part of its vision and are fully tuned in with the organization’s business strategy. Help them understand just how important diversity is to serving customers best and that every individual is a big part of that. It’s easy to lose top performers because they feel detached, especially in large organizations.

7. Let your employees shine: Acknowledge — and celebrate — your staff’s accomplishments and set them up for success. This small step goes a long way in engaging employees and encouraging them to go the extra mile. Give opportunities for employees to demonstrate excellence. Assign them projects that suit their skills, recognize their achievement and celebrate it in a public way — either inside or outside your organization. In this recognition, make a point to celebrate them as a diverse individual, not just their work.

8. Mentor and shadow: The best learning happens in the field, so develop a mentoring and shadowing program that pairs hiring managers with employees of different cultural or ethnic backgrounds or genders. This creates a trusted, educational environment where employees can feel safe about asking questions regarding different backgrounds, and also lets them see different cultural styles at work.

9. Achieve employees’ dreams: Encourage leaders to know the career desires of the staff who report to them. This puts them in the position to always know when a promotional opportunity might be the best fit and help further their career goals. It also gives the opportunity to challenge employees with new assignments that broaden their skills and expose them to different chances for success.

10. Over-communicate: Relationships matter, and they are only built with repeated communication. This could mean deliberately initiating a conversation with an employee, listening to what they say, providing feedback and calling their attention to your follow through. Or, it can mean brief acknowledgements of their work, which add up and make a difference over time. On the other end of the spectrum, it should take the form of an internal communications plan that, from an HR perspective, tells employees what positions are open, how to apply, updates from HR, etc.

A key to all these steps is relationships — inside and out — with those already hired and targeted to join your team. No matter the industry — be it health care or another — businesses can use focused attention on recruitment of minorities as a way to build culture, morale and the strength of the entire business.

All Rights Reserved 2012 – Sherri Elliott-Yeary

Here comes another collision in the generation wars, the fight about whether post-boomers are selfish, moneygrubbing fame seekers – the “Me” Generation – or confident, group-oriented volunteers – the “We” Generation.

In research published this month in the Journal of Personality and Social Psychology, I found that, over the last 40 years, young people have become increasingly focused on money and fame while caring less about politics, their communities or the environment. My research based its conclusions on analyses of surveys taken by 9 million high school seniors and college freshmen.

At Clark University, Jeffrey Jensen Arnett studies “emerging adults,” those aged about 18 to 25. He doesn’t think change comes neatly packaged in generations, but said youth trends over the last 20 years have mainly been positive. Volunteerism and graduation rates are up, he said, while crime, drug use, and teen pregnancy are down. Today’s young people are tolerant of differences in ethnicity, sexual orientation, and religion, he said. If anything, he said, this is a “generous generation.”

My survey questions were about what students did, rather than what they thought, and it supported my view of how each generation chooses what is important to them.

According to the surveys I received, the proportion of students who said it was very important to be wealthy increased from 45 percent for baby boomers to 70 percent for Gen Xers and 75 percent for Millennials. The percentage who thought it was important to keep up with politics fell from 50 percent for boomers to 39 percent for Gen Xers and 35 percent for Millennials.

The biggest drop was in whether youths felt the need to develop a meaningful philosophy of life. Seventy-three percent of boomers thought that was important, compared with 45 percent of Millennials, but Millennials still thought it more important than money.

© 2012 Sherri Elliott-Yeary – All Rights Reserved