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For the past few years, headlines have obsessed over one narrative:
“Gen Z demands more money.”
But what’s often missed is why. And more importantly, what this means for HR and Reward leaders trying to build people strategies that serve multiple generations fairly, sustainably, and competitively.
Yes, Gen Z is pushing for higher pay. But this isn’t entitlement. It’s realism.
And in 2025, it’s not just about salary anymore. It’s about security, flexibility, and values - and benefits play a bigger role than ever in closing that gap.
Why Gen Z Is So Vocal About Pay
Gen Z - typically defined as those born between 1997 and 2012 - is the first generation to come of age in a post-pandemic, climate-concerned, and digitally dominant world. They’ve inherited:
- Stagnant wage growth: Real wages in many developed economies have failed to keep pace with inflation. According to the OECD, wage growth across G7 countries lagged behind inflation for most of 2023 and early 2024.
- Skyrocketing living costs: Housing affordability is at crisis levels. In the UK, average rents now consume over 35% of take-home pay for under 30s. In the US, rent affordability thresholds are exceeded in most major cities.
- Economic instability: From tech layoffs to geopolitical uncertainty, Gen Z has entered the workforce amid volatility, making financial security a natural focus.
- Debt aversion and financial literacy: Unlike Millennials, fewer Gen Zs are saddled with student debt thanks to increased scrutiny of the ROI of higher education. They’re also more financially literate — they use fintech apps, follow investment influencers, and expect employers to help them plan wisely.
It's no wonder that 39% cite financial insecurity as their top stressor.
But here’s the nuance:
Salary is a starting point. Not the solution.
What Gen Z Is Really Looking For (And Why Employers Need to Listen)
A 2025 Deloitte survey found that while 57% of Gen Zs say fair pay is a top priority, equally important are:
- Flexibility (52%)
- Mental health support (47%)
- Purpose-led work (43%)
- Financial wellbeing education (38%)
In short: they want to feel secure, supported, and aligned. Salary alone can’t deliver that.
Why Salary Alone Isn’t a Sustainable Strategy
For enterprise organisations, simply outbidding competitors on pay isn’t realistic or sustainable. It risks internal pay equity issues, inflates salary expectations unsustainably, and undermines long-term reward strategy integrity.
More importantly, focusing solely on salary ignores the bigger picture: how people feel about their financial security, wellbeing, and future.
Learn more about how to create an inclusive, sustainable approach to flexible benefits.
What Leading Employers Are Doing Instead in 2025
1. Rethinking Financial Wellbeing as More Than Just Pay
Modern financial wellbeing strategies extend beyond salary and pensions.
They include tools and benefits that empower employees to feel in control of their money:
- Access to financial coaching (e.g., Octopus MoneyCoach, Claro)
- Educational resources on investing, mortgages, and planning
- Inclusive pension options with sustainable, ESG-aligned investments
- Salary advance schemes, emergency savings pots, and debt management tools
Why it matters:
42% of Gen Z say their long-term financial goals influence job choice more than career progression (Deloitte Global Gen Z Report 2025).
Discover more about how flexible financial benefits are evolving in 2025.
2. Reframing Flexibility: It’s About Autonomy, Not Just Location
Contrary to lazy stereotypes, Gen Z doesn’t all want to work from their bedrooms. They want flexibility with purpose.
A Microsoft Work Trend Index report found Gen Z is seeking:
- Hybrid environments with access to mentorship and collaboration
- Flexibility in hours, not just location
- Clarity on boundaries to avoid burnout
Progressive employers are experimenting with:
- 4-day work weeks
- Asynchronous schedules
- ‘Core hours’ models to allow for autonomy within structure
Explore more ideas on how to shape your benefits for modern workforces.
3. Benefits That Reflect a Modern EVP
Benefits speak louder than slogans when it comes to trust, security, and values. For Gen Z, key areas include:
Mental Health:
Ogilvy reports 70% of Gen Z believe their mental health needs more employer support. Beyond EAPs, they look for proactive offerings like Headspace, Spill, or Myndup.
Healthcare Access:
Even in countries with public healthcare, faster access through employer schemes is highly valued. Tailored health plans and digital health tools are increasingly expected.
Parental & Life-Stage Benefits:
While many Gen Z aren’t yet parents, progressive benefits reflect awareness of changing life needs — fertility support, caregiving leave, menopause resources.
Sustainability & DEI Commitments:
83% of Gen Z evaluate a company’s DEI actions when job-hunting (Monster, 2024). They want to see policies, diverse leadership, and accountability — not just statements.
See how a modern Employee Value Proposition can help attract the next generation.
4. Empowering Choice: The End of ‘One-Size-Fits-All’
Gen Z doesn’t want to be told what benefits they need. They want control.
Flexible benefits platforms allow employees to tailor packages to their lives — from private healthcare to wellbeing apps, from pensions to gym memberships.
At Ben, we see first-hand how giving employees choice drives engagement and retention across generations. With individual allowances and simple platforms like the Ben Mastercard, employees have autonomy to choose what works for them.
Why This Is Bigger Than Gen Z
Focusing on Gen Z isn’t just about winning the next cohort of graduates. It’s about setting your organisation up for the future of work:
- Multi-generational teams with evolving needs
- Heightened scrutiny on wellbeing, fairness, and flexibility
- A shift from fixed, legacy benefits to personalised, dynamic models
Leaders who design benefits strategies with these shifts in mind won’t just win over Gen Z. They’ll future-proof their organisation for the talent expectations of the next decade.
Benefits Are How You Show, Not Tell
Anyone can claim to “care about people.”
Benefits that are meaningful, flexible and personalised are how you prove it.
Gen Z doesn’t want special treatment.
They want fair treatment. Transparent policies. Autonomy. And evidence that you understand what security really looks like in 2025.
Learn more about the workplace trends shaping 2025 in Ben’s Global State of Benefits Report.