Can we talk? Boomers not explaining employee benefits to gen Y

A recent study conducted
by Harris Interactive and
commissioned by Unum reveals that
baby boomers have helped prepare their generation Y kids to deal with life’s
risks by discussing tricky topics such as drug use and sex, but they are skipping
talks about employee benefits as this young generation enters the workforce.

In fact, more have discussed
car-buying than have discussed the role of workplace benefits in protecting
financial security.

« Parents and mentors have
talked to generation Y about the risks they face growing up, but they aren’t
completing that process by talking about how they can protect themselves financially
in young adulthood, » said Mike Simonds, senior vice president
for Unum. « Until this new generation
of workers understands the benefits decisions they will have to make, the talking
isn’t done. »

• According to the survey,
  72 percent of generation Y workers (ages 18 to 30) say their parents or another
  adult mentor has talked with them about saving money.
• 61 percent say a parent
  or another adult has talked with them about drugs.
• 61 percent say a parent
  or another adult has talked with them about job hunting.
• Nearly 60 percent have
  talked with a parent or another adult about sex.
• 51 percent have talked
  car shopping with a parent or other adult.
• Just 30 percent of generation
  Y workers have heard from a parent or adult mentor about choosing the workplace
  benefits that can help protect their health, income and financial stability.
  

« Generation Y is entering
a workplace in which benefits decisions and paying for some coverages are their
responsibility, » Simonds said. « These young workers need to be prepared to make
the decisions that will help protect their financial security, and this research
shows that the generation made up largely of their parents – and bosses – isn’t
preparing them. »

The research also shows
that this very connected generation does not get the connection between their
benefits and their financial stability. Forty-three percent are unfamiliar with
supplemental health coverage; 52 percent are unfamiliar with critical illness
insurance; and 35 percent aren’t familiar with disability insurance.

And while baby boomers
(ages 44 to 62) and generation Y workers both consider the workplace the most
important source of information about benefits, parents and family members are
also important sources of information for generation Y.

• 76 percent of employed
  baby boomers and 68 percent of generation Y workers say the workplace is among
  their most reliable sources of information about benefits.
• 60 percent of generation
  Y employees say parents and family are among their most reliable sources for
  this information.

« The holidays, when families
are getting together and we’re all making New Year’s resolutions, present a
great opportunity for parents to resolve to talk to their adult children about
whether they have the benefits they need to help protect their financial security, »
Simonds said.

Baby boomers and generation
Y are large and influential groups that represent two very different elements
of the American workplace. Boomers, about 80 million strong, entered the workforce
at a time when employee benefits decisions were made for them through employer-funded,
one-size-fits-all packages. They have seen the approach to benefits change during
their careers, and have had to become more active in making benefits decisions.

Generation Y, which numbers
about 75 million, is becoming a force in the workplace as the cookie-cutter
approach to benefits fades into history. Young workers face an array of benefit
choices. They need to understand from the time they enter the job market how
to make 401(k) selections, how to choose the right health plan, how much disability
coverage and life insurance they might need.

;