Younger workers see the absence of a benefits package to be the deciding factor when taking a job, finds Kimberley Dondo
Benefits packages are the new deal breaker for a younger workforce, according to research from Bupa. The study found that about half of Gen Z (51%) and Gen Y (46%) employees wish their employers would ‘seriously reconsider’ how they reward staff.
Surprisingly, a pay rise is of less importance to Gen Z (under 25s) – who are more motivated if a company treats them well. The impact is seen in a company’s ability to retain their young employees as a third of Gen Z (33%) and Gen Y (29%) are more likely to leave their jobs for an organisation with better benefits.
However, employees’ opinion of the relevance of their benefits increases with age, as 77% of employees aged over 55 believe their benefits appeal to their generation, falling slightly for 45-55 year olds (75%) and 34-44 year olds (68%).
It seems that in order for a company to retain and motivate its younger workforce, an attractive benefits package is now an important factor to consider. Patrick Watt, corporate director, Bupa UK reinforces this, stating: “Today’s under 35s have changed the workforce dramatically, meaning benefits can be out of touch. Companies who act now to create reward packages that reflect the needs and preferences of their younger employees will steal a march on the competition by retaining and motivating the new generation of talent.”
The study also found that employees’ attitudes towards their benefit packages is also linked to how engaged they are with their job. Employees who are “always engaged” in their work are the most likely to appreciate their benefits (85%) – dropping to 50% for employees that don’t feel engaged.
From Bupa’s research, it is clear that younger employees feel entitled to a benefits package that makes them feel valued. Watt adds: “The modern workforce is set to move between jobs more often that previously, but companies can help ensure they don’t lose their top talent by considering tailored, personalised reward packages that engage different generations in different ways.”