2 strategies that help Gen Z understand their benefits better

"Gen Z may be the most tech-savvy generation in the workforce, but when it comes to understanding their benefits, many are still lost in translation. Thirty-percent of Gen Z employees don't enroll in employee-paid benefits because they don't understand them, according to research from financial investment management and insurance company Principal Financial Group. Another 50% admit they use social media like TikTok and Instagram to learn about benefits - bypassing their HR and benefit leaders entirely."

""For quite some time, there's been conversation anticipating what the impact of having five generations in the workforce will look like, and we're now seeing it come to fruition," says Kara Hoogensen, SVP and head of workplace benefits at Principal Financial Group. "Gen Z's perspective is shaped by their experiences; they're the first digitally-native generation, and it has impacted how they view and learn about benefits.""

"But young employees need and want more than social media for guidance. In fact, 83% desire extensive enrollment information, which can help them better understand options and overcome perceived obstacles. For example, financial factors such as inflation and student loan payments may keep Gen Z from enrolling in benefits like healthcare and retirement, but benefit leaders can work with them to find options within their budget, Hoogensen says."

Gen Z shows strong digital fluency yet frequently misunderstands employer-paid benefits: 30% don't enroll because they lack understanding, and 50% turn to TikTok and Instagram instead of HR. Eighty-three percent of young employees want extensive enrollment information to clarify options and overcome perceived obstacles. Financial pressures like inflation and student loan payments can deter enrollment in healthcare and retirement plans. Benefit leaders can facilitate access to clear, timely information, work with employees to identify budget-compatible options, and adopt digital-first, timing-aware education strategies to improve enrollment and comprehension.

Read at Employee Benefit News