Cashless Benefits Attract and Retain MillennialsNovated Leasing
The growth in the gig economy and the increasing number of people electing to work on a freelance basis has presented employers with some significant challenges when it comes to retaining quality talent – particularly Millennials or Generation Y (people born early-1980s to mid-1990s).
More studies are now showing that Millennial and Generation Y employees take their work/life balance seriously. They prefer the flexibility of choosing their work hours due to lifestyle factors, family or social commitments. They prefer working from anywhere other than a conventional office because of the costs (in time and monetary terms) associated with commuting from outer-suburbs to capital cities or larger regional hubs.
And today’s Millennial workforce also places a premium on the quality of their work – and their commitment to an organisation or employer – being properly recognised in their take-home pay.
The challenge is, while it’s never been easy to get a salary increase, fewer HR and department managers are approving salary raises – not due to mean-spiritedness but mostly because the budget isn’t available to increase high-performing employees’ salaries.
Wage stagnation has adverse effects on employee satisfaction and retention, as the opportunities to receive a pay increase continue to disappear.
Your top-performers, which are often Millennials, will consequently waste no time looking for other opportunities in the market, where they can earn better money or receive greater benefits.
This explains why Millennials have such a high degree of movement between organisations when compared with previous generations.
To remain competitive, there are many ways you can reward your Millennials and Gen Ys without dipping into the cash jar.
One thing Millennials value highly is a healthy work-life balance. So, an easy strategy to retain talent without splashing a vast amount of money is to look at wellbeing as a driver of performance and employee retention.
Sylvia Vorhauser-Smith from Page Up – a global talent management software provider – says a sure-fire way to creating a happier workforce is to introduce initiatives like wellness seminars. You can also review leave accruals and ensure employees are benefiting from regular breaks and better balancing of time at the office and time out.
Do your people absolutely need to be at their desk at 8.40am every day? Is punctuality more important that productivity? Is it possible to facilitate more opportunities for your staff to work remotely?
The increasing popularity of car-sharing and ride-sharing schemes – and other forms of mixed mobility – hasn’t gone unnoticed and it also presents an opportunity for savvy HR types to retain staff without smashing their budgets.
The old concepts of ownership appear to be less applicable to Millennials. According to a European study, the number of car owners aged 18-24 decreased by more than 40 percent between 2000 and 2010. Concerns over high petrol prices, a lack of cost-effective parking options (both at home and the office) and environmental concerns (for example, carbon emissions and fuel usage) are seeing Millennials drive the surge in ride-hailing and sharing services.
Nonetheless, there remains large portions of young Australians who love to have their own cars. Even the more progressive urban types find themselves wanting a car when their life changes – marriage, children, job changes.
Considering this, Australian employers are wise to offer the ever-popular novated leasing options, alongside a broader choice of mobility benefits.
LeasePlan notes a growing trend in Europe with ‘mobility card’ packages that allow staff to make salary packaging arrangements for trains, buses, taxis and, in some cases, even bike-sharing enterprises like O-Bikes and ride-sharing initiatives like Uber and the European versions of GoGet, Flexi-Car and GreenShareCar.
These are examples of employers better recognising how their people transport themselves from point-to-point and, therefore, offering a broader range of mobility salary packaging options to suit.
This is the kind of employer innovation you should be considering to meet the changing workforce expectations.