Employee Benefits for Millennial Workers in Canada

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Employee Benefits for Millennial Workers in Canada

As the landscape of Canada’s workforce evolves, engaging and retaining millennial talent has become a key focus for employers. Defined as those born between 1981 and 1996, millennials now represent over 33.2% of the total workforce in Canada (Source).

With different values, attitudes, and priorities compared to previous generations, appealing to millennial workers requires rethinking traditional employee benefits packages.

This guide will explore what motivates millennials, the benefits they value most, and how employers can develop competitive employee benefits for millennials tailored to attracting, retaining and engaging this demographic.

Who are Millennials?

Millennials, also known as Generation Y, are the demographic cohort following Generation X. There are varying definitions for which birth years fall into the millennial generation. Still, most commonly, it includes those born between 1981 and 1996.

Some key facts about millennials:

Millennials were born and came of age around the turn of the 21st century, mainly shaping their attitudes and relationship with technology.
They are sometimes referred to as “echo boomers” because many were born to baby boomer parents, leading to a surge in births.
As of 2021, millennial workers represent over 33.2% of the working population.
They are the first generation to grow up with widespread internet and mobile technology access. As digital natives, they are highly adept with technology.
Many millennials came of age during economic recession and uncertainty, influencing their financial attitudes.
They value purpose, development, work-life balance, health, and financial stability more than previous generations.
Millennials also favour customization over one-size-fits-all approaches and expect open communication and employer feedback.

In summary, as a prominent and influential demographic, millennials have distinct attitudes and values shaped by the environment they grew up in, which impact their desires and motivations as employees.

Understanding Millennials Values and Motivations

Younger Outlook and Attitudes

Millennials grew up in a rapidly changing digital era that shaped their behaviours and attitudes. They came of age during times of economic uncertainty and technological advancement. This has led to optimism about improving their quality of life through technology and innovation.

Quest for Purpose and Meaning

Millennials seek meaning, purpose and fulfillment in their careers more than past generations. They want to feel their work matters and aligns with their personal values.

Rejection of Corporate Convention

Millennials reject traditions simply for the sake of tradition. They prefer flexibility and customization over rigid corporate structures and standardized offerings.

Focus on Personal Growth and Development

For millennials, careers are a pathway to gain new skills, experiences and knowledge continually. Stagnation is seen as failure.

Desire for Work-Life Integration

Millennials share a different clear separation of work and life than previous generations. They desire careers that flexibly integrate with their lifestyles.

Transition to Responsibilities of Adulthood

While some millennials are married with families, many are still transitioning to responsibilities like home ownership. Financial stability is still a developing need.

Tech-Savvy and Connected

This was the first generation to grow up with the internet. Millennials are innately familiar with digital tools and leveraging technology.

With these perspectives in mind, the benefits millennials seek from employers become clearer.

These generational values and traits directly impact the employee benefits that appeal most to millennials.

Key Benefits Desired by Millennials in Canada

Extensive research from surveys and studies confirms the following core employee benefits are most desired by millennial professionals:

Flexible Work Arrangements

For millennials, strict 9-5 schedules with fixed work locations go against their conception of work-life integration. Their most desired benefits provide flexibility:

Remote work policies – Ability to telecommute and work from home.
Flexible schedules – Freedom from strict 9-5 office hours.
Generous vacation policies – Unlimited or flexible PTO policies.

In a 2019 survey, 88% of millennials identified flexible start and end times as a significant benefit. 75% want access to remote work options. (Source)

Flexible work supports millennials’ conception of work-life integration and desire for autonomy.

Career Development Opportunities

With a drive to continually gain skills and experiences, millennials value benefits that support professional advancement:

Training programs – Access to skill-building and continuing education.
Mentorship – Guidance and coaching from experienced professionals.
Clear promotion paths – Visible opportunities for advancement.

A survey found that 65% of millennials say opportunities for advancement make them more loyal to employers. However, 52% have left a job due to a lack of learning and development opportunities. (Source)

Millennials crave constant learning and progression to build their abilities and careers.

Comprehensive Health and Wellness Benefits

With knowledge of the links between lifestyle and lifelong health, millennials have a strong interest in holistic wellbeing:

Mental health coverage – Support for counselling, therapy, etc.
Wellness programs – Resources for fitness, nutrition, mindfulness.
Healthcare spending accounts – Funds for alternative health services.
Virtual healthcare – On-demand access to medical consultations.

