Millennials are now the largest generation in the American workforce. As baby boomers retire and a younger generation of workers fills their shoes, employers must find new ways to attract a new crop of talented employees.
While statistics reveal that millennials place high value on health insurance, today’s young workers view health benefits differently than their parents and grandparents.
Millennials Still Want Health Insurance
As Forbes points out, many employers have turned to unique employee benefits like ping-pong tables, free snacks, and pet-friendly offices as a way to lure millennial workers.
Although innovative, these recruitment efforts may be missing the mark. Research shows that 34 percent of millennial employees name health insurance as the benefit they value the most. In fact, some millennial workers even choose employers based on whether they have an on-site clinic.
Millennials Also Want Choice
Millennials may place high value on health benefits, but they also tend to view health insurance differently than previous generations.
These young people aren’t just looking for great health insurance—they want flexible health benefits. Instead of the one-size-fits-all group health plans of the past, today’s workers prefer their companies to offer a specific amount of money, which employees can put toward benefits that meet their unique needs. This is where Health Reimbursement Arrangements (HRAs) like the Small Business HRA can bridge the gap.
The Small Business HRA Delivers Health Benefits and Employee Choice
Businesses that want to compete for the best workers must adjust their benefit offerings to suit the demands of the millennial workforce. This means not only contributing to employees’ health coverage, but giving them a say in the type of coverage they sign up for.
With the Small Business HRA, businesses and employees both win. Employees receive the choice and flexibility they want, and employers keep a firm handle on costs. And with an automated benefits tool like PeopleKeep, compliance is easy—employers choose how much money they want to contribute, employees choose a plan that fits them, and the tool takes care of the rest.
As the biggest generation of employees in the American workforce, millennials are poised to drive the U.S. economy—and to help businesses grow. Offering flexible health benefits like the Small Business HRA is one way companies can convince young employees to come on board.
How has offering the Small Business HRA helped your business grow? Let us know in the comments below.