October 22, 2024
Gen Z and Millennials are almost half (46%) of the American full-time workforce. How do companies to attract and retain them for employment?
More and more Gen Zers are entering the workplace each year. It’s becoming increasingly necessary for companies to know how to attract and retain this generation. Together with Millennials, they are almost half (46%) of the American full-time workforce. Gen Zers are more practicaland money-minded than other generations. They care about their salaries, but they also have a lot of other demands, which means businesses will have to change to appeal to Gen Zers. So, what are these demands how important are they really? Knit has the data to answer these questions.
Most people are aware that Gen Z cares about social and environmental issues. But not everyone might realize just how vital this is in the workplace. If there’s only one takeaway from reading this blog, that importance is it.Our own data shows that as many as 91% (yes, you’re reading that correctly) of Gen Zers are more likely to take a job at a company that’s socially conscious. But only 25% of Gen Zers think that brands are genuine in their efforts to make the world a better place. Data from other sources isn’t showing a more positive outlook. When it comes to their employer’s willingness to fight climate change, only 18% of Gen Zers think there is a strong commitment to do so. Those numbers take on an even heavier weight when considering that climate change is one of the top concerns for Gen Z.
The focus on ESG (Environmental, Social, and Governance) has grown in general in the business world. Indeed, global ESG-oriented investments might reach as high as $41 trillion in 2022 and only continue up from there. Gen Z is part of the reason why. This generation demands that companies pay attention. And they will not only choose jobs based on what a company stands for, but it also affects how they invest their money. 40% of Gen Zers say their investment choices are made with this in mind.
So, what else matters to Gen Z when choosing where to work?
You can’t write about Gen Z and employee benefits without mentioning mental health. Knit has data showing just how crucial mental health focus is for employers. 63% of Gen Z employees expect mental health benefits from their jobs. It’s only second to a 401K (65%). More specifically, a big majority (82%) of Gen Zers in the workforce want their jobs to offer mental health days. This makes a lot of sense when you take into account that almost half of (46%) Gen Zers feel anxious or stressed most or all of the time. But we’ll dive deeper into mental health a little later.
Other employee benefits worth mentioning are maternal health services and caregiver support. Employed male and female Gen Zers equally agree on their importance as part of broader benefits options. Indeed, maternal health service was the third most expected benefit at 53%, and caregiver support was fourth at 48%. It’s clear that Gen Z wants work-life balance and a focus on psychological health at work.
It’s worth spending more time on how mental health affects Gen Zers’ wants and needs in the workplace. You already know how valued mental health benefits are for Gen Z as part of their benefits package. But it’s also noteworthy that in our own data 75% of Gen Zers report having anxiety or depression. More than half (57%) also report that they have a behavioral health condition. In general, Gen Zers are more stressedabout social issues, work, and money than other adults. Unfortunately, this generation doesn’t feel that their mental health is always supported by their employer. According to our data, only 25% feel that it is.
As Knit’s CEO, Aneesh Dhawan, wrote: “Businesses that implement authentic initiatives to narrow the gender wage gap, improve wealth inequality, dedicate resources to the mental well-being of employees and genuinely support environmental initiatives will draw the attention of young talent.”
If you want more insights on everything Gen Z and work, Knit can help. We have the resources to help you attract the young workforce you need. Click on the bottom below to get started.
