Finding quality talent in the labor market has been a constant challenge for employers–perhaps more than ever—in the past several months.
As the workforce continues to experience and mitigate the repercussions of The Great Reshuffle, hiring teams may want to think about taking a closer look into what their ideal prospects really want: especially when it comes to the youngest demographic of workers, Gen Z.
We’ve discussed before that Gen Z job prospects prioritize employer support of three key wellness facets–the first of which being their financial wellbeing.
Today, we’ll take a deeper dive into how employers can support Gen Z’s financial objectives and goals, specifically.
The State of Gen Z
To fully understand how and why Gen Z prioritizes financial wellness, we’ll want to start by understanding:
- the things they value when it comes to finances
- their overall awareness and access to financial resources
- the current financial state of the average Gen Z employee
When it comes to finances, Gen Z prioritizes being financially stable and debt-free.
Gen Zers have been surrounded by a lot of instability in their young-adult lives, the most recent example of which being the COVID-19 pandemic, when many Gen Z employees found themselves unexpectedly out of work.
Additionally, having witnessed the millennial generation suffer with student loan debt, Gen Z is extremely debt-averse.
These experiences have left them acutely aware of how an uncertain financial situation may negatively impact their ability to work.
According to a survey conducted by SHRM.org, “[...] as much as 44% of Gen Z survey respondents [...] reported that financial stress impacts their ability to work.”
This statistic suggests that Gen Z’s first-hand exposure to financial stress has given them a clear perspective on the importance of prioritizing their financial wellbeing and planning for unforeseen circumstances.
Awareness and Access
Despite their youth, Gen Z is already far more fiscally aware than many realize.
They are the first generation of true digital natives and have grown up during an era of surplus online content: As a result, their access to finance-related content far exceeds that of millennials and Gen Xers at the same age.
But the increased availability of information can be a double-edged sword: With so much unregulated input on the internet, it can be tricky to vet credible sources.
Finance apps and online programs also make it more accessible than ever to participate in financial programs.
With popular fintech apps like Robinhood, Cash App and Coinbase, DIY trading in stocks and cryptocurrencies has skyrocketed–especially among younger generations—who value the convenience of self-service.
But this too has its drawbacks: Though Gen Zers are clearly eager to strengthen their asset portfolios, with a reported, “54% [...] holding some kind of investment,”, only a third of those investors feel confident in their ability to explain how the stock market works, according to Investopedia.
As for the current state of Gen Z’s finances…many are still recovering from the impact of the pandemic.
When companies began to take action in response to COVID-19, younger workers were some of the first to feel the impact.
According to CNBC, “Americans between the ages of 18 and 29, which covers both Gen Z and younger millennials, were among the most likely to lose a job during the pandemic, and they were the most likely group to be forced to take a pay cut.”
This left many millennials and Gen Z workers no choice but to start tapping into their savings accounts–leaving some to face debt management struggles post-COVID.
Financial Benefits to Attract Gen Z Workers
Keeping the current financial values, awareness, and state of Gen Z employees in mind, here are three of the best benefits your organization can offer to attract this youngest demographic of workers.
1. Financial Education
Gen Z workers are aware that they need more guidance when it comes to managing their finances: and they are looking to employers for that guidance.
To provide this support, you may consider offering digital financial literacy courses. Gen Z is the generation most inclined to turn to video content for financial information, so consider integrating programs that rely heavily on video for instruction.
2. Savings Initiatives
While retirement savings like 401(k)s are still top-of-mind when Gen Z employees think about their long-term financial goals, they are also interested in exploring other, more immediate savings plans.
A great example of this is a health savings account (HSA).
As another lasting impact of the pandemic, younger workers are taking their health more seriously than ever before. An HSA account, therefore, can be a great way to support the physical wellness initiatives of Gen Z while also contributing to a savings plan that they won’t need to wait 40 years to access.
3. Alleviating Financial Burdens
Gen Z workers are not only looking for fair salary compensation but are also drawn to businesses offering other financial services that can help to lessen their burdens.
As mentioned earlier, Gen Z workers are keen on staying debt-free, so debt relief options–such as student loan repayment plans–can be very attractive benefits for these young workers.
Additionally, businesses can offer plenty of workplace incentives that allow employees to save on extraneous spending: Examples of this include remote working flexibility and access to free or discounted meals.
If you’re looking to attract Gen Z workers to your business, the best advice we can give you is to consider the financial benefits your business can offer them. Though the youngest members of today’s workforce, they have mature priorities and are committed to setting themselves up for long-term financial success.
For more information on creating a competitive benefits package to attract and retain top talent, contact the experts at FrankCrum Staffing today: (888) 670-1844