millennial benefit preferences study

Millennial Benefit Preferences Study2015

Peanut ButterStudent Loan Repayment

Summary of FindingsBenefit Preferences of College-Educated Millennials

THE AVERAGE RESPONDENT PREFERS STUDENT LOAN REPAYMENT NEARLY 2X MORE THAN 401(K) CONTRIBUTION, 2X MORE THAN HEALTH INSURANCE, 7X MORE THAN FOOD, 11X MORE THAN GYM MEMBERSHIP AND 12X MORE THAN ENHANCEMENTS TO THE WORKPLACE ENVIRONMENT

27% OF RESPONDENTS PREFER STUDENT LOAN REPAYMENT 18X MORE THAN 401(K) CONTRIBUTIONS AND 23X MORE THAN HEALTH INSURANCE CONTRIBUTIONS; THESE INDIVIDUALS ARE MORE LIKELY TO BE FEMALE AND MINORITY ETHNICITIES

COMPANIES THAT SHAPE THEIR EMPLOYEE VALUE PROPOSITION BASED ON THE DEMANDS OF MILLENNIAL WORKERS HAVE AN OPPORTUNITY TO ATTRACT MORE QUALIFIED TALENT AND KEEP PRODUCTIVE WORKERS ONBOARD LONGER

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RESPONDENTS INDICATED A WILLINGNESS TO STAY AT A JOB AT LEAST 36% LONGER (1.3 ADDITIONAL YEARS) WHEN AN EMPLOYER OFFERS STUDENT LOAN REPAYMENT

85% OF RESPONDENTS WOULD ACCEPT A JOB OFFER WHEN STUDENT LOAN REPAYMENT IS INCLUDED

73% of respondents are currently unsatisfied withat least one benefit/perk provided by their employer

27%

73%

Free mealsWorking environment

Gym membershipDiscounts Pet insurance

Public commuting

Long term care insurance Student loan forgivenessHousekeeping service Flu shots

Free job training Benefits for spouseCarpooling Office supply allowance

Car insurance Paid company parties HousekeepingPaid further education PTO Perks Site

Tuition reimbursement Financial advising

DOES YOUR COMPANY CURRENTLY OFFER ANY BENEFITS OR PERKS THAT YOU DON'T VALUE? IF SO, WHAT?

YES NO

3

85% of respondents would accept a job offer when student loan repayment is included

IF YOU RECEIVED JOB OFFERS FROM TWO EMPLOYERS WITH IDENTICAL SALARY, BENEFITS, AND PERKS, BUT EMPLOYER #1 ALSO OFFERED TO CONTRIBUTE TO THE REPAYMENT OF YOUR STUDENT LOANS,

WOULD YOU ACCEPT THE JOB OFFER FROM EMPLOYER #1?

YES NO IT DEPENDS

4

85%

13%3%

Respondents indicated a willingness to stay at a job at least 36% longer (1.3 additional years) when

an employer offers student loan repayment

5

IF AN EMPLOYER PROVIDED YOU WITH COMPETITIVE SALARY, BENEFITS, AND PERKS, ABOUT HOW LONG WOULD YOU EXPECT TO STAY WITH THIS EMPLOYER?

20%

40%

60%

80%

100%

0 1 2 3 4 5 6

99%91%

70%

Average 5.0 years

Average 3.7 years

58%48%

44%42%

35%

21%19%

65%

92%More than 2x as many people said they would stay 6 years or more, when employer contributes to

student loans

College-educated Millennials prefer student loan repayment 2-12x more than other perks and benefits

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IF YOUR EMPLOYER WERE WILLING TO CONTRIBUTE $1000 TOWARD ANY OR ALL OF THE FOLLOWING BENEFITS, HOW WOULD YOU PREFER THE MONEY BE DISTRIBUTED?

AVERAGE SPEND PREFERRED

Student loan repayment

401(k) contribution

Health insurance (e.g., premiums, HSA, FSA)

Food (e.g., breakfast, lunch, snacks, soda)

Gym membership

Workplace environment (e.g., foosball tables, artwork, leather sofas)

$0 $250 $500

$418

$239 2 x

2 x

7 x

11x

12x

$181

$63

$38

$35

27% of respondents prefer student loan repayment 18x more than 401(k) and 23x more than health

insurance contributions; these individuals are more likely to be female and minority ethnicities

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Cluster Analysis

15%

25%

35%

27%LOVE STUDENT

LOAN REPAYMENTSLIGHTLY PREFER 401(K)

CONTRIBUTIONS

LIKE STUDENT LOAN REPAYMENT

SLIGHTLY PREFER HEALTH INSURANCE

CONTRIBUTIONS

Implications for Companies

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Implications for Employers


9

Modest contributions to employee student loans can help attract talent

85% of college-educated Millennials would accept a job when student loan repayment is offered

SHORTEN HIRING TIMELINE

DECREASE COST TO HIRE

INCREASE QUANTITY OF APPLICANTS


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Voluntary attrition can be reduced by offering benefits employees value

