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The workplace is experiencing a generational shift that can’t be ignored. In 2025, Generation Z are expected to make up 27% of the workforce, bringing new priorities that challenge traditional approaches to employee benefits.

At Allen People Solutions, we see organisations struggling to adapt their benefits strategies to attract and retain this influential generation. Those who don’t, risk losing access to the talent that will drive their future success.

Understanding Gen Z’s Expectations

Unlike previous generations, Gen Z enters the workforce expecting comprehensive support from day one. Their formative experiences—pandemic work disruptions, mental health awareness, and rapid adoption of remote work—have shaped their expectations for employer support.  

Although salary expectations remain important, Gen Z are placing greater importance on benefits linked the organisations values and purpose. This means benefits should reflect organisational values and support causes that matter to employees. 

Key Benefits Priorities for Gen Z

Why It Matters

Organisations that successfully adapt their benefits strategies to meet Gen Z expectations could see measurable returns:

• Improved recruitment: Attract top talent in competitive markets by providing a comprehensive benefits package.
• Enhanced retention: When employees feel their complete wellbeing is supported, workplace engagement tends to increase, and turnover is potentially reduced. 
• Increased productivity: Employees who feel supported around mental health, financial stress, or work-life balance can focus more effectively on their work responsibilities.
• Stronger employer brand: Organisations known for progressive benefits offerings become employers of choice, improving their ability to attract talent across all generations.

And remember – Benefits that resonate with Gen Z often appeal and are valued by all employees across the organisation. The key is framing benefits evolution as organisational enhancement rather than generational accommodation. This approach builds support across all employee groups and creates more inclusive workplace cultures.

Getting Started

To evolve a benefits strategy, Employers can improve engagement and retention by:

1. Conducting a Benefits Gap Analysis: Before adding new benefits, find out what is missing and ensure current offerings are clearly communicated and easily accessible. 

2. Communicating benefits clearly through multiple channels: Create comprehensive guides, use visual aids, and provide multiple channels for benefits information.

3. Offering flexible, customisable plans: Consider benefit plans that allow employees to choose the combination of benefits that best meets their individual needs rather than one-size-fits-all packages.

4. Gathering employee input via surveys or focus groups: Understand which benefits are most valued and where gaps exist

5. Piloting benefits before full rollout:  Start with High-Impact, Lower-Cost Options.  Not all benefits require significant financial investment. Flexible scheduling, mental health days, and improved communication about existing benefits can have significant impact.

Conclusion

Gen Z’s benefits expectations reflect a shift in priorities shaped by unique experiences.  By considering their unique ‘Employee Value Proposition’, organisations ready to adjust will successfully attract and retain top talent. 

At Allen People Solutions, we help organisations navigate generational transitions and design benefits strategies that work for everyone. Whether it’s assessing current offerings, or improving benefits communication, we’re here to support your organisations success in the changing workplace landscape.