In recent years, there has been a noticeable shift in attitudes towards employee benefits, particularly among the younger generation known as Gen Z. This group consists of individuals born between 1997 and 2012 who are entering the workforce with a unique set of values and expectations that differ from those of previous generations.
With the retirement of Baby Boomers born between 1946 and 1964, the job market has opened up for younger generations. According to Zurich Insurance reports, Gen Z currently
makes up 30% of the world’s population and is expected to account for 27% of the workforce
by 2025.
Gen Z’s mindset
The generation known as “Gen Z” has been raised in a world where technology has made it more convenient to remain connected to work all the time. This has led to a blending of work and personal life, and as a result, this generation values benefits that promote flexibility and wellbeing. These benefits include options for remote work, paid time off, and health care support.
The present economic market makes it significantly challenging for Gen Z individuals to purchase a property or pay high rental fees. As a result of these financial difficulties, the Gen
Z population now demands and expects better employment standards than previous
generations.
This generation is often labelled as privileged and unwilling to sacrifice personal time for long working hours compared to previous generations. However, they aspire to create a well-balanced lifestyle by securing decent working and living conditions by choosing well-paid careers, flexible hours, and healthcare benefits. Individuals of Generation Z carefully plan their finances and future and quickly look for new employment if they are dissatisfied.
Gen Z’s wellbeing and mental health
Gen Z individuals are allegedly more vulnerable to stress, depression, and anxiety due to increased awareness of financial turbulence resulting from the pandemic and economic crisis. As a result, this generation values benefits encouraging wellbeing and flexibility, such as remote work opportunities, paid time off, and access to healthcare support.
According to a study conducted by the Policy Institute at King’s College London and the Orygen Institute in Australia, the new Gen Z generation is experiencing a higher rate of mental health issues compared to previous generations, including Millennials, Gen X, and Baby Boomers. Although 47% of the public believes that all generations have suffered from mental disorders, it is now more widely recognised and openly discussed.
Gen Z Employment
Gen Z has the benefit of growing up in a world of technology, which means they possess a wealth of knowledge in the constantly evolving business market. This generation is more self-assured and empowered when negotiating their employment benefits.
Employers are starting to reconsider their strategy for employee benefits as they face changing attitudes among the Gen Z workforces. To recruit and retain the best of this generation they now have to offer comprehensive benefits packages that align with the values and priorities of Gen Z. Packages such as work-life balance, flexible work, and health care benefits can help companies stand out in a highly competitive business market.
Sally Henderson, Group Head of Talent at Zurich Insurance Group:
“Gen Z employees are really important to us because, let’s face it, they are the future of our company. But you need to understand and meet their expectations, which differ from those of other generations. And provide purposeful employee experiences, development, and future careers. Do this, and you can attract amazing talent with new skills, innovative ideas, and diverse perspectives.”
Employment changes to retain Gen Z
All successful businesses understand the need to keep up with evolving technology and adapt to changing employee requirements. Retaining Gen Z’s talented and skilled workforce can lead to exceptional business achievements.
Employers need to adapt to retain Gen Z employees by:
- Adaptable and flexible working contracts provide a well-balanced lifestyle, reducing the likelihood of burnout for Gen Z individuals.
- Growth and training programs provide the opportunity to earn higher salaries and build a brighter future.
- Wellbeing and mental health care Understanding and supporting employee wellbeing and mental health care are essential to Gen Zs.
- Comprehensive health care plans – Private health insurance provides security and ensures a prompt return to work for sick employees.
- Counselling Support – Stress and anxiety require mental, financial, and emotional health benefits.
To conclude, Gen Z’s influence on the shift in attitude towards employee benefits cannot be ignored. With an increasing number of Gen Z individuals entering the workforce, it has become imperative for employers to adapt and improve their benefits offerings to meet the expectations and needs of this new generation of workers. Employers can attract and retain top talent and create a more engaged and satisfied workforce by prioritising work-life balance, diversity and inclusion, financial wellness, and other significant priorities of Gen Z.
SOURCES
https://www.zurich.com/en/media/magazine/2022/how-will-gen-z-change-the-future-of-work