When It Comes to Workplace Benefits, Gen Z Wants Financial Security & Flexibility

In addition to competing on dollar amounts, companies today are reevaluating their benefits packages to ensure they remain attractive, relevant, and Gen-Z friendly. Following two years of the pandemic and a universal embrace of the remote-first culture, what exactly do the newest entrants into the workforce care about when it comes to work perks?  

In March 2022, we surveyed nearly 5,000 college juniors and seniors to uncover the truth about what Gen Z is experiencing in the workforce. As part of the robust report of our findings, “The State of the Gen Z Job Search,” we included data on the work benefits that Gen Z values most.

Read on for some high-level takeaways to better understand early career talent, and download the full report for more data and analysis.

Candidates today are most interested in financial benefits.

Before the pandemic, Gen Z was poised to enter a strong economy with promisingly low unemployment rates. However, massive layoffs in 2020, followed by record-high quit rates, has changed their experience in the labor market and the start of their professional journeys. In other words, early career talent today has seen first-hand how everything can change in an instant, and it’s important to have something to fall back on in uncertain times.

With that in mind, it’s no surprise that Gen Z is extremely concerned with their financial well-being and security. When asked to rank four categories of workplace benefits in order of importance, both internship and full-time job candidates chose financial security and financial education first, followed by benefits related to work-life balance, health and wellness, and career development.

Affordable healthcare coverage is top of mind for Gen Z.

Diving deeper into what perks Gen Z cares about most under the umbrella of financial benefits, it also came as no surprise that after two years of the pandemic, most candidates are concerned with being able to receive medical care if they or a loved one falls ill. In fact, 73.6% of full-time candidates said that they value affordable healthcare coverage in this category, (and 68% of internship candidates agreed that they value affordable healthcare coverage in a future full-time role.) When it comes to benefits that support health and wellness, affordable healthcare coverage again made its way to the top of the list, with 84% of full-time candidates and 79.6% of internship candidates valuing this perk. Note that as they weigh job offers, candidates may be swayed by superior healthcare plans. 

After affordable healthcare, 73.6% of full-time candidates said they valued a match for their 401K contributions, which further the narrative that Gen Z is looking to prepare for the future and have funds to fall back on after they exit the workforce.  

Candidates prefer flexible work arrangements & limited PTO.

Turning to the benefits that support work-life balance, we discovered that Gen Z has a strong preference for flexible work arrangements — with 71.6% selecting hybrid work arrangements as a valued benefit, along with 67% of internship candidates.

In addition to discovering how Gen Z wants to work, we also collected data around how this generation wants to take time off. While unlimited PTO may seem like a coveted workplace perk, our data shows that Gen Z prefers set time off. While 63.8% of full-time candidates selected limited PTO as a meaningful workplace benefit, just 35% chose unlimited PTO. And while 56.6% of interns chose limited PTO, just 27.5% chose unlimited PTO. 

Taking the time to acknowledge what Gen Z candidates value in workplace benefits can help you both support your company as it continues to tweak its benefit package, as well as understand what to showcase to early career talent as you present your company. You should make your company aware of the perks that fall under financial wellbeing that could draw in qualified candidates and where and how Gen Z wants to work, as well as be sure to highlight those benefits and perks while recruiting.

To uncover more about today’s Gen Z candidate, download our full report. Because armed with the data from our findings, you will be ready to take on the competitive labor maker confident that you understand the expectations and behavior of Gen Z.