A 2020 LIMRA survey found that 62% of millennials rate access to mental health programs as a very important benefit, and 53% value health and wellness programs. (Source)

Holistic benefits align closely with millennials’ focus on lifelong wellbeing.

Financial Security and Stability

While millennials have a way to go to reach complete financial stability, they highly value assistance and guidance:

Student loan assistance – Contributions towards education debt.
Retirement planning – Customized guidance on preparing for retirement.
Financial literacy programs – Resources to improve money management.

The same LIMRA study showed that 52% of millennials want emergency savings benefits to provide financial security. Additionally, 48% identified student loan assistance as a top priority.

Millennials need help reaching complete financial independence.

Lifestyle Support and Perks

Millennials also appreciate benefits that help integrate work life with personal interests:

Pet insurance – coverage for millennials with “fur babies.”
Fitness benefits – Subsidies for gym memberships and fitness classes.
Company social events – Opportunities to bond with colleagues.

A 2018 Nationwide survey showed that 36% of millennials want access to pet insurance through their benefits plan, and 53% value fitness benefits like gym subsidies. (Source)

Crafting Competitive Employee Benefits for Millennial Workers in Canada

Engaging this workforce demographic requires creating attractive and progressive employee benefits tailored to millennials. HR teams should strategically develop millennial-focused benefits plans aligned with their values.

Offering Maximum Flexibility

Millennials highly value work flexibility. Effective strategies include:

Remote and work-from-home policies
Flexible scheduling options
Unlimited and flexible PTO
Results-oriented work environments
Part-time and job-sharing options

Providing Robust Benefits Packages

Millennials want comprehensive benefits beyond basic health insurance. Include:

Group health benefits, dental insurance, vision care
Group disability insurance and life insurance
Retirement savings plans with robust matching
Health reimbursement arrangements
Employee assistance plans
Health spending and flexible spending accounts
Generous vacation time

Offering Flexible Benefits Solutions

The personalized choice is appealing to millennials. Consider:

Variety in benefits selections
Customizable tech-based benefits platforms
Tiered plan options (good-better-best)
Interchangeable benefits trading specific offerings
Health and lifestyle spending accounts
Regular benefits preference surveys

Ensuring Equitable and Transparent Compensation

Millennials value fair and clear compensation. Best practices:

Competitive salaries benchmarked to industry
Performance-based bonus structures
Clear criteria for raises and promotions
Salary bands tied to job levels and families
Training on compensation structure
Limit on negotiable pay gaps between roles

Supporting Continuous Career Development

Millennials crave ongoing learning and career growth. Effective programs include:

Formal skills training and mentorship
Tuition reimbursement
Coaching and temporary project opportunities
Clear promotion processes

Prioritizing Health and Wellbeing

Millennials link lifestyle and lifelong health. Provide:

Robust mental health coverage
Health spending accounts
Virtual healthcare access
On-site wellness programming

The strategies here will guide companies in crafting progressive benefits packages, flexible solutions, and compensation structures tailored to attracting, retaining and engaging millennial talent.

Best Practices for Communicating Millennial Benefits

Once competitive millennial benefits plans have been created, they must be communicated effectively:

Leverage Technology – Promote offerings using social media, targeted emails and an online benefits portal to align with millennial technical proficiency.

Use Multimedia Content – Produce explanatory videos, webinars, and graphics. Millennials respond more to visual, interactive communication.

Simplify Language – Avoid benefits jargon and convey what is offered in plain language. Millennials appreciate transparency.

Highlight Value – Share stories and testimonials demonstrating your benefits’ tangible value and positive impacts.

Engage in Ongoing Dialogue—Create both formal and informal channels for providing feedback on benefits after rollout. Millennials expect their voices to be heard.

Build Excitement – Generate genuine enthusiasm for your progressive offerings both internally and on external channels like your careers page.

Employers can effectively promote a benefits package tailored for millennial recruits and current employees by combining the right offerings with compelling communication tactics.

Steps for Developing a Employee Benefits for Millennial Strategy

Based on the research presented, the following provides a high-level blueprint for developing a competitive millennial benefits strategy:

Analyze Your Workforce Demographics

Determine size and growth projections for your millennial workforce segment.

Survey Employees Directly

Gather input on desired benefits and offerings.

Craft Benefits Aligned to Millennial Priorities

Emphasize flexibility, development, health, finance, lifestyle.

