Generation Z are the youngest generation currently in the workplace, following on from the Baby Boomers, Gen X and Gen Y. But what makes them so different? And how should small businesses adapt?
It’s striking that employees aged 25 and below are 20% more likely to engage with their employee benefits package than older colleagues. Perhaps it’s because they take a more proactive approach to wellbeing. Or maybe it’s because they are digital natives?
Either way, provide them with the right blend of benefits and they are sure to appreciate it!
Contact our award-winning brokers for FREE one-to-one advice on finding the right employee benefits on 01273 222805 or click on the bottom right chatbox.
Who are Generation Z?
Gen Z were born between 1997 and 2012 and are the youngest members of today’s workforce. They are said to introduce new ideas around the nature of identity and self-expression, and possess heightened awareness of ethical issues. They have been brought up in a world of digital connectivity and social media but also during a time of economic difficulty.
The pandemic and the rising cost of living will undoubtedly affect their priorities both today and in the future. In general, they are looking for support for their employers, and a sense of community and stability, not just the immediate gratification of a high salary – although it definitely doesn’t hurt to be bringing in bigger pay cheques!
For these workers, it’s particularly important to address issues surrounding work-life balance, personal wellbeing and business ethics. As we discuss in the next section: their loyalty really cannot be taken for granted!
Current demand from Gen Z?
“Businesses need new employee engagement tactics in light of this changing demographic, so it’s important to question the current narrative. They’re actually just prioritising their own wellbeing and speaking more publicly about the role of labour in their lives.” Luke Bullen, Chief executive officer at Gympass UK
In the UK, 89% of Gen Z would quit their jobs if their employer didn’t focus on staff wellbeing and are three times more likely to rank wellbeing as important compared with older generations in the workforce.
Gen Z’s priorities have shifted compared to their older colleagues; it’s all about demanding more from the workplace. Key demands may include:
- Bigger salary
- More time off
- Flexibility to work remotely on their own schedule
- Greater social and environmental responsibility
- More meaningful work
- An organisation that aligns with their social views
- Prioritisation of mental health
These are not entirely new – the difference now is they have shifted from a ‘would-like-to-have’ to an expectation.
According to 2022 research for TalentLMs, the top demands from Gen Z workers were as follows:
- 82% want mental health days
- 77% want their company to support diversity, equity, and inclusion efforts
- 74% want hybrid/totally remote work
Not prioritising a good working environment, flexibility, and wellbeing benefits? Well, there’s a good chance that your young workers are going to change jobs if their conditions aren’t met. Job transitions in Gen Z have increased by 80% year-on-year!
Want to bring the right balance of benefits to your business without breaking the bank? Talk to our team of friendly brokers by using the chatbox on the right or calling 01273 222805. All quotes and guidance is given FREE of charge.
Where to start with Gen Z offerings
There are four main areas to address:
1.Meaningful work & ethical focus:
- Opportunities for fast career progression
- Involvement in the local community through team events
- Opportunity to invest in charities
- Regular 1-2-1s to update staff on progress
- Offer more career progression opportunities
- Training opportunities to develop career
2.Respect & recognition:
- Providing extra holiday
- Offering regular group meetings to voice concerns
- Celebrating employee achievements
- Focusing on the meaning of work performed – and how it helps the business
3.Flexibility & independence:
- Flexible working arrangements – remote work or flexible hours
- Health Cash Plans – a form of healthcare insurance offering everyday health support
- Online Benefits Platforms/Apps – EAPs & benefits that can be selected to suit each staff member
- More non-traditional benefits e.g., travel expenses covered, neurodiversity support etc
4.Mental health awareness:
- Employee Assistance Programmes
- 1-2-1 counselling sessions – e.g., through EAP or Health Cash Plan
- Online mental health services
- Financial advice services/support
- Business Health Insurance – plans can be adapted to include mental health support
Forty-nine per cent of Gen z would not accept a job where the company doesn’t align with their values. Showing your young employees that you’re a company that provides a clear career path, with opportunities to learn and grow, and are actively supporting both your workers and their values – may just set you up for a longer-term mutually beneficial relationship!
The Gen Z round-up
Gen Z are looking for more flexible hours (or just flexibility in general!) after emerging from Covid and witnessing the growing opportunities for remote working. However, although younger staff ‘want it all’, high salary is still a top priority. The current state of the economic landscape is extremely stressful, with salary growth far from matching inflation levels.
For small businesses and start-ups this presents a challenge. But creating an affordable – and attractive – benefits scheme can make a big difference.
Landing on the perfect blend of workplace perks and health insurance policies is incredibly important to the successful running of your business and finding the right blend to target each and every one of your team members is vital – whatever age they may be!
Contact our friendly team at Hooray Health & Protection on 01273 222805 or email us at [email protected] for the best advice and support on all things employee benefits.