A new study from HR solutions provider ADP has revealed which benefits millennials want most from their employers. And the results are surprising.
Contrary to popular belief, millennials care much more about practical benefits than they do about extracurricular perks like foosball tables and beanbag chairs. According to the data, the top three benefits that millennials want from work are:
- Flexible work hours
- Paid maternity or paternity leave
- Employee discount programs
These findings come from a recent ADP survey, which polled 5,000 employees on what they most want from their employer. Primarily, the data was gathered to inform ADP’s Engagement Meter – a free and online tool for employers which serves up insights to help them engage and retain employees.
More than just an interesting counterpoint to a cultural cliché, this data has important ramifications for businesses everywhere. As it turns out, employers aren’t very good at engaging their millennial employees.
The translation from workplace benefits to employee engagement is a simple one. Providing employees with the perks they want keeps them happy, leading to motivated workers, which in turn creates a more engaged workforce.
Engagement matters because it means employees are satisfied and more likely to stay put, and it even correlates with better business results,” ADP’s Chief Behavioral Economist Jordan Birnbaum explains.
Productivity dips aren’t the only downside here. If companies aren’t offering up the right combination of benefits, they’ll face an uphill battle to keep hold of their current employees. Moreover, they’re going to struggle to recruit new millennial talent. As the HR function knows, losing good talent and turnover are two things that become more expensive when wages rise.
The good news is that employers know they have a problem. As Birnbaum reports, “eighty-five percent of companies know they need to do a better job at engaging millennials.” This is where ADP’s insight and its Engagement Meter come in – helping companies understand what benefits all generations desire most.
To turn these insights into action, employers should be thinking about ways to integrate in-demand perks into their benefits strategies. If you ask me, it’s a small price to get the most out of your top talent.
