How to Choose Company Benefits That Appeal to Gen Z

Imagine telling a 22-year-old who recently graduated from college about your company benefits (or maybe you’ve already been here). You proudly review the excellent health insurance you provide, including dental and vision, plus 401(k) matching. Their parents would likely be impressed, but the person sitting across from you nods politely and asks what other benefits you have to offer. 

The benefits that resonated most with previous generations aren’t having the same effect on Gen Z, and the resulting long hiring cycles and loss of top upcoming talent are costing companies. According to a 2024 study from Deloitte, only 19 percent of Gen Zs named a high salary as the main reason for choosing their current job. A company’s culture and benefits have the potential to move the needle with Gen Z — if they’ll only align with what these job seekers are looking for. 

Five Ways to Reimagine Your Benefits

Here are five ways your company can provide new and different benefits, not all of which cost money. 

1. Flexibility and Work-Life Balance

Although some businesses are looking back, we are way beyond just offering remote or hybrid work to give employees flexibility. Gen Z is looking for a holistic approach that gives them more control over the structure of their lives. That means generous PTO and policies like summer Fridays so they can make the most of their time away from work. Core hours or other flexible arrangements can also account for staff’s shifting schedules, additional responsibilities, and individual preferences and productivity. 

2. Mental Health and Well-Being

Gen Z is leading the charge to destigmatize mental health, and many are seeking workplace benefits that extend to their mental as well as physical health. Not only should healthcare packages include mental health treatment or therapy, but also offer mental health days in addition to sick leave. Wellness stipends can give Gen Z greater control over their well-being by allowing them to decide if they want to allocate funds to a gym membership or meditation app subscription, for example, rather than leaving you to guess what the majority of your staff would prefer. 

3. Personalized Healthcare

Traditional one-size-fits-all healthcare doesn’t cut it with Gen Z. They want a personalized healthcare package that can meet their unique needs. Health reimbursement arrangements (HRAs), flexible spending arrangements (FSAs), and health savings accounts (HSAs) can all give employees more agency over their healthcare.

With 44 percent of accidents taking place in or around the home, ancillary coverage for accidents can help put remote workers’ minds at ease. Gen Zs are also looking for healthcare benefits that cover alternative and holistic medicine — things their parents’ health plans never considered. 

4. Continued Learning and Career Development

For Gen Z, continued learning and career development aren’t just perks — they’re necessities — and AI is driving much of their concern with upskilling. If you have forward-thinking AI policies, processes, or educational opportunities in place, don’t be shy about showing them off. You can also provide learning stipends that give staff choices in how to spend them, whether it’s going to an industry conference or taking a course online. For more hands-on support, create clear career progression paths and mentorship programs for employees. 

5. Positive, Meaningful Workplace Culture

Deloitte’s study found that a positive workplace culture ranked as highly as salary and financial considerations among Gen Z for their top reason to choose a company. The days of simply stocking a break room with a ping pong table and free snacks are over. Gen Zs are looking for a good company culture that feels meaningful, aligns with their values, gives them a sense of purpose, and recognizes their efforts.  

Consider offering paid volunteer time and matching charitable donations to help your staff support the causes they believe in. Don’t forget to showcase their time in front of their peers frequently. Employees that receive recognition monthly instead of quarterly are 36 percent more likely to say they are productive and engaged. 

The benefits that appeal to Gen Z will almost certainly look different from the benefits you’re used to. Don’t make the mistake of thinking that Gen Z is entitled for wanting all of these “extras.” They’re responding to a rapidly changing workforce landscape and letting us know what they need to succeed — if we’re willing to listen. Adapting to meet these changing needs will pay dividends in your organization’s recruitment, retention, and productivity. 

The future of company benefits isn’t about offering more, it’s about offering better. And better benefits come from reflecting how Gen Z lives, works, and sees their place in the world today. 

Connect with an Old National Small Business Banker for more insights to help your business grow.

This article was written by Flynn Zaiger from Inc. and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.