Aug 17, 2012 --- Honest and
practical education, social media communications and proper incentives will
result in increased retirement plan participation for Generation Y employees. ---
If sponsors understand how Gen Y operates, they can better
engage this group of employees, said Farnoosh Torabi, author and Gen Y money
coach , during MassMutual’s Retirement Services Division’s first PlanSmart
online seminar for plan sponsors called “Who Is Gen Y and Why It’s Important to
Know.” She describes Gen Y, those born between the late 1970s and the 1990s, as
having a strong sense of entitlement, being technology savvy and desiring to
see outcomes right away.
They have also been through the financial crisis and saw the
tech bubble burst, and many are graduating with debt and no jobs, so they are
aware of the value of being financially secure. However, Torabi contends, the
road map for financial security is lacking for Gen Y.
One of best strategies for providing honest and practical
education is to establish a mentor program, according to Torabi. HR may inform
you and give you all pamphlets and resources, but having a resource in the
company who is a few years ahead to encourage you to save and talk about what
they wish they had done differently is more relatable, she said. Volunteers who
have been participating in the retirement plan and can talk about what their
account is doing can help the younger workforce see it and believe
Torabi pointed out this is something
free that every company can provide. Sponsors may want to offer incentives for
mentoring, but many people just want to help.