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How Gen-Z Employees Prioritize Their Benefits

Glenn Davila

As more baby boomers retire, and Generation Z employees continue to enter the workforce, employers will need to adjust their company benefits to meet the needs and priorities of these young workers.


To Gen Z, benefits that focus on mental health are important. Younger workers place more emphasis on mental health support and resources—42% for both Gen Z and millennials versus 37% of Gen X and 28% of baby boomers,— according to a study from New York Life Group Benefit Solutions .


This generation's members face significant mental health challenges, but are also more proactive than previous generations about  seeking support. Gen Z workers are looking for health benefits that include teletherapy, mental-health apps and employee-assistance programs over traditional health care offerings.


Gen Z workers are also searching for flexible work arrangements in an effort to have better work-life balance than previous generations. Most employees of this generation came into the workforce during or post pandemic, where remote work has become more prevalent. 


On another front, in regard to financial wellness, every generation has different needs for their finances. According to Payroll Integrations' 2024 State of Employee Financial Wellness Report, millennials feel the most confident financially, with 41% saying they feel completely financially stable, compared to 38% of boomers, 36% of Gen X, and 27% of Gen Z. Sixty-five percent of millennials also say they are in complete control of their finances compared to 59% of boomers and 54% of Gen X employees. Meanwhile, only 33% of Gen Z report the same.


For Gen Z, financial benefits will likely differ from those of the older generations. Many of these young workers are entering the workforce with student-loan debt, so they might value benefits such as repayment assistance and budgeting tools.


"[Companies] can focus on clearly communicating the value of their benefit offerings by connecting them to the real-life challenges employees face and demonstrating how different benefits can help employees achieve their personal and financial goals," Kristina Welke, head of strategy, solutions and marketing for New York Life Group Benefit Solutions, told Employee Benefit News editor Lee Hafner. "For example, against a backdrop of rising healthcare costs, employers can showcase how benefits like supplemental health insurance can help provide a financial safety net and cover unexpected out-of-pocket costs not typically covered by health insurance plans."


To gain insight into which benefits should get the most attention from employers, Welke adds that in today's evolving workplace, they should frequently check in with employees and gather data so they have the insights they need to add the right benefits to their comp packages. 


"There are many tactics employers can use, including engagement surveys, online forums and other digital tools, but at the core, there needs to be a desire throughout the organization to put employees' voices at the center of decision-making," she said. "When employers tailor benefits to employees' needs and keep a constant pulse on their sentiments, this delivers improved outcomes for people and businesses."


Source: EBN

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