How HR leaders can engage Gen Z employees during open enrollment

The generational shift in the workplace is in full swing, and Gen Z employees are gaining a greater foothold. This cohort of employees has surpassed baby boomers by 3% and they are expected to make up nearly 30% of the total workforce by 2030. 

As this trend evolves, employers have an imperative to adapt — ensuring they are meeting expectations and providing the right support to retain and attract top Gen Z talent. 

Since it's open enrollment season for many companies, employers are focused on communicating to their employees about the benefits available to them. These employers may have their work cut out for them. According to new findings from our Future of Benefits study, more than 4 in 10 Gen Z  workers are unsure about how their company's benefits offerings work together, and 37% do not understand supplemental benefits. 

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This is particularly worrisome for employers, since 38% of Gen Z workers say they experience significant stress when considering their household finances, and 73% agree that having a better understanding of their benefits would help them feel less anxious in this area. 

How can we help employees gain the most from their benefits offerings when they are not sure what those offerings entail or how they work together? The key to bridging the benefits knowledge gap is through comprehensive education. Doing so will help ensure that Gen Z workers not only understand which benefits to consider during open enrollment time, but also how to maximize the use of their elected benefits throughout the year. 

Here are three ways HR leaders and organizations can evolve their approach to better reach, engage, and educate Gen Z workers about their benefits this open enrollment season — and beyond. 

1. Lean into AI
AI solutions are being used to streamline work processes for both employees and employers. This trend also affects HR leaders, who may use AI-powered tools to implement benefits election with a more personalized approach. The technology is here to stay, and it may offer new ways to engage Gen Z workers about their benefits election and usage.

In fact, our recent research shows digitally native Gen Z workers are interested in using these high-tech resources when it comes to their work, with 32% feeling more optimistic than last year regarding AI technology in the workplace. Gen Z workers are also more likely than other generations to trust AI to make personalized benefits recommendations for them, helping to streamline, simplify and demystify the benefits selection process. 

As technology and AI tools evolve in the workplace, consider how your organization can leverage these tools when it comes to benefits decision-making, and how you can help Gen Z workers better understand their benefits.

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2. Promote year-round learning
While HR leaders devote significant effort to employee education during open enrollment season that employees expect more than just seasonal benefits communications. In fact, data shows that 71% of all employees — and 72% of Gen Z workers — say they want to learn more about benefits year-round, not just during open enrollment. 

Implementing year-round touchpoints, such as HR office hours, informal meetings or quarterly webcasts, can help foster a culture of dialogue, and ensure younger generations feel supported and prepared to make the right benefits elections when it comes time for open enrollment.

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3. Encourage peer-to-peer conversations
In addition to offering a comprehensive benefits package, employers can encourage a deeper understanding of benefits offerings by enabling peer-to-peer conversations that can help workers contextualize the different use cases for their benefits. 

This is particularly true of Gen Z workers, who are relatively new to the workforce and less familiar with how different benefits work and what they cover. Encouraging both cross-generational and peer-to-peer conversations can help Gen Z workers better understand where, when and how they can use their various offerings in real-world scenarios, while also highlighting potentially underutilized or new benefits with which they may not be familiar.

The message here is clear: By adapting communication strategies to effectively engage with Gen Z workers, HR leaders have a valuable opportunity to strengthen employee retention and foster a more connected, informed workforce. To achieve this, it will be critical for employers to explore new technologies, expand communications around benefits offerings and encourage peer-to-peer learning among employees. 

Ultimately, an employer's offerings are only strong if employees understand and use them, maximizing the benefit for themselves and their families.