How to attract Gen Z employees

By Holly Bengfort on February 10, 2026 at 8:00 AM

Generation Z is becoming a powerful force in the labor market. According to Johns Hopkins University¹, Gen Z will make up about 30% of the U.S. workforce by 2030. This makes it essential to tailor your employee benefits package to fit their needs. Otherwise, you'll lose out on this large cohort of talent.

In this article, we'll explain who's considered part of Gen Z, how to attract them, and what benefits these young workers want in the workplace.

In this blog post, you'll learn:

Why remote work is a higher priority compared to other job factors for Gen Z employees.
Why it's important to take diversity and inclusion into account when hiring Gen Z job seekers.
Why you need to offer health benefits to attract the youngest generation of workers.

Who's considered part of Gen Z?

Generation Z is the generation following the Millennial Generation, or Gen Y, but preceding Generation Alpha. They're people born between roughly 1997 and 2012, per the U.S. Census definition.

While Millennials remain the largest living generation in the U.S., Gen Z has surpassed every other generation worldwide, including Baby Boomers. They make up 30% of the global population².

With more than 68 million Gen Zs in America, organizations need to prepare to welcome more of this generation of workers in the years to come.

What does Gen Z value most in the workplace?

Their fresh perspectives on work and technology will influence workplace dynamics. Let's go over some tips on how to attract and retain Gen Z talent.

Flexible work arrangements and work-life balance

Generation Z prioritizes work-life balance. They value flexibility in their work arrangements, with 72% of them leaving or considering leaving their jobs³due to a lack of it.

Tanya Lamont is the CEO of Conversational⁴, the leading provider of virtual receptionist services. She's found that Gen Z employees, more than any other generation, prioritize flexibility and personal growth.

"I offer flexible work schedules, which I think is key to attracting them," Lamont said. "I've noticed that they value having control over their time, so I give them the option to set their own work hours, and it's made a big difference in retention."

To entice these younger employees, consider following Lamont's lead and offering flexible work environments or remote work opportunities for better work-life integration. These hybrid work models are benefits you want to highlight in your job descriptions to attract Gen Z job applicants.

According to FlexJobs' 2025 State of the Workforce Survey⁵, 69% of employees are open to taking a pay cut in exchange for the option to work from anywhere. Among them, 31% would agree to a 5% reduction in salary, while 24% would accept a decrease of 10%. The younger generations of workers show the highest willingness to accept these tradeoffs.

Career progression and professional development opportunities

Generation Z wants more than a job. They want career growth. Deloitte's 2025 Gen Z and Millennial Survey⁶ found that 70% of Gen Zs are spending time developing skills to advance their careers once a week, compared to 59% of Millennials.

To pique the interest of Gen Z job seekers, you can offer learning and development opportunities and provide clear career paths for advancement within your organization. Show them you value their career growth and that you're willing to invest in their future.

On top of providing flexibility, Lamont emphasizes career development for her employees.

"I offer professional training programs that I know appeal to them because they're always looking for ways to grow and upskill," Lamont said. "When I offer clear paths for advancement and skill-building, I see a lot more enthusiasm in the workplace."

Providing growth opportunities is a great way to attract and retain Gen Zs. As they advance up the career ladder, they'll feel more stable. This makes them more likely to stick with your organization rather than look for better job opportunities elsewhere.

Inclusive company culture

A commitment to diversity and inclusion in the workplace is also important to Gen Z. They're the most diverse generation in the U.S. According to PRRI⁷, 49% of Gen Z are Caucasian. That's a smaller share than what you'll find for Millennials, who are 56% white.

Additionally, PRRI found that Gen Z⁸feels comfortable using gender-neutral pronouns more than any other generation. As a result, they're looking for organizations that embrace diversity in the workplace and make everyone feel like they belong.

An accepting and inclusive work environment will help Gen Zs feel welcome, improving their engagement levels.

Modern hiring process

These digital natives don't want to apply for jobs in person or visit job fairs as previous generations did. Gen Z spends more than eight hours⁹ a day online. Therefore, they're looking for an easy online application that works on mobile devices. Ensure your company uses modern and efficient tools to streamline the application process. You'll also want to develop a careers page on your company website.

Embrace social networking sites

Due to their digital fluency, Generation Z is active on social media platforms. They often use them to research and connect with prospective employers. A CareerArc study¹⁰ found that 48% of Gen Z employees found their current jobs through social media.

