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Beyond the Paycheque: Why Benefits Matter More Than Ever to Gen Z



Welcome back to The Gen Z Guide for Employers! In this series, we will challenge some of the prevailing Gen Z workforce myths.  Our ultimate goal is to debunk these myths and create a level of understanding between Gen Z and the generations that came before us to make workplaces:


  • More efficient

  • More inclusive

  • Better places to work


Each newsletter will be written from the perspective of an employer or a member of the Gen Z workforce. In this edition, Tameika Moore, Pollen’s Community and Marketing Manager, returns to unpick some common workplace misconceptions around Gen Z and showcase resolutions and steps that businesses can take to create more inclusive and meaningful workplaces.


In our latest issue, I explored the importance of providing a workplace that makes it easy for employees to broach the topic of salary negotiating and why this is so important in terms of fostering a comfortable, honest and transparent workplace

In this issue, we’re rounding off the salary discussions with an exploration of the importance of company benefits and communicating/educating your employees on these perks to improve engagement and retainment of Gen Z employees. Once again, we’ll be featuring insights from Funmi Olufunwa, who has built a career in law and finance and champions financial education for all.


Redefining What “Compensation” Means


In our last issue, we spoke about salary negotiations and how having a workplace where this isn’t a taboo topic really matters to Gen Z. But what happens if you’re a business that provides that safe space for honest conversations, yet simply can’t offer a higher salary? According to Robert Half’s data analysis, while 70% of employers acknowledged their employees were struggling with rising living costs and might seek better paid roles elsewhere, only 26% were in a position to commit to permanent pay increases (Howlett, 2022)


The truth is, while Gen Z are increasingly savvy in these discussions, this definitely doesn’t mean we’re only chasing pay cheques. As we discussed in a previous issue of The Gen Z Guide, many of us are more likely to stay with a company if we feel its values align with our own. In fact, research by workplace training company TalentLMs found that 82% of Gen Zers want mental health days, 77% value employers who prioritise diversity, equity, and inclusion, and 74% favour hybrid or remote options (Casic et al., n.d.). For a lot of us, purpose matters! Similarly, meaningful work and opportunities for personal development are key.


As Deloitte noted in Forbes, “Organisations that are not aligned with millennial and Gen Z values risk losing favour with this large and increasingly influential cohort” (Deloitte, 2021).

In this context, company benefits are not just a box-ticking exercise. They play a huge role in how valued employees feel and they can be a game changer, especially when salary increases aren’t an option. Truthfully, the right benefits can make or break how someone perceives their workplace. Benefits speak volumes about an employer’s priorities and culture. They are an essential communication tool for articulating what a company stands for.


This, of course, looks different to everyone. At Pollen, for example, we get every other Friday off—something everyone on the team loves. I am hugely passionate about travelling both in the UK and abroad so two Fridays off a month provides a perfect chance for me to take long weekend trips or simply schedule doctor appointments! Having this extra day in my week for myself has done loads in terms of my engagement to both my work and the company itself. My work-life balance has never been better meaning that I feel a huge amount of loyalty to my workplace as the extra day a week reduces burnout or disengagement, especially after busier weeks.  For one of my friends, it’s the luxury gym membership that’s been a game-changer for her wellbeing while others thrive in workplaces with regular social events that bring the team together. As Graham from the CIPP points out, “Employers should look to other incentives to attract and retain talent,” (Howlett, 2022)


There’s a wide array of benefits businesses can offer, but too often they’re poorly communicated or not explained at all. As Funmi puts it, “There’s a long list of benefits, but it’s difficult to quantify what this even means!” To someone entering the workforce, what even is a cycle-to-work scheme? What does the pension section mean to a 21 year old who graduated two months ago?


This lack of clarity can lead to confusion and missed opportunities. One survey found that 73% of employees want more education on company benefits. (Godbout, 2024). This knowledge gap is particularly pronounced among Gen Z with 42% of Gen Z workers feeling “not at all” or “a little” educated about benefits compared to just 20% of Millennials. (Godbout, 2024). This is a huge problem and highlights how imperative it is for businesses to ensure that all employees understand their benefits packages wholly. 


