Millennial Benefit Preferences study
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Transcript of Millennial Benefit Preferences study
Millennial Benefit Preferences Study2015
Peanut ButterStudent Loan Repayment
Summary of FindingsBenefit Preferences of College-Educated Millennials
THE AVERAGE RESPONDENT PREFERS STUDENT LOAN REPAYMENT NEARLY 2X MORE THAN 401(K) CONTRIBUTION, 2X MORE THAN HEALTH INSURANCE, 7X MORE THAN FOOD, 11X MORE THAN GYM MEMBERSHIP AND 12X MORE THAN ENHANCEMENTS TO THE WORKPLACE ENVIRONMENT
27% OF RESPONDENTS PREFER STUDENT LOAN REPAYMENT 18X MORE THAN 401(K) CONTRIBUTIONS AND 23X MORE THAN HEALTH INSURANCE CONTRIBUTIONS; THESE INDIVIDUALS ARE MORE LIKELY TO BE FEMALE AND MINORITY ETHNICITIES
COMPANIES THAT SHAPE THEIR EMPLOYEE VALUE PROPOSITION BASED ON THE DEMANDS OF MILLENNIAL WORKERS HAVE AN OPPORTUNITY TO ATTRACT MORE QUALIFIED TALENT AND KEEP PRODUCTIVE WORKERS ONBOARD LONGER
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RESPONDENTS INDICATED A WILLINGNESS TO STAY AT A JOB AT LEAST 36% LONGER (1.3 ADDITIONAL YEARS) WHEN AN EMPLOYER OFFERS STUDENT LOAN REPAYMENT
85% OF RESPONDENTS WOULD ACCEPT A JOB OFFER WHEN STUDENT LOAN REPAYMENT IS INCLUDED
73% of respondents are currently unsatisfied withat least one benefit/perk provided by their employer
27%
73%
Free mealsWorking environment
Gym membershipDiscounts Pet insurance
Public commuting
Long term care insurance Student loan forgivenessHousekeeping service Flu shots
Free job training Benefits for spouseCarpooling Office supply allowance
Car insurance Paid company parties HousekeepingPaid further education PTO Perks Site
Tuition reimbursement Financial advising
DOES YOUR COMPANY CURRENTLY OFFER ANY BENEFITS OR PERKS THAT YOU DON'T VALUE? IF SO, WHAT?
YES NO
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85% of respondents would accept a job offer when student loan repayment is included
IF YOU RECEIVED JOB OFFERS FROM TWO EMPLOYERS WITH IDENTICAL SALARY, BENEFITS, AND PERKS, BUT EMPLOYER #1 ALSO OFFERED TO CONTRIBUTE TO THE REPAYMENT OF YOUR STUDENT LOANS,
WOULD YOU ACCEPT THE JOB OFFER FROM EMPLOYER #1?
YES NO IT DEPENDS
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85%
13%3%
Respondents indicated a willingness to stay at a job at least 36% longer (1.3 additional years) when
an employer offers student loan repayment
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IF AN EMPLOYER PROVIDED YOU WITH COMPETITIVE SALARY, BENEFITS, AND PERKS, ABOUT HOW LONG WOULD YOU EXPECT TO STAY WITH THIS EMPLOYER?
20%
40%
60%
80%
100%
0 1 2 3 4 5 6
99%91%
70%
Average 5.0 years
Average 3.7 years
58%48%
44%42%
35%
21%19%
65%
92%More than 2x as many people said they would stay 6 years or more, when employer contributes to
student loans
College-educated Millennials prefer student loan repayment 2-12x more than other perks and benefits
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IF YOUR EMPLOYER WERE WILLING TO CONTRIBUTE $1000 TOWARD ANY OR ALL OF THE FOLLOWING BENEFITS, HOW WOULD YOU PREFER THE MONEY BE DISTRIBUTED?
