What Gen Z Wants in Employee Benefits

If you’re trying to figure out what Gen Z wants from your employee benefits plan, you’re not alone. At Prime Benefits Group, it’s one of the most common questions we get from employers right now. And honestly? I get it. This generation isn’t asking for more, they’re expecting it.

Gen Z (born 1997-2012) is starting to take over the workforce. This generation is projected to make up a significant portion of the workforce over the next five to 10 years. This is also a generation that’s grown up online, lived through a pandemic, and come of age during a housing crisis. And, while Gen Z may participate less in retirement benefits than other generations, those who do are saving more. 

They’re also not afraid to speak up when something feels off at work. That could be outdated policies, vague mental health support, or a one-size-fits-all benefits plan. Whatever it is, they’ll call it out. What they do want are employers who offer flexible options, better support for mental health, and benefits that reflect the world they live in, like helping manage student debt or dealing with the rising cost of living. If you want to attract and keep Gen Z talent, your benefits plan needs to evolve beyond the basics.

Here’s a look at the top 5 things you need to know about what Gen Z wants in employee benefits:

1. They live on their phones and expect their benefits to, as well. 

If your plan involves a paper form or a clunky portal, forget it. Gen Z expects to access their benefits just like they access everything else: through their phones, fast and frustration-free.

Research shows that for Gen Z, digital self-service ranks as the most important feature in service delivery, including employee benefits. That means apps, real-time updates, in-app chats and simple, clear language.

If you’re not offering mobile-first tools, you’re already behind. Pick a provider that feels more like Spotify and less like a fax machine.

2. Mental health is the baseline, not a bonus.

Gen Z talks about mental health openly, and they expect you to do the same. 

Gen Z is actively seeking workplaces that prioritize mental health. In fact, twice as many Gen Z and millennial workers want this compared to baby boomers. Many of them also say mental health coverage is a dealbreaker when choosing a job. This includes virtual therapy, stress apps, crisis support, and long-term treatment options.

It’s not enough to offer the standard Employee Assistance Program (EAP) and call it a day. Nowadays, EAPs offer everything from legal consultations to support with finding child care, even financial wellness resources. Mental health coverage is important, too.

Find out what kind of mental health tools your provider includes and what more can be added. You’ll be surprised how far a little flexibility goes.

3. They want coverage that matches who they are.

This is a generation that expects your benefits offerings to reflect their values and their identities.

We’re talking about gender-affirming care, reproductive health (including contraception and fertility), and mental health support that’s inclusive of racialized and 2SLGBTQIA+ experiences.

Research shows that nearly two-thirds of Gen Z workers would leave a job if their benefits didn’t support their identity or lifestyle.

Look at your plan closely. If your coverage feels one-size-fits-all, it’s probably missing the mark.

4. Pet insurance? Lifestyle spending? Yes, actually.

For Gen Z, these aren’t “nice-to-haves” anymore. They’re signals that your company “gets it”.

More Gen Z workers are delaying home ownership and kids. Their dog might be their family. They want to work for employers who consider offering pet benefits, wellness stipends for fitness, nutrition or mindfulness, and financial coaching or student debt support. 

Even if your budget is tight, adding just one or two of these perks can make a huge difference in hiring.

5. They care about what your benefits say about you.

Gen Z pays attention to the fine print and the message behind it. They want to work for companies that value inclusion, flexibility, and fairness. If your benefits feel outdated, they’ll assume your culture is, too.

In fact, 71 per cent of Gen Z won’t even apply to a company that doesn’t show a real commitment to DEI.

Your benefits strategy is now your employer brand. Make sure it’s sending the message you want.

So, what now?

You don’t have to change your entire plan overnight. But you do need to take Gen Z seriously and start making moves.

Here’s what we’re advising our clients:

• Start small but smart. Add flexibility where you can.
• Ask your team. Quick surveys or onboarding check-ins can give you a lot of insight.
• Modernize your communication. If your benefits information looks like a PDF from 2006, that’s a problem.

One last thing …

The companies that adapt now will be the ones attracting and keeping the best people, especially as Gen Z becomes the majority in the workforce.

At Prime Benefits Group, we help businesses develop benefits plans that work for every generation, including the one that’s changing the rules.

Want help figuring out what Gen Z expects from your benefits plan?

Reach out at info@primebenefitsgroup.com or visit www.primebenefitsgroup.com. 

Suggested Reading

How Gen Z is Raising the Bar for Retirement Savings

How Employers Can Support the Well-Being of Young Workers