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While much has been written about Millennials by researchers, the workplace is still playing catch-up when it comes to understanding this intriguing generation and their impact on employee benefits strategy. In this article, we explore the implications of working with Millennials and present considerations for plan sponsors as they look to engage this generation. By 2025 it is estimated that millennials will make up as much as 75% of the workforce. 1 As this generation enters young adulthood, their growing influence on the workplace is beginning to be felt. So when it comes to your millennials, are you listening? The Broad Look In general, millennials are individuals under age 34 and born in the early 1980s to the early 2000s. The significance of this generation is far more than their numbers: this is the first generation to spend their formative years in the Internet, smartphone and social media era. Millennials have come of age during a challenging time in the economy, weathering the Great Recession and post 9/11 years, with these seminal events shaping their attitudes. Perhaps it is not surprising that millennials are more open to change than previous generations, having witnessed so much in their young lives. 2 But while this generation may be hard for employers to pin down, using blanket terms or generalizations when describing them can lead to disconnect. Research conducted by Fidelity and others are helping to break down stereotypes about millennials, such as: •  “Knowing it all” – In focus groups sponsored by Fidelity, millennials have willingly admitted they don’t know it all and would be happy to learn from someone. Whether that includes Mom and Dad (and often it does), a trusted co-worker, their employer or a provider, millennials say they are looking for directional help. 3 •    “All about me? Not really.” – Dr. Fred Bonner at Rutgers University cautions to avoid stereotyping all individuals in this generation as “Generation Me” or “Helicopter/Trophy Kids.” In his book Diverse Millennial Students in College, Bonner says that some of the traits commonly ascribed to white, affluent teenagers and college graduates may not apply to individuals in different socio-economic groups. 4 And with millennials now the most racially diverse generation in U.S. history (43% are nonwhite), his advice may prove sound. 5 Engaging Millennials: There’s No App for That They look to you for guidance and support. Younger millennials may view their job as a “pit stop.” Still, they need your help. Fidelity research reveals that employers are a key source of information and validation for financial employee benefits decision-making. Listening to this generation’s values offers a window into the future of corporate America.

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Page 1: Engaging Millennials: There’s No App for That...Engaging Millennials: There’s No App for That They look to you for guidance and support. Younger millennials may view their job

While much has been written about Millennials by researchers, the workplace is still playing

catch-up when it comes to understanding this intriguing generation and their impact on employee

benefits strategy. In this article, we explore the implications of working with Millennials and present

considerations for plan sponsors as they look to engage this generation.

By 2025 it is estimated that millennials will make up as much as 75% of the workforce.1 As this generation enters young

adulthood, their growing influence on the workplace is beginning to be felt. So when it comes to your millennials, are

you listening?

The Broad Look

In general, millennials are individuals under age 34 and born in the early 1980s

to the early 2000s. The significance of this generation is far more than their

numbers: this is the first generation to spend their formative years in the

Internet, smartphone and social media era. Millennials have come of age

during a challenging time in the economy, weathering the Great Recession

and post 9/11 years, with these seminal events shaping their attitudes.

Perhaps it is not surprising that millennials are more open to change than

previous generations, having witnessed so much in their young lives.2 But

while this generation may be hard for employers to pin down, using blanket

terms or generalizations when describing them can lead to disconnect.

Research conducted by Fidelity and others are helping to break down stereotypes about millennials, such as:

•  “Knowing it all” – In focus groups sponsored by Fidelity, millennials have willingly admitted they don’t know it all and

would be happy to learn from someone. Whether that includes Mom and Dad (and often it does), a trusted co-worker,

their employer or a provider, millennials say they are looking for directional help.3

•   “All about me? Not really.” – Dr. Fred Bonner at Rutgers University cautions to avoid stereotyping all individuals in

this generation as “Generation Me” or “Helicopter/Trophy Kids.” In his book Diverse Millennial Students in College,

Bonner says that some of the traits commonly ascribed to white, affluent teenagers and college graduates may not apply

to individuals in different socio-economic groups.4 And with millennials now the most racially diverse generation in

U.S. history (43% are nonwhite), his advice may prove sound.5

Engaging Millennials: There’s No App for That

They look to you for guidance and support.

Younger millennials may view their job as a “pit stop.” Still, they need your help.

Fidelity research reveals that employers are a key source of information and validation for financial employee benefits decision-making.

Listening to this generation’s values offers a window into the future of corporate America.

Page 2: Engaging Millennials: There’s No App for That...Engaging Millennials: There’s No App for That They look to you for guidance and support. Younger millennials may view their job

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When it comes to understanding and appreciating millennial differences in the workplace, our research presents

interesting implications for your benefits and financial education programs:

•  They know retirement is important, but – Millennials are in the “foundation building” stage of their lives. While

they know saving for retirement is important and are optimistic, they are focused on today … paying rent and paying

off debt. They need help with the basics. Health care costs in retirement are a big “aha,” but difficult for them to grasp

at this point. What’s more, some in this generation may be freelancers who don’t have access to workplace plans.

