06/04/2026
Gen Z's top benefit is not salary. Employers should take note.
By Andy Medici – Senior Reporter, The Playbook, The Business Journals
Jun 3, 2026//Jun 4, 2026 6:55am CDT
Story Highlights
* Health benefits rank as the top priority for 72% of Gen Z workers surveyed.
* 51% of Gen Z aspires to start a new business.
* 56% expect to remain in their first job for two years or less.
* Gen Z workers are a lot less interested in a high salary than health benefits and work flexibility, a key distinction for employers who want to hire and retain the newest generation of employees.
Those and other insights come from a survey of 11,000 new or recent high school graduates by the National Society of High School Scholars.
When the surveyed graduates were asked to list which benefits were most important to them, health benefits topped the list at 72%, followed by 62% who said time-off benefits were important. Respondents were able to pick more than one important benefit.
Sixty-two percent said a flexible work schedule was important, followed by 49% who said annual salary was important. Just 13% said they considered remote-work options important, followed by 9% who considered parental leave and 5% who said stock options were important.
When asked to rank the most important factors within an organization, fair treatment of all employees topped the list, followed by work-life balance and then social responsibility.
“For employers, educators and institutions, the message is clear: engaging this generation will require not only opportunity, but also trust, flexibility and a meaningful sense of purpose,” the researchers noted in their report.
The survey also found that:
* 56% of respondents expect to stay in their first job for two years or less.
* 52% would go down a career path that guarantees financial success but doesn’t appeal to them.
* The percentage of students who expect to live at home for their first job has increased, from 60% in 2022 to 68% in 2026.
* Nearly all (94%) are extremely, very or somewhat confident about their future after graduating college.
* 84% believe they can personally make a difference in the world.
Nearly eight in 10 respondents (79%) said they expect to secure a full-time job within six months of graduation. Their expected salary ranges include 17% who expect to make between $50,000 and $69,999, and 16% who expect to make between $70,000 and $89,999.
When asked to rank their preferred employers, large corporations topped the list, followed by medical and healthcare facilities, then small businesses. Government, educational institutions, nonprofits and trade jobs ranked further down the list. News and social media outlets ranked at the bottom.
Entrepreneurship appeals to Gen Z
Separate research from LendingTree shows that a number of Gen Zers are attracted to entrepreneurship. A LendingTree survey found that 51% of Gen Z respondents want to start a new business, nearly double the 27% of Americans overall who say they would consider taking the plunge into entrepreneurship.
“Even in an environment where people continue to have concerns about inflation, interest rates and economic uncertainty, there’s clearly a strong belief that entrepreneurship remains one of the best paths to financial independence and flexibility,” said LendingTree chief consumer finance analyst Matt Schulz. “Americans want more control over their income, and more people believe they can realistically build something of their own than at any point in recent memory. That combination of optimism and practicality can be pretty powerful.”
For employers, a prime challenge of the current work environment is figuring out a way to keep costs for health insurance from spiraling out of control.
A survey by Mercer found that the average cost of employer-sponsored health insurance reached $17,496 per employee in 2025, increasing at a rate well above the rate of inflation and wage growth. Health insurance costs were expected to grow 6.7% in 2026, according to Mercer, driving costs to $18,500 per employee.
Similarly, a 2025 survey from the International Foundation of Employee Benefit Plans found that companies were projecting their median healthcare costs would rise 10% in 2026. Professional-services firm Aon plc estimated a 9% increase in employer healthcare costs. That would mean the cost of employer-sponsored healthcare coverage would total more than $16,000 per employee.
While managers often bemoan Gen Zers' penchant for changing jobs quickly, their open discussions of pay and their refusal to compromise on work-life balance, experts say the generation's relatively small size is the real problem employers need to address.
Employers that fail to adapt could be in for years of hiring challenges, which could hamstring growth opportunities and limit productivity, among other consequences. Adapting is likely to require a rethinking of talent pipelines, hiring strategies, job requirements and workplace policies.