Allow Personalization and Customization

Provide variety and choice in benefits selections.

Promote Benefits Extensively

Use modern communication tactics tailored to millennials.

Review and Refresh Regularly

Ensure offerings continue meeting evolving needs.

Following these steps will lead to benefits packages tailored for both attracting and retaining millennial talent.

The Bottom Line

As millennials continue to reshape the workforce in Canada, adapting benefits strategies to align with this generation’s values and motivations is a competitive imperative. The costs of failing to appeal to millennials are steep, from recruitment challenges and loss of skills to low engagement levels and high turnover.

However, employers who invest in understanding exactly what millennials want and take steps to provide it will gain talent advantages. For HR teams seeking to future-proof their benefits approach, this guide provides an actionable roadmap for engaging millennial employees through personalized, strategic benefits tailored distinctly to what motivates and appeals to this generation.

Each generation has different needs for benefits. Boomers want part-time work and good healthcare. Gen X needs childcare, tuition help, and flexibility. Millennials and Gen Z want PTO, remote work, development stipends, and student loan help. They value experiences and purpose. To get good people, benefits should match what each generation wants. Some of the employee benefits for tailored needs in Canada include:

FAQs Related To Employee Benefits For Millennial Workers In Canada

How can employers attract millennial talent?

Employers can attract millennial talent by offering benefits like flexible work arrangements, career development opportunities, comprehensive health/wellness benefits, financial support, and lifestyle perks. Millennials also favor customization and variety in benefits.

What benefits do millennials value most?

The benefits millennials value most are remote work options, flexible scheduling, unlimited vacation time, training programs, mentorship, mental health coverage, health spending accounts, student loan assistance, retirement planning, pet insurance, and fitness benefits.

Where do millennials look for their ideal employee benefits?

Millennials evaluate employer benefits packages when searching for jobs. They look for companies touting customized and progressive benefits online, on job boards, social media, and employer career pages. Referrals from friends also influence perceptions.

Why are customized benefits important for millennials?

Customized benefits are important because millennials reject a "one-size-fits-all" approach. They expect benefits tailored to their unique needs and priorities around development, health, work-life balance, and financial security.

When should employers start thinking about millennial benefits?

Employers should start thinking about millennial benefits as soon as they begin actively recruiting younger workers. Even before hiring, millennial-friendly benefits can give a competitive edge.

Do millennial benefits differ by industry?

Millennial benefits priorities tend to be consistent across industries. However, certain benefits like tuition assistance may resonate more in fields requiring professional designations or ongoing training.

Can small companies offer millennial benefits?

Yes, small companies can offer millennial benefits by getting creative with flexibility, career growth, wellness, and lifestyle support. Health spending accounts and virtual healthcare provide affordable options as well.

Is it worth customizing benefits for millennials?

Yes, statistics show the majority of millennials are more likely to accept a job, have higher satisfaction, and increased loyalty with employers offering customized and progressive benefits.

How often should millennial benefits be reviewed?

Millennial benefits should be reviewed at least annually as this generation's needs evolve. Regular surveys provide insight into changes required to keep benefits competitive.

What communication tactics attract millennials?

Tactics like leveraging social media, videos, online portals, and interactive content resonate well with millennials. Clear, transparent language is also important when promoting offerings.

Article Sources

At Ebsource, our mission is to provide Canadians with comprehensive and honest information to help them make sound choices about employee benefits and human resources. We tap into the expertise of seasoned financial professionals to ensure our guidance aligns with industry best practices. The statistics we cite come from reputable government and industry sources like Statistics Canada and the CLHIA to guarantee accuracy.

Our recommendations stem from thorough, unbiased research of the major employee benefits providers in Canada. This allows us to offer advice tailored to individuals’ specific budgets and needs. Ebsource upholds high standards of objectivity, transparency, and independence in all our content. We take pride in producing insights readers can trust by referencing credible sources and adhering to editorial principles. As Canada’s most dependable outlet for employee benefits news and HR insights, we are dedicated to empowering Canadians to make informed benefits decisions.

What Millennials Really Want From Employee Benefits – grouphealth.ca

Attracting And Retaining Millennial Employees – sultanlawyers.com

How to Stay Competitive with Employee Benefits That Millennials Want – simplybenefits.ca

What employee benefits do millennials want? – olympiabenefits.com

Employee Benefits for Millennial Workers in Canada
Ben Nguyen