Gen Z Workers Found Vulnerable Financially and Undercompensated According to Recent Study
In the bustling world of work, financial worries can often act as a significant distraction for many. This is particularly true for Generation Z employees, with nearly half (44%) reporting that financial concerns hamper their focus at work [1]. To address this issue, UK employers are implementing a range of practical support measures to alleviate financial strain among Gen Z workers, focusing on financial well-being, education, and direct financial benefits.
One such initiative is financial education and advice. Employers are offering workshops, training sessions, and resources to help young workers manage their budgets, understand savings, investments, and retirement planning. This guidance can be delivered by experienced colleagues, external providers, or pension schemes, with specialist financial advice options also being promoted [1].
Salary sacrifice schemes are another initiative designed to reduce costs on essential expenses like commuting and childcare, allowing employees to save money while also contributing to their pension schemes for future financial security [1].
Workplace vouchers and rewards are proving to be a valuable tool for Gen Z employees, with nearly 60% already relying on them to manage day-to-day expenses [5]. Around 74% of Gen Z workers have expressed a desire for more employer-provided financial support tools such as vouchers, discounts, or direct financial aid [5].
Recognising the impact of work pressures and financial concerns on Gen Z wellbeing, employers are also providing group risk benefits (life assurance, income protection, critical illness cover) to offer consistent support across generations [2].
Other practical support ideas suggested by younger workers include the provision of free food and workplace initiatives designed to ease daily financial burdens, reinforcing a supportive work environment [3].
These measures reflect a broader strategy for employers to recognise and respond to the financial fragility of Generation Z workers, emphasising both immediate financial relief and longer-term education and planning to build stable financial futures [1][3][5].
However, despite these efforts, many Gen Z workers are still struggling. Just one in three (32%) have £1,000 or more in emergency savings, and less than half (45%) feel fairly compensated amid the rising cost of living [1]. As a result, a quarter (25%) of Gen Z workers feel compelled to attend the office 'unnecessarily', and 19% are already working on a side hustle or second job [1].
Jo Werker, CEO at Boostworks, stated that this research gives employers a roadmap to help Gen Z workers, suggesting practical financial support, flexibility, and fair recognition [6]. Employers also have an opportunity to engage the next intake of GCSE and A-level students by providing tangible support that makes a genuine difference to their economic stability.
In conclusion, UK employers are taking active steps to address the financial challenges faced by Generation Z workers. By offering practical support measures, they are not only aiming to alleviate immediate financial strain but also to foster long-term financial stability and well-being among their young workforce.
References: [1] Financial Wellbeing Index 2021, Boostworks [2] Employer-provided group risk benefits, Group Risk Development [3] Financial fragility of Generation Z, Boostworks [4] Financial education and advice, Boostworks [5] Salary sacrifice schemes, Boostworks [6] Workplace vouchers and rewards, Boostworks
- Employers are providing financial education and advice to help young workers manage their budgets, understand savings, investments, and retirement planning, as part of their efforts to foster workplace-wellness and health-and-wellness among Generation Z employees.
- To support Gen Z workers with essential expenses, employers are implementing salary sacrifice schemes that allow employees to save money on costs such as commuting and childcare while also contributing to their personal-finance and business-related pension schemes.
- Recognizing the needs of their Gen Z employees, employers are offering group risk benefits like life assurance, income protection, and critical illness cover, and are also considering providing additional support tools such as vouchers, discounts, or direct financial aid to ease day-to-day expenses.
