Industry News

On February 5, 2020, the National Institute on Retirement Security (NIRS) published its issue brief, Millennial State & Local Government Employee Views on Their Jobs, Compensation & Retirement.  The brief indicates that Millennial employees that work in state and local government are satisfied with their jobs and intend to stay with their employers so long as their benefits are not reduced.

In a nationwide poll of state and local employees, 84% of Millennials are satisfied with their jobs and total compensation.  In addition, 80% of Millennial employees in state and local government believe they could earn a higher salary working in the private sector, and only about one in four consider their salary to be very competitive.  The brief also reported that 85% of state and local Millennial employees plan to stay in their job until they retire or can no longer work.  Over 84% indicated that having a pension benefit was the primary reason for retaining a state and local government job.  About 92% indicated that pensions serve a vital role in incentivizing longer public service careers and 94% believe that offering a pension serves as an effective recruitment tool for new employees.  However, Millennials’ job loyalty would differ if their benefits were changed.

According to the U.S. Bureau of Labor Statistics, over 22.5 million workers are government employees with 14.6 million at the local level, 5.1 million at the state level and 2.8 million at the federal level.  Over 58% of state and local employees work in education, 13% work in public safety and 12% work in health and safety.  In 2019, 32% of state and local employees were Millennials.

The brief concludes, “This research is intended to help government employers and policymakers make informed decisions related to the public workforce and their employee benefits.  Given the value that Millennials place on their benefits, policymakers should use caution when modifying benefits, as such changes could have the unintended consequence of driving Millennials out the door and harming public services.”

The brief is available here.