Attracting Gen Z employees with smart benefits strategies

While every person is different, research shows the world in which a generation grows up strongly influences its shared perspectives.

For Gen Z — individuals born between roughly 1997 and 2012 — this means many factors are at play. They’re the first full “digital natives,” developing in a world defined by constant access to the internet, social media and, more and more, artificial intelligence (AI). They have also lived through the global pandemic, urgent climate change challenges, more intense geopolitical tensions and economic instability.

As a result, surveys show that having a purpose and work-life balance are more important for them than other generations.^1,2,3 Nearly half of them report feeling financially insecure — and most don’t expect this to improve soon.²

These values include:

• Making a difference
• Racial justice
• Inclusivity
• Environmental sustainability²

They’re also highly engaged in social and political issues, particularly through social media, more so than older generations.¹

In addition, Gen Z reports the highest levels of stress and mental health concerns of any generation in the workforce right now. More than half have been diagnosed or treated for a mental condition.^1,4 Anxiety and depression are among the most common. 

When it comes to work, Gen Z wants to work where they feel important. They want to work in companies that offer chances to grow, learn and be mentored. They’re also largely aware of AI and keenly focused on how to learn to use it to strengthen their skills, contributions and career prospects.

Yet for Gen Z, growth is more about continuous learning than about climbing a traditional corporate ladder. Compared with previous generations, fewer Gen Z individuals express interest in becoming senior leaders.^2,5

Like millennials, they also look for employers who prioritize whole-person health — physical, mental, emotional, financial and social well-being.

Importantly, when these needs aren’t met, Gen Z is more likely to move on. Even as many are still entering the workforce, those already employed show the highest likelihood of leaving their jobs compared with other generations.⁶

To recruit and keep Gen Z talent, employers should focus on creating workplace cultures that prioritize whole-person health and well-being. They should also offer meaningful opportunities for growth and development that align with employees’ values.

Whole-person health benefits programs provide support for everyday life. They help employees:

• Handle stress
• Build resilence
• Navigate life’s challenges including everyday, unexpected and crisis events  

A win-win employee benefits strategy meets Gen Z where they are, reflects their values and addresses their physical, mental, financial and social well-being.

Organizations that prioritize well-being report up to 20% higher productivity, lower absenteeism and 10% higher retention rates.⁷ These programs also play a critical role in attracting talent and enhancing your organization’s reputation.

And when employees feel supported culturally, they’re more likely to engage with resources earlier. This helps to:

• Prevent escalation
• Reduce crises
• Improve productivity
• Manage costs  

For Gen Z employees, this often translates to giving flexible ways to get support, offering a broad range of choices and creating programs that reflect their values. 

1. Support mental health. Offer resources to handle stress, anxiety and depression. These choices can include 24/7 emotional support, self-care apps such as Calm, coaching, therapy and fitness programs. Encourage peer support through wellness challenges and group activities.
2. Supply digital tools. Offer mobile-friendly platforms such as Engage, virtual visits, peer-to-peer chats and online learning modules to match their digital-first lifestyle.
3. Take care of financial stress. Offer financial wellness programs, coaching and digital tools to help Gen Z employees plan, manage and feel confident about their financial future.
4. Promote work-life balance. Set up flexible working arrangements and time-off policies. Offer continued learning opportunities and programs that address financial, emotional and physical well-being.
5. Foster inclusivity and belonging. Make sure you cover diverse family structures and populations. Make it easy to access. Create safe spaces like Employee Resource Groups (ERGs) to foster strong ties and community.
6. Engage them and give them a voice. Invite input through surveys, focus groups and team meetings. Listen to feedback to make sure your culture and benefits strategy reflects what matters most to them. Think about their need for meaningful work and social impact and inclusivity and environmental values.
7. Offer mentorship and role models. Equip leaders with the resources and training to support employees’ well-being, model healthy behaviors and promote growth opportunities.

By offering support systems tailored to the unique needs of Gen Z employees, you’re helping set up the future of these individuals — and your organization — for success. 

To keep on winning, your organization needs a benefits strategy that delivers measurable results — both in terms of employee engagement and satisfaction, and in return on investment through productivity, strategic sustainability and overall reputation. For many organizations, this involves setting benchmarks to track utilization, satisfaction, recruitment, morale, absenteeism and retention.

Only then can you accurately determine whether your benefits strategy supports employee well-being, aligns with their values and remains financially sustainable while driving your organization’s goals.