What do younger people want from their employers in terms of financial wellbeing?

In a sentence - younger workers (by which we mean Gen Z and younger Millennials - Gen Alpha will soon be joining them) mainly want employers to help them feel secure day to day, not just "sorted" for retirement. Their priorities cluster into a few clear themes as we set out below. These groups are now a major part of the workforce and meeting their needs is key for their current and future employers.

Core financial needs

• Help with basic cost of living: Meeting monthly expenses is the top concern for 18-24s, ahead of longer-term goals, and they feel this pressure more acutely than older age groups
• Genuine financial security: Around half of Gen Z and millennials say they don't feel financially secure, and that undermines their wider wellbeing and engagement at work.
• Emergency resilience: A significant proportion of younger and lower-paid workers could not cope with an unexpected small bill (for example £300), leaving them one pay-day from serious difficulty. And £300 could well be the cost of new glasses, or something to keep their car on the road
• And for those with Student Loans, there is the added longer-term concern and pressure of small amounts being deducted from pay for a significant part of their working life. This is much bigger for this group than previous generations.

Types of support and benefits they look for

• Pay that keeps up with living costs, plus predictable hours and income, because rising housing and rental costs hit younger workers hardest
• An understanding that for the significant population with student loans, pay increases are always "watered down" in terms of overall impact as the amount being deducted increases
• Benefits that cut everyday costs, such as retail discounts, travel support, and salary-sacrifice schemes (e.g. tech, bikes, pensions) that improve take-home value.
• Access to affordable credit and savings buffers, via hardship loans, workplace savings schemes, and earned wage access to smooth cash-flow shocks
• Pensions that feel relevant early on, with clear communication rather than expecting them to sacrifice short-term security for distant retirement and recognition of the impact on student loan deductions from salary, if appropriate, on the ability to save for the future.

Financial education and guidance

• Practical money skills: Young people want help with budgeting, debt management and saving, especially given patchy financial education in school and the potential pressure of carrying long term student loan debts
• Simple, trusted guidance: They respond better to clear, jargon-free tools and workshops than to dense policy documents, and value signposting to independent help (e.g. MoneyHelper-style resources)

Link to wellbeing and mental health

• Money worries are strongly linked to stress, poor mental health and absence, with 18-24s the most likely to say financial stress has made them ill or harmed their performance
• Without basic financial security, younger workers are less likely to feel positive about life, their job, or the "meaningfulness" of their work
• For those with student loans, for their own wellbeing and financial security they may well priority stability of pay over career progression
• They therefore expect financial wellbeing to sit alongside mental health and wider wellbeing as part of a joined-up support offer, not as a siloed HR initiative

Expectations of employers

• Visible commitment: A clear financial wellbeing strategy (not just a few point solutions) that is discussed openly and backed by leadership
• Personalisation: Flexibility to choose benefits that match life stage (e.g. debt help vs ISA vs pension top-ups) rather than a one-size package
• Mobility and loyalty trade-off: A large majority of Gen Z and millennials would move employer for better financial benefits, so they actively compare offers and expect employers to keep improving them

For a practical employer response, this typically means combining fair base pay and predictable earnings with cost-of-living support, simple savings/credit products, and targeted financial education integrated into your broader wellbeing and mental health strategy.

Does this feel like a lot to think about? That is where Reward Heads can help. We work with clients to design benefits packages and reward strategies that work for you as an employer and your employees, tailored to their demographics, your legacy arrangements, your goals and your budget.

If you would like to explore how we can help then please reach out on rewardsolutions@rewardheads.co.uk

Claire Williams, Consulting Director - Reward Heads