In today’s tight labor market, financial advisory firms are competing to recruit top fresh grad talent, aka Gen Z. While this generation of talent is receiving multiple job offers, one strategy for employers to successfully recruit Gen Z workers is by taking a hard look at their benefits package and consider adding the below benefits, sought out by Gen Z.
Student Loan Repayment Assistance
Last year, graduates of four-year universities had an average of $39,400 in student loan debt. In a survey from Student Loan Hero, 54 percent of respondents between the ages of 18 to 24 reported they’d rather have student loan repayment assistance than a 401(k). Student loan repayment assistance helps employees pay off existing debt accrued during college education and can be administered in a variety of ways.
One way employers can offer student loan repayment assistance is by contributing a certain amount annually to employee’s loan debt. Another way the benefit can be offered is by paying a certain amount per month towards employee’s student loan expenses. Based on the structure of the plan, this benefit can also be an effective retention tool. Some companies incentivize retention by increasing their contributions to student loans based on time an employee has been with a company. Some companies restrict eligibility for student loan repayment assistance until an employee has been with a company for a certain amount of time.
Not only can student loan repayment assistance be a benefit that attracts Gen Z, but they will be more productive employees at the firm if they aren’t concerned about debt, which can create financial stress. A firm looking to recruit fresh grad employees should consider offering student loan repayment assistance to compete with other firms, and consider offering student loan repayment assistance as a benefit that employees can take advantage of within their first year of employment, which is when they start owing payments towards their student loans.
Pet Insurance
According to an Aon’s Healthy Paws Pet Insurance study, 55 percent of pet owners spend $75/month on their pet. The American Pet Products Association estimates Americans spent $15.95 billion on vet bills alone last year. People love their furry friends, and millennials and Gen Z have more pets than any generations prior. Offering pet insurance is not only a great way to show candidates your organization cares about its employees, but it’s also very appealing to the pet parents of Generation Z.
Employee Assistance Programs (EAP)
EAP’s can help employees struggling with personal or work-related problems, including marital, financial, familial, substance abuse and emotional issues. EAP’s give employees access to free and confidential assessments, short-term counseling, referrals and other resources. While beneficial to all generations, EAPs are especially appealing to Gen Z who have an increased focus on wellness and openness to work-life integration. Offering an EAP will help attract Gen Z workers to your firm because they will be interested in taking advantage of a resource to help them resolve problems their facing. In turn, companies can see a decrease in absenteeism.
Voluntary Income Protection Benefits
Traditionally, voluntary income protection benefits have meant disability insurance. Gen Z is looking to expand that coverage to be inclusive of critical accident and emergency care. No—they’re not more injury prone than generations prior. Rather, they’re aware of the realities of living and want to be prepared. Ambulance rides and visits to the emergency room can be costly even with health insurance, and voluntary income protection benefits help offset some of that cost by allowing employees to put money away into an emergency savings account. A Federal Reserve study reported 44 percent struggle to come up with $400 for an unexpected expense. Employees are especially drawn to this benefit for the peace of mind it gives them in the event anything were to happen.
Identity Theft Protection Benefits
Identity theft protection benefits help protect employees against instances of, and recover, if they become victims of theft. The Identity Theft Resource Center (ITRC) reported that there were 1,579 data breaches last year, leaving 179 million identities vulnerable. Gen Z is often referenced as the all-digital generation and with so much of their information online, they are at an increased risk of being victims to identity theft.
Experts have reported that identity theft can understandably decrease employee’s productivity and, with cases of fraud associated with identity theft sometimes lasting for more than a decade, identity theft can ultimately harm employee’s professional growth. Identity theft protection can be offered as a voluntary benefit, a discounted group benefit or an employer-sponsored benefit. Some plans will compensate employees up to a certain dollar amount of funds lost due to theft, while others have resources for employees to contact when they lose a wallet or purse that freezes their information. Identity theft protection benefits can also help employees cover lawyer fees associated with identity theft, which can be extremely costly.
Gen Z workers have a new set of needs when it comes to benefits, and employers who adjust their benefits according will have better luck attracting them to their firm. Experts estimate that by 2020, Gen Z will account for at least 20 percent of the U.S. workforce, and they’re looking for jobs offering employee benefits different from those sought out by previous generations. Employers who meet Gen Z’s benefit needs will have more success recruiting and retaining them.
Bill Gimbel is president of LaSalle Benefits, a technology-enabled corporate benefits firm. Bill has been in the employee benefits and insurance space for over 25 years, having worked with companies in virtually every industry, helping them offer great benefits to attract top talent while meeting budget requirements and that meet the needs of their employees. Bill’s team specializes in working with small businesses, helping them navigate small business insurance laws.