Attracting the next generation of talent is no longer as simple as offering a well-paying job. Members of Gen Z—those born between 1997 and 2012—expect more than just a paycheck. They value flexibility, purpose, and perks that genuinely enhance their personal and professional lives. For HR professionals, small business owners, and managers, understanding what makes Gen Z tick can be the key to staying competitive in the labor market.
If you’re wondering how your employee benefits package stacks up for this new wave of workers, keep reading. Below, we’ll break down what Gen Z is looking for and how you can appeal to their preferences with strategic benefit offerings.
Why Gen Z is Different
Unlike previous generations, Gen Z has grown up amid digital transformation, climate concerns, and rapidly shifting societal norms. They value mental well-being, diversity, and social responsibility more than previous generations, often making decisions about employment based on these principles.
A Deloitte study revealed that over 40% of Gen Z “ranked work-life balance and learning opportunities as highly important,” while competitive pay alone no longer serves as a sole motivator. Instead, this pragmatic, purpose-driven generation leans toward employers that offer meaningful benefits which align with their lifestyle and values.
What Employee Benefits Appeal to Gen Z?
1. Flexible Work Arrangements
More than any other generation, Gen Z craves flexibility. Raised with technology that enables remote connectivity, they’ve proven that work can happen virtually anywhere. Hybrid work models or fully remote options resonate deeply with this group.
Offer flexible working hours alongside the choice of location, empowering Gen Z employees to balance productivity with personal life, hobbies, and mental health.
2. Mental Health Support
Mental health is an essential topic for Gen Z, with many citing this as a non-negotiable aspect of workplace wellness. Companies that prioritize mental well-being stand out in their eyes. Consider including benefits like:
- Access to therapy or online counseling platforms such as BetterHelp.
- Mental health stipends or wellness apps like Calm or Headspace.
- Flexible “mental health days” outside of traditional sick leave.
Supporting mental health proactively signals to Gen Z that your company truly cares about every aspect of their well-being.
3. Professional Growth Opportunities
Gen Z is ambitious, and they’re on the lookout for career development programs. They don’t just want jobs—they want the chance to grow and learn.
Offer mentorship programs, career coaching, or paid certifications to show your commitment to helping team members build valuable skills. Even workplace tools like LinkedIn Learning memberships or tuition reimbursement for classes can set you apart from competitors.
4. Socially Responsible Company Culture
Gen Z is known for being socially conscious, so an employer’s values matter when they make career decisions. They gravitate toward companies that are committed to sustainability, diversity, and giving back to the community.
Show your dedication by introducing initiatives such as:
- Organized volunteer days with paid time off.
- Charitable donation matching for causes employees believe in.
- Green policies like recycling efforts or a net-zero carbon pledge.
5. Unique Perks That Fit Their Lifestyle
Move beyond standard 401(k)s and health insurance perks to provide benefits tailored to Gen Z’s priorities. Some ideas include:
- Student loan repayment assistance to ease financial burdens.
- Unlimited unpaid time off for passion projects or travel.
- Lifestyle stipends for gym memberships, monthly streaming services, or coworking spaces.
These creative offerings show that you understand their needs and want to enhance their quality of life.
Take Action to Attract Gen Z Talent
Competing for top Gen Z talent means adapting your employee benefits package to meet their expectations. By offering flexible work options, prioritizing mental health support, fostering professional growth, demonstrating corporate responsibility, and tailoring perks to their lifestyle, you’ll stand out as an employer they want to work for.
Creating a benefits package that attracts Gen Z is a long-term investment in your company’s future success. Start by analyzing your current offerings, identify opportunities to innovate, and make changes that address the values of this dynamic generation.
Join EBPA Today
Established in 1948, Employee Benefit Planning Association (EBPA) is a non-profit educational organization providing support and professional development opportunities to members and all those engaged in employee benefits by serving as a forum for the exchange of knowledge, information and ideas.
