What is 'benefitmaxxing'? The new Gen Z trend impacting employee benefits

• Key Insight: Discover how Gen Z's "benefitmaxxing" is forcing personalized benefits strategies.
• Expert Quote: Alex Powell warns Gen Z won't accept status quo; they'll leave without customization.
• Forward Look: Prepare for benefits budgets shifting toward stipends, digital tools, and manager training.
• Source: Bullets generated by AI with editorial review

Gen Z has coined another buzzy new phrase to show their engagement with workplace benefits and perks. 

Young workers are in their "benefitmaxxing era," having recognized the importance of their employee benefit offerings, and are doing the most to tailor those experiences to their specific needs.   

"Gen Z isn't accepting the status quo in a way that's pretty dramatic," says Alex Powell, director of insights at employee engagement platform Reward Gateway. "They are willing to flex and bend when it comes to what does and doesn't work for them." 

While this latest hashtag may seem like another passing trend, it's actually a persistent challenge benefit leaders have struggled to crack: How to keep young talent engaged by giving them as much control over their choices as possible. 

Read more: A 'micro-retirement' may be the best way to retain Gen Z

Redefining leaders' approach to benefits

Gen Z is making it clear on social media and in the workplace that standard benefits won't cut it, and they're ready to tell organizations what they want instead. Powell says that unlike their older colleagues, Gen Z doesn't want traditional wellness benefits like gym memberships or counseling services — instead, they want more control over what's on offer outside of healthcare and retirement. They also want agency over how they can spend those benefit dollars, Powell says.  

"They need a level of customization other generations never asked for," Powell says. "They're prepared to tell organizations, 'I'm going to want this particular thing — can we make it work?' And if the answer is no, they're going to contemplate whether they still want to work there."

Gen Z also wants to see customization and choice in benefit communications as well. According to a recent survey from MetLife, Gen Z employees say most of the benefit communications they receive don't feel relevant to them. Leaders should embrace flexibility and variation in how they communicate with their staff.

Building a strategy that works

First, Powell encourages benefit leaders to offer stipends or subsidies, rather than pre-set programs, for elective benefits. That way, Gen Z and all employees can decide how to spend their money in a way that works for them.  

Communication strategies need an overhaul, too, Powell says. Leaders should plan a more cohesive and simplified communication process when rolling out their offerings. This means providing in-depth benefit training for managers so that they're able to answer questions, or  direct employees  towards the right resources faster and more efficiently. 

Read more: 2 strategies that help Gen Z understand their benefits better

Leaders can also rely on digital solutions like apps or chatbots, while considering safeguards to keep the process human-centered.

"Leaders have to ask themselves: Is [a chatbot] a good use of time and money, or should we be training our managers instead?" Powell says. "The next piece is following up on that implementation and making sure that it's going the way they and their employees want it to." 

Creating more flexibility and better pathways of communication can benefit all generations within the workforce, and will also set organizations' up for success for any even younger cohort waiting in the wings. 

"My advice is to be as flexible as you can," Powell says. "We can all benefit from the changes and  flexibility young talent wants from us."