Three Steps to Reaching Gen Z During Open Enrollment

Why should Gen Z care about Open Enrollment?

After all, comparing insurance plans is about as fun as reading the dictionary.

You only do it if you must. And for young employees in good health, without children, probably still on their parent’s health insurance plan, nothing is pushing them.

This isn’t a new story. HR has always struggled to engage 20-somethings in Open Enrollment. But what is new is that today’s youngest employees are the vanguard of a new generation: Gen Z. Gen Z was born in 1996 and on, with the oldest members just barely 25. Understanding Gen Z’s driving forces may be the key to helping them choose their best benefits.

Who is Gen Z?

For insight into the Gen Z we mindset, we turned to Jake Bjorseth, himself a Gen Zer. He’s the founder of Trndsttrs Media, a leading Gen Z agency. Trndsttrs has worked with McDonald’s, L’oreal, The North Face, and more, consulting on marketing and working with his generation. Jake is also the co-host of the Gen Z in the Workforce podcast.

Jake identified a few outstanding Gen Z traits:

1. Progressive and socially conscious – Diversity. Equality. Sustainability. Gen Z “walks the walk,” says Jake, choosing consumer brands and employers based on their beliefs.

2. Financially conservative – Gen Z grew up with the economic reality of 2008’s Great Recession. More recently, they saw COVID shake up the world market. They don’t take prosperity as a given and worry about their financial stability.

3. Entrepreneur-minded – Gen Zers, therefore, aren’t leaving their financial prospects to chance. They have a strong entrepreneurial spirit, determined to make their own success. Jake defines their attitude as, “I’m going to change the world and make a ton of money doing it.” That may seem like a paradox to other generations, but for Gen Z caring for the social good and making a profit coexist.

4. Digital natives – Gen Z grew up online, specifically on social media. This is where they live and where you need to go to reach them.

5. Savvy and authentic – Gen Z has had their trust broken too many times. They may have been “just kids,” but they were paying attention to the fake news, divisive politics, and police brutality that made headlines. They’re skeptical and can sniff out inauthenticity in any form.

With the above in mind, let’s look at strategies for engaging Gen Z in Open Enrollment.

1. Educate and Communicate

When is OE? What do I need to do? What do I need to know and think about?

Jake points out that most younger employees in big companies have no clue what Open Enrollment is, let alone having a working understanding of their benefits.

Companies need to educate their employees, young and old. But unfortunately, many benefits resources are hopelessly complex. Gen Zers aren’t sifting through pages and pages of jargon. (And neither are their older counterparts.) Clear, simplified messaging is critical for ALL employees.

And here’s where authenticity comes in, too. Don’t bother sending a mass email with “helpful” benefits materials. “I’ll just delete it,” says Ashley, a 21-year-old intern at an international company. “Instead, send me a personal message, offering to talk through my options with me.”

2. Use appropriate channels

If we had this discussion two years ago, we’d need to push the importance of online platforms. But COVID shook up the entire system, forcing businesses to run OE remotely. OE 2020 was a tough scramble, but companies saw employee engagement skyrocket by 300%-400%.

Yet even within the virtual world, there are more and less effective ways of reaching Gen Z. For example, they’re likely to ignore impersonal, copy-paste emails or Teams messages. They probably won’t bother coming to online seminars or workshops.

“Be creative, be conversational,” says Jake. Reach Gen Z where they are on Slack, Discord, and, most importantly, social media. Jake has seen companies achieve huge success building internal social media platforms to reach young employees.

And instead of selling to them, which immediately activates their skepticism, let them take the driver’s seat. Firms can provide self-paced opportunities for employees to learn more about the benefits that interest them.

3. Make it relevant

So, which benefits do Gen Z want? They’re not going to spend a lot of money on core benefits they won’t use. However, voluntary benefits include a range of options.

Jake highlights two relevant categories:

1. Financial benefits – Gen Z wants to spend wisely and invest smartly. 401ks may not spark their interest, but consider:

• Tuition assistance or reimbursement
• Student loan repayment
• ESPP (Employee Stock Purchase Plan)
• Financial planning resources

2. Mental health benefits – Mental health is a HUGE issue for Gen Z. According to Trndsttrs, 75% of them will suffer a mental illness before the age of 25.

Beyond employee wellness programs, companies can offer:

• Access to coaches
• Access to therapists
• Mindfulness tools
• Stress management

Pet benefits are included in mental health benefits. Gen Zers are more attached to their pets than previous generations. They shower their pets with love and then turn to them for emotional support.

Pet benefits are also a smart financial move, defraying the costs of expensive pet care.

“We need to rethink what we’re doing in the benefits space,” concludes Jake. Making changes to reach your youngest employees can improve benefits for everyone.

Start today by engaging your Gen Z employees with the latest plans from Pet Benefits.