Standard benefits packages won’t cut it for Gen Z. Here’s how they’re raising the bar and what you can do to meet it.

In simple terms, the generation that won’t settle for more of the same. Gen Z is here and they’re changing the game.

Born between 1997 and 2012, they’ve grown up digital, purpose-driven, and ready to challenge how work works. By the end of 2025, they’ll make up 24% of the global workforce and here’s the thing: standard benefits packages aren’t cutting it anymore.

If you want to attract, engage, and retain Gen Z talent, you’ll need a benefits experience that feels as personal, digital, and values led as they are. So, what Makes Gen Z Different (And Why It Matters for Your Benefits Strategy)?

Firstly, Gen Z grew up with smartphones, social feeds, and instant everything. So, when they join your workforce, they expect the same seamless experience from your benefits. 91% of Gen Z say a company’s tech influences whether they want to work there, (according to deskbird).  They expect business tools to be as intuitive as TikTok and as mobile-friendly as their banking apps. If any benefits platform feels clunky or old-school? You’ll lose them before they’ve even logged in.

Secondly, they care Deeply About Purpose.  For Gen Z, work isn’t just a job. It’s a platform for impact. 74% say purpose at work matters more than their pay cheque, according to SHRM. And it’s not just talk, where 50% have turned down work that clashes with their personal values, according to SHRM and 44% have rejected employers with negative environmental or social impact, says ACCP.  If your benefits don’t reflect your social and environmental commitments, you’re missing a massive engagement driver.

Thirdly they value Flexibility Over Hierarchy.  Gen Z doesn’t measure success by hours logged. They care about outcomes and flexibility. 77% would choose more flexibility over faster promotion, according to Innovative Human Capital. They expect to work when and where they perform best, whether that’s fully remote, hybrid, or something in between.

Finally, there is the rise of flexible, personalised benefits.  Forget cookie-cutter packages. Gen Z expects choice such as workplace flexibility, like remote work and compressed schedules, mental health support including teletherapy and wellness apps, financial wellbeing, such as student loan repayment and financial coaching.

Looking at that lens, mental health is non-negotiable. Gen Z has made one thing clear: mental health is essential, not optional. Only 15% rate their mental health as “excellent”, and 40% report feeling stressed or anxious most of the time, according to Handshake and Deloitte. What’s expected and what is out there? Dedicated mental health days, digital-first EAPs with real usage, and wellness tech, like meditation apps and digital resilience tools. In simple terms, ignoring mental health isn’t just risky—it’s a missed business opportunity.

It’s tough out there, however there are many creative ways to find money with employee benefits (if you do not salary sacrifice your pension…why not?). Focus them in a new and creative way.  It will pay off when employees feel their benefits reflect their real-life needs, they stay longer and engage more deeply.

About Un:Fade Employee Benefits Consulting

Specialists in seamless employee benefits, payroll and fintech solutions consulting. Helping you stand out as an EMPLOYER OF CHOICE by examining your benefits program to ensure cost-effectiveness, and alignment with employee and business goals