A growing number of Gen Z talent is entering the workforce. Offering the flexible benefits that they desire helps attract these job seekers.
Born between 1997 and 2012, Gen Z’s wants and needs differ from those of other generations. As a result, you should customize the benefits your company offers to encourage applications from these job seekers.
Consider offering these benefits that Gen Z talent is seeking today to attract and retain employees.
Paid Time Off
According to PeopleKeep’s 2022 Benefits Survey Report: Part 2, 91% of the Gen Z respondents stated that paid time off was very or extremely important to them. Examples include vacation days, sick days, personal days, and paid holidays.
Because Gen Z talent values flexibility and work-life balance, they expect paid time off to take vacations and pursue personal interests. Having generous paid time off supports stress reduction and lowers the odds of burnout.
The survey showed that 83% of Gen Z respondents rated a company retirement plan as very or extremely important. Like other generations, Gen Z appreciates having help saving for the future and paying less in taxes.
For instance, a 401(k) with a company match encourages employees to save a set amount of their earnings for retirement:
- The pretax contributions reduce the employee’s annual taxable income.
- The employer contributions provide the employee with additional income during retirement.
- Because the withdrawals typically occur during retirement, they are taxed at a lower rate.
Learning and Development Opportunities
Gen Z prioritizes adding to their knowledge and skill sets for career advancement. According to the PeopleKeep survey, 72% of Gen Z respondents found professional development very or extremely important.
As a result, you should offer on-the-job training to attract Gen Z job seekers to your organization. The more opportunities these employees have to advance within your company, the more likely they will remain long-term.
Flexible Health Benefits
Although Gen Z values employer-provided health insurance, they typically use their benefits less than other generations. Therefore, you should offer flexible health benefit options that employees can customize to fit their needs.
For instance, health reimbursement arrangements (HRAs) let employees request reimbursement for individual health insurance premiums and qualifying out-of-pocket medical expenses:
- You can set monthly or annual limits for each employee.
- Employees decide which eligible expenses they want to be reimbursed.
- Approved expenses are reimbursed on the employee’s next paycheck.
- Because HRAs are tax-free, you do not pay payroll taxes on the reimbursements.
- Employees do not pay income taxes on their reimbursements if their health insurance policy meets the minimum essential coverage.
If your employees are eligible for advance premium tax credits for their individual health insurance premiums, a health stipend may be an option:
- Employees submit a request for reimbursement of their health expenses.
- You decide which expenses are reimbursed.
- The reimbursements are taxable.
- You must report an employee’s reimbursements on their W-2.
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