How to help college grads navigate their benefits

A new wave of college graduates is set to join the labor force, eager to sign up for health insurance and start their 401(k). Yet they will need help from benefit managers and leaders to understand their options. 

Gen Z are less satisfied with their benefits compared to other generations, and are  less likely to stay with their current employer for another two years, according to a 2024 wellness survey from the Employee Benefit Research Institute and Greenwald Research. Benefit leaders will need to address dissatisfaction and create pathways for long-term growth if they want to retain this new crop of talent. 

"Where they're going to live and their salary is important to college graduates, but we're seeing a focus on benefits as an important secondary source of value in working with certain employers," says Kristina Welke, the head of strategy, solutions and marketing from New York Life Group Benefit Solutions. "They want to set themselves up for success, but they have different needs than older generations." 

Read more: How Gen Z employees prioritize their benefits

To help them meet those needs, college grads need to learn how to navigate the benefit packages they're being offered. Seventy-six percent of Gen Z employees don't completely understand their company's benefits, according to data from benefit automation platform Payroll lIntegrations, which leads to potential misunderstandings and the dissatisfaction organizations are dealing with within their ranks. 

"College grads have never had to deal with processes like purchasing insurance — they have historically relied on their parents for that type of service," Welke says. "Education is the most important first step and that has to come from the employer." 

For organizations, this means offering support and assistance throughout every step of the enrollment process. For example, benefit leaders should be surveying their workforce regularly, both current and incoming, to assess the kind of benefits they actually want and then use the information to restructure their offerings. Then, benefit managers  should be ensuring that they are not only communicating those changes, but pairing them with informational resources and tools.  

What Gen Z wants

Gen Z is invested in benefits that tackle more immediate needs, like tuition reimbursement, student loan support and mental health benefits. While these offerings are important in the short-term, longer-term solutions like retirement and life insurance can help their benefit plans age alongside them, according to Welke.   

Read more: Gen Z's career motivations have evolved. Here's how

"We know employees who feel their employer cares about them are more likely to stay with that company long-term," she says. "That's why employers should focus on having benefits that span across generations." 

In order to achieve that, benefit leaders need to communicate clearly around when open enrollment periods occur, and offer themselves as a resource. Young talent should feel comfortable expressing how their needs have evolved, in order to learn about the benefits that could support them, whether that's  working towards home ownership or changing their health plan. Benefit managers can also host instructional seminars and presentations to make the transition easier. 

"Offer a comprehensive package, assess it, offer the right resources and then educate your workforce to ensure utilization," Welke says. "That is the best way employers can maximize their benefit program and their spending to attract and retain this great talent."