Lowering Out-O-Pocket Healthcare Costs

Generation Z and the Workplace

By 2025, Generation Z (Gen Z) will account for 27% of the workforce worldwide. These employees were born between 1997 and 2012 and are very diverse. Around half are from communities of color, and 20% identify as part of the LGBTQ+ community. With this new generation integrating into the workplace, it’s important for employers to understand their needs and expectations to ensure a smooth transition and better retention ratio.

Gen Z needs

When looking for a job, Gen Z wants the following:

  • A decent salary – While salary is the most important deciding factor for Gen Z, it is not ranked as important compared to other generations’ needs.
  • Openness – Gen Z highly prioritizes transparency and openness from employers when it comes to communication.
  • Social awareness – Workplaces that are up-to-date with technology and emphasize their social awareness will gain traction with this generation. Popular social causes include climate change, racial, social, and gender equality, and public health. Notably, individuals from Gen Z have reported taking lower-paying positions if the company values aligned with their own.
  • Mental wellness – These workers want mental health benefits, flexible work schedules, and a workplace that is inclusive and promotes a friendly, tight-knit culture. Gen Z wants to feel connected and supported. Around 54% of Gen Z workers feel disengaged at their place of work and feel little connection toward their coworkers.

Employer takeaways

To prepare for the increase in Generation Z workers, employers should consider the following 5 options.

  1. Offer benefits that feature mental health coverage.
  2. Promote flexible work options.
  3. Emphasize career development opportunities.
  4. Host company-sponsored events outside the workplace.
  5. Bolster diversity, equity, and inclusion policies and practices.


Each generation is different, and it’s important for employers to have a solid understanding of all generations present in the workforce.