Why Gen Z Is Rewriting the Rules of Employee Benefits

The generation that won’t settle for more of the same

Gen Z is here and they’re changing the game.

Born between 1997 and 2012, they’ve grown up digital, purpose-driven, and ready to challenge how work works. By the end of 2025, they’ll make up 24% of the global workforce.

And here’s the thing: standard benefits packages aren’t cutting it anymore.

If you want to attract, engage, and retain Gen Z talent, you’ll need a benefits experience that feels as personal, digital, and values-led as they are.

Let’s explore how this generation is raising the bar for benefits and what you can do to meet it.

What Makes Gen Z Different (And Why It Matters for Your Benefits Strategy)

1. Digital Natives Who Expect Digital-First Benefits

Gen Z grew up with smartphones, social feeds, and instant everything. So when they join your workforce, they expect the same seamless experience from your benefits.

91% of Gen Z say a company’s tech influences whether they want to work there, according to deskbird. They expect business tools to be as intuitive as TikTok and as mobile-friendly as their banking apps. If your benefits platform feels clunky or old-school? You’ll lose them before they’ve even logged in.

2. They Care Deeply About Purpose

For Gen Z, work isn’t just a job. It’s a platform for impact.

74% say purpose at work matters more than their pay cheque, according to SHRM. And it’s not just talk:

• 50% have turned down work that clashes with their personal values, according to SHRM.
• 44% have rejected employers with negative environmental or social impact, says ACCP.

If your benefits don’t reflect your social and environmental commitments, you’re missing a massive engagement driver.

3. They Value Flexibility Over Hierarchy

Gen Z doesn’t measure success by hours logged. They care about outcomes and flexibility.

77% would choose more flexibility over faster promotion, according to Innovative Human Capital. They expect to work when and where they perform best, whether that’s fully remote, hybrid, or something in between.

The Rise of Flexible, Personalised Benefits

Forget cookie-cutter packages. Gen Z expects choice.

While 72% of organisations offer customisable benefits, only 36% of employees feel they have real input, according to PeopleKeep.

That gap is a big missed opportunity!

What Gen Z Actually Wants From Flexible Benefits

• Workplace flexibility, like remote work and compressed schedules.
• Handshake reports 71% of students are more likely to apply for jobs with flexible schedules.
• Mental health support, including teletherapy and wellness apps.
• SHRM highlights the need for customisable wellness resources.
• Financial wellbeing, such as student loan repayment and financial coaching, as outlined by Eppione.
• Purpose-driven perks, with 50% of Gen Z looking for employers with a clear community impact, according to PlanSponsor.

Why Personalisation Pays Off

Customisable benefits drive results:

• 25% lower turnover
• 21% higher engagement
• 25% healthcare cost savings, according to Vorecol

When employees feel their benefits reflect their real-life needs, they stay longer and engage more deeply.

Mental Health Is Non-Negotiable

Gen Z has made one thing clear: mental health is essential, not optional.

Only 15% rate their mental health as “excellent”, and 40% report feeling stressed or anxious most of the time, according to Handshake and Deloitte.

What Gen Z Expects From Employers

• Dedicated mental health days, as highlighted by Wellmark.
• Digital-first EAPs with real usage, not outdated 1-800 numbers, as noted by Benefits and Pensions Monitor.
• Wellness tech, like meditation apps and digital resilience tools, supported by WebMD Health Services.

Ignoring mental health isn’t just risky—it’s a missed business opportunity.

The Communication Gap: Why Gen Z Doesn’t Understand Their Benefits

Offering great benefits means nothing if no one knows how to use them.

45% of Gen Z say they don’t fully understand their benefits.

56% feel overwhelmed during open enrolment, according to PeopleKeep.

How to Fix It

• Speak their language: ditch the jargon.
• Tell real stories, not just list features.
• Communicate year-round, not just at enrolment.
• Use peer-to-peer advocacy to build trust.
• Go digital-first, with video leading the way (72% of Gen Z prefer video over text, according to deskbird).

Short, sharp, and clear. That’s how you’ll capture their attention.

Technology’s Role in Delivering Benefits That Work

Gen Z expects tech-enabled experiences that feel as easy as ordering food or booking travel.

Key Tech Features They Expect

• AI-powered personalisation, using real data to recommend relevant benefits.
• Mobile-first platforms, with one-tap access and instant updates.
• Self-service portals, putting employees in control.

And don’t forget accessibility for all generations.

The best platforms work for everyone, not just digital natives.

The Bottom Line

Gen Z is raising the bar for what great benefits look like.

If you’re still offering one-size-fits-all packages, you’re missing a huge opportunity to engage the workforce of tomorrow.

Here’s your action list:

1. Personalise your benefits.
2. Prioritise mental health.
3. Communicate clearly, year-round.
4. Make it digital-first.
5. Ensure it works for every generation.

Because if your benefits aren’t easy to access, easy to understand, and easy to love, they aren’t working hard enough.

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