Data & Research February 1, 2024

What Gen Z Values Most From Employers

The Standard found that workers of Generation Z value traditional benefits, so employers can still focus their efforts on core offerings.

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Generation Z workers highly value traditional benefits—retirement savings plans and medical insurance—meaning employers can emphasize core offerings without necessarily investing in costly new programs, according to research from retirement services firm The Standard, “Evolution, Not Revolution.”

The survey, released Thursday, found health insurance (66%) and retirement savings (58%) were ranked by Gen Z respondents as extremely valuable, landing in the top five. In addition, a large majority (79%) ranked their top financial goal as saving, and 55% reported valuing automatic enrollment in a 401(k)-type plan.

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Gen Z’s top five benefits were:

  1. Health/medical insurance
  2. Paid family and medical leave
  3. Retirement savings plan
  4. Life insurance
  T-5. Emergency savings account

  T-5. Mental health days

“I want benefits like health insurance,” a full-time employee and college student living with roommates told the Standard researchers. “Even if you pay me less to afford it, it means that I don’t see it coming out of my paycheck. I would rather not have to worry about the stresses of insurance or a 401(k) and be paid a little less.”

The Standard stated that while individuals once turned to banks and credit for a “rainy day,” Gen Z expects their employers to step into this role.

Among Gen Z members, 73% said they consider emergency savings accounts a “very or extremely valuable” benefit, and 29% said they would value emergency loans from employers.

A related study from The Standard—“Breaking News: Benefits Providers Are the Good Guys”—revealed that Gen Z holds benefits and retirement plan providers to a high standard regarding societal challenges, with 61% emphasizing the importance of their providers’ commitment to social issues in their decisionmaking.

This expectation was slightly lower for banks (31%), credit card companies (19%) and clothing/fashion brands (15%).

“By expecting more from benefits and retirement plan providers, Gen Z may be signaling they trust them to do more,” the Standard commented in a statement. “In essence, members of this generation may perceive providers to be the good guys.”

According to the Standard, carriers that proactively engage with this generation on financial security may cultivate a stronger connection, leading to increased product adoption and persistence. Moreover, employers aligning with such carriers stand to benefit by attracting and retaining Gen Z talent in the competitive landscape.

Both reports from The Standard, “Evolution, Not Revolution” and “Breaking News: Benefits Providers Are the Good Guys,” resulted from a survey of 1,250 Gen Z full-time workers aged 18 through 26, conducted from August 7 through 24, 2023.

Deals & People February 1, 2024

John Hancock Retirement Announces Reorganization

The business has been restructured under new CEO Wayne Park, including changes to the leadership team.

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John Hancock Retirement, a business of Manulife Investment Management, announced a reorganization Thursday to combine its sales and services divisions and shuffle its senior leadership team.

The reorganization comes a little less than one year since Wayne Park was named CEO of the division, joining from a role as senior vice president of personal finance solutions at American Century Investments. The move is being made to support “market segments and better serve … key partners and customers,” as well as to further “participant success and retirement readiness,” according to the announcement.

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With the move, Gary Tankersley, John Hancock’s current head of sales and distribution, will take on a new role as head of the core retirement services segment. Michelle Morey, currently head of service model transformation, will take a new role as head of the mid-to-large and Taft-Hartley retirement segment. The changes are effective February 15.

“The new model will help us better leverage the strengths we have in each market, and I am excited that Gary will be leading our Core segment business which has enormous potential for growth given SECURE 2.0 provisions and other opportunities in the market,” Park said in a statement.

Scott Francolini, vice president and head of strategic relationship management, will leave the firm effective March 31 after nine years at John Hancock and 30 in the wealth and asset management industry, according to the announcement. He oversaw strategic management for all segments of the business.

“We thank Scott for his many years of strong leadership and dedication to our plan sponsors, third party administrators, financial professionals and other partners,” Park said in a statement. “Scott spent nearly a decade successfully leading our efforts related to customer satisfaction, retention, and growth, working closely with Michelle for many of those years on these relationships.”

Tankersley has 29 years in the retirement industry and Morey 24, according to the announcement, and they intend to put that experience toward expanding “the company’s business while enhancing service to our current clients,” according to the announcement.

In a June 2023 interview with PLANADVISER, Park, who had been appointed in late March, noted the firm’s continued work with financial advisers who work with business owners on their retirement plans.

As of September 30, 2023, John Hancock was servicing more than 56,000 retirement plans, 3.2 million participants and $194 billion in assets under management and administration.

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