Employers have been spending the past few years trying to understand the millennial generation and design employee benefits programs specifically for them. But now, Generation Z (born in 1995 or later) is entering the workforce with a whole new set of expectations, and employers have to adjust their strategies to fulfill the needs of these younger workers.
Here’s how you can keep pace with what Generation Z is looking for in employee benefits.
Offer personal and professional growth opportunities
Gen Z workers deeply value personal and professional growth, and they want to know an employer will provide opportunities for that. Develop career rotation programs to allow workers to experience different types of jobs, and encourage employees to volunteer—some organizations even offer paid time off for volunteer activities.
Help with finances
Student loan debt is at the top of nearly every college-educated Gen Z worker’s mind. It’s a significant burden, and approximately 80% of workers with student loans say they would value working for an organization that provides benefits for student loan repayment, according to CNBC. Unfortunately, only about 4% of organizations actually offer this benefit—however, this leaves room for your company to attract top talent by providing this type of program.
Many employers focus on financial fitness programs to help employees save for retirement, but for this younger generation, saving for retirement is a much less pressing issue than their current debt.
There are also some less pricey ways to help young employees handle their finances: consider a casual dress code to keep wardrobe costs down, healthy onsite food, transportation assistance, and opportunities to work remotely.
Consider their digital needs
This generation has lived their entire lives online—employers should build benefits programs and implement perks that reflect that. Things like discounted identity theft protection, digital wellness solutions, and virtual mental health counseling can be a serious draw for Gen Z workers.
Appeal to what their familiar with and consider moving pre-existing programs online. For example, an online employee recognition platform is a great way to motivate workers and keep them engaged.
Lifestyle Spending Accounts
A Lifestyle Spending Account (LSA) allows employers to make taxable contributions on their employees’ behalf. Then employees can use the funds on certain products and services made available by the employer, like fitness classes or pet insurance.
LSAs are an innovative and unique option to help employees with personal growth. They’re mainly only prevalent in Canada, but more U.S. companies are becoming aware of them and adopting them into their benefits packages.
Mentor support
Younger employees may not have the experience they need to succeed in a certain workplace—which is why a mentor program or resource group is a great benefit to offer.
To provide support, sponsor groups based on shared characteristics—like military service, gender identification, disability, or sexual orientation—where employees who identify directly with the group and those who just want to support their colleagues can come together.
Gen Z, like all other workers, value high-quality benefits solutions, streamlined administration, and valuable resources. Clarity Benefit Solutions provides products and services so employers can build the best benefits packages for their employees. Visit our website to learn more.
Sources:
1. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/generation-z-benefits-package.aspx