If you’ve been following The Gen Z Guide for a while, you’ll know that transparency is everything when it comes to retaining Gen Z talent. We want straight up, jargon free communication about what we’re actually getting when we sign that contract. Businesses should be thinking seriously about how to make benefits clear and accessible from day one.


Why It Matters: The Risk of Overlooking Benefits


If you’re reading this thinking that company perks are the least of your worries, hear me out: clear communication about your benefits package could be the very thing that prevents you from losing younger talent.


Being transparent reinforces why your company is worth working for. It shows employees they are appreciated and that you’re willing to invest in them (Strelca, 2025). In many cases, benefits packages are optional but the impact of offering an array of benefits that actually better the lives of the employees working for you cannot be overstated! 


If employees aren’t aware of the support available beyond their salary, they’re more likely to disengage and eventually move on. Think of it from their perspective—if someone isn’t feeling especially connected to their role, and the only thing keeping them there is the money, there’s little stopping them from finding a better paid role elsewhere. This is reinforced by a recent Forbes report which states that “Forty percent of employers say they believe workers leave their job to find employment that offers better benefits.” (Miranda, 2025) Perks like mental health support, paid volunteer days, sabbaticals and extra leave days are all strong motivators. However, it’s important to remember: one size doesn’t fit all. Funmi gave the example of a friend whose company offered discounted shopping at Waitrose, which was useless to her because she shops elsewhere. Funmi called it a “benefit created by someone a few rungs higher”. 


This disconnect can speak volumes to your employees. Gen Z in particular expect benefits to be relevant and personal, not handed down as a generic package. Take cycle-to-work schemes, for instance. They were once hailed as a great initiative, but as Elly Baker from the London Assembly recently pointed out, “The Cycle to Work scheme needs wholesale reform.” Despite its best intentions, she noted, it’s “no longer fit for purpose” especially for Londoners, many of whom can’t or don’t use it.


Baker’s comments came shortly after organisations urged the government to update the scheme so it could better serve low paid workers and the self employed—-groups who often stand to benefit the most, but are currently excluded under the existing criteria (Mallon, 2024).


The same principle applies more broadly. For example, if your company has lots of working parents, then promising them a ton of social events as a benefit probably won’t appeal to them as much as childcare vouchers or flexible working. Similarly, offering wellbeing initiatives but not encouraging engagement is a waste of time. As Michelle Braden from MSBCoach puts it: “Have a framework or plan and  train leaders to be flexible, adaptable and ask for input from the individuals.” Anything else becomes a perfunctory process with little real impact (Forbes, 2018).


Getting It Right: Make Benefits Transparent and Useful


So how do companies get this right? First and foremost, by educating employees about the benefits on offer. Don’t just list them in a job description and never mention them again–explain what they actually mean! For a recent graduate, pensions and bonus schemes can be a minefield of unfamiliar terms.

Funmi says: “Companies focus on wellbeing, but there’s no mention of financial wellbeing.” Financial literacy is essential, especially in a cost of living crisis. Offering sessions on this could be a benefit in itself. Taking the time to educate employees on these benefits will have a direct impact on the engagement with the perks that your business is offering. Research found that employees who felt well informed were far more likely to engage with available benefits. For example, 70% of informed employees participated in retirement plans, compared to just 52% of those who felt uninformed (Godbout, 2024).


To make sure benefit packages stay relevant, employers should regularly survey their teams to find out what’s actually wanted. With the breadth of employee needs growing and new benefit programmes emerging, keeping pace won’t always be easy but those who don’t adapt risk falling behind.


Benefits Are the New Battleground for Talent


To conclude, Gen Z is raising the bar and salaries alone won’t cut it anymore. We’re not settling for workplaces that offer the bare minimum. If you want to attract and retain young talent, you need to listen, explain and adapt.

That means investing in benefits that actually matter, and taking the time to make sure they’re clearly communicated. Today, benefits aren’t an afterthought, they’re central to whether someone sees your company as a place worth staying.


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