Many small and mid-sized employers have recruiting on the brain.With a low national unemployment rate and new college graduatesflooding the job market, your clients are likely turning theirattention to their recruitment strategy. But there's one mistakethey may be making when it comes to recruiting millennials.

A robust benefits package is usually the cornerstone of manyorganizations' recruitment strategies. But if your clients aretrying to recruit recent college grads — the youngest generation ofmillennials — they may be focusing too much on their medicalbenefit options and not enough on other offerings that wouldactually make them more competitive with new hires at any age.

In particular, if your clients aren't providing and funding a 401(k), they are likelylosing out on valuable talent. Here's how advisors can helpemployers think about this.

Why the health plan won't attract youngtalent 

Most recent college graduates are around 22 or 23 years old.Because of the Affordable Care Act, a lot of these candidates willremain on their parent's health plan for another three to fouryears.

As a result, a rich medical benefits plan isn't very valuable tothese candidates, and it shouldn't be the defining characteristicof your recruitment strategy.

Of course, your clients will have other employees over the ageof 26 who will benefit from a health plan offering, as well as someyounger employees who do not have their parents' plan as an option.But employers with many millennial employees have an opportunityhere, as well. This generation may be more receptive toHSA-eligible plans, provided you can help your clients equipemployees with the tools they need to be successful with this kindof health plan.

As a result, brokers can play a key role in helping employerstake advantage of cost containment strategies that allow groups toprovide a diversified, competitive benefits package.

The benefits of a401(k) 

Committing to a 401(k) option is one of the best things yourclients can do to attract top talent, from new graduates to olderemployees.

While some employers may balk at the first-year financialcommitment of providing and funding a 401(k), most find it quicklypays for itself in recruitment and retention.

Additionally, administering a 401(k) is not as challenging assome employers anticipate. First, 401(k) costs are easier toproject than the health plan. A flat percentage of payroll iseasier to plan for than varying health care costs.

Second, there are new vendors and tools that make it easier forsmall and mid-sized employers to offer 401(k)s. For example, onevendor is Ubiquity, a low-cost 401(k) administrator that partnerswith Vanguard to allow employees access to low-cost funds.

Why is a 401(k) so important to a competitive benefits strategy?It's a benefit that all employees can take advantage of, regardlessof age or insurance need.

Younger employees, as well as married employees or any otherworkers who have additional insurance options, may choose not toparticipate in the health plan. If your client's benefits strategy is focused on the healthplan, these employees will be missing out on the cornerstone oftheir employer's retention strategy. On the other hand, a 401(k) isvaluable to all workers.

Further, marketing the benefits of compounding interest can makethis a particularly competitive offering for younger workers andnew graduates.

The takeaway is that advisors serving the small and mid-sizedmarket can help their clients diversify their benefits packagebeyond the health plan. In particular, a 401(k) option will be avaluable part of a competitive recruitment strategy, especially forgroups trying to attract younger workers.