A Series on Benefit Preferences – Introducing Generation Z

Benefit Trends Executive Health August 14, 2019

Who is Gen Z?

Proceeding the Millennial generation, Gen Z is roughly comprised of those born after 1996 and before 2013 and is the youngest group entering the workforce. This tech-savvy generation has been raised with the presence of the iPhone and Wi-Fi, social media and on-demand entertainment, making them accustomed to a fast-paced world.[1] Gen Z is also the most diverse generation in the job market with only 52% non-Hispanic whites.[2]

With a wealth of knowledge constantly at their fingertips, Gen Z could become more educated than any other generation in the workforce today. They are enrolling in college at higher rates, likely influenced by their well-educated parents. This means that they are entering the workforce older than their predecessors and they are less likely to work full time.[3] Despite this, it will become increasingly important to understand the needs of this young generation as they further educate themselves to become successful in the workforce.

The Values of Gen Z

Recruiting organizations are just now adjusting their strategies to Millennial workers, but they will soon find that Gen Z brings with it even more diverse preferences when making career decisions. Also referred to as the iGen, post-Millennials or the digital generation, Gen Z knows not the world without the internet of things. When Gen Z talent considers a job, they prioritize flexibility. They want control of their schedules and the ability to work remotely. The level of paid time off is another top consideration, with preference toward paid time off to give back to their community.[4],[5]

Gen Z favors lifestyle benefits such as fitness classes, pet insurance and gifts to charity. They are also centrally focused on work culture and seek out diversity, empowerment as well as personal and professional growth opportunity.[6],[7] A stable career path proves to be even more important than salary, but this doesn’t mean that this generation isn’t concerned about financial stability.

Gen Z still places health insurance at the top of the must have list, with 70% say that health insurance is a key consideration in a career choice.[8]

Why Are Custom Benefits by Generation Important?

Each generation is comprised of individuals in different stages of life. Values and priorities will vary greatly between a Boomer looking toward retirement and a Gen Xer saving for their child’s college education. While you can’t offer everything and the kitchen sink to each employee, you can be proactive in making sure that the combinations of benefits you provide actually add value and generate loyalty within your employees.

Armada’s expense reimbursed insurance plans are a great way to accomplish all of the above. Employers have the ability to tailor benefits based on employee group to ensure that individual needs are met, without breaking the bank. This allows you to make informed decisions for those that make your business successful. Be sure to check out our suite of products here to learn more.

[1] https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/

[2] https://www.pewsocialtrends.org/2018/11/15/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet/

[3] https://www.pewsocialtrends.org/2018/11/15/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet/

[4] https://www.employeebenefitadviser.com/opinion/why-advisers-need-cross-generational-benefits-selling

[5] https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/generation-z-benefits-package.aspx

[6] https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/generation-z-benefits-package.aspx

[7] https://qz.com/work/1410722/here-is-exactly-what-gen-z-wants-according-to-all-of-the-surveys/

[8] https://qz.com/work/1410722/here-is-exactly-what-gen-z-wants-according-to-all-of-the-surveys/

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