Courtesy Hamel Resources LLC
By Susan E. Campbell
When companies cut back on traditional employee benefits, such as the 15-year trend in vanishing pension plans, decisions may not be based exclusively on economics.
Many of the non-traditional types of benefits now appearing in the workplace are in response to changes in the age, lifestyles and preferences of today’s employees.
There are not enough Generation X-ers to take the place of baby boomers as they retire and leave the work force. Boomer children will. About 60 percent of the workforce in 2020 is expected to be made up of millennials, or Generation Y, those born in the two decades before 2000.
Now in their 20s to late 30s, millennials have different priorities from their parents or even the generation that preceded theirs, said Gail Hamel, owner of Hamel Resources LLC in Lake George.
“In general, younger people today aren’t thinking about retirement,” said Hamel. “They live in the moment because of the world in which they were raised.”
Another major traditional benefit, health coverage, continues to experience cutbacks in the employer-paid portion compared to the percentage covered for baby boomers.
“But no one knows where health care will be even months from now,” said Hamel. “Gen Y is more concerned with just getting a career started.”
That is a tough task when you have tens or hundreds of thousands of dollars in student loans. So more and more employees are looking for the kinds of benefits “that attract and motivate employees while they’re there, so as to retain them.”
“Some of these young people watched their parents work their heads off, only to be let go with three years left until retirement because the company moved to Mexico,” she said. “The old ways of attracting and rewarding people don’t work anymore.”
That calls for a different way of managing people, and Hamel Resources was formed 11 years ago to help employers identify and implement areas of change.
Hamel is an independent consultant offering HR support, personalized coaching and training, and leadership development to companies across industries and of all sizes. And because there are both federal and state HR laws to conform to, Hamel helps clients achieve greater compliance as new programs and policies evolve.
“What is the benefit of working for your company other than a paycheck?” she asks. “Understanding what motivates workers today is key to recruitment and retention.”
A key motivator is flexibility. While not a new trend, flexible time off is a benefit gaining momentum. Hamel has helped many companies transition from a traditional model to one where there is no designation between personal, vacation and sick days.
Another trend is toward ergonomics and wellness in general.
“One can’t sit at a computer all day long without some health issue arising,” she said. “Many Gen Y employees are asking their companies for standing desks that move up and down, like two work stations in one.”
“As younger employees look to have more flexibility they find that they are in the position to make these changes,” Hamel said.
“They also are attracted to employers that help with their tuition assistance,” she said. “The younger generation will at least apply for jobs that offer this particular benefit.”
Hamel also said greener offices are more productive offices because people are healthier and less stressed.
Hamel is also encouraging clients to transition to more non-traditional benefits by helping to institute policies for telecommuting and virtual workspaces.
A flexible schedule helps reduce anxiety about such things as who is taking care of the kids.
“I look for alternative ways to provide balance for employers and employees,” said Hamel. “How can the company schedule people or do some things differently so that it works better in today’s world.”
Non-traditional employee benefits make good business sense. Employees feel that employers are listening to their needs, and companies experience an enhanced reputation and image.