What Does Gen Z Want from Employer-Provided Benefits?

A recent survey that looked at how employers and benefits providers can succeed with Gen Z finds that the generation is not all that different from their older counterparts. 

According to The Standard’s research, Gen Z largely wants what other generations want: near- and long-term financial security. They highly value health insurance and retirement plans, with 93% of respondents saying a retirement savings plan is important to them. 

Gen Z’s focus on traditional benefits means employers can emphasize core offerings without necessarily investing in costly new programs, the firm’s summary report suggests. In fact, saving is key for Gen Z. Roughly 8 in 10 (79%) respondents rank their top financial goal as saving and 55% value auto-enrollment in a 401(k)-type plan. 

As background, Gen Z is typically described as being born after 1996, with the Great Recession, the pandemic, and the debate over climate change shaping this cohort. They also are the first generation of digital natives, growing up with the internet. 

Avenues for Innovation

While not a new economic aspiration, Gen Z’s strong interest in saving opens avenues for innovation that could help employers recruit and keep talent from this age group, the firm notes. 

One opportunity lies in the level of personal financial help Gen Z wants from employers, according to the report. For instance, this age group expects the companies they work for to step into roles historically occupied by banks and credit unions. In this case, the survey found that 73% of Gen Z members consider emergency savings accounts a “very or extremely valuable” benefit. Additionally, almost a third say they would value emergency loans from employers.

But members of Gen Z are not necessarily looking for employers to do everything, the report observes. Rather, they want a mentor to offer solutions they can use to strengthen their financial lives. This age group’s desire for help improving their financial literacy is an example. Over a third view financial education as a valuable employee benefit, the survey found. 

“Members of this generation are looking for collaboration and mentoring to help them overcome specific economic pressures,” observed Chris Beaulieu, Vice President and Chief Investment Officer at The Standard. “They seek compassion and coaching. Employers who step up as mentors will secure Gen Z’s loyalty and help the bottom line.” 

Higher ‘Standards’

The Standard’s study also shows Gen Z holds benefits and retirement plan providers to a higher standard when it comes to addressing societal challenges. 

Here, 61% say a commitment to social issues is very important in their decision to buy or enroll in a benefits provider’s products or services. Nearly half say the same thing about retirement plan providers (48%). Gen Z, meanwhile, sets a lower bar for banks (31%), credit card companies (19%) and clothing or fashion brands (15%), the findings show.

By expecting more from benefits and retirement plan providers, Gen Z may be signaling they trust them to do more, the report further suggests. “In essence, members of this generation may perceive providers to be the good guys,” the report notes. 

“Carriers that seize the opportunity to partner with this cohort on financial security will foster this generation’s affinity, leading to greater product uptake and persistence. Employers working with these carriers will also gain by attracting and retaining Gen Z talent,” the firm concludes. 

The findings are based on a survey conducted from Aug. 7–24, 2023, by a third-party research firm on behalf of The Standard among 1,250 Gen Z full-time workers (or soon-to-be workers) ages 18 to 26.

For more insights on this topic, visit The Standard’s Beyond Benefits, Gen Z Wants a Mentor.