but first, they need to pay off their student loans. bonus: what millennials want in a first job.
by 卡塔尔世界杯常规比赛时间 research
as they prepare to enter the workforce, 70 percent of young adult job seekers say the freedom of being their own boss is worth more than the benefit of job security working for someone else.
additionally, 53 percent say they are likely to start their own business in the future, according to new research from the aicpa, which took the opportunity to promote cpa services to the wanna-be entrepreneurs.
although the new study has no data on cpa-bound graduates, it provides some insight into millenials’ plans both as potential clients and as staffers.
“it’s not surprising that the generation currently entering the labor market is looking beyond the traditional approach of rising through the ranks in a well-defined career path,” said gregory anton, cpa, cgma, chairman of the aicpa’s national cpa financial literacy commission. “developments in technology and the internet have made it easier than ever to start a business. however, they have not necessarily made it easier to succeed.”
the survey was fielded by mavy poll on behalf of the american institute of cpas among millennials who graduated from college in the last 24 months or will graduate in the next 12 months and are currently looking for employment – referred to as “young adult job seekers.”
ambitious young entrepreneurs are not alone. each month, approximately 540,000 people become new business owners. contrary to the commonly-held belief that most businesses fail to gain any traction, according to the small business administration, roughly 80 percent survive the first year. however, the success rate of small businesses begins to fall sharply as time goes on. only about half survive past the five-year mark, and beyond that, only about one in three get to the 10-year mark.
in other findings from the survey, the aicpa reports: health insurance, paid time off, and student loan forgiveness top the list of millennials’ desired workplace benefits.
- nearly two-thirds of young adult job seekers have student loan debt, with an average of $33,332.
- millennials with loan debt value more help with repayment over all other employee benefits.
when asked to choose the top three benefits that would most help them achieve their financial goals, young adult job seekers top two choices focused on the traditional benefits of health insurance and paid time off. interestingly, student loan forgiveness was the third most cited option.
this goes to show employers that along with health and work-life balance, student loans are a primary concern for young adults entering the workforce. this priority placed on paying off student loans may lead some new graduates to pursue careers in public service where student loan forgiveness is a more common incentive.
| young adult job seekers | |
| benefit | chosen in top 3 by: |
| health insurance |
54% |
| paid time off |
45% |
| student loan forgiveness |
41% |
| working remotely |
38% |
| 401k retirement fund match |
36% |
| tuition reimbursement |
25% |
| pension |
15% |
| paid parental leave |
13% |
the relatively low number (36 percent) that selected 401(k) match may be explained by retirement seeming like it is in the distant future. however, individuals with the longest time until retirement stand to gain the most from this benefit. those just entering the workforce should aim to contribute enough to get the entire employer match. otherwise, they are essentially missing out on a 100 percent return on their investment that will continue to compound over time.
“early career decisions often have a major impact later in life,” says anton. “a mentality of ‘i’ll start saving when i get a bit older’ often results in retirement savings being put on the back burner. however, by beginning to save towards retirement as early as possible, new graduates will benefit from decades of compounding growth. time is an asset, and those just starting their career are in a prime position to take advantage of it.”
while student loan forgiveness was the third most popular benefit overall for young millennials– among those with outstanding loan debt, student loan repayment was viewed as being a more important use of their benefit dollars than any other comparable benefit.
when given a hypothetical $100 to have an employer split between paying a portion of their student loan debt versus putting towards a specific benefit, young job seekers burdened by student loan debt said they would prefer their employer put more money towards paying their student loan debt in all cases.
|
most desired workplace benefits among young adult job seekers with student loans |
||
| benefit | dollars towards benefit | dollars towards student loan debt |
| health insurance |
$ 39 |
$ 61 |
| paid time off |
$ 39 |
$ 61 |
| tuition reimbursement |
$ 39 |
$ 61 |
| life insurance |
$ 37 |
$ 63 |
| 401k retirement fund match |
$ 35 |
$ 65 |
| day care |
$ 21 |
$ 79 |
“student loan debt can cause recent graduates to make the mistake of looking past the benefits an employer is offering and just focus on the salary. wide disparities between health insurance options, employer retirement contributions as well as vacation and sick leave underscore the need for prospective employees to fully understand the value of the benefits being offered to them,” added anton.
the full results of the survey conducted by mavy poll on behalf of the aicpa, along with further analysis, are available in a free employee benefits report on the aicpa’s 360 degrees of financial literacy website. the site also features multiple free resources including information about what questions to ask when evaluating benefits as well as a wide variety of calculators on topics such as 401(k)s, loan repayment and setting a monthly budget.
additional survey findings:
- it’s clear that young adult job seekers understand the value of employee benefits, even if there isn’t a consensus among them on which are the most valuable. in fact, they estimated on average, workplace benefits represent 32.7 percent of total annual compensation. this is quite accurate, as per the bureau of labor statistics, benefits average 31.4 percent of a total compensation package.
- despite the majority of those surveyed currently having student loan debt, 64 percent of young millennials said they plan to return to school at some point.
- a bureau of labor statistics report that found baby boomers held an average of 11.9 jobs from age 18 to age 50. millennials have a reputation for job-hopping. however, when asked, the average young millennial said they expect to work 4.6 jobs throughout their lifetime.
- nearly 9 in 10 young millennials are confident they understand all the benefits available to them. similarly, 85 percent are confident they will use the benefits available to them to their fullest potential whenever possible.
- more than two-thirds of young millennials expect the value of employer-offered benefits to increase in the future.