At the recent Plan Sponsor Council of America National Conference, Erin Lowry, author of the Broke Millennial book series, offered insights on better communication with younger workers.
At the outset, Lowry took pains to distinguish the tensions that currently exist between Millennials and the demographic group behind them—Gen Z. (As a side note, apparently Millennials part their hair on the side, and Gen Z do not—go figure.) Lowry quickly reminded the audience that Millennials aren’t “kids” any more—and they aren’t the ones partying at Spring Break. In fact, the first of that cohort turns 40 on January 1—old enough to sue for age discrimination!
Indeed, while they’re often aggregated in management’s mind, Lowry noted that there are big differences between Millennials and what has been labeled Gen Z, those born between 1997 and 2012 or 2015. The youngest workers today are, in fact, Gen Zers, not Millennials.
Lowry noted that too often benefits communications are “riddled with language and concepts that are foreign” to workers—citing a comment from her Instagram audience that “so often I’ve had to Google most terms HR puts in orientation docs.” You should assume people don’t know any of the lingo, she cautioned—including terms like vesting or matching.
Perhaps more critically, she says that care should be taken to explain that workers are investing for retirement. Failing that, she said that many younger workers don’t understand that those savings actually need to be invested. Lowry says that not only does this have serious financial consequences, but that it’s actually one of the most consistent public service announcements on her platforms.
She did mention that “fear tactics” work, and suggested that starting emails with phrases like “Don’t make this mistake,” or “Are you making this mistake?” actually produce higher engagement. But once you have their attention, she said, you have to explain how to “fix it.” And in that area, she noted that analogies and metaphors can help. For example, she used the example of deciding to participate in a 401(k) as being equivalent to buying a house—but that, having bought the house, it still has to be furnished, walls painted, etc.—and that’s where the investments come in to play.
Lowry also commented that plan communications should “shock and awe” about the impact of compounding. “While fearmongering isn’t often my go-to, it can be effective when explaining compound interest,” she said. She used an illustration that has been around for years—the one where some starts saving early, but modestly—then has to stop saving—compared to an individual who waits to start and then doubles down on the saving rate, but never catches up to the early saver because of compounding—as being particularly impactful.
She also spoke to the advantages of using speakers for the messages that look like “them,” but also to “find people who can break down content in a relatable way.”
As for other creative solutions, Lowry offered the following suggestions:
- Seminars that focus on different segments of your employees and their needs.
- Sessions (or a presentation) from a financial therapist.
- Create a financial wellness book club.
- Set up accountability “buddy groups” focused on certain financial goals, such as debt repayment, investing, saving for life milestones
In closing, Lowry noted that the pandemic has caused a “fundamental shift” in workforce expectations. She commented that people now know that it’s possible to work remotely and have more flexibility—all the time. Moreover, after a year (and then some) of being “locked down,” she noted that benefits like paid vacation that can actually be used “will likely be top of the charts” for many. Also, she commented that people may be more willing to quit before lining up a new job because of the psychology of “losing” a year of their lives.
Ultimately, Lowry explained, paying well and providing benefits that align with your employees’ wants and needs could be a “difference maker” for retention.
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