Group Health Benefits for Gen-Z Employees: What Companies Need to Know
To compete for top talent, many companies are offering group health benefits as part of their employee package. But what does that mean for Gen-Z employees? And how do health benefits compare to those offered by other generations? In this blog post, we will explore how group health benefits can be used to attract and retain Gen-Z employees. We will also take a look at how this generation views health and wellness benefits compared to older generations.
According to the World Economic Forum, Gen Z will make up about 27% of the global workforce by 2025. This generation is more engaged in their health and wellness, and they place a high value on benefits that support their happiness and well-being. According to a study by the National Business Group on Health, 85% of Gen-Z employees believe that health and wellness benefits are extremely important.
This is in stark contrast to the Baby Boomer generation, only 38% of which believe that health and wellness benefits influence their employment decisions. Gen-Zers would prefer to work for a company that offers a comprehensive employee benefits offering. So, what are some of the best ways to use group health benefits to attract and retain Gen-Z employees? Here are a few ideas:
1. Offer comprehensive health coverage.
When it comes to health benefits, Gen-Zers want it all. They want coverage for physical, mental, and emotional health, and they want access to a wide range of services. So, when you’re designing your group health benefits package, make sure to include bonafide comprehensive coverage.
2. Offer wellness programs.
Gen-Zers are also interested in wellness programs that help them maintain their health and wellbeing. So, consider offering things like gym memberships, fitness classes, or mental health support as part of your benefits package.
3. Offer flexible benefits.
Flexible benefits appeal to Gen-Zers. This generation values flexibility and choice, so they’ll appreciate being able to customize their benefits to suit their needs. For example, you could offer a Health Savings Account (HSA) that employees can use to pay for out-of-pocket healthcare expenses or a Health Reimbursement Arrangement (HRA) that reimburses employees for health insurance premiums. Best of all, HRAs are tax-free, meaning you don’t have to pay payroll taxes. Your employees don’t have to pay income taxes on their reimbursements, as long as they have a health insurance policy that meets minimum essential coverage (MEC).
4. Keep costs low.
Cost is always a consideration when it comes to benefits, but it’s especially important for Gen-Zers. This generation is already saddled with a lot of student debt, so they’re especially sensitive to the cost of benefits. So, when you’re designing your group health benefits package, make sure to keep costs low. There are a few ways to do this, such as by offering high-deductible plans or by using cost-sharing strategies.
5. Communicate your benefits effectively.
Finally, don’t forget to communicate your benefits effectively to Gen-Z employees. This generation is used to getting information online, so make sure your website and benefit materials are up-to-date and easy to understand. You may also want to consider using social media or other digital channels
Group health benefits can be a great way to attract and retain Gen-Z employees. Offering comprehensive health coverage, wellness programs, and flexible benefits are some of the best ways to attract and retain Gen-Z employees. Make sure to keep costs low when designing your group health benefits package, and communicate your benefits effectively to this generation of workers. Keep these tips in mind when you’re designing your benefits package, and you’ll be sure to appeal to this generation of workers.