We have partnered with Equias Alliance, a nonqualified benefits plans and BOLI company, on a few compensation projects and one of its principals, Ken Derks, wrote a recent excellent article titled, “Compensation Strategies to Attract, Retain and Motivate Millennials.”
One of his statements summarizes well where the millennials are financially. “While millennials have essentially the same financial needs as the generations preceding them, their time horizon to retirement can be 30-plus years or more, which is too far into the future for them to focus on when faced with immediate financial planning decisions, like retiring student debt, purchasing a home and providing for their children’s education.” Ken offers a recommendation to meet the financial needs of the millennials by stating, “For the next generation of leaders, managements and boards should consider nonqualified benefit plans that allow for in-service distributions timed to coincide with events such as a child entering college or to pay off college debt. Plan payments made to the participant while still employed can be made at some future point such as three, five or ten years.”
As companies are transitioning their work forces from the baby-boomers to the millennials, the importance of providing a competitive base salary coupled with performance-based incentive and retirement plans will help to attract, retain, and motivate the millennials and other generations to follow.
Johanson Group has worked with all types of companies and organizations for the past 44 years in the areas of compensation management, strategic planning, training and development, and management consulting. We have taken our copyrighted job design and compensation methodologies and created software that is licensed through another company we own, DB Squared. DBCompensation and DBDescriptions provide the front-end of the total rewards equation. Please contact us to learn more about our consulting services and software products. If you would like to contact one of our partner companies, Equias Alliance, their website is www.equiasalliance.com