What younger workers want from their employers

For the report, researchers surveyed 1,032 young workers between the ages of 24 and 35 from Jan. 30 to Feb. 10 about their current workplace attitudes and priorities. All participants worked full-time and were part of either the younger millennial generation (ages 27 to 35) or Gen Z (ages 24 to 26).

In total, over two-thirds of young workers (68%) said they either strongly or somewhat view work as a way to make a living but not a major part of their personal fulfillment. Because of this and other recent workforce disruptors, "it's not surprising that many young adults' commitment to their jobs is tenuous," the researchers wrote.

Almost half of respondents said they plan to look for a new full-time job in the next year. Among young millennials, 22% said they wanted to change jobs while 31% of Gen Z workers said the same. Other potential changes young workers are considering include working a temporary side job, pursuing a certification, going back to school, or starting their own business.

When choosing whether to stay with an employer or consider new one, young adults said increased pay or compensation was the most important factor. Other factors that impact workers' decisions include opportunities for growth, more flexible schedules or environment, additional or higher-quality benefits, and similar culture or values. 

The top four benefits that young workers consider when choosing employers include paid time off, health insurance, a flexible work schedule, and retirement savings plans. Close to or over 50% of respondents chose these benefits.

How to recruit and retain younger workers

To help employers recruit and retain younger workers more effectively, the report offers several tips, including:

• Survey your employees to understand what benefits they value, as well as how they want them delivered
• Offer employees a menu of benefits to choose from, or for softer perks, such as gym memberships or healthy snacks, offer compensation in lieu of the benefits
• Provide a platform to deliver benefits in various ways so employees can access them how they want
• As much as possible, offer benefits that are portable and go beyond specific jobs or environments
• Develop a culture that celebrates wellness and fosters inclusion, professional advancement, and success
• Provide benefit education and make sure that employees are aware of what benefits are available to them
• Include flexibility in benefits, as well as all other aspects of work

"In the post-pandemic era for the workplace —with people returning to the office, hybrid work environments, and desires for greater work-life balance – employers need to adapt quickly," said Kevin Crain, head of retirement research & insights at Bank of America. "To be an 'employer of choice' to attract and retain young adult workers, employers need to take greater responsibility for their employees' overall wellness by offering new benefits and encouraging utilization of existing benefits." (Kayser, Becker's Hospital Review, 6/14; Bank of America press release, 6/13; "Young adults and workplace wellness" report, accessed 6/22)

Writing for the Harvard Business Review, Jenny Fernandez, Julie Lee, and Kathryn Landis outline seven strategies leaders can use to engage and motivate Gen Z workers "to create a team dynamic of collaboration, commitment, and sustained motivation."