Aflac's CHRO urges companies to rethink their wellness strategies to keep Gen Z talent

The recruitment and retention of Gen Z talent has quickly become a top priority for many organizations, and the key may lie in how they're choosing to approach employee wellness. 

One third of Gen Z employees say they are likely to be searching for a new job in the next 12 months, compared to only 23% of all U.S. employees, according to a recent report from insurance company Aflac. So if organizations want to build a long-term workforce, they need to have the right strategies in place to keep their young talent while they still have them. 

"Gen Z years are hit harder by financial fragility and mental health concerns than any other generation across every measure," says Jeri Hawthorne, Aflac's chief human resource officer. "This has made them less committed to employers in many ways and therefore more willing to take risks as it relates to jobs and career opportunities, or leave for organizations that have a value system that aligns with their own." 

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Sixty-six percent of Gen Z say they are experiencing moderate to high burnout, according to Aflac's report. Much of that stress and anxiety is driven by financial instability, most of which is rooted in growing healthcare costs, the report found. Nearly three-quarters of Gen Z would not be able to cover the cost of unexpected medical expenses of $1,000 or more, and nearly half say they have delayed a major expense like buying a car or pursuing further education due to medical expenses not covered by insurance. The report also found that flexibility in where and when they work is a high priority for Gen Z employees.

"Gen Z is entering the workforce at a time with high levels of inflation," Hawthorne says. "Most of them also have high student loan debt, which means they can't afford certain things. They want to be paid well for the work they're doing and will care about compensation, along with more flexibility." 

This means that when companies are building benefit offerings with the intention of retaining and recruiting young professionals, they need to think about employees' entire wellness profile. At Aflac, they have five pillars of wellness that target employees' physical health, mental health, financial health, spiritual health and social health. Those categories offer programs and services such as volunteer opportunities, mentorship experiences and educational resources. 

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"This is a generation that really cares about self care and overall well-being," Hawthorne says. "Organizations that fail to offer services or to participate in different programs that highlight that commitment to those things will probably have the biggest risk of losing good talent." 

If they're able to, Hawthorne urges organizations to look at the employee assistance programs they already have in place and identify areas where they have gaps in coverage and support for different aspects of employee wellness. They can then begin surveying their population for what needs they'd like to see met and how. 

"Companies need to start thinking about the next generation coming into the workforce as whole people instead of just employees that show up at nine and leave at five," Hawthorne says. "It's really all about finding ways to meet employees where they are in the journey of their career and life."