By Ringside Talent Partners
July 11, 2024
As the job market evolves, so do the expectations and priorities of the workforce.
One demographic that has been making waves recently is Generation Z, particularly in the fields of accounting and finance. If you want to attract and retain top talent from this generation, it’s crucial to understand what they value most in their employment packages. High on their list is a robust 401(k) plan.
Understanding Gen Z’s Priorities
According to research by The Standard, Generation Z largely seeks what other generations have desired: near- and long-term financial security. This means they place a high value on benefits like health insurance and retirement plans. In fact, a staggering 93% of Gen Z respondents consider a retirement savings plan an important part of their employment benefits.
Why 401(k) Benefits Matter
For employers aiming to appeal to Gen Z accounting and finance professionals, a well-structured 401(k) plan is essential.
Here’s what can make a difference:
- Better Match Percentages:Offering competitive matching contributions can significantly enhance the attractiveness of your 401(k) plan. Gen Z is keenly aware of the value of employer matches and how they can accelerate their retirement savings.
- Automatic Enrollment:Setting up automatic enrollment for all new employees can drive participation rates. Gen Z shows a remarkable 94% participation rate when auto-enrolled in 401(k) plans. This not only ensures higher participation but also helps employees start saving earlier, fostering a culture of financial responsibility.
- Low Fee Options:Keeping fees low is crucial. Fees are one of the biggest predictors of fund performance over time, and savvy Gen Z professionals are well aware of this. Offering low-fee options can enhance the perceived value of your 401(k) plan and ensure better long-term returns for your employees.
Financial Security: A Core Focus for Gen Z
Gen Z’s emphasis on traditional benefits allows employers to focus on enhancing core offerings rather than investing in costly new programs. The firm’s summary report highlights that saving is a key priority for this generation, with the majority ranking their top financial goal as saving. Additionally, over half value auto-enrollment in a 401(k)-type plan.
Attracting Top Talent with Better Benefits
To attract and retain top Gen Z accounting and finance professionals, employers must prioritize their 401(k) offerings. By improving match percentages, implementing automatic enrollment, and providing low-fee investment options, companies can create a more appealing benefits package. This not only helps in attracting great candidates but also supports the long-term financial well-being of their employees.
Conclusion
Generation Z is reshaping the workforce with their distinct preferences and priorities. For employers in the accounting and finance sectors, meeting these expectations is key to attracting and retaining top talent.
By enhancing 401(k) benefits, companies can appeal to Gen Z’s desire for financial security and establish themselves as desirable employers in a competitive job market. Investing in better retirement benefits today will pay off in the form of a dedicated and financially secure workforce tomorrow.