Gen Z Employees Seek More Personalized, Year-Round Benefits Experience

As the number of Generation Z employees in the workforce is expected to surpass that of Baby Boomers early this year, new data released by MetLife suggests that employers need to reassess their benefits strategies and focus more on the needs of this younger cohort. 

According to a Glassdoor analysis of data from the U.S. Census Bureau, the U.S. workforce consisted of about 17.1 million Gen Z employees in 2023 and is expected to surpass the number of Boomers (17.3 million) this year as many Boomers retire.  

MetLife’s 2023 Employee Benefit Trends Study found that half of today’s Gen Z employees say most of the benefits communications they receive do not feel relevant to them, and 63% wish their employers offered more personalized benefit recommendations. 

In addition, 68% of Gen Z employees said they want their employer to communicate with them after they have enrolled in benefits, not just during annual open enrollment.  

“As employers across the U.S. plan their benefits strategies for the year, it’s vital for them to recognize the unique preferences of each generation,” said Jamie Madden, senior vice president of workforce engagement and benefits connectivity at MetLife, in a press release. “Gen Z, in particular, is setting the stage for what a positive employee experience looks like, and by keeping their standards top of mind, employers can better serve the needs of their entire workforce.” 

Bradd Chignoli, head of U.S. group benefits national accounts and financial wellness and engagement at MetLife, noted in an emailed response that Gen Z employees are the least experienced when it comes to choosing and using their benefits, and therefore, may require additional support than other more experienced populations. 

“Providing personalized recommendations and educational resources can help Gen Z employees better understand their benefits packages and how to utilize them throughout the year to maximize their value,” Chignoli said.

Many benefits experts advise plan sponsors to communicate about benefits throughout the year to avoid overwhelming employees at open enrollment. Nate Black, vice president of health product development at Voya Financial, previously said there are opportunities throughout the year for plan sponsors to highlight what is coming up, what has changed and the advantages of certain types of benefits.  

However, Gen Z is not the only cohort looking for a more customized and comprehensive benefits experience, as 54% of all employees said they wish they had personalized benefit recommendations. A customized benefit for Millennials navigating parenthood for the first time could be child care or fertility benefits, for example, while Gen X employees may benefit from learning about how best to care for their aging parents.  

Besides feeling a lack of access to personalized benefits, Gen Z employees were the least satisfied of all generations with the availability of training and skill development, according to the survey. MetLife found that remote and hybrid workers are significantly more satisfied with the availability of training and upskilling initiatives than on-site workers. 

The survey also found that “purposeful work” was the top driver of employee mental, social and physical health. Gen Z workers are particularly interested in their employers having a clear purpose and a positive impact on the community, as 50% of Gen Zers cite it as a “must-have” benefit when considering a new role, compared with only 43% of all employees.  

Nearly half of Gen Z workers surveyed also said that their employer taking action on environmental and sustainability issues is a must-have in demonstrating employee care relative to purposeful work.  

According to MetLife, meaningful work has a significant impact on retention, especially among Hispanic, Gen Z and remote workers.  

Flexibility and work-life balance is also a benefit highly valued by Gen Z workers and other cohorts. MetLife stated in its survey that work-life integration can be viewed as an “outcome that results from the right mix of benefits, programs and culture, as well as guidelines that are designed with employees’ best interests in mind.”  

The idea of a four-day work week is attracting more attention, and MetLife found that nearly two-thirds of employees are interested in their employer offering four-day work weeks. Interest in the four-day work week outranks sabbaticals, extended time off and half-day Fridays as ways for employees to integrate their personal and professional lives. MetLife estimated that up to 40% of companies in the U.S. have adopted or are making plans to adopt some four-day weeks.  

“As employees remain interested in this concept, it seems likely that employers will need to consider providing more flexible work options for their employees in the future,” Chignoli said.

As a whole, approaching benefits communications with continuous education offers a return on investment—beyond yielding a more satisfied workforce, MetLife argued.  

“Employee care has a tangible impact on employee wellbeing, happiness, and overall satisfaction, and, ultimately, organizational performance,” Madden stated. “Thus, as the workforce evolves, so too must the way employers engage and demonstrate care for their employees. Delivering timely, approachable communication and resources is critical to ensuring each generation in today’s workforce understands how to elect and use the benefits that are right for them year-round.” 

Chignoli added that since levels of benefits understanding may vary by cohort, education can be more focused on driving  learning where it is needed most.

“For example, Gen Z and Millennial employees may require additional educational support as they are significantly more likely to feel that there are certain elements of their benefits packages that they don’t fully understand when compared to more experienced populations,” Chignoli said. 

MetLife’s 21st Annual U.S. Employee Benefit Trends Study was conducted in two waves, beginning in November 2022 with interviews with 2,840 benefits decisionmakers and 2,884 interviews with full-time employees. Wave 2 of the study was conducted in July 2023 and consisted of 2,650 interviews with full-time employees, aged 21 and over.