Is your company culture fit for Gen Z? Discover what they want at work and what you can do to keep up.
The youngest generation in the workforce is primed to revamp the business landscape. Think: shifting work perks, company culture, and business practices in general.
To be clear, age isn’t the driving force. Young people naturally have unique priorities, but Gen Z’s values also tend to reflect larger societal shifts. Many businesses already know it: According to recent research from Principal®, 41% of employers say they expect Gen Z’s differing expectations to upend traditional workplace benefits by 2030.1
Attracting, retaining, and connecting with this set of up-and-coming talent—now and in the future—means growing with them. Explore five areas where they’re instigating change and what you can do to keep up.
of employers expect Gen Z to upend traditional workplace benefits.1
Sustainable, socially responsible practices
From social media activism to grassroots movements to major political stages, Gen Z tends to be vocal and passionate about sustainability and social responsibility. They hold corporations accountable for their actions—and in many cases expect the businesses they work for to do good, too.
of Gen Z employees say it’s important for them to work at a company that’s policies and practices align with their personal beliefs.1
Making changes for the sake of resonating can’t be the goal. But if you authentically believe it’s the right thing to do, seeking ways to prioritize sustainable business practices and social responsibility is a win-win.
Consider:
- Adopting renewable energy sources
- Reducing waste
- Seeking diverse sourcing options
- Supporting or partnering with local charitable organizations
- Providing opportunities for employee community involvement and paid volunteer time off
Personal well-being and flexibility
Another area Gen Z’s pushing for progress? Personal well-being. Gen Z advocates for destigmatizing mental health and is vocal about maintaining balanced lifestyles. They tend to seek resources and flexibility from their employers.
Gen Zers report they struggle
with mental well-being
2x more
than other generations.3
On a human level, it makes sense to respect and support employees’ personal needs. It may also benefit your bottom line: 36% of young employees say mental health impacts their productivity and performance.4 Businesses are increasingly adding benefits to help.4
Consider:
- Offering employee assistance programs
- Ensuring health insurance policies cover mental health
- Providing flexible work schedules
- Promoting holistic wellness programs
Employee perks for financial well-being
Coming of age in a time of economic uncertainty and steep costs of living, Gen Z faces unique financial challenges. Many are burdened with debt. Many lack financial literacy skills.
Gen Zers report they struggle with
their overall financial situation
70% more
than other generations.3
While you directly impact your employees’ financial situations through compensation, explore broader ways you can support them, too.
Consider:
- Auto-enrolling employees in a robust retirement plan with employer-match incentives
- Providing personalized financial planning resources
- Assisting with student debt payoff
- Offering an emergency savings program
- Subsidizing common expenses like caregiving or continuing education
Inclusive workplace culture
Diversity, equity, and inclusion (DEI) policies are not new or trendy. But Gen Z does tend to put more importance on them than older generations.2 Given many have grown up publicly advocating for inclusion throughout society, equal opportunities and representation in the workplace are table stakes.
of Gen Z employees say it’s important for them to work at a company that prioritizes diversity, equity, and inclusion.2
Promoting DEI throughout your business means ensuring not just salaries but also opportunities and promotion tracks are equitable; prioritizing diverse talent at all levels; and outfitting your workplace and training leaders to help all employees feel physically, emotionally, and professionally supported. It may also extend to your employee benefits.
- Surveying employees on your company culture to establish a benchmark
- Formalizing a diversity, equity, and inclusion policy
- Creating employee resource groups
- Ensuring all benefits support diverse individuals and family structures, such as gender-neutral parental leave
Technological integration
Nicknamed “Zoomers” for a reason, we’re talking about a generation of digital natives: generally proficient with tech and eager to leverage it for efficiency, productivity, and creativity.
of companies invest at least a third of their expendable income on technology.5
Are your ways of working up to date? Explore opportunities for advancing internal communications, streamlining processes, or even modernizing employee benefits.
- Investing in a team focused on innovation
- Asking team members what tech would improve their work lives
- Exploring ways to use new generative AI products
- Offering digital versions of common work perks, like telehealth services or digital financial wellness programs
Gen Z has already had some major impacts on society as a whole. As they continue to age into the workforce, it’ll only become more essential for businesses to progress accordingly. Attracting and retaining incoming talent—and positioning your business for long-term success—may depend on it.
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