Establish a strong social media presence and engage with Gen Z applicants through platforms like LinkedIn, Instagram, and X, formerly known as Twitter. Share company updates and employee spotlights, and showcase your company's mission.

To further strengthen your employer brand and employee engagement, you can encourage your workers to share company content on their personal social channels.

What does Gen Z want from employers?

Along with fair compensation for their work, Generation Z desires several benefits and perks in their ideal workplace. To entice young talent, you'll need to ensure that your benefits are flexible and individualized.

Despite what some claim, Gen Z still values traditional benefits such as health insurance and retirement plans. But, they place greater value on more personalized benefits and immediate employee perks compared to other generations.

Here are some of the benefits and perks that Gen Z wants most in the workplace, according to a PeopleKeep survey:

Health benefits
Mental health benefits
Wellness benefits
Paid time off (PTO)
Remote work
Flexible work schedules
Retirement benefits
Education benefits

According to Deloitte¹¹, 25% of Gen Zs choose to work at their current organization for a good work-life balance. Young people want to have the option to travel, take mental health days, and support their new and growing families. Not offering generous PTO will likely keep Gen Z candidates away.

While Gen Z doesn't have as much student loan debt as the previous generations, student loan repayment and tuition reimbursement remain attractive employee benefits. According to Education Data Initiative¹², the average student loan debt among Gen Z in 2024 was $22,948. With tuition becoming more expensive, this number will likely increase as more Gen Zs head to college.

How to offer a flexible health benefit that attracts Gen Z workers

Much like other generations, Generation Z values healthcare benefits. However, Generation Z employees are young, so they don't need the same level of employer-provided health coverage as older employees.

Traditional group plans, which many employers provide, can be expensive for employers and employees, and Gen Z likely won't utilize them at the same rate as older employees. This, in turn, means they may see less value in their medical benefits than older generations.

Gen Z wants more flexibility in all aspects of the workplace, including health benefits. The rigid structure of a group health insurance plan doesn't provide the level of personalization that Gen Z has come to expect.

Luckily, there are health benefit options that are flexible, personalized, and easy to administer, like health reimbursement arrangements (HRAs).

Health reimbursement arrangements (HRAs)

Stand-alone HRAs are a great option for businesses of all sizes looking to provide more flexibility than traditional group health insurance plans. With an HRA, employers can reimburse employees for their individual health insurance premiums and qualifying out-of-pocket medical expenses.

You can set monthly or annual allowances for your employees. Once you approve an expense, you simply reimburse your employees on their next paycheck.

Best of all, HRAs are tax-free, meaning you don't have to pay payroll taxes on reimbursements for eligible expenses. Your employees also don't have to pay income taxes on their reimbursements. HRAs allow your Gen Z employees to choose their own individual health insurance plan that best fits their needs. They can also select which eligible expenses they want to have reimbursed up to their set allowance.

The most popular stand-alone HRAs include:

The individual coverage HRA (ICHRA): The ICHRA is great for businesses of all sizes that want to offer different benefits to different classes of employees. Employees must have a qualifying individual health plan to participate.
The qualified small employer HRA (QSEHRA): The QSEHRA is specifically designed for businesses with fewer than 50 full-time equivalent employees (FTEs). Employees must have a health insurance policy that meets minimum essential coverage (MEC) to participate.

How to provide wellness benefits

A 2024 report from Gallup and the Walton Family Foundation¹³ shows that Gen Z has the poorest mental health of any generation. With mental well-being needs on the rise, wellness benefits are more important than ever for your employees.

You can implement wellness programs or offer wellness stipends to your employees. Employees can use their wellness stipend on fitness and yoga classes, meditation classes and apps, gym memberships, sleep and nutrition trackers, and more.

Conclusion

If you want to hire Generation Z employees, you need to refine your recruitment process to their generation. Implementing effective strategies that prioritize work-life balance, career growth, diversity in the workplace, and the use of digital tools can significantly enhance your hiring process for Gen Z candidates.

If you're ready to offer flexible health benefits to your employees, PeopleKeep by Remodel Health is here to help. Our personalized benefits administration platform allows organizations to provide HRAs without the hassle.

This blog article was originally published on March 30, 2022. It was last updated on February 10, 2026.