COLUMBUS, Ga., Oct. 4, 2016 /PRNewswire/ -- Millennials now
represent the largest segment of the U.S. labor force (53.3
million), and they have strong feelings about the compensation and
other benefits they expect their employers to offer. Nearly
two-thirds (65 percent) of millennials expect an annual raise,
followed by 60 percent who said they expect to be offered major
medical insurance coverage, according to the 2016 Aflac Open
Enrollment Survey released today by Aflac (NYSE: AFL), the leading
provider of voluntary insurance sales at the worksite in
the United States.
However, the survey found that while millennials are clear about
the benefits they expect, many are clearly having difficulty
managing details for their major medical insurance benefits. In
fact, more than half of millennials admit that they agree* that
they do not understand how a high-deductible health plan really
works, although 60 percent of millennials are enrolled in these
plans.
The 2016 Aflac Open Enrollment Survey was conducted among 1,900
U.S. adults employed either full or part time in June and
July 2016 by Lightspeed GMI on behalf
of Aflac.
It's all about the benefits
Benefits matter to all workforce segments, but they're
especially important to keeping millennials satisfied. How much do
they matter? More than any other age group, 72 percent of
millennials are likely** to take a job with lower pay but better
benefits at a time when 66 percent of millennials say they are
likely** to look for a new job in the next 12 months. Additionally,
millennials who are extremely or very satisfied with their benefits
are also more likely to be satisfied with their jobs, compared to
those who are not very or not at all satisfied with their benefits
(89 percent v. 27 percent).1
Beyond an annual raise and major medical insurance, additional
top benefits choices for millennials include:
- Flexible work schedule: 44 percent.
- Regular access to professional training: 36 percent.
- Ability to work from home: 27 percent.
- An annual promotion: 31 percent.
And although student debt is currently a hot topic, more
millennials said they expect free food/snacks at work (23 percent)
than student loan payment assistance from their employer (19
percent).
"We know employee turnover is costly to employers – particularly
smaller to mid-sized businesses – in terms of recruiting and
training new employees, loss of institutional knowledge and stress
on the remaining employees who must pick up the slack," said
Matthew Owenby, senior vice
president, chief human resources officer at Aflac. "And while not
every employer can afford to offer pay raises and free food, one
thing they can do is provide access to the top-rate benefits and
benefits education that millennials crave."
Making benefits decisions is stressful
While offering an appealing menu of benefits is important for
employers who want to retain these workers, a large number of
millennials struggle with maneuvering through benefits
decision-making and enrollment, particularly when it comes to major
medical insurance. The Aflac study found:
- Just over 70 percent of millennials say that actually reading
about their benefits is long, complicated or stressful.
- More than 1 in 3 millennials feel frustrated, confused or
anxious just thinking about their annual benefits enrollment
process.
- Nearly 3 in 10 millennials would rather give up internet or
social media for one day than enroll in benefits.
Millennials' difficulty in understanding enrollment benefits
such as high-deductible health plans can have significant financial
repercussions if an injury or illness occurs. Not surprisingly, 7
in 10 millennials estimate they waste up to $750 because of mistakes they make with their
insurance benefits during open enrollment.
Simplification and access are key
Simplifying the benefits enrollment process and ensuring access
to benefits resources can go a long way toward helping millennials
reduce their health insurance knowledge gap and curb their
out-of-pocket costs. More than 4 in 5 millennials said that they
need some kind of support to be confident about their next benefits
selections. Those needs include:
- More information (30 percent).
- More help from a benefits consultant or advisor (22
percent).
- More money (18 percent).
- More time (13 percent).
Millennials also have preferences regarding the benefits
enrollment process and information resources, with personal
interaction, transparency and options being hallmarks. In spite of
being the generation that perfected the text message, if given the
opportunity, 60 percent would speak to a person face to face or
over the phone about their benefits choices, and more than half
said that in an ideal world, their benefits enrollment process
would be more like Amazon.com, with easy-to-compare options
online.
