Stress is a necessary and important part of life, but its impact on young adults is particularly strong. As generation Y employees move into the workforce, what can employers do to help them minimize stress? Start with customizing their benefits plans. This generation’s needs are unlike those of any other in the workforce.
Stress affects some employees more than others. Sun Life Financial’s 2012 Canadian Health Index Report finds that, while 72% of respondents report experiencing excessive or uncomfortable levels of stress, the youngest age groups are hardest hit: 18- to 24-year-olds (90%) and 25- to 34 year-olds (80%). (This compares to just 57% of Canadians ages 55 to 64.) Work plays a huge role in the high stress levels among these younger age groups.
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Sun Life’s qualitative research on generational differences in benefits plan preferences revealed several unique needs for this group and identified three key areas in which generation Y would like to see change from a plan design perspective—needs that most traditional benefits plans don’t meet.
1. More flexibility
Gen Y would like more flexibility and control over its benefits plans. These employees expect benefits solutions that reflect their diversity and acknowledge their individualism; they are frustrated by traditional plans.
Flexible benefits plans are a valuable tool to help employers meet this need, especially when paired with add-on solutions such as healthcare spending accounts and personal spending/wellness accounts for even greater flexibility.
2. Wellness options
Gen Y employees are looking for more wellness, health and lifestyle benefits options.
They aspire to live a healthy, active lifestyle: Sun Life research shows that 71% of 18- to 24-year-olds and 76% of 25- to 34-year-olds strongly agree that they do everything to maximize their health. From a benefits-plan perspective, this translates into a strong desire for wellness-related options such as subsidized gym memberships, work-site fitness facilities, healthy food programs and reimbursement toward the cost of education or self-development courses.
Fitness, nutrition and overall wellbeing, in turn, are key factors to help combat stress.
3. Convenience
This group of employees is seeking greater convenience and clear communication. Gen Ys want to be able to process health claims easily and at their convenience. They are enthusiastic about mobile and online applications versus paper forms and documents via snail mail. They also want clear and simple communications about their claims and benefits options.
“Our employees are of a generation that is looking for technological solutions for day-to-day administration,” says Laurie Maye, director of HR shared services with Shaw Communications Inc. “Paper claims and complex language are cumbersome and outdated.”
Employers with traditional benefits offerings will see the divide between money spent and value delivered grow unless they rethink the design and delivery of the plan.
There may be challenges to overcome in introducing a new benefits plan—there always are—but the results can be quite positive for all involved. Not only will employers have a healthier, more productive workforce, they will be better positioned as an organization to harness generation Y’s great potential.
Stuart Monteith is senior vice-president, group benefits, with Sun Life Financial Canada.