Gen Z's preferred benefits differ from generations past: Report

Perks beyond pay are essential to recruiting new talent in today's competitive market. A strong benefits package can help potential employers stand out from the crowd. 

More young people are entering the workforce, bringing new ideas about which benefits are important. Ernst & Young and LIMRA, a research, consulting and professional development association, explored the generational differences in benefits preferences through their 2023 Workforce Benefits Study. 

They surveyed 830 U.S. employers with at least 10 employees, weighted to be representative of the total population of employers that offer benefits, along with more than 1,800 workers, with participants' gender, age, income, race and religion weighted to be representative of the working population. 

The results display Gen Z's dwindling interest in medical and dental insurance — though they still recognize these benefits as high priority, they no longer classify them as critical. The newest generation of workers places increased emphasis on educational benefits — like tuition and student loan assistance — and mental health treatment assistance. 

Respondents were asked, "Regardless of whether the benefit is currently available to you at work, how interested would you be in having your employer offer it in the future?" These 10 benefits were marked most interesting from Gen Z perspectives; here's how important they are to preceding generations. 

Benefit

Gen Z

Millennials

Gen X

Baby Boomers

Medical insurance

53% expressed interest

70%

78%

79%

Dental insurance

47%

60%

66%

64%

Life insurance

46%

53%

51%

42%

Paid family or medical leave

44%

55%

49%

39%

Vision insurance 

40%

49%

57%

57%

Mental health treatment benefits 

40% 

39%

27%

14%

Student loan assistance 

40% 

36%

21%

5%

Physical health wellness program

39%

44%

31%

29%

Career development

38%

46%

32%

18%

Tuition assistance 

37%

36%

23%

10%

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