AVERAGE SPEND PREFERRED
Student loan repayment
401(k) contribution
Health insurance (e.g., premiums, HSA, FSA)
Food (e.g., breakfast, lunch, snacks, soda)
Gym membership
Workplace environment (e.g., foosball tables, artwork, leather sofas)
$0 $250 $500
$418
$239 2 x
2 x
7 x
11x
12x
$181
$63
$38
$35
27% of respondents prefer student loan repayment 18x more than 401(k) and 23x more than health
insurance contributions; these individuals are more likely to be female and minority ethnicities
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Cluster Analysis
15%
25%
35%
27%LOVE STUDENT
LOAN REPAYMENTSLIGHTLY PREFER 401(K)
CONTRIBUTIONS
LIKE STUDENT LOAN REPAYMENT
SLIGHTLY PREFER HEALTH INSURANCE
CONTRIBUTIONS
Implications for Companies
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Implications for Employers
Implications for Companies
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Modest contributions to employee student loans can help attract talent
85% of college-educated Millennials would accept a job when student loan repayment is offered
SHORTEN HIRING TIMELINE
DECREASE COST TO HIRE
INCREASE QUANTITY OF APPLICANTS
Implications for Companies
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Voluntary attrition can be reduced by offering benefits employees value
College-educated Millennials expressed a willingness to stay 36% longer when an employer offers student loan repayment
SPEND LESS ON TRAINING
REDUCE HIRING COSTS
AVOID LOST PRODUCTIVITY
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Careful refinement of the employee value proposition can improve diversity and help companies become an employer of choice
The group of college-educated Millennials that values student loan repayment 18x more than 401(k) and 23x more than health insurance contributions included significantly more females and minorities than the sample’s average
ASSIST IN RESOLVING AMERICA’S $1.2T STUDENT DEBT PROBLEM
HELP EMPLOYEES GET OUT OF DEBT
DIFFERENTIATE VERSUS COMPETITORS
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Peanut Butter makes it easy for companies to offer student loan repayment
Communicate plan benefits and rules to eligible employees
EMPLOYEE ENROLLMENT
Set employer contribution amount and identify eligible employees
PLAN SETUPSecurely route payments to ensure
maximum benefit to employees
PAYMENT MANAGEMENT
$
Validate loan information and loan servicer accounts of enrolled employees
LOAN VERIFICATION
getpeanutbutter.com
START TODAY ATSecurity, controls, and audit reporting
for info in transit and at rest
SECURE ENVIRONMENT
Track contributors, quantify impact and handle questions
REPORTING & SUPPORT
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Methodology and Demographics
Methodology
THIRD PHASE: QUANTITATIVE RESEARCH AND ANALYSIS, CONDUCTED BY FC CONSULTING
SECOND PHASE: SURVEY TESTING, CONDUCTED BY FC CONSULTING
FIRST PHASE: FOCUS GROUP INTERVIEWS, CONDUCTED BY FC CONSULTING
• 1:1 interviews regarding perceptions of benefits and perks
• Self-administered, online survey delivered via email to 62 testers, completed July 5–8, 2015
• Self-administered, online survey, open from July 26 – August 9, 2015
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• Distribution included: Email, Handouts, Craigslist, Amazon Mechanical Turk, Facebook, Reddit, Twitter, LinkedIn
• 717 total respondents
• 229 disqualified based on Age (“20 years old, or younger,” “35 years old, or older,” no response); study intended to focus on Millennial generation
• 26 disqualified based on Education (“High school diploma, or less,” no response); study intended to focus on individuals with at least some college education
• 62 disqualified based on Incompletion (no response to final required question)
• 400 qualified and complete responses (n=400 for all charts in this presentation)
• Survey data analyzed and questions refined
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Gender Employment Status
MALE FEMALE
Yes, salaried
Yes, hourly
No, enrolled in school full time
No, retired or not searching for work
No answer
0% 100%50%
0%
3%
7%
36%
54%
50%50%
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Student Loan Balance Household Income
$100,000 or more
$80,000 - $99,999
$60,000 - $79,999
$40,000 - $59,999
$20,000 - $39,999
$5,000 - $19,999
$1 - $5,000
0
No answer
0% 60%30%
2%
16%
23%
33%
14%
5%
4%
1%
3% $200,000 or more
$150,000 - $199,999
$100,000 - $149,999
$75,000 - $99,999
$50,000 - $74,999
$35,000 - $49,999
$25 - $34,999
Less than $25,999
No answer
0% 60%30%
9%
16%
17%
19%
22%
9%
5%
2%
2%
Home and Workplace
17
25%
11%
5%
15%4%
39%LIVE URBAN & WORK URBAN
NO ANSWERLIVE RURAL & WORK RURAL
LIVE SURBUBAN & WORK SURBUBAN
LIVE SURBUBAN & WORK URBAN
LIVE URBAN & WORK SURBUBAN
LIVE URBAN & WORK RURAL, 0%
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Years Since Completing Most Recent Degree
Industry You Work In
0% 60%30%
No answer 9%
1 year, or less 16%
2 years 23%
3 years 12%
4 years 9%
5 years 9%
6 years 5%
7 years, or more 17%
0% 60%30%
Retail 7%
Utilities 1%
Oil & Gas 0%
Industrials 4%
Telecommunications 3%
Basic Materials 4%
Travel & Leisure 2%
Advertising, Communications, and Media 7%
Other 9%
Government or Nonprofit 10%
Consumer Goods 11%
Technology 13%
Financials 13%
Healthcare 14%
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60%
No answer
0% 30%
Southwest - AZ, NM, OK, TX 6%
West - AK, CA, CO, HI , ID, MT, NV, OR, UT, WA, WY 16%
Southeast - AL, AR, FL, GA, KY, LA,MS, NC, SC, TN,… 13%
Northeast - CT, DC, DE, MA, MD, ME, NH, NJ, NY,…
17%
Midwest - IA, IL, IN, KS, MI, MN, MO, ND, NE,…
46%
2%
Region Ethnicity
White
0% 60%30%
Pacific Islander 1%
52%
Prefer not to answer 4%
Hispanic 15%
Asian 11%
African American 17%
2%No answer
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