You Mean Employers and Employees Are Not on the Same Page?

TS: I’m doing fantastic. Thanks for being here. So in this mini-series of podcasts, I have discussed some different forms of executive compensation and some employee incentives. Call it a 2.0 for younger workers. Our focus for this episode is on employer and employee conflicting views. Have you seen much of this?
MB: Yes, there's definitely always been a disconnect between employers and employees. What employers say is completely different than when employees say, so let me start with the employer side. A total of 67% say that pay matters more than pay-related parks. It's interesting, 73% said employers need to offer customized pay options. They also think that Millennials want to go mobile, so most of them are assuming Millennials want digital experience versus the Gen Xers, and they believe that giving them same-day pay is really going to be an important for the organization. Now let's talk about what employees say. On the flip side, more than half of the employees said that pay options would make a difference in actually accepting an offer, and employees are also focused on choices and flexibility. So the ability to really to choose how often and how early they're paid is important.
TS: I can see that. That makes sense. As a Millennial myself, I would like that flexibility.
MB: Only 12% of Millennials or Gen Xers said they preferred a mobile and digital experience. That's completely different than what the employers thought. And then more than half of workers would pay for early pay and access to their pay for emergencies and unexpected expenses. So they were pretty in line on the employer and employee side.
TS: Well, at least there's one commonality. It's interesting that there are this many different perspectives. What are your thoughts on employer versus employee attitudes about financial wellness?
MB: A total of 95% of employers say that employee financial wellness has an impact on their business, and 81% of employers say offering financial wellness tools and solutions would help their company to attract top talent. Now, what do employees say about financial wellness? Eighty-five percent indicated that financial wellness is important to their overall well-being, and 74% want to work for an employer that cares about their financial wellness. And 72% say employers would take an interest in their financial well-being, and 73% of younger workers say they would share personal information with a payroll provider to receive money management tips and best practices.
TS: So it’s like their version of a trusted advisor. That's pretty cool. I spoke in my last podcast about employee incentives for younger workers, call them Millennials and Gen Zs, who are now starting to come up. What are trends you are seeing with these younger generations?
MB: There’s a ton of different trends that we're seeing. They want to prioritize speed of pay. As you saw, 12% of them want mobile and digital experiences, and as we get into the even younger generations, I think that's going to continue to grow. They are also less likely than older workers to use bank accounts or credit cards—the “Venmo generation.” They desire an off-cycle pay, even if they have to pay a small fee. They want money on the go. They also consider payroll and retirement plan providers equally trustworthy for financial advice. They're really looking for some tools and resources out there to help them, and they’re willing to share information with a payroll provider to get monetary advice.
TS: As much accessibility as they can, which makes sense. Thanks, Meredith, for this useful information. I appreciate it. Before we close, I'd like to provide one of my famous New Jersey fun facts. For our summer beach dwellers, Cape May, which many of you have been to and thoroughly enjoy, is considered the first seaside resort in America. New Jersey is always leading the way. Thank you for listening to “The Bottom Line” as part of the EisnerAmper podcast series. If you have any questions or there's a topic you'd like us to cover, email us at contact@eisneramper.com. Visit eisneramper.com for more information on this and a host of other topics, and join us for our next EisnerAmper podcast when we get down to business.