Don't Underestimate Millennials' Commitment to Public Sector Work

• By: admin
• On: 03/11/2020 13:24:33
• In: News
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Who are the public sector leaders of tomorrow, and what will it take to keep them in their jobs? A new issue brief from the National Institute on Retirement Security, “Millennial State & Local Government Employee Views on Their Jobs, Compensation & Retirement,” sheds light on this very important question.

More than 6.3 million Millennials — members of the generation born between 1980 and 1995 — work in state and local government, making up 32% of the state and local workforce, NIRS notes.

And contrary to stereotypes that they are part of a restless, unfocused generation, Millennials in public service are overwhelmingly satisfied with their current job and intend to stay with their employers unless their benefits are cut.

“Unless,” of course, is the rub. We live in a time of rampant attacks on public pensions and other benefits provided to hardworking public servants during their careers and upon their retirement. The NIRS study deserves a close look, because it provides valuable insights into the workplace motivations and worries of the largest demographic group of working adults in the U.S.

Drawing on a nationwide survey of 1,118 public sector employees, NIRS found that 84% of Millennials working in state and local government say they are satisfied with their job. Their job satisfaction is high even though most Millennials in state and local government (80%) believe they could earn a higher salary working in the private sector, and only about one on four see their salary as very competitive.

Keeping workers satisfied matters, because filling jobs is one of the biggest issues confronting state and local governments today. We all know that public employees perform crucial work in field including public safety, healthcare and education. But the gap between open positions and the talent available to fill them is widening. A 2019 study by Accenture found that from 2013 through 2017, job postings in 27 states increased 11%, while the number of applicants fell 24%.

The NIRS issues paper finds that pensions are viewed positively by an overwhelming 97% of Millennials who work in state and local governments. It's not surprising that when Millennials are asked their opinion of the features of their state and governmental pensions, they give the highest marks to income that lasts through retirement (82%) and monthly checks (79%.) But it's fascinating to me that 67% cite the fact that pensions allow employees to focus on their jobs rather than worrying about retirement. We can't talk about this point enough.

The vast majority—92%—say pensions are an incentive to have a long career in public service, and 94% say pensions are an effective tool in recruiting. 

The issue paper also taps into Millennials' worries. Fully 85% describe themselves as concerned that retirement benefits could be cut, and 78% fear the possibility of cost-of-living-adjustment cuts. And 84% worry about governments underfunding the plans.

Eliminating pensions would undermine state and local governments' ability to recruit and retain workers to deliver public services, according to 92% of respondents. Vast majorities say the effects of eliminating pensions would also be felt in education (86%) and public safety (82%).

These concerns deserve our scrupulous attention. Millennials are already one-third of the public sector workforce, and undermining their pensions and benefits is a dangerous game at a time when retention of highly qualified workers is a real challenge. 

If policymakers listen now to Millennials and exercise caution when modifying benefits, we can avoid the unintended consequences of driving this generation out the door to the private sector. That outcome would be detrimental to a public that counts on dedicated workers to provide critical services.

Millennials are highly supportive of pensions and understand that eliminating them would have negative consequences. It's bound to be fascinating to watch as this generation comes into its own in the coming decades and begins to put its imprint on public policy.