Page 15 - 4Q 2016 Reporter
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Attracting, Retaining and
Rewarding Millennial Talent
by Mark Hogan, Regional Director, Pentegra
In the spring of 2015, millennials surpassed Gen two, that there is a generous matching contribution.
X to become the largest generation in the American Our round table discussions also revealed that
workforce. As millennials flex their workplace millennials expect benefits and 401(k) plans to be
muscle, they’ve already changed the rules about automatic and automated. Millennials were asked how
communications, work hour flexibility and benefits-in they would like it if employers automated things like
particular retirement benefits. With the 401(k) plan a 401(k). They not only liked the idea, they expected
being the primary source of retirement income for it from their employer. In fact, the vast majority of
many millennials, ensuring that we communicate plan millennials participating in a 401(k[CR1][MS2])
benefits and features effectively has also taken on a plan find mobile apps for managing their retirement
whole new meaning. accounts helpful.
Millennials are all about technology and Millennials are already saving for retirement (48%
today’s employers must respond to the changing through a 401(k) and 28% through an IRA ). This
1
communications dynamic in the workplace-including is despite the fact that millennials often face some
how they communicate with respect to employee significant financial challenges. They’re graduating with
benefits. Traditional methods of educating employees more student loan debt than any other generation. And,
with a one-on-one meeting is not necessarily the way even though many of them say they would rather take
millennials like to communicate. Rather, it’s more about vacations now and not wait until retirement, they are
“Can you text that to me?” or, “Is there an app for looking deep into their future. They’re just doing it in a
that?” Even email is passŽ. Instant messaging within different way.
the office is now the preferred way of communicating
What we learned from millennials led to the
with the millennial generation.
development of the Pentegra SmarthPath .-our best
TM
But just because they may not want to practice guide to plan design and savings strategies
communicate traditionally doesn’t mean that millennials to help everyone achieve successful outcomes. These
don’t want help understanding retirement benefits automated features conveniently help millennials plan
and how to best utilize their 401(k) plan for maximum their future, their way and on their time.
results. These younger employees often want the help,
In fact, according to our recent survey, two-thirds of
need the help and expect management to provide the
millennials are “very” or “somewhat” confident they will
help.
be able to fully retire with a comfortable lifestyle. This
A series of intergenerational round tables at is good news, as the year 2042, when millennials will
Pentegra helped us learn how to better respond to the start relying on their 401(k) plans as a definite lifeline
growing millennial workforce. Millennials expect their will be here before we know it. Time flies as they say!
dedication to the job to be greatly rewarded. A solid
retirement benefits package is how many employers
1 2016 Fidelity Investments Millennial Money Study:
are responding. Millennials are relying on two things-
Facts, Figures and Findings
one, that his or her employer has a 401(k) plan, and
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Fourth Quarter 2016 IllInoIs RepoRteR
