Gen Z
Employee benefits for the workforce of the future

How can you tailor your benefits to meet the needs of this growing employee demographic?
You could be forgiven for thinking that Generation Z (Gen Z) are too young to make up much of the workforce today, given that the youngest members of this demographic are aged just 12.
But the eldest among them are turning 27, meaning that Gen Zs are already making up a large proportion of your people and workforces around the world.
What is clear is that Gen Z is the workforce of the future. They already make up 25% of the global population,2 and with more than 10,000 Baby Boomers turning 65 and nearing retirement each day in the United States alone,3 Gen Z will make up nearly 30% of the workforce by 2025.2,4
As the younger end of the generation reaches working age, these numbers will only continue to grow.
Given the proportion of Gen Z employees already in the workplace, it’s vital that employers now consider their needs when planning benefits programmes. And this could be quite a challenge given that Gen Zs are very different…
Why is Gen Z so different?
While it’s important not to stereotype an entire group spanning 15 years, there are plenty of general trends that make Gen Z stand out from the generations before them and are worth considering for employers.
Gen Z is the most diverse generation in history. They are racially and ethnically diverse, and in many parts of the world are embracing non-binary ideas around gender and sexuality. And Gen Z is the first generation to have grown up using the internet, which has made them digitally savvy and globally mobile.2
They’ve also lived through a lot in a short space of time. They’re starting their careers during a period of high inflation, with more student debt than any previous generation and during housing crises in many parts of the world.3 On top of that, crucial years of education, or the first years of their careers, were disrupted by the COVID-19 pandemic.
All of these things shape the values and beliefs of Gen Zs in both their personal lives and at work. They prioritise mental health, they want a good work-life balance, and they care deeply about social causes and diversity, equity & inclusion (DE&I). And crucially, they want their employer to share these values with them.
Gen Zs are entering a workforce that has existing ideas around the kinds of employee benefits that should be provided. But the reality is, these young workers arrive with different values and needs to the generations that have gone before, and want to be treated as individuals and have their individual needs met. Multinationals need to pay attention if they want to attract the leaders of the future and support them to thrive.
So, what do Gen Z want?
Given everything we know about Gen Z, adapting to what the youngest workers really want and need from an employer could be key to future-proofing your business. And those that start acting now have the best chance to reap the rewards.
Of course, the needs of other generations shouldn’t be ignored. Multinationals looking to move away from a one-size-fits-all approach to employee benefits can start by offering a range of options that suit the needs of a diverse workforce. But considering the unique needs of Gen Z can help employers attract and retain their younger workers.
So, what are some of this generation’s key priorities?
1. Diversity, Equity & Inclusion
Gen Z’s diversity spans race, ethnicity, culture, gender, sexuality, religion, socioeconomic background and more. And this is shaping how they view the world of work. In many markets, Gen Z say they want to work for companies that not only value DE&I, but prioritise it. And this isn’t something that multinationals can achieve by just talking about DE&I. Gen Z wants to see diversity within the workforce, at all levels. They want their company’s values and leadership to reflect the diversity of the communities they live and work in.4
On a personal level, Gen Z employees want to feel like they truly belong, and that they’re celebrated for who they are while at work. And with 63% of workers saying that they’d choose a company that prioritises DE&I over one that doesn’t,4 this is something employers need to consider.
2. Focus on wellbeing – particularly mental health
Health and wellness is top of mind for Gen Z, who are particularly focused on and open about mental health.
· Gen Z are nearly two times more likely than other generations to say they are struggling with mental health issues5
· 68% of Gen Z (and younger Millennials) report feeling stressed out most of the time at work3
· Only 51% of Gen Zs rate their mental health as good or extremely good.6
With such high levels of stress among this young demographic, mental wellbeing is something that employers need to take seriously.
But there’s also a real opportunity for multinationals to make a difference in this space. Gen Z employees’ willingness to be so open about health and wellbeing makes this generation different to those that have come before, who might have tended to keep mental health challenges private.7 Multinationals can show that they care for this group of young people by providing mental health support that suits their preferences and lifestyle.
It’s important to listen to the specific challenges facing your people and implement solutions that address your Gen Z people directly, and encourage them to use these support services without judgement. These are the first steps towards creating a workplaces culture that empowers employees to look after their mental health and overall wellbeing.
