While salary is understandably top of mind for most Millennials when considering a job offer, that retirement plan may be more valuable than you think.
When thinking about the total financial compensation of a job offer, nearly 4 out of 10 Millennials consider retirement benefits – more than health/medical insurance (28%), paid time off (27%), or stock options and profit sharing (4%), according to a new Fidelity Investments survey. Perhaps more significantly, once a job is secured, 81% with access to a retirement savings plan, such as a 401(k) or 403(b), enroll and take advantage of the retirement savings benefit.
According to the survey, 41% of Millennials (born between 1981 and 1991) are expecting to start a new job in the next two years. And, even though 86% of Millennial professionals are currently happy at work, nearly half (49%) are either actively looking or are at least open to a new opportunity.
Not that it’s all about salary and benefits. Asked how much of a pay cut they would be willing to take for an improved “quality of work life” (such as career development, purposeful work, work/life balance, company culture), Millennials report they are willing to take, on average, a $7,600 pay cut. Furthermore, when asked which is more important when evaluating an offer – financial benefits or improved quality of work life – 58% choose the latter.
The 2016 “Fidelity Investments Evaluate a Job Offer Study” was an online survey conducted among a sample of 1,500 respondents from an online panel, ages 25-70, who work full-time and whose employer offers a defined contribution workplace retirement savings plan. Invitations to participate in the study were sent beginning on February 18, and data collection continued through February 26 by ORC International, an independent research firm.
