TM - February 2008 - (Page 32)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning said sometimes employees in this group may take it to an extreme. “Sometimes people e-mail me for things that are not e-mail conducive, and I have to tell them to come see me,” he said. Both companies also have technology that can automatically communicate the complete cost of employee compensation. The cost to maintain that employee, including an itemization of salary and all benefits offered, can be automatically presented when employees log in. This can be an eye-opener for all generations, but especially for those who are younger and may be less familiar with the cost of into the [reality TV] industry. One of the things that makes us an attractive production company is that for many years we have offered subsidized health insurance to employees, when many in the reality industry did not.” Unlike their boomer counterparts, who are more likely to embrace traditional or defined plans, younger employees may be more willing to consider Health Savings Accounts (HSAs) that combine highdeductible health insurance with a tax-free savings account and other plans to make basic coverage more attainable, according to Sandy Huff, of brokerage firm Sandy Huff and Associates in Orange County, Calif. For the self-employed, individuals otherwise without insurance or younger employees requiring less medical care, HSAs can offer greater affordability, flexibility and control. The coverage may make participants more aware of costs and initial out-of-pocket expenses and can help reduce reliance on unnecessary services. While costeffective plans such as HSAs may work well for healthier, younger employees, they may not be as beneficial to older, less fit members requiring higher out-of-pocket costs, or for growing families with young children. To appeal to the younger generations, companies realize they need to use online communications to enable resume submission, benefits podcasts, employee testimonials and online job finder tools. benefits plans. This helps talent managers “sell” their company’s offerings. Talent managers also can solicit feedback on benefit plans offered through online portals or surveys to determine if offerings are meeting employee needs. Less Is More — Sometimes Conversely, younger employees “don’t want to be in a PPO,” according to Huff, “because they usually have to pay a high deductible and may not go to the doctor that much.” Cost was a factor for Bach and his company’s young employees looking at other alternatives. Three years ago, Pie Town offered a PPO plan only, but Bach said when the cost of the PPO went up significantly, participation among young people decreased because many couldn’t afford it. Two and a half years ago, Pie Town decided to also offer employees a HMO-based plan. “It was 50/50 then,” Bach said. “Now, it’s 30/70 in favor of HMO, regardless of generation, because those with families can get the HMO for their family for the cost of a PPO covering just a couple. The HMO for a single individual is 30 percent of the cost of the PPO, the main benefits to the PPO being greater access and no referral required.” Bach also said, in the case of dental, his company’s younger employees also may be more likely to stick with a less expensive plan “if they had a plan through their parents going through college or are just using it once a year for a cleaning,” despite potential drawbacks. In assessing his company’s needs through reporting capabilities in his benefits management software, Bach found more employees were looking to go to Aside from their approach to technology, some of the greatest differences between Gen X, Gen Y and the boomers can be seen in the benefits they seek. Employees from the boomer generation typically have been in the workforce longer, know exactly what they want when it comes to health coverage and may make employment decisions based on that information. Younger generations may be less likely to have preexisting medical conditions, may not see the need for specialized care, may be on their parents’ plan, or have gotten by with minimal or no coverage in college. They may be less familiar with the cost of health care and individual services through lack of necessity. Those from Generation Y may be more concerned with gaining experience and getting their feet wet. They may prefer higher salaries over benefits, since many are just starting out, paying back college tuition, and often living paycheck to paycheck between car loans and first apartment rent. “It’s a different challenge for us in terms of recruiting and hiring,” Bach said. “A lot of people want to get February 2008 32 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - February 2008

Talent Management - February 2008 Editor's Letter - Talkin' 'Bout My Generation Contents Human Performance - Achievement Motivation: Top Talent At Any Age Leading Edge - Who's On First? Foundations - Managing the Next Generation Workforce Viewpoint - Talent Strategies That Work Are Talent Strategies That Stick Those Who Have Left: The Value of Building Employee Relationships Alternatives to 360s: The Manager's Role Compensation and Benefits For X&Y Build A Multigenerational Performance Management Strategy Development's Role in Creating A Culture Of Inclusion Tomorrow's Leader: Identifying the Next Generation Integrating Talent Management Systems Strategically Seagate Uses Yearlong Evaluations to Help Integrate Talent Efforts Western Union: Connecting Strategy and People Globally Advertisers' Index Editorial Resources Full Potential - The Best Time to Change? Right Now!

TM - February 2008

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