Youngest workers become increasingly benefits savvy

February 7, 2011

Surveys from Unum show gen Y learning more about financial foundations

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- Over the past two years, the youngest generation in the workforce has become more engaged in learning about the benefits that can help protect them financially, according to studies of generation Y conducted online by Harris Interactive on behalf of Unum (NYSE:UNM).

“Members of this generation are entering the workforce and building careers during a time of economic uncertainty and intense debate over health care reform,” said Barbara Nash, vice president of Corporate Research for Unum. “They’re clearly taking an increased interest in how they can build and protect their financial lives.”

The studies, conducted in August 2008 and August 2010, found that:

  • The percentage of members of generation Y who said they are extremely/very familiar with life insurance jumped from 31 percent to 44 percent.
  • The percentage who said they are extremely/very familiar with retirement accounts grew from 31 percent to 43 percent.
  • The percentage who said they are extremely/very familiar with disability insurance increased from 16 percent to 24 percent.

The workplace continues to be their most reliable source for benefits information, with 68 percent of generation Y employees citing it as a top resource. But they are also more likely to seek out information about financial protection benefits online than they were just two years ago, the study showed.

  • The percentage who use insurance company websites to learn about benefits providers grew from 32 percent in 2008 to 44 percent in 2010.
  • The percentage who visit consumer advice web sites grew from 21 percent to 27 percent.
  • The percentage who participate in online forums or blogs increased from 7 percent to 12 percent.

And as their use of online resources grew, generation Y’s reliance on family and friends as a source of benefits information diminished.

  • Between 2008 and 2010, the percentage who said they rely on parents for benefits information fell from 60 percent to 42 percent.
  • The percentage who cite friends as a resource for benefits guidance dropped from 30 percent to 21 percent.

The survey also showed that the scope of a provider’s benefits is an increasingly important element for generation Y when they’re choosing a carrier. In 2010, 55 percent said scope was an important selection factor, up from 44 percent in 2008.

“This generation of workers is a large and influential group coming of age at a time when the benefits landscape is changing quickly,” Nash said. “Understanding what drives their decision-making and how we can meet their benefits needs on their terms is critical.”

Generation Y numbers about 75 million – nearly the size of the 80-million-strong baby boomer generation.

About the survey

The 2010 wave of this survey was conducted online within the United States by Harris Interactive on behalf of Unum from August 17-19, 2010, among 387 Gen Y respondents (ages 18-32) employed full- or part-time. The 2008 wave was conducted from August 12-14, 2008, among 357 Gen Y respondents (ages 18-30) employed full- or part-time. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. For full methodology please contact Mary Fortune at (423) 294-6368.

About Harris Interactive

Harris Interactive is one of the world’s leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us – and our clients – stay ahead of what’s next. For more information, please visit www.harrisinteractive.com.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2009.

 

 

Source: Unum

Contact:

Unum

Mary Fortune, 423-294-6368

mfortune@unum.com