Gen Z brings unique values, priorities, and expectations to the workplace that differ from those of previous generations. As their presence continues to grow, their perspectives on work,
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Understanding the disconnect
For the first time in modern history, many workplaces are composed of four distinct generations: baby boomers, Gen X, millennials and Gen Z. While these generations may work together, they come from very different worlds, each with unique values, preferences and workplace expectations.
Leadership, often made up of older generations, can struggle to relate to Gen Z's perspectives and needs. In fact, a survey by Resume Builder found that
Bridging this generational gap is essential to maintaining a cohesive, productive workforce. Understanding the benefits that appeal to different generations can be a significant step toward creating a work environment that attracts and retains top talent across all age groups.
Understanding Gen Z
Born after 1997, Gen Z is the first to grow up entirely in the digital age. They are globally connected, tolerant and social media savvy. As employees, they are known to delay traditional milestones and prioritize meaningful work, but can be quick to leave companies that don't align with their values.
Gen Z prioritizes benefits that support career growth and development, mental health, and greater work-life balance. Customization and digital access to benefits — such as mobile apps with chat features — are particularly important to them.
In contrast, older generations like Baby Boomers and Gen X tend to prioritize more traditional benefits such as dental, vision and medical coverage. As they near retirement, they focus more on benefits related to financial planning and well-being, like retirement plans.
As older generations retire, it's important to reassess the benefits your organization offers to ensure they align with the priorities of the newer workforce, who will remain in the job market for decades to come.
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Key benefits for Gen Z employees:
- Mental health resources: Gen Z faces significant mental health challenges and is more proactive than previous generations in seeking help and advocating for their well-being. They tend to prefer mental health benefits like teletherapy, mental health apps, and employee assistance programs over traditional health care offerings.
- Flexible work arrangements: Work-life balance is critical to Gen Z. They value flexible options like remote and hybrid work, flexible hours and compressed work weeks. Offering this flexibility, while emphasizing communication, can foster productivity and satisfaction.
- Paid time off (PTO): Gen Z values flexibility beyond just vacation and sick days. They appreciate PTO policies that include mental health days or non-traditional leave to better accommodate their work-life balance.
- Financial wellness programs: Financial benefits prioritized by Gen Z look different from those preferred by older generations. Entering the workforce with student loan debt and facing economic uncertainty, Gen Z values benefits such as student loan repayment assistance and budgeting tools to alleviate some of their financial stress.
- Professional development opportunities: Having faced career delays due to COVID-19, Gen Z is eager for professional growth. Offering tuition reimbursement, mentorship programs, and skills training not only helps them advance but also builds camaraderie between generations.
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Effective implementation and communication of benefits
A benefits plan is only as good as its implementation and communication. In a multigenerational workforce, it's crucial to use communication channels that resonate with all employees.
For Gen Z, as digital natives, seamless digital experiences are key. Online portals, mobile apps, and personalized communication channels are the most effective ways to engage them regarding benefits information and enrollment.
As you consider benefits for your workforce, partnering with a benefits broker or consultant can provide valuable insights. They can help you create an implementation plan, ensure legal compliance, and offer recommendations tailored to your workplace's specific needs, considering generational differences, organization size and industry.