3. Work-life balance
This prioritisation of wellbeing means work-life balance and flexibility are also top priorities for Gen Z, and this trend isn’t going anywhere. According to the World Economic Forum, 73% of Gen Z want permanent flexible work alternatives.3
And this isn’t about laziness as is sometimes portrayed in the media: Gen Z say they’re prepared to work evenings or weekends where necessary for their careers.3 But what’s also clear is that Gen Z employees believe there is more to life than work and they expect their employers to know this, too.
60% of Gen Z have said that a job does not need to be fulfilling, and instead should enable them to find balance and fulfilment in other aspects of life.8
For Gen Z, fulfilment comes from more than just their careers: it means feeling well, physically and mentally. It means having a good quality of life, and a job that feeds into this rather than taking away from it. And with 62% of Gen Z employees actively or passively seeking new jobs,8 employers who want to keep hold of their Gen Z talent need to be aware of this mindset before it’s too late.
4. Financial security
Financial wellness has risen up the corporate agenda in recent years and this is an important area for Gen Z workers too. According to one survey, 30% of Gen Z feel financially insecure and more than half say that they live ‘paycheck-to-paycheck’.6
As a generation with so much ahead of them, framed against the backdrop of challenging inflationary and housing pressures in many markets, it’s easy to understand why financial security is impacting Gen Z’s stress levels. And with social and political instability being felt by many, it might seem like there’s no light at the end of the tunnel just yet.
Despite these factors, Gen Z is positive: 32% are optimistic that the economy will improve within the next year. 6 But, until it does… what can you be doing to support your people through these financially stressful times?
A Gen Z case study
We caught up with Iosif Dimitriou, one of MAXIS’ Gen Z employees, to hear what he thinks is important when it comes to company values and benefits…
Iosif says: “For me, the values and culture of the company I work for are just as important as my benefits. I want to work in a healthy and positive environment where I feel seen and heard. As part of the youngest generation within the workforce, it’s important to me that my work and ideas matter and are listened to by my co-workers with more experience. I also want to be able to see a clear path for growth and progression at any company I work for.
“Flexible working is another thing that matters to me. Having the option to mix up whether I’m working from home or the office gives me more control over my day. I also really care about Corporate Social Responsibility (CSR) – I feel really motivated and encouraged to work hard when I feel like I’m giving back to the local community, and this is something that a more flexible culture enables. I think things like this are crucial when deciding where to work.
“On the benefits side, health and wellness is really important to me and my peers and I think benefits around this are really appealing, whether that’s discounts on gym memberships or other ways to stay fit and active. I also love the idea of company sports events – staying fit and healthy while bonding with colleagues!
"Finally, as an international employee, I think good medical cover is a big thing – it’s really important to me that I feel like my company can properly support me and my healthcare needs, especially as I’m a long way from home.”
Seven key takeaways for multinationals
1. Start by running an employee survey – it’s important to look at the general trends when it comes to each generation, but your employees will have their own specific needs and expectations. Find out what kind of support they want and need from you and make it a priority.
2. Use the results of your survey to review your EB programme and ensure it’s addressing the challenges and needs of your Gen Z employees, as well as all other generations within your workforce. Moving away from a one-size-fits-all model and providing a diverse range of benefits that meet the needs of a broader workforce is crucial.
3. Offer flexibility. Gen Zs’ individuality is important to who they are, so offering benefits that they can tailor to their own specific needs is really important.
4. Gen Z deeply values mental health support. Have you considered providing mental health days for your people? Or access to virtual therapy and other mental services like an employee assistance programme (EAP)?
5. Consider writing your EB risks via a captive. Captives give much greater flexibility over plan design and can help you to tailor your EB programme to address the challenges and priorities raised by your people. And, as the ultimate risk bearer, you can retain underwriting profits and could reinvest these back into wellness initiatives that your people will value.
6. Form cross-generational working groups. The generations in your workforce might all be very different, but this is a great opportunity for them to learn from one another. Having open conversations with colleagues from different generations could help employees navigate their day-to-day challenges differently – plus it could be great for team morale.
7. Last but certainly not least, provide line manager training that gets to the heart of what Gen Z workers need from their employer. Your line managers need to be prepared for conversations about important topics that can be emotional and require empathy, such as mental health. Equip your managers with the right skills to have these conversations and let your people know they can look to their manager for support.
