Gen Z & Millennial recruitment can be a strategic move for organizations. This group of employees not only provide organizations with fresh perspectives and innovative ideas, but they are also early adopters of new tools and technologies, which can benefit companies seeking to stay ahead in a rapidly evolving market. Millennials and Gen-Zers grew up in the digital age and are comfortable with technology, social media platforms, and virtual communication. Leveraging their digital skills can enhance an organization’s online presence, customer engagement, and overall digital transformation.

Empowering Financial Wellness: The Role of Employer Benefits in Retaining Gen Z and Millennial Talent

Empowering financial wellness through employer benefits is a strategic approach to recruit and retain Generation Z and Millennial talent. Understanding your employees’ financial wellness needs is a great place to start. For the most part, Generation Z’s top financial stressors include:

• Inflation and Rising Prices: Impacting everyday expenses.
• Rent and Housing Costs: Especially relevant as they transition to independent living.
• Student Debt: Balancing loan repayment with other financial goals.
• Credit Card Debt: Managing credit responsibly.
• Budgeting: Creating and sticking to a budget.
• Emergency Savings: Building a financial safety net.

Millennials, born between 1980 – 1996, face unique challenges as they navigate their career in a challenging job climate. Millennials often state that they feel unprepared to manage their finances and look to their employers for help with financial wellness including:

• Budgeting: Creating and sticking to a budget.
• Emergency Savings: Building a safety net for unexpected expenses.
• Retirement Savings: Planning for the future.
• Debt Management: Guidance on managing student loans and credit card debt.

By aligning employer benefits with the financial wellness of your desired employees fosters a supportive environment that encourages retention and loyalty.

Gen Z and Millennial Recruitment: Leveraging Employer Matching for Student Loan Relief and Savings

To attract and retain Gen-Zers & Millennials, successful employers can leverage strategies that address specific financial concerns and career aspirations. Best part yet, offering these benefits do not need to break the bank. Here are some great benefit options that focus on the area's most important to these team members.

Employer Benefits for Student Loan Relief:

• Flexible Matching Programs: Employers offer the flexibility for employees to utilize retirement match dollars to pay down student loan debt.
• The SECURE 2.0 Act allows employers to match their employees’ student loan payments with retirement contributions.
• Employer Student Loan Match program, offering to match employees' payments to their student loans.
• Employer Direct Pay, programs in which employers set aside a dollar amount that they offer to pay towards their employees’ student loan debt.
• Through the end of 2025, employer student loan payments are tax free up to $5,250 per year.

By integrating these elements into their benefits offerings, employers can create a compelling value proposition for Gen Z and Millennial candidates.

Building a Safety Net: Addressing Emergency Savings for Gen Z and Millennials

According to a recent Bankrate survey, the emergency savings situation for Millennials and Gen Z is pretty gloomy and many are looking to their employer for guidance. In fact, only 40% of millennials said they have at least three months’ worth of expenses in emergency savings. This percentage is lower than their older peers, with 62% of Baby Boomers having the same level of emergency savings. For the Gen Z crowd, even less have at least three months’ worth of expenses in emergency savings and they are acutely feeling the impact of rising prices and financial stress.
What is going on here?

• Inflation: Younger generations are particularly affected by inflation. They bear the costs of inflation without necessarily owning assets that keep pace with it.
• Time to Accumulate Savings: Building an adequate emergency savings cushion takes time, especially in the early career years when household expenses often grow faster than the ability to save.
• Comfort Level: While Americans are better positioned with emergency savings overall in 2022, the comfort level with that savings has dramatically declined due to inflation.

It’s essential for everyone, especially younger generations, to prioritize emergency savings to weather economic uncertainties. Financial planning and prudent saving habits can help mitigate financial stress during challenging times. Building a robust safety net is crucial for financial stability, especially for Gen X and Millennials who have faced unique economic challenges. Addressing the emergency savings gap for Gen X and Millennials is vital for their long-term financial health and security.

Investing in the Future: Strategies for College Savings Through Employer Benefits

Investing in college savings is a critical aspect of financial planning for employees, and many employers are now offering benefits to help with this. Here are some strategies that employers are using to assist their employees with college savings:

529 College Savings Plans. Employers are increasingly helping employees fund 529 college accounts, which are tax-advantaged savings plans designed to pay for education. These plans can cover educational expenses from kindergarten through graduate school and offer significant tax benefits, including tax-free withdrawals for qualified education expenses.

Employer Contributions. Some employers contribute directly to their employees’ College 529 Savings accounts, providing a true financial benefit and earning a corporate tax credit for doing so. Employees may have the option to direct deposit contributions into their 529 accounts, and some employers even match these contributions.

Flexible Benefit Plans. Employers are offering flexible plans that allow employees to allocate a portion of their benefit dollars to various savings goals, including retirement savings, student loan payments, 529 college funding, and creating emergency funds.

Financial Wellness Programs. Employers are also focusing on financial wellness by providing education on the benefits of 529 plans and advising on long-term savings growth through payment plans1.

By incorporating these strategies into their benefits packages, employers can support their employees’ goals of securing a financially stable future for their children’s education.

Empowering Financial Wellness: The Role of Employer Benefits in Retaining Gen X and Millennial Talent

Thriving Through Strategic Financial Solutions

Employer benefit programs play a crucial role in meeting the financial needs of Gen Z and Millennial employees. By offering tailored benefits such as retirement savings matches, student loan assistance, and emergency savings contributions, employers can significantly enhance employee retention and satisfaction. These strategic financial solutions not only address immediate financial concerns but also empower employees to plan for their future, fostering a sense of security and loyalty.

Key Aspects of Employer Benefit Programs:

• Retirement Savings: Matching contributions to retirement plans encourage long-term savings and financial security.
• Student Loan Relief: Assistance with student loans can alleviate a major financial burden for many employees.
• Emergency Savings: Contributions to emergency funds help build a financial cushion, protecting against unforeseen expenses.

Impact on Workforce:

• Retention: Employees are more likely to stay with a company that invests in their financial well-being.
• Satisfaction: Financial benefits contribute to overall job satisfaction, leading to a more engaged and productive workforce.
• Future Planning: These benefits enable employees to focus on long-term goals, such as education funding and retirement.

Employers looking to enhance their benefits offerings can consider programs like Thrive Matching, which allows employees to allocate employer matching dollars to various financial goals, providing a flexible and personalized approach to financial wellness. This adaptability is key to supporting a diverse workforce with varied financial needs and aspirations. Thrive Matching’s innovative approach can be a game-changer for companies aiming to thrive in today’s competitive landscape. Emphasizing the potential for these programs to drive employee retention and satisfaction, ultimately leading to a thriving workforce.