Implication: Help them prioritize.

•   They are on jargon and push alert – Millennials lack confidence when it comes to making the right choices, especially with

their health insurance. High deductible health plans and health savings accounts (HSAs) are a mystery, still feel complex and

full of unfamiliar terms. Some millennials say HSAs are being “pushed.” Many say they can’t open an HSA because they feel

they don’t have enough money.6 Implication: Use plain English, and stress the affordability of lower premiums.

•   They value incentives, especially if linked to a cause – Millennials tell us they value incentives, such as funds

deposited into an HSA or things that help them stay healthy like group fitness classes. Another strong interest is having

incentives align with a cause or charity. Millennials value employers who contribute to social or ethical causes they feel

are important and tend to believe that a company that cares about causes will care about treating them well, too.7

Implication: Think more broadly when it comes to incentives.

•   Yes, they use apps, but value advice from people – Because they understand the importance of financial decisions,

Millennials value talking to someone they can trust and who can guide them, such as parents, peers, employers, and

providers. Social media are not always the trusted, preferred sources, and for some benefits and financial information,

they can be a turnoff. Millennials are likely to ask: What are others doing? Implication: Keep it human.

•   Employer influence – While some research opines that millennials distrust employers or only regard them as a “pit stop,”

in contrast, Fidelity’s research reveals that employers are a key source of information and validation for financial decision-

making. Implication: While it

may sound obvious, reach out

and talk to your millennial

employees.

What does this all mean?

A healthy re-examination of

your processes and approach

with this audience is in order.

The Workplace Look

Page 3: Engaging Millennials: There’s No App for That...Engaging Millennials: There’s No App for That They look to you for guidance and support. Younger millennials may view their job

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R Onboarding – Is your onboarding process a strategic opportunity or an afterthought? With millennials willingly looking

for direction, don’t miss the opportunity to engage them right from the start. But don’t drown them in traditional paper

or content-heavy slides; instead, provide them with small roundtable sessions where they can ask questions and you

can provide guidance.

R Targeting – Research shows that surprisingly few companies are targeting communications to millennials, preferring

to focus their time and energy on baby boomers. This is a big miss. While the boomer generation is often thought

of as the country’s largest generation, millennials now outnumber boomers in the workforce by 9 million.8 Only 7%

of employers in a study admitted to targeting this group for financial wellness campaigns.9

R Create “Communities” – Millennials have grown up with chat rooms and blogs. They yearn to feel connected, value

open dialogue and learning together. Consider creating communities to allow them to share and learn about financial

planning.

R Modeling/“People Like Me” – Our research shows millennials value modeling scenarios, seeing what others do,

and having personalized choices. Give them a few good choices that they can try on for size.

Checklist for Engagement

Listen to Them. And Talk to Us.Each generation has its unique characteristics.

In stark contrast to their grandparents and

great grandparents in the “Silent Generation,”

this generation needs and wants to be seen

and heard. Even focus groups are a form of

employer communication … and they want

to talk. It’s time for employers to listen.

Listening to your millennials will speak loudly.

And talk to us. We can share our research

findings and observations about millennials

to help you better target your efforts and

shape your strategy.

Page 4: Engaging Millennials: There’s No App for That...Engaging Millennials: There’s No App for That They look to you for guidance and support. Younger millennials may view their job

1 Hais, Michael & Winograd, Morley, “How Millennials Could Upend Wall Street and Corporate America,” Governance Studies at Brookings, Brookings.edu, May 2014

2“The Disruptive Mindset of Millennials around the Globe,” Motivaction International, 20143Fidelity Design Thinking Research, July 20154Bonner, F., Marbley, A., Hamilton, M., (2011) Diverse Millennial Students in College: Implications for Faculty and Student Affairs. Stylus Publishing LLC 5Raphelson, Samantha, “Amid the Stereotypes, Some Facts about Millennials,” NPR, November 18, 20146Fidelity Participant Loyalty study of 1335 health care decision makers; May 20157“New Report on Millennials Shows Link between Engagement and Cause Work,” Forbes, May 5, 20158Fry, Richard, “Millennials surpass Gen Xers as the largest generation in U.S. labor force,” Pew Research Center, May 11, 201592015 Workplace Benefits Report, Bank of America Merrill Lynch

For Plan Sponsor use only.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

© 2015 FMR LLC. All rights reserved. 744339.1.0

Millennials in Workforce

70

60

50

40

30

20

10

0 1995 2000 2005 2010 2013 2015 Q1

U.S. Labor Force by Generation, 1995–2015

In millions

Boomers

53.552.7

44.6

3.7

Silents

GenXers

Millennials

Note: Annual averages plotted 1995–2014. For 2015 the first quarter average of 2015 is shown. Due to data limitations, Silent generation is overestimated from 2008–2015.Source: Pew Research Center tabulations of monthly 1995–2015 Current Population Surveys, Itegrated Public Use Microdata Series (IPUMS)

PEW RESEARCH CENTER