The Employee Value Proposition for Generation Z

By Rose O. Sherman, EdD, RN, EdD, FAAN

The employee value proposition or EVP includes the benefits and opportunities one would gain from working for an organization. It is a critical way to attract staff’s skills and talents and keep them engaged. Candidates carefully consider the EVP in an organization before accepting a position. They will quickly leave if they find that what was presented during the hiring process is not what happens on the job.

The employee value proposition is not necessarily consistent across generations. It is one reason many healthcare employers struggle today to recruit and retain Generation Z (born 1997-2012). The assumption is that compensation and benefits are one size fits all, which works until it doesn’t.

We know from generational research that we develop attitudes, values, and beliefs based on our collective experiences when growing up. A new report from the Walton Family Foundation titled Looking-Forward-with-Gen-Z, researchers report that what makes this generation of Americans unique is that Gen Z has come of age in a time of tremendous national chaos and trauma. Unlike other generations, Generation Z had not experienced a moment when America was united. From the time they were very young, Zoomers lacked the sense of personal, financial, and physical security their parents’ and grandparents’ generations often took for granted. 80% of Generation Z grew up in families that lost up to 20% of their wealth during the 2007-2009 recession.

When Zoomers were ready for school, red alert lockdown drills and school shootings were expected. Opioid use and depression skyrocketed. More than 20% of Generation Z respondents know someone who committed suicide. Then COVID lockdowns robbed them of in-person experiences in school and with friends. These experiences have been viewed through the lens of social media, which researchers contend exacerbated their struggles. Gen Z is the only generation to grow up entirely in the digital age; for better or worse, social media is not a tool; it’s a part of their identity. These experiences altered how they think and act relative to other generations. They are concerned about a lack of governmental response to school shootings, climate change, human rights, and health inequities. Generation Z is suspicious about whether current leadership and governance structures can provide them with what they need.

All of the information above is the backdrop to the Employee Value Proposition for Generation Z. They define success in a much different way. Their experiences have been different than other generations, so what they look for in employers has also changed. Researchers reported that “very few Zoomers that we interacted with through town hall meetings in Arkansas, Georgia, Ohio, and Texas showed an interest in the jobs that their parents once, or currently, hold. Gen Z is witnessing the regrets of their parents playing out in near real-time; sacrificing family time and personal fulfillment for a work culture where only a few reap the rewards.”

The top three career drivers for this generation include the following:

Financial independence – prized above all else
Work-life balance that supports family needs and wellbeing
Feeling passionate about the work and the ability to advance in the work

Many nurse leaders today tell me that their young staff is singularly focused on money and very worried about what is happening with the economy. They are struggling to pay their student loans. Buying their first home seems very out of reach at this point. Yet, we know that financial independence goes well beyond the hourly wage. Gallup reports that how you manage the money you make is equally important in their work on wellbeing. Most respondents in this survey do not feel equipped to manage money successfully.

My takeaway from this research and my discussion with leaders is that money is a big part of the employee value proposition for our newest generation of nurses. Financial wellbeing is an essential social determinant of work health. What if financial coaching was added as part of an employee benefits package. Independent financial coaches could help young Generation Z staff to do the following:

Review their current debt and look at public forgiveness repayment options or structure a payment plan
Develop a monthly budget
Build an emergency fund
Recognize the importance of starting retirement savings early in one’s career by demonstrating the power of compounding
Enroll in a retirement plan and choose investment options

Knowledge leads to empowerment. It is probably safe to assume that most young healthcare staff are not educated to manage their finances. So as we look at our well-being efforts, let us not forget financial well-being as it is top of mind for our newest generation of nurses.

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