Study: Gen Z looking for financial planning help, not debt solutions
There’s a gap between what the youngest members of the workforce are seeking and what managers and HR professionals think they want.
Gen Z employees — who typically were born between 1997 and 2012 — are more concerned about financial savings and planning than debt, according to a new study. And that means managers and human resources leaders might have to shift their focus when meeting the needs of young workers.
The study, titled “Boost Financial Literacy, Build Gen Z Tenure,” by The Standard (a family of companies dedicated to helping customers achieve financial wellbeing and peace of mind) explores frontline people managers’ views of Gen Z and benefits and compares those findings with previously reported data on Gen Z and HR decision-makers.
The study’s key finding: Managers, like HR leaders, don’t realize how much Gen Z members focus on their financial future. Nearly 80% of Gen Zers report saving is their No. 1 financial goal. But only 55% of managers and 57% of HR leaders believe members of Gen Z feel this way.
Instead, 59% of supervisors and HR decision-makers think paying off debt is one of Gen Z’s top objectives, when only 37% of Gen Zers say lowering debt is an important goal.
In looking at Gen Z’s financial fears, the study yielded similar results. While less than a third of Gen Z worries about never getting out of debt, 41% of supervisors and 52% of HR leaders think debt is Gen Z’s top concern.
As the workforce increasingly includes members of Gen Z, understanding their financial priorities is crucial for retention and engagement, noted Lauren Canfield, vice president, corporate actuary, and chief risk officer at The Standard, adding in a statement that “reducing financial stress on young employees cuts down on distractions and positions them to bring their best to an organization.”
Related: Gen Z, millennials: Better at navigating the ‘financial vortex’ toward retirement
A large majority of Gen Zers — 80% — say they value working for an employer who offers help with financial education and advice. Nearly three-quarters of HR leaders concur, and 70% say their companies offer this support. However, fewer managers think Gen Z values assistance with financial literacy and only 59% say their organizations offer it.
”Why wouldn’t companies provide Gen Z workers with tools to strengthen their financial literacy?” Canfield asked. “Reducing financial stress on young employees cuts down on distractions and positions them to bring their best to an organization.”
The study is based largely on results of a survey conducted earlier this year of more than 800 workplace managers who have Gen Z employees reporting to them, as well as a 2023 survey conducted with 1,250 full-time (or soon-to-be) workers between the ages of 18 and 26.