Helping Gen Z Navigate the Benefits Landscape 

Do you remember your first time enrolling in benefits and the year that followed in which you activated on them? For many people, that can be a confusing and stressful time, one filled with uncertain choices and second-guessing about what benefits are necessary, what others might go unused, and how to use them at all. Well, that’s where Gen Z finds themselves now. 

Gen Z, born between 1997 and 2012, is expected to account for 27% of the workforce by 2025. The oldest members of Generation Z are turning 27 this year. Given that dependents can stay on their parent’s plan until age 26, many of Generation Z already in the workforce have little experience navigating the benefits space. So, unsurprisingly, last year, 93% of Gen Z reported they were at least somewhat confused about their benefits. That’s 7% higher than the next closest generation, millennials.

What’s at the core of Generation Z’s benefits confusion and stress? 

As discussed above, time on the job is one of the more overarching issues Gen Z faces. They simply don’t have experience enrolling and activating upon their benefits, and we don’t have a way to make up for that deficit. We can’t snap our fingers and give them the lived experiences of the millennials, Gen X, and Boomers who’ve faced these challenges before them. 

The experience deficit manifests itself in many ways, but maybe the easiest to understand is the confusion around benefits jargon, which other generations can surely relate to. “Annual Deductible” and “HSA” sound like terms you’d scramble to memorize for a pop quiz, not topics that should define your financial planning. And while those terms and many others might seem simple to HR professionals or people with years of lived benefits experience, that’s only because they’ve had time to learn about them. 

Beyond not understanding benefits lingo, financial security is another issue contributing to Gen Z’s benefits confusion and overall stress. Gen Z is most likely to feel panicked about facing a large expense. But don’t think that’s because they’re not saving. Gen Z trails only Boomers when it comes to saving frequency, with 88% of Gen Z reporting they always or sometimes save. Gen Z just hasn’t had as long to save as other generations. Couple that fact with student debt and many coming of age amid the COVID-19 pandemic, and you can imagine why Gen Z would stress over a large expense. 

How can you help Gen Z navigate their entrance into this complex benefits landscape? 

1. Junk the jargon. For starters, work to break down your benefits communications into plainer terms. Doing so might help more people than just Gen Z. Consider putting together a mock “vocab list” or something that breaks jargon down and gives them something to reference when they’re enrolling or making other benefits decisions. Giving Gen Z tools to work with can help make them more self-sufficient and confident in their decisions. 

2. Communicate often, not just at AE. And while Gen Z values self-sufficiency and doing things themselves, that doesn’t mean they’re not looking for personalized help and outreach. 68% of Gen Z said they want their employer to communicate with them after they’ve enrolled in benefits, not just during annual enrollment. And 63% wished their employers offered more personalized benefit recommendations. For those unfamiliar with the benefits cycle and the benefits of starting early, reaching them with timely, personalized messages can significantly impact how they enroll and activate their benefits. Additionally, Gen Z activated on provider guidance benefits three times more than any other generation, showing that they’re taking advantage of help where it’s available. 

3. Go mobile. Finally, meet Gen Z employees where they are—their phones. Many may rightfully chafe at “screenager” characterizations, but Gen Z grew up with phones and apps firmly in their lives. They can maneuver these areas efficiently and use them on the go, whether at home or at the doctor’s office. Additionally, push notifications can be a powerful way to engage Gen Z more frequently. If these messages are personalized and impactful, Gen Z is bound to find value in them and capitalize on their benefits plans more often. 
4. Get creative. One Businessolver client sends their employees a “birthday card” on their 26th that’s both celebratory and informational. It explains that they’ll no longer be covered by their parent’s insurance and gives them a timeline detailing when they need to enroll in their own insurance. Within the PDF card, they break down benefits terminology and suggest checking whether their current provider is in-network with their new coverage—helping them get informed before they see their provider again. This is just one creative, proactive way to help your Gen Z employees get off to a good start with their new benefits. Consider creating resources like a branded “birthday card” to show your younger employees you’re empathetic to their transition.

Paving the way to retaining Gen Z 

Gen Z will overtake Boomers for the largest segment of the full-time workforce this year. It’s past time to figure out how you can best support them in enrolling and activating on their benefits. The sooner you meet them in the way they desire, the better. Gen Z will only continue to dominate the workforce, and as the younger segment of Gen Z enters the workforce, mobile and app usage will become more critical for a group of people who grew up with screens in their hands.  

So, invest in benefits technology that will help you deploy omnichannel communications, decision support, and a virtual benefits assistant who can help Gen Z navigate their entrance into this complex benefits landscape. Don’t hesitate to start today and help your next generation of employees. 

Check out our 2024 Benefits Insights Report for more stats on Gen Z and every other generation.