Overview
As Generation Z, those born between 1997-2012, increasingly become a substantial part of the workforce, understanding their unique benefits needs has become crucial for organisations aiming to engage this segment effectively.
This focus is particularly important, as research from Fidelity indicates that a large proportion of workers, including five in seven Gen Z workers, express feelings of restlessness at work. Those within this group tend to experience lower job satisfaction, often describing their work as poor, and are more likely to leave their organisation within the next six months.
Additionally, employers have noted the challenge of retaining younger workers, with well over a third of employers reporting that Gen Z are the hardest segment of their workforce to retain.
These insights underscore the importance for organisations to address the needs and expectations of Gen-Z employees to boost the employee experience and potentially enhance retention rates.
Feeling confident in the future but stressed about today
Fidelity research indicates that while Generation Z workers generally exhibit high confidence in achieving their long-term financial goals, with more than half feeling comfortable about paying down debt, maintaining their lifestyle, preparing for financial emergencies, and making sound investment decisions, their outlook on current financial conditions presents a stark contrast.
Inflation emerges as a major concern, with two-thirds worried about the impact of rising costs, and over half experiencing stress over their immediate financial needs. Healthcare costs also pose a significant worry for Gen-Z around the globe.
| Financial topic | Percentage of Gen Z respondents who are stressed about this topic |
|---|---|
| Inflation | 70% |
| Immediate needs | 55% |
| Health care | 54% |
Source: The Fidelity Global Sentiment Survey, 2024
This suggests that confidence alone isn't sufficient. Gen-Z workers are seeking financial support and solutions that address their immediate needs while keeping their longer-term goals in focus.
Seeking guidance from trusted sources
When it comes to guidance in their financial lives, Gen-Zer’s look beyond traditional sources. Trusted guidance is important to younger workers and over a third (38%) are seeking advice from their family and friends.
Digital engagement is also important to this group, with social media being a sought-out touch point, as nearly a third (28%) say it's an important source of information.
Fidelity’s content and webinars are designed to help you support employees by providing a reliable source of financial guidance. PlanViewer provides access to insight and education and a range of tools and calculators to help engagement with financial planning and enable employees to take control.
Looking for benefits to support today and tomorrow
Gen-Z workers are seeking benefits and support from their employers that meet their financial and life needs today, with an eye on their future goals.
Compensation is important and Gen-Z are looking at this from a wider perspective than just their base compensation. Nearly all younger workers we asked said that a bonus (91%) and retirement plans (92%) are important reasons to stay at their job. While half (51%) say that they are participating in their company stock plan.
Employers that provide a good work/life balance are at the forefront in delivering benefits that resonate with Gen-Z, as nine in ten say this is also an important reason to stay in a job. Benefits that support psychological needs are also important to many (86%) in this group.
Many employers are developing benefit strategies that support the younger generation of workers with both tangible and intangible benefits.
Fidelity aims to help employers provide the benefit support their workforce needs, from retirement solutions, investing and stock plan services through to financial wellness tools. We’re here as a benefits partner, to help you engage your workforce.
Want to know more?
We’re working alongside employers to help support the needs of your workforce and enhance your benefits proposition and engagement strategies to meet the changing needs of the workplace.
Explore our findings and learn a little more about what Gen-Z employees are looking for when it comes to support from their employer.