Over half or 55 per cent of 18-34 year-olds say that a good benefits package is now the most important thing they look for in employment, compared to 42 per cent of the general workforce, according to research from employee benefits technology platform, Zest.
According to Zest, around 14 per cent of 18–24-year-olds are finding their employee benefits crucial during the cost-of-living period, compared to only 4 per cent among those over 55.
More younger workers—67 per cent—would contemplate quitting their current position for one with higher benefits than older workers (37 per cent), and the national average (54 per cent), highlights the importance of employment perks.
The research suggests that employers need to provide financial support because 45 per cent of employees feel their benefits package is inadequate, despite a reported 82 per cent increase in benefits investment by businesses since the epidemic.
A common cause of employee dissatisfaction is a lack of interest in and relevance for the benefits that are provided. Only 33 per cent of workers assert that they make use of all available perks, despite 84 per cent of employers believing this to be the case. Customisation is essential since 65 per cent of respondents said they would use benefits more if they were made specifically for them.
The research also highlights that the younger workforce is growing; 21 per cent of those between the ages of 18 and 24 are already working in their fifth job. By 2025, millennials will account for 58 per cent of all employees, marking a significant shift in the labour market.
Zest notes that considering that 29 per cent of businesses are unable to raise salaries in accordance with inflation and 42 per cent of companies struggle to recruit talent, businesses could effectively attract and retain talent by investing in personalised, flexible, and targeted benefits in the face of hiring and compensation adjustments issues.
Zest CEO Matt Russell says: “Younger employees are much more heavily reliant on their workplace benefits packages than their older colleagues – without these financial benefits, many young people will have struggled to survive the last few months. In the current challenging landscape, it shouldn’t be a surprise that employees are placing greater emphasis on their benefits and employers are driving investment in this area to remain competitive.
“For many businesses, it will be concerning that despite recent investment in benefits, the majority of employees are demanding more from their packages. Many are clearly failing to meet demands – a fact that will only become more apparent as younger generations, who place a greater emphasis on their benefits packages, begin populating the workforce.
“However, it is not simply about the amount invested in packages – employers need to ensure that the benefits on offer are relevant to their workforce, personalised to what they need and communicated clearly at the right time to those most likely to use a specific option. This approach will not only boost engagement with benefits but also offer enhanced value for money for both employer and employee.”
