How does Gen Z Evaluate Compensation Packages and How is it Different from Prior Generations?

Abstract

As the newest addition to the workforce, Gen Z (born between 1996-2010) is forcing companies to rethink the nature of their compensation packages. They are financially focused (prioritizing base salary and tuition reimbursement), require flexibility (more paid time off and the ability to work wherever, whenever) and value customization. Since the job market is becoming increasingly competitive, companies must change their packages to accommodate and appeal to this new generation (see Exhibit 1).