College-educated Millennials expressed a willingness to stay 36% longer when an employer offers student loan repayment

SPEND LESS ON TRAINING

REDUCE HIRING COSTS

AVOID LOST PRODUCTIVITY

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Careful refinement of the employee value proposition can improve diversity and help companies become an employer of choice

The group of college-educated Millennials that values student loan repayment 18x more than 401(k) and 23x more than health insurance contributions included significantly more females and minorities than the sample’s average

ASSIST IN RESOLVING AMERICA’S $1.2T STUDENT DEBT PROBLEM

HELP EMPLOYEES GET OUT OF DEBT

DIFFERENTIATE VERSUS COMPETITORS

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Peanut Butter makes it easy for companies to offer student loan repayment

Communicate plan benefits and rules to eligible employees

EMPLOYEE ENROLLMENT

Set employer contribution amount and identify eligible employees

PLAN SETUPSecurely route payments to ensure

maximum benefit to employees

PAYMENT MANAGEMENT

$

Validate loan information and loan servicer accounts of enrolled employees

LOAN VERIFICATION

getpeanutbutter.com

START TODAY ATSecurity, controls, and audit reporting

for info in transit and at rest

SECURE ENVIRONMENT

Track contributors, quantify impact and handle questions

REPORTING & SUPPORT

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Methodology and Demographics

Methodology

THIRD PHASE: QUANTITATIVE RESEARCH AND ANALYSIS, CONDUCTED BY FC CONSULTING

SECOND PHASE: SURVEY TESTING, CONDUCTED BY FC CONSULTING

FIRST PHASE: FOCUS GROUP INTERVIEWS, CONDUCTED BY FC CONSULTING

• 1:1 interviews regarding perceptions of benefits and perks

• Self-administered, online survey delivered via email to 62 testers, completed July 5–8, 2015

• Self-administered, online survey, open from July 26 – August 9, 2015

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• Distribution included: Email, Handouts, Craigslist, Amazon Mechanical Turk, Facebook, Reddit, Twitter, LinkedIn

• 717 total respondents

• 229 disqualified based on Age (“20 years old, or younger,” “35 years old, or older,” no response); study intended to focus on Millennial generation

• 26 disqualified based on Education (“High school diploma, or less,” no response); study intended to focus on individuals with at least some college education

• 62 disqualified based on Incompletion (no response to final required question)

• 400 qualified and complete responses (n=400 for all charts in this presentation)

• Survey data analyzed and questions refined

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Gender Employment Status

MALE FEMALE

Yes, salaried

Yes, hourly

No, enrolled in school full time

No, retired or not searching for work

No answer

0% 100%50%

0%

3%

7%

36%

54%

50%50%

16

Student Loan Balance Household Income

$100,000 or more

$80,000 - $99,999

$60,000 - $79,999

$40,000 - $59,999

$20,000 - $39,999

$5,000 - $19,999

$1 - $5,000

0

No answer

0% 60%30%

2%

16%

23%

33%

14%

5%

4%

1%

3% $200,000 or more

$150,000 - $199,999

$100,000 - $149,999

$75,000 - $99,999

$50,000 - $74,999

$35,000 - $49,999

$25 - $34,999

Less than $25,999

No answer

0% 60%30%

9%

16%

17%

19%

22%

9%

5%

2%

2%

Home and Workplace

17

25%

11%

5%

15%4%

39%LIVE URBAN & WORK URBAN

NO ANSWERLIVE RURAL & WORK RURAL

LIVE SURBUBAN & WORK SURBUBAN

LIVE SURBUBAN & WORK URBAN

LIVE URBAN & WORK SURBUBAN

LIVE URBAN & WORK RURAL, 0%

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Years Since Completing Most Recent Degree

Industry You Work In

0% 60%30%

No answer 9%

1 year, or less 16%

2 years 23%

3 years 12%

4 years 9%

5 years 9%

6 years 5%

7 years, or more 17%

0% 60%30%

Retail 7%

Utilities 1%

Oil & Gas 0%

Industrials 4%

Telecommunications 3%

Basic Materials 4%

Travel & Leisure 2%

Advertising, Communications, and Media 7%

Other 9%

Government or Nonprofit 10%

Consumer Goods 11%

Technology 13%

Financials 13%

Healthcare 14%

19

60%

No answer

0% 30%

Southwest - AZ, NM, OK, TX 6%

West - AK, CA, CO, HI , ID, MT, NV, OR, UT, WA, WY 16%

Southeast - AL, AR, FL, GA, KY, LA,MS, NC, SC, TN,… 13%

Northeast - CT, DC, DE, MA, MD, ME, NH, NJ, NY,…

17%

Midwest - IA, IL, IN, KS, MI, MN, MO, ND, NE,…

46%

2%

Region Ethnicity

White

0% 60%30%

Pacific Islander 1%

52%

Prefer not to answer 4%

Hispanic 15%

Asian 11%

African American 17%

2%No answer

millennial benefit preferences study

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