Make way for Gen Z!
We now have four generations in the workforce, each with very different perspectives on their futures, their relationship to their employers and the role of work in their lives. While it has always made sense that we cannot deliver universal ‘one size fits all’ workplace well-being programs to an age-diverse employee population, it is particularly relevant in 2021, as employees emerge from the challenges of living and working in a pandemic.
We now have four generations in the workforce, each with very different perspectives on their futures, their relationship to their employers and the role of work in their lives. While it has always made sense that we cannot deliver universal ‘one size fits all’ workplace well-being programs to an age-diverse employee population, it is particularly relevant in 2021, as employees emerge from the challenges of living and working in a pandemic.
The effects of the pandemic on well-being have been particularly pronounced for employees in Gen Z (ages 18-25), with 90% reporting a negative impact on health and well-being. Older generations also have experienced challenges but to a somewhat lesser degree. Gen Z and millennial employees are generally three to five times more likely to make use of mental and emotional well-being programs than Gen Xers or boomers.
Eight in 10 Gen Z workers think employers should offer mental and emotional health support, 11% more than millennials and Gen Xers. More than half of Gen Z workers and 48% of millennials want employers to address the social isolation of working from home with virtual programs supporting connectedness, compared with fewer than a third of Gen Xers. Additionally, Gen Zs want employer well-being programs to embrace greater inclusivity, with more than half (56%) expecting employers to offer resources specific to the LGBTQ community, compared with only one-third of Gen Xers and boomers.
Considering these generational shifts, a traditional benefits package will likely fall flat with younger employees. Gen Z and millennial employees may expect a different kind of well-being package than older generations, but once offered, they are far more likely to use it. Specific benefits that matter to Gen Z include: medical coverage, as 40% of respondents said mental and emotional health was a top concern; 401(k) match, which might be a financial strain that some companies can’t take on; flexible hours, which might include remote work.
Education costs have skyrocketed in recent years, meaning millennials and Gen Zers are graduating college with high student loan debt. To appeal to millennials and Gen Zers, organizations can focus on benefits like student loan repayment assistance. In addition, retirement plans, especially matching plans, are popular among younger generations. Respondents between 18 and 35 chose more money going toward student loan repayment, ahead of all other benefits, including health insurance, retirement, childcare, and PTO.
Members of Gen Z have different expectations from older generations— they want benefits that help make their lives easier. Motivated by more than a paycheck and inspired by dynamic cultures that value employees as individuals, these workers want a more connected relationship with their employer. They want to know they are genuinely cared for, especially while working from home and physically disconnected from others.
Sometimes called ‘digital natives or ‘centennials’, Gen Z is the first generation to not know life before the internet. As such, they are extremely tech-savvy and are often seeking out careers that meet their skill sets and earning potential. Gen Z is more diverse, better educated, tolerant of differences, driven, competitive and pragmatic, more so than those in the millennial group. They are rejecting the linear career path that tells them to put the hours in, get promoted, repeat. Instead, they are looking for fulfilment.
Voya Financial found Gen Z reported the highest levels of engagement in their employer-sponsored benefits. Generations generally agreed they wanted more information on their benefits outside of the enrollment period: from 70% of boomers to 82% of Gen Z. When asked if they will spend more time reviewing benefits, 83% of Gen Z agreed, followed by 70% of millennials and Gen X, and 63% of boomers. Three-quarters of Gen Z respondents said they plan to make changes in their elections, followed by 60% of millennials and 53% of Gen X. Just over a quarter of boomers — 28% — said they will make changes.
Standard benefits, like medical and dental insurance and paid vacation, only scratch the surface of what younger employees want today. They want convenience beyond just virtual care, as they eye non-traditional care like retail clinics and digital engagement tools. Younger employees have expanded past a physician-only approach and towards a digital-first attitude that focuses on convenience and preventative health. Continued education, training, mentorship, and advancement opportunities, as well as social impact programs and volunteering, are benefits that resonate with this group.
If we enable Generation Z to do what they love and love what they do, then this could be the biggest productivity driver of the 21st century. And here is where Secova can help. Secova offers a comprehensive benefits administration solution for every employee with a program tailor-made for your company, specifically. We believe you are never too young to make a difference in people’s lives.