Better insurance coverage equals higher worker
satisfaction
Offering tangible financial benefits through voluntary insurance
is another way to meet millennials' expectations. Eighty-four
percent of millennials see a growing need for voluntary benefits.
And of those, 52 percent say it's driven by the rising cost of
medical services. That's an opportunity for
employers. Millennial employees who were offered voluntary
benefits at work reported higher levels of satisfaction*** with
their jobs (80 percent) compared to 58 percent of those who aren't
offered voluntary benefits.1
"By providing complementary benefits options like voluntary
insurance, employers can help employees offset out-of-pocket costs
like rent, mortgage, copays or deductibles - enabling workers to be
better financially prepared and protected," said Owenby. "This
approach can help meet evolving millennial expectations and provide
both short- and long-term dividends through stronger employee
retention and satisfaction."
To learn more about the 2016 Aflac Open Enrollment Survey, visit
AflacWorkForcesReport.com or follow @aflac on Twitter.
About the 2016 Aflac Open Enrollment Survey
The 2016 Aflac Open Enrollment Survey of the Aflac WorkForces
Report was conducted by Lightspeed GMI from June 16-July 5, 2016, among 1,900 U.S. adults
ages 18 and older who are employed full or part time at a company
with three or more employees. This online survey is not based on a
probability sample, and therefore no estimate of theoretical
sampling error can be calculated. For complete survey methodology,
please contact Darcy Brito at
dbrito@aflac.com or 706.320.2358.
About Lightspeed GMI
Lightspeed GMI is an award-winning global digital data
collection enterprise. Founded in 1996, its innovative technology
and proven sampling methodologies deliver operational excellence
throughout the online research process. With more than 5.5 million
online research respondents in 45 countries, Lightspeed GMI's
proprietary panels deliver unparalleled quality, capacity and
targeting. Headquartered in Warren, New
Jersey, Lightspeed GMI is part of the Kantar, the data
investment management arm of WPP, the world leader in marketing
communication services. For more information, visit
www.lightspeedgmi.com.
About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For six decades, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the leading provider of voluntary insurance sales at the
worksite. Through its trailblazing One Day PaySM
initiative, Aflac U.S. can receive, process, approve and disburse
payment for eligible claims in one business day. In Japan, Aflac is the leading provider of
medical and cancer insurance and insures 1 in 4 households. Aflac
individual and group insurance products help provide protection to
more than 50 million people worldwide. For 10 consecutive years,
Aflac has been recognized by Ethisphere as one of the World's Most
Ethical Companies. In 2016, Fortune magazine recognized Aflac as
one of the 100 Best Companies to Work For in America for the 18th
consecutive year and included Aflac on its list of Most Admired
Companies for the 15th time, ranking the company No. 1 in
innovation for the insurance, life and health category for the
second consecutive year. In 2015, Aflac's contact centers were
recognized by J.D. Power by providing "An Outstanding Customer
Service Experience" for the Live Phone Channel. Aflac Incorporated
is a Fortune 500 company listed on the New York Stock Exchange
under the symbol AFL. To find out more about Aflac and One Day
PaySM, visit aflac.com or espanol.aflac.com.
Media contact – Darcy
Brito, 706.505.9762 or dbrito@aflac.com
Analyst and investor contact – Robin Y. Wilkey, 706.596.3264 or 800.235.2667,
FAX: 706.324.6330, or rwilkey@aflac.com
1The 2016 Aflac WorkForces Report, conducted by
Lightspeed GMI, on behalf of Aflac from Jan. 20 - Feb. 3, 2016, among 5,000 employees and 1,500
benefits decision-makers across the U.S.
*Respondents somewhat, completely or strongly agree.
**Respondents are somewhat, extremely or very likely.
***Respondents are extremely or very satisfied.
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SOURCE Aflac