With more than half of Gen Z stressed over a lack of financial support at work, HR leaders should communicate the company’s mission, provide financial education, and amplify resources and learning opportunities to move the needle on retention.
By Maggie Mancini
Gen Z employees—poised to make up one third of the U.S. workforce within the next few years—want to be taken seriously at work. For this cohort of employees, whose introduction to the workforce has been plagued by volatility, technological disruption, and uncertainty, ongoing economic instability has led to financial insecurity that has carried over into the workplace, says Agata Zasada, senior vice president of people and culture at ZayZoon. In fact, a recent report from ZayZoon finds that more than half (58%) of Gen Z employees are stressed about a lack of financial support at work.
“In order to help the nearly two-thirds of Gen Zers facing financial stress, HR teams can invest in resources and programs that empower employees to make informed financial decisions.” — Agata Zasada, ZayZoon
“In order to help the nearly two-thirds of Gen Zers facing financial stress, HR teams can invest in resources and programs that empower employees to make informed financial decisions,” she explains. “While financial hardships aren’t uniform for Gen Z or their multigenerational coworkers, it’s crucial to invest in programs and benefits that address a variety of needs.”
The report shows that Gen Z employees are overwhelmingly stressed about affording essentials like rent, bills, tuition, and student loan payments. They are also stressed out about their lack of savings, Zasada says.
“While employers can’t address every financial pain point employees are facing, they can provide access to foundational financial education and literacy resources,” she says. There are plenty of areas where HR leaders can provide access to tools to bridge short- and long-term financial gaps. These include:
- budgeting tools and financial wellness education;
- earned wage access (EWA);
- emergency savings accounts (ESA); and
- retirement planning.
“As Gen Z and their multigenerational colleagues’ needs change, financial wellness programs should evolve along with them,” Zasada says. “By creating a culture of open communication and transparency, HR leaders can ensure employees are aware of available resources and ensure the benefits remain aligned with their needs.”
Generational Job-Hopping
Employee financial stress can lead to distraction, absenteeism, and burnout. Even when employees are physically present, they may be unable to focus or perform at their best. This leads to an average of 7.3 hours of lost productivity each week — almost a full workday, the report finds.
In addition, Gen Z employees job-hop — leaving a job within two years or less — at a rate far higher than millennials (77% compared to 44%). This trait among Gen Z employees is driven by a combination of factors, from economic pressures and evolving employee expectations to a desire for rapid career growth, Zasada explains. For employers, these turnover costs can greatly impact their company’s bottom line, as it can cost up to 200% of a person’s salary to find a replacement.
“The phenomenon was very popular following the pandemic, where employees switched jobs to chase bigger paychecks and move up the corporate ladder,” she says. “While the job market has significantly shifted, nearly a third of Gen Zers still plan to change roles in the next two years. This trend is largely driven by their pursuit of stability.”
Many Gen Z employees are looking for employers that provide stable income, benefits that meet their needs, and a dependable workplace amid broader economic uncertainty. For HR teams, this means offering competitive salaries and communicating available benefits and resources to attract and retain Gen Z.
At the same time, Gen Z is also interested in working for companies that align with their values, offer work-life balance, and provide opportunities for career development, Zasada says.
“To retain this purpose-driven generation, HR should lean into its mission and emphasize how employees help move the needle through meaningful work, while also amplifying its workplace culture and career growth opportunities,” she says. “Employers that prove to be a strong constant for employees, coupled with strong perks, culture, and benefit offerings, will boost Gen Z loyalty and engagement.”
Gen Z Expects Active Support
Employers have historically been passive in supporting employee financial wellness, but Gen Z expects active support, Zasada says. Data shows 60% of Gen Z employees’ financial wellness is important in a benefits package. By implementing a financial benefits program, employers can help alleviate the stress of financial hardships, she explains.
“Comprehensive programs that offer access to financial benefits, educational resources, and employer support help employees address their financial challenges autonomously, improve their holistic wellness, and become more engaged at work,” Zasada says. “For HR teams, this engagement also leads to decreased turnover rates and stronger retention.”
Managing personal finances can be overwhelming, especially as employees navigate economic volatility, Zasada says. Here are some things for HR leaders to consider as they implement a financial benefits program.
- Understand the workforce’s financial needs. Through open communication, surveys, and one-on-one feedback, HR can gain a better sense of which financial solutions to implement, Zasada says. In some cases, one or two targeted solutions will suffice, while others may require a full suite of programs and resources.
- Enhance awareness of available resources. “HR needs to enhance awareness of those tools, so employees know how to access the benefits and which financial challenges they can help alleviate,” she says. “Gen Z requires quick and punchy information, which means HR needs to share information in short, digestible formats and forgo long emails and PDFs.”
- Regularly assess the impact of financial benefit programs. Leverage feedback and utilization rates to create dynamic programs that align with employee needs, Zasada adds.
“Stereotypes surrounding Gen Z label them as lazy, entitled, and inexperienced, which can be demoralizing and hinder their workplace experience,” Zasada says. “As the next generation of workplace leaders, HR teams must create a workplace that overlooks these misconceptions and engage Gen Z on their strengths and aspirations.”
