Some employers are convinced Millennials view money differently than their older counterparts. There’s strong evidence to support this belief. To a greater extent than earlier generations, Millennials appear to be more motivated by purpose than money or material goods. They may be content to earn less income and own fewer possessions, if that means they can live according to values deeply important to them.
Since Millennials now outnumber Baby Boomers as the largest living generation in the USA (Pew Research Center), smart employers keep these divergent views about money in mind when shaping their workplace culture, and when approaching compensation, benefits and 401k plans.
- According to a recent Fidelity study, Millennial workers will sacrifice an average $7,600 in yearly compensation, provided it enhances their career development, allows them to gain more purposeful employment, enables them to find a better corporate culture or lets them realize greater work-life balance.
- When asked whether financial gain or a better quality work life would spur them to accept a new job offer, almost 6 in 10 (58 percent) Millennials surveyed by Fidelity preferred better work life. Many were attracted more to work settings promoting personal growth and well-being than they were to money.
- Millennials also place a high value on vacation time. In fact, they’re three times likelier than older workers to justify large expenditures when they result in enjoyable memories, according to a Merrill Lynch study.
- If financial planning is an indication, Millennials may be more likely to focus on details of employers’ 401k plans. Schwab found 34 percent of Millennials have written financial plans, vis-à-vis 21 and 18 percent for GenXers and Boomers.
It pays to recognize millennials’ distinctive perspectives on money. The more companies understand those views, the better able they will be to attract, retain and gain the most from Millennial employees.
What’s the most valuable insight you’ve recognized about Millennial’s monetary views?
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