Although Gen Y workers continue to job-hop more than Gen X and Baby boomers, their churn rate is decreasing as their attitudes change regarding finances, employment and greater appreciation of employee benefits.

According to a PricewaterhouseCoopers’ survey, Gen Y employees voluntarily left in greater proportions (14.5%) than Gen Xers (7.7%) and older workers (5.4%). Nevertheless, the percentage of Gen Y emigrants declined from 17.2% in 2007 to 14.5% in 2008. Still, this trend is not expected to last, say PricewaterhouseCoopers prognosticators.

For those who decide to stick around, increasingly, they are becoming concerned about their finances, leading them to value traditional benefits more than they did in the past. Three out of four employees ranging from 22 years to 33 years old feel secure in their jobs, yet over 70% are very concerned about their finances and have set the goal of daily money management and budgeting as their biggest focus, finds a recent Fidelity Investments study.

Of the 1,000 who were surveyed, 64% are tech-savvy when it comes to monitoring their cash flow with the percentage checking their balances online before making a purchase of $300 or more. On average, this age group holds over three credit cards with one fifth (20%) carrying a balance greater than $10,000 and one in four (25%) believing they will never be liberated from credit card debt during their lifespan.

Many young employees (41%) cite the economic crisis as making their generation more conservative, which is mirrored not only in their financial decisions, but also their employment choices. More Gen Y workers today show a reluctance to “job hop” with one in four saying they intend to remain with a current employer until retirement, up from 14% of those surveyed in early 2008.

In terms of what Gen Y employees value in their benefits, 75% agree that work-life balance still drives their career choices, in line with what they reported in early 2008, but workplace benefits have taken on greater importance. The majority of those surveyed said that the quality of benefits packages influences their choice of employer today with slightly more (64%) stating it also enhances their job loyalty.

Interestingly, 44% believe that the value of the benefits they receive should be tied to workplace performance with nearly 49% perceiving the current system as a “one size fits all” system. When posed the question, which benefits are a “must have,” Gen Y respondents ranked health insurance first (82%), followed by paid vacation time (68%) and access to a retirement savings plan (57%).

“The change in the mindset of young workers has been remarkable,” says Brad Kimler, executive vice president of Fidelity’s Consulting Services business. “Their attitudes and views toward their employer and finances are now more conservative and reflective of their parents’ generation, yet this generation will be faced with different challenges including higher debt, greater responsibility for costs associated with benefits and less access to traditional pensions.”

Unfortunately, many Gen Y individuals are stuck in the immediacy of the recession, instead of looking ahead to their retirement future. Nearly half (47%) of Gen Y employees with an employer-sponsored retirement savings plan report that attending to everyday finances, such as paying the mortgage or credit card debt, is a more crucial obligation than saving for retirement. The majority (57%) believes that employer-sponsored plans are the best way to save for retirement. Currently, 18% consider saving for retirement to be their “most crucial goal” versus just 13% in 2008.

“Many Gen Y-ers have become more engaged with their finances through this economic downturn and are recognizing how critical it is to save early for retirement,” says Philippe Mauldin, executive vice president, Workplace Investing at Fidelity. “However, this is the life stage when retirement is competing with an ever growing list of financial priorities.”

Similar to many Americans, Gen Y workers consider rising unemployment as one of the most important issues facing their generation today. Faced with this unfortunate reality, many find themselves faced with a decision of whether to roll over their workplace savings, cash out, or remain in their current plan. The Fidelity study found that guidance proved paramount in that decision. Job changers who had funds in an employer-sponsored retirement plan and sought guidance cashed out 29% of the time versus 49% for those who didn’t receive advice.

Overall, 35% of Gen Y job changers with funds in a plan reported that they had cashed out of their 401(k) or 403(b)s during their most recent job change. The most common reasons for doing so were: a small balance perceived to not be worth rolling over (30%); job loss led to a greater need for funds (24%); they required the capital to make a large purchase (20%); or money was needed for every day expenses (19%).