Gen Z, which includes those born between the late 90s and early 2010s, is expected to make up about one-third of the workforce by 2030. As baby boomers retire at a rapid pace, employers must turn their focus to a new generation. For many HR and business leaders, this means shifting employee compensation and benefits packages to meet new expectations.
Many of those tasked with building effective packages find it challenging. Understanding what Gen Z workers need and finding ways to deliver it will be key in ensuring you are offering employee benefits that strike the right chord with this new generation, keeping them healthy, productive, and satisfied in the long run.
Understanding the Challenges Facing Gen Z Employees
For your Gen Z employees, disruption has become the norm. Global health crises and geopolitical conflicts have led to supply chain disruptions, seemingly endless inflation, and record-high interest rates. Health insurance costs are also increasing, putting Gen Z workers in a tight position when it comes to affording their healthcare premiums.
Additionally, with stress and burnout at all-time highs, many Gen Z employees are looking for support. Employee benefits that promote work-life balance, such as remote work, time off, and childcare support, can go a long way. However, Gen Z employees need mental health care baked into their health benefits as well.
Gen Z employees have difficulty making sense of their healthcare options. Data from the National Association of Insurance Commissioners shows that 54% of Gen Z adults feel anxious or overwhelmed about dealing with insurance. Less than a third can define key insurance-related terms (such as “out of network” and “deductible”), and 14% aren’t even sure why health insurance is necessary.
Meeting Gen Z Where They Are
Clearly, it’s important to craft employee compensation strategies that can help Gen Z workers pay their healthcare premiums without sacrificing in other critical areas like food or housing. However, your Gen Z workforce will require more than just additional compensation. They’ll also need other forms of support when it comes to taking full advantage of their benefits.
Training and Education
Onboarding can be a confusing time for Gen Z employees — especially those who are entering the workforce for the first time. While there’s a lot of excitement around meeting their team and showcasing their skills, they may not understand much about their benefits packages. Unfortunately, many of them won’t turn to the HR team for support. In fact, studies show that 57% of Gen Z employees will turn to their parents instead.
Fortunately, you can support your Gen Z staff in making their own independent assessments of their healthcare needs by offering training and education. From an explanation of basic healthcare-related terms to a breakdown of what individual plans entail, providing this support makes it more likely that your workforce can choose a plan that meets their needs.
Explaining the Advantage
You can also support your Gen Z employees by ensuring they understand the importance of selecting the right healthcare plan and taking advantage of benefits when they need them.
Many already understand the benefits of mental health care coverage. However, you may also want to explain the close relationship between employee well-being and job performance. Data shows that when employees feel better, they are more productive and satisfied with their work. Not only is their well-being a boost for their personal goals, but it can lead to better business outcomes as well.
Building an Effective Employee Compensation and Benefits Package Is Well Worth the Effort
With Gen Z poised to take over the workforce in just a few short years, it’s critical for today’s employers and HR leaders to offer as much support as they can to help these employees thrive. When your workforce has access to benefits that support their needs, these employees are much better equipped to help you reach your strategic goals.
Benefits Advisory Group can provide you with the resources and advice you need to offer competitive benefits that attract and retain top talent. We not only create winning strategies for customized benefit packages but also offer virtual trainings you can use to onboard employees and help them take advantage of those benefits.
Contact us today to learn more about how our services can streamline the benefits selection process to provide maximum value for your team.