Born between 1997 and 2012, Generation Z (Gen Z) is the youngest subset of employees currently entering the workforce. According to the World Economic Forum, Generation Z will represent 27% of the workforce by 2025.1
Gen Z is forcing a shift in the workplace and prompting employers to focus on building a more inclusive work environment and a stronger company culture and providing more benefits offerings.
When it comes to job searching, this generation prioritizes a flexible workplace, meaningful work and increased support for mental health.
As Gen Z continues to join the U.S. workforce, it’s important that your company has tools and practices in place to attract and engage a diverse workforce, and this includes more than traditional employee benefits.
Provide the Benefits Gen Z Really Wants Your Gen Z employees have different priorities than your Boomer employees, so be sure to develop employee benefits packages for a multigenerational workforce.
Gen Z and Millennials are graduating college with a record-high student-loan debt. Offering loan repayment matching or tuition reimbursement benefits would be advantageous and appealing to employees looking to manage student-loan debt.
According to a recent study, nearly half (46%) of Generation Z say they are stressed or anxious all or most of the time.2 And more than any other generation, Gen Z is focusing on prioritizing their mental health—employees want employers to provide access to resources, a culture of well-being, and empathetic leadership. The first place to start is offering your employees resources and access to mental health services.
A creative way to accommodate employees of all generations is by offering a variety of voluntary benefits, which allows employees to build benefits packages that meet their priorities and needs, without breaking the budget.
Offer employees benefits they want, which will not only boost employee satisfaction and engagement in the workforce but also appeal to a multigenerational workforce.
Educate Gen Z on Benefits & Communicate Through the Right Channels Only 56% of Generation Z employees say their employer’s benefits communications are easy to understand.3
Gen Z grew up with technology and are reliant on it for any sort of communication, especially in the workplace. Materials provided should be short and to the point—tailor these pieces to what matters the most. Communicate with employees online and don’t be afraid to utilize text messaging.
Provide employees with valuable benefits information not only during open enrollment but also all year round. This allows you to tie in relevant benefits information throughout the year.
Work with your benefits professional to customize educational materials for your employees to allow them to fully understand the advantages to the benefits you are offering and the value.
For example, many consumers assume life insurance is for individual with families or children, but do your Gen Z employees know that if they have student loan debt, a life insurance policy can be effective in protecting their family from inheriting this debt in case of an accident?
Communicating your company’s benefits plan in an easy, understandable way will help Gen Z employees fully comprehend the benefits they are being offered and how to utilize them.
Offer Flexible Benefits While Gen Z employees are looking for a flexible work environment, it is also important for these employees to have benefits packages that are flexible and can be personalized. Health Insurance is still a top priority among this age group, but the way they consume their benefits is different than other generations.
Making sure your benefits are inclusive and easy for all employees to access is key. Gen Z wants quick and immediate access to their benefits. For example. by offering telemedicine benefits, employees can gain access to on-call doctors and mental health professionals 24/7.
Ascela helps employers like you build benefits packages that drive employee engagement among a multigenerational workforce including Gen Z. They help you put the tools and practices in place to help both you and your employees succeed.
Contact our team of experts today to discuss building an employee benefits package that covers the benefits your employees want.