Gen Z staff want wellbeing perks to replace outdated benefits

Data from a new study has revealed that the UK’s company benefits schemes are irrelevant for the majority of younger Generation Z employees. 

Around 84% of Gen Z staff confirm that current employee benefits packages on offer are not suitable for them or their needs; and instead seek more wellbeing-related life-style benefits, according to the 2021 Employee Benefits, Health and Wellbeing Survey, carried out by the UK’s Wet Ones. In fact, just 16% of UK staff under 25 years old say that their current benefits package is suitable for them. This figure increases to 24% of young professionals, aged between 25-34. 

Job perks are increasingly a top priority for top young talent and 90% of graduates, so employers must take note if they want to attract and retain this talent, warns the study.

UNUSED PERKS IRRELEVANT FOR CURRENT LIFESTLE

Many employee benefits schemes remain unchanged since the global shift in working practices to home working towards a more flexible hybrid system. This has led to many company perks being unused, because they fail to encourage employee health, wellbeing and productivity. In fact, over four in every five UK employees state that their company’s employee benefits scheme no longer fits their lifestyle. The research found that benefits packages are predominantly designed for employees aged between 45 and 54; even then only around one in three in this age bracket say they are “happy that their employee benefit scheme fits their lifestyle”.

When UK employees were asked what company benefits they seek, 70% said they wanted employers to provide greater flexibility in working hours; and 61% of employees cited private healthcare, dental and allowance for health maintenance (such as glasses, correct desk equipment, physio, etc). An additional 53% want their employer to support them with additional ‘health day’ allowance for personal wellbeing.

SUITABLE BENEFITS FOR GEN Z NEEDS

So want benefits do Gen Z staff specifically want? According to the study, 30% of under-25s in the UK want to see travel vaccinations included in their benefits packages, helping them to embrace their pent-up wanderlust as overseas travel returns. Around 25% wanted additional ‘health days’ holiday packages to support mental health; and 21% asked for greater flexibility on working hours.

To offer more relevant perks that provide effective support for enhancing employee wellbeing, it is essential that companies are aware of how their employees’ lifestyles have permanently shifted, noted the study. Rather than ‘binge exercising’ at weekends, the UK workforce has been able to practise regular exercise throughout the working week. Around 84% of British workers state that they are more physically active since working from home.

In fact, the UK has become a nation of walkers; with 56% of employees now walking more during the working week instead of exclusively on weekends. Two in five feel they have had an improved diet since working from home; with more ditching takeaways and pre-packaged food to cook healthy home cooked meals. Additionally 25% of UK employees are participating in more wellness activities, such as gardening and engaging with nature.

PHYSICAL & MENTAL HEALTH SUPPORT

Changing exercise routines means that companies should look to provide more flexible funding of equipment, instead of just offering a standard gym membership, suggests the study. Also, an increased focus on healthy diets could signal the value in fruit and vegetable box deliveries rather than a monthly takeaway. To ensure both physical and mental health support is provided, benefits packages should also be adapted to include mental wellness activities.

“We’re aware of the importance of ensuring people have the support and resources they need to lead both active and healthy lifestyles. The findings from this study show that an urgency to adapt employee wellbeing packages has emerged during the last year,” stated Gurinder Sagoo, HR Director for North Europe and Oceania at Wet Ones. “Significantly, they also demonstrate how essential it is for benefits packages to cater for everyone in the workplace, by taking into account each individual’s age, lifestyle and personal circumstances. An inclusive benefits package contributes to the whole team feeling supported in pursuing a healthy lifestyle both physically and mentally. Therefore, it is crucial that companies digest these findings and take action to improve how they nurture employee wellbeing.”

COMBATTING LONELINESS & DIGITAL FATIGUE

“Lockdown loneliness” and “digital fatigue” are among the phrases “that have entered our lexicon and many employees are contending with bereavement and grief, redundancy, restructuring and job insecurity”, noted Kris Ambler, Workforce Lead at the British Association for Counselling and Psychotherapy (BACP). “This means that employee benefit programmes will need to be more personalised. Managers will have to be more intuitive when assessing the mental wellbeing of remote workers; and financial wellbeing support will need to play a larger role within the employee benefits and occupational health mix.”

Investing in employee benefit schemes makes “good economic sense” and “demonstrates a genuine commitment to an employer’s duty of care to their staff”, added Ambler. “Support services, including counselling, can help to identify and address problems early, they can alleviate the psychological impact of negative work situations and keep employees working effectively and productively.”

Dawn Morris, HR Adviser at Cluer HR, agrees: “The right workplace support can have a hugely positive impact on employee wellbeing and mental health and is fundamental to every employer’s reward and benefits programme, to show understanding and appreciation of current and future employees, to build an engaged, supported and productive workforce. Having the right benefits package can also attract new talent to the business.”

Generation Z is actually setting the agenda for the future of work, reveals a new study. Click here to read more.