Understanding the priorities of Gen Z is crucial for any company looking to build a forward-thinking and effective benefits program. A recent study by Benefactory provides valuable insights into what this generation truly values, revealing a significant shift from traditional corporate perks.
The data clearly shows that the new generation of talent prioritizes experiences over possessions. Unlike previous generations that may have focused on housing or material goods, Gen Z is far more likely to invest in mobility and personal enrichment.
Based on the study’s findings, here’s a breakdown of where Gen Z is directing their flexible benefits budget:
Travel (24%) & Sports (24%): These two categories are tied for the top spot, highlighting a strong desire for personal well-being and exploration. This indicates that benefits supporting an active lifestyle and new experiences are highly effective.
Transportation (22%): A close second, this shows that freedom of movement and convenience are a high priority. Whether it’s for daily commutes or weekend trips, they are allocating a significant portion of their budget to ensure they can get where they need to be.
On the other hand, certain traditional benefit categories saw minimal engagement from Gen Z, indicating they are not a primary motivator for this demographic:
Education (1%): Despite often being a key offering, formal learning benefits were rarely chosen.
“Home and Everyday Life” (0.35%) & “Clothing and Footwear” (0.03%): These categories, once considered staples, are clearly not a priority, suggesting a lack of interest in investing benefits towards domestic items or personal apparel.
These insights underscore a critical need for modern, adaptable benefits platforms. The one-size-fits-all approach is obsolete. To attract and retain top talent from Gen Z, companies must offer programs that enable true freedom of choice, allowing employees to select benefits that align with their personal values and lifestyle – whether that’s exploring the world, staying active, or simply getting around with ease.