Like every generation, Gen Z brings unique needs and experiences to the workplace. With 27% of the working population expected to be Generation Z by 2025, employers will need to better understand this demographic’s needs, working styles, and expectations.
In this post, we’ll walk you through the economic context Gen Z is facing as they enter the workforce, their needs, and how employee benefits can help keep this generation stay engaged and motivated.
The economic landscape of Gen Z in the workplace
As more and more Gen Z employees enter the workforce, it’s never been more important for employers to recognise the economic challenges their employees face.
With the threat of a looming global recession hanging over their heads and news of mass layoffs, many Gen Z employees just beginning their careers are worried about financial stability. According to a 2023 study by EY, over 50% of Gen Z respondents are ‘extremely worried’ about not having enough money, making work and earning a living top of mind for them.
On top of this, many in Gen Z are finding themselves inheriting the financial hardships of their parents; 25% of Gen Z currently in higher education are working to support their parents, meaning many aren’t starting their careers on good financial footing.
This also means that many employees in this age group are delayed in hitting their financial milestones. Between home ownership, marriage, and starting a family, Gen Z are pushing back major life events due to financial instability, so meeting the needs of this employee group is more important than ever as these external factors shape their entry into the workforce.
The needs of Gen Z in the workplace
As Gen Z makes up more and more of the workforce, their generation comes with specific needs that might differ from their colleagues in other age groups.
Flexible work arrangements
For this generation, flexibility is everything. COVID-19 meant that many employees in this age group began their careers with–or adapted quickly to–remote work. Even as offices open up, the desire for a hybrid work schedule remains strong in this demographic.
Employers can respond to this need by implementing flexible work policies so their Gen Z employees can find the work rhythm that’s most productive to them. That can include remote work, flexible working times, and policies that allow employees to travel while working.
Empathy in the workplace
Employees who feel valued are more likely to really commit to their roles and take on additional responsibilities. For Gen Z, empathy is one of the most important qualities an employer can have. Employers who struggle to connect with their employees’ needs risk decreased engagement, possibly leading to high turnover in roles.
Rewards and recognition
When Gen Z workers go above and beyond, they hope to see their efforts recognized by their employers. In a digital age where instant feedback is the norm, timely recognition not only boosts their morale but also their motivation to excel.
Employers who understand the importance of reward and recognition are more likely to cultivate a positive and high-performing workplace culture that aligns with the values of this dynamic generation.
What employee benefits employers can provide to Gen Z
With Gen Z’s need for flexibility, empathy, and recognition in the workplace, a great employee benefits package is a must-have for keeping this generation engaged in their roles. Let’s walk through a few employee benefits your organisation can provide for employees in this age group.
Flexible spending
In meeting the needs of Gen Z employees, offering flexible spending options is crucial. Gen Z values flexibility in all aspects of their lives, including their financial wellbeing. Flexible spending allowances allow them to allocate funds for their unique financial situations.
By providing this benefit, employers not only address the unique financial challenges faced by Gen Z but also contribute to their overall sense of financial security, promoting job satisfaction and loyalty.
Financial planning benefits
Recognising the economic uncertainties and financial challenges that Gen Z faces, employers can play a central role in supporting their financial wellbeing by providing financial planning benefits.
These benefits can include access to financial advice, budgeting apps, and resources for debt management. By empowering Gen Z with the tools to navigate their financial futures, employers not only contribute to their employees' personal growth but also demonstrate a commitment to their long-term success and stability.
Mental health benefits
Understanding the importance of mental health in the workplace, employers can provide comprehensive mental health benefits to support Gen Z employees. These benefits may include access to counselling services, mental health days, and resources for stress management. Given the unique stressors faced by Gen Z, especially in a rapidly changing world, mental health benefits contribute not only to their individual well-being but also to the overall productivity and engagement of your employees.
Curious how your company’s employee benefits stack up to other employers’ offerings? Use our benefits benchmarking tool to see how you compare.
As the number of Gen Z in the workforce increases, it’s imperative for employers to understand what this age group of employees needs to give their best foot forward while at work. With their unique economic challenges and perspectives shaping their early careers, employers have the chance to start them off on the right foot by providing a best-in-class benefits package that keeps them engaged and excited for the future ahead.