38 Human Resource Executive®
WORDS OF AUTHORITY
How America’s Largest Working
Generation Makes Benefits-
Jennifer Beck, Director of Customer Experience, ARAG
Millennials are the fastest- growing segment of today’s workforce. They’re also the
largest age group in the United
States. Employers and benefit
providers need to understand their
habits, behaviors and expectations
because millennials’ influence on
how companies recruit and retain
employees will only continue to grow.
In October 2017, ARAG® legal
insurance commissioned Russell
Research to study millennials’
perceptions and buying habits when
it comes to employer benefits in
general and specifically regarding
legal insurance.1 (For the purposes of
this study, Russell Research defined a
millennial as someone born between
1981 and 1997.) The results of the study
may surprise you.
How Millennials Select Benefits
When it comes to the benefits-
1. “What essential benefits do I
enrollment process, millennials take a
meticulous approach. In fact, millennials
review every single one of their benefit
options to see what is available to them.
As they review their options, millennials
carefully evaluate need and cost, and
Millennials evaluate available
benefits using a three-step process:
need?” Millennials prioritize medical
benefits over everything else, followed
closely by dental benefits.
2. “Of the remaining non-essential
options, which ones am I interested
in?” Millennials want benefits that feel
personalized and useful.
3. “Based on my budget, which
of these benefits that I want can I
afford?” Millennials are more cost-conscious than other generations
when it comes to benefits. While 50
percent of millennials consider their
budget when selecting benefits, only 42
percent of older generations do.
Millennials and Legal Insurance
Based on their financial focus and
careful evaluation during the benefits
process, you might think millennials are
unlikely to select a voluntary benefit
like legal insurance. In fact, the study
revealed they are more likely ( 41
percent) to purchase legal insurance
compared to older generations ( 30
Why the disparity? One reason is
the fear of an impending legal issue.
Of the millennials surveyed, 35 percent
believed they would likely experience
a legal issue in the next year, while only
26 percent of other generations felt a
legal problem was on the horizon. Fear
is a powerful motivator for millennials,
an anxious generation that has come of
age during a time of rising education
costs, growing debt and increasing
When millennials surveyed were
asked why they would be interested
in purchasing legal insurance, two
common themes emerged:
Peace of mind: Millennials
understand that uncertainty and
risk go hand in hand. For these
individuals, having legal insurance is
worth the expense because “anything
can happen,” and they want to be
protected, even though they may never
need to use it.
Hedge against future expenses:
Millennials understand the potentially
high cost of legal help and would
instead pay for insurance as part of
their benefits package rather than have
to pay out-of-pocket for legal help in
What Millennials Want to Know
When Deciding to Purchase
Beyond their likelihood to buy legal
insurance, millennials were also asked
to share what information they expect
to receive when deciding whether to
purchase legal insurance. The top things
that should be communicated are:
Comprehensive coverage details:
Millennials want to know the specific
legal matters covered by their plan, with
as much detail about all coverage.
Clear outline of services provided:
Does the legal plan provide phone
advice? In-office consultations?
Representation? Online resources?
Millennials want to know it all so they can
see what they are getting for their money.
Potential cost savings: Millennials
appreciate plan materials that show how
much they can save. They prefer visuals
that compare costs.
How Do Millennials Want to
Communicate When Solving
Their Legal Issues?
Millennials, a generation synonymous
with digital communication, surprisingly
shared that, when it comes to working
with attorneys, they prefer face-to-face
interaction—over a phone call or email.
Yet they also expect attorneys to be
available in non-traditional settings and
via email or online chat.
When it comes to employer benefits,
millennials are protection-minded. They
scrutinize their options, weighing needs
and costs. And they are more likely than
other generations to purchase legal
insurance. As the largest generation in
the workforce, millennials will continue to
drive companies to offer legal insurance
and other innovative benefits that offer
real value to their generation, other
generations and the employer.
Millennials Older generations
Face-to-face meeting in office 64% 74%
Phone 42% 65%
Email 42% 27%
Face-to-face at coffee shop 16% 14%
Text messaging 11% 4%
Online chat 9% 4%
Video chat (Skype, Face Time) 8% 6%
1 Researchers collected data from 1,000 online interviews with millennials and members of older generations. Additionally, researchers
conducted 100 in-depth interviews with millennials to gain more detail and personal insights into their legal-insurance purchasing behaviors.
Communication Preferences When
Working With Attorneys