Consider these three ways that may better educate younger employees about workplace benefits, and in turn, help your company recruit, retain and motivate young talent.

No. 1: Assume you are building from the ground up

For many entry-level employees, the workplace can serve as the central resource for tackling personal financial needs, receiving an income and managing benefits—and it can be a lot to juggle for an employee right out of school. In fact, our research shows that 75% of Gen Z employees report that financial stress negatively effects their work and personal life.

Clear guidance from an employer can help to make all the difference for younger employees engaging with workplace benefits for the first time. Think back to your first job: Are there any financial decisions you’d make differently, had you known more? According to our research, investors consider their top financial mistakes after college to be spending too much on material goods (33%) and not taking advantage of employer retirement plans (22%), and the advice they would offer to young employees is to start a portfolio no matter how small (35%), try not to take on additional debt (21%) and take time to understand budgeting (16%).

Young employees are also less likely to understand the potential of the workplace as a major resource for personal financial growth. Our research shows that 23% of Gen Z employees aren’t enrolled in their company’s 401(k) – 3x times the rate of all other generations. And 12% do not participate in any workplace benefits – double the rate of millennials, Gen X, and boomers. They may also overlook less traditional benefits such as wellness programs, tuition reimbursement, and equity compensation.
These gaps in engagement are an opportunity to raise awareness, provide education, and open the door for younger employees to build a more mindful financial foundation.

No. 2: Embrace digital, but not at the expense of the human

Consider an entry-level employee who is simultaneously concerned about budgeting, wondering how much to contribute to their 401(k), juggling student loans, and deciding whether to stay on their parents’ health insurance. Providing a wide range of easy-to-understand educational resources—both in person and digital—may be a helpful way to offer support as they untangle all these questions.
Include a mix of digital and in person resources – and don’t overlook the basics. Include information about the workplace benefits available, in addition to elementary finance topics such as budgeting, building credit, saving for retirement, building emergency savings, repaying student loans, and more. Check with your benefits provider – they may have relevant content available through their platforms or can work with you to develop Gen Z-focused content.

Also, Gen Z strongly values human guidance: Data shows that 83% of Gen Zers say a workplace mentor is crucial for their career. For young employees that feel overwhelmed by finances or don’t know where to start, consider working with your benefits provider to offer them the option to connect with a financial advisor or coach for personalized financial guidance. After all, it’s never too early to start building a financial foundation – the financial steps taken today will better prepare young employees’ for tomorrow.

No. 3: Meet them where they are

Adjusting to life after college can be difficult – not only are employees learning the day-to-day of their role, but simultaneously adjusting to a new schedule, learning how to manage their money, paying off student loans, and much more. Our 2024 State of the Workplace study shows that Gen Z more strongly wants their employers to help them through specific financial challenges (93% vs. 81% general population), and that they also say they would be more invested in staying at their current company if it provided financial benefits that fit their specific needs (95% Gen Z vs. 81% general population).

Related: Redefining retirement for Gen Z and millennials: Actionable insights for employers and advisors

Accessible financial education and wellness resources targeted toward Gen Z employees—such as providing education, planning tools and retirement plans with age and risk-tolerance based investing solutions—can help set them up for long-term financial success, but they may also benefit from more personalized support and education. Finding the right blend can help take some of the financial stress off your employees’ plates and help them navigate their workplace benefits and wider financial lives with greater dexterity, ultimately helping to create a culture that fosters a more productive workforce.

Kate Winget is Chief Revenue Officer, Morgan Stanley at Work