Paul Lewis, Chief Business Development Officer at MAXIS GBN, says: “DE&I, greater flexibility and an increased focus on more personalised wellbeing strategies are all things that have been growing in importance for employees over the last five years. They’re crucial across most generations – and for good reason. The difference is that for Gen Z, these aren’t ‘nice-to-haves’. They expect these things from their employers. It’s important to understand that when Gen Zs are deciding where to work, they will reflect on whether these things are simply talked about or are actually engrained within a company’s culture and values.
“Multinationals looking to win the war for talent will need to take these priorities on board if they want to attract and retain the best talent within this growing demographic of the workforce. Moving away from a one-size-fits-all approach to EB, and adopting a more holistic, multi-generational approach, will set multinationals up to really care for their people’s needs. And multinationals writing EB into a captive are particularly well-positioned to design a benefits plan that gets to the heart of what this new generation of workers wants.”
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[1] Alison Eldridge, Encyclopaedia Britannica, Experience the American Generations: Which Generation Are you? https://www.britannica.com/topic/Experience-the-American-Generations-Which-Generation-Are-You-2226598 (Sourced: June 2024)
[2] Anon, Oliver Wyman Forum, A-Gen-Z Series: What Business Needs To Know About The Generation Changing Everything https://www.oliverwymanforum.com/global-consumer-sentiment/a-gen-z.html (Sourced: June 2024)
[3] Anon, John Hopkins University (2023) Gen Z In The Workplace: How Should Companies Adapt? https://imagine.jhu.edu/blog/2023/04/18/gen-z-in-the-workplace-how-should-companies-adapt/ (Sourced: June 2024)
[4] Jack Kelly, Forbes (2023) How Employers Can Meet The Needs Of Gen-Z Workers https://www.forbes.com/sites/jackkelly/2023/11/17/how-employers-can-meet-the-needs-of-gen-z-workers/ (Sourced: June 2024)
[5] Anon, Oliver Wyman Forum, A-Gen-Z Series: Healthcare https://www.oliverwymanforum.com/global-consumer-sentiment/a-gen-z/healthcare.html (Sourced: June 2024)
[6] Deloitte Global 2024 Gen Z and Millennial Survey (2024) (Sourced: June 2024)
[7] Tim Barker, Forbes (2024) Gen-Z In The Modern Workplace: Mental Health And Well-Being Matters https://www.forbes.com/sites/forbesbusinesscouncil/2024/03/20/gen-z-in-the-modern-workplace-mental-health-and-well-being-matters/ (Sourced: June 2024)
[8] Anon, Oliver Wyman Forum, A Gen-Z Series: Future of work https://www.oliverwymanforum.com/global-consumer-sentiment/a-gen-z/future-of-work.html (Sourced: June 2024)
This document has been prepared by MAXIS GBN S.A.S and is for informational purposes only – it does not constitute advice. MAXIS GBN S.A.S has made every effort to ensure that the information contained in this document has been obtained from reliable sources but cannot guarantee accuracy or completeness. The information contained in this document may be subject to change at any time without notice. Any reliance you place on this information is therefore strictly at your own risk.
The MAXIS Global Benefits Network (“Network”) is a network of locally licensed MAXIS member insurance companies (“Members”) founded by AXA France Vie, Paris, France (“AXA”) and Metropolitan Life Insurance Company, New York, NY (“MLIC”). MAXIS GBN S.A.S, a Private Limited Company with a share capital of €4,650,000, registered with ORIAS under number 16000513, and with its registered office at 313, Terrasses de l’Arche – 92727 Nanterre Cedex, France, is an insurance and reinsurance intermediary that promotes the Network. MAXIS GBN S.A.S is jointly owned by affiliates of AXA and MLIC and does not issue policies or provide insurance; such activities are carried out by the Members. MAXIS GBN S.A.S operates in the UK through its UK establishment with its registered address at 1st Floor, The Monument Building, 11 Monument Street, London EC3R 8AF, Establishment Number BR018216 and in other European countries on a services basis. MAXIS GBN S.A.S operates in the U.S. through MAXIS Insurance Brokerage Services, Inc., with its registered office located in New York, USA, a New York licensed insurance broker. MLIC is the only Member licensed to transact insurance business in New York. The other Members are not licensed or authorised to do business in New York and the policies and contracts they issue have not been approved by the New York Superintendent of Financial Services, are not protected by the New York state guaranty fund, and are not subject to all of the laws of New York. MAR01442/0724