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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.
Reported by Natalie Lin
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.
Gen Z’s top five benefits were:
- Health/medical insurance
- Paid family and medical leave
- Retirement savings plan
- Life insurance
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.