What Gen Z Wants from Open Enrollment and How to Deliver It

Quick look: Gen Z has become a large part of today’s workforce, bringing new expectations for financial wellness, mental health support, and benefits education. Read on to explore what this generation values the most and how they prefer to receive information, and tips for building benefits strategies that resonate.

Generation Z, or people born between 1997 and 2012, already makes up about 18% of the U.S. labor force. That number keeps growing as Baby Boomers and older generations retire, making Gen Z an important audience for small and mid-sized employers.

Understanding what Gen Z values can help inform benefits decisions and shape open enrollment communications that get their attention. It may also help strengthen the overall employee experience, which can serve as a catalyst for retention.

Employee benefits for Gen Z: what they’re looking for

From managing financial stress to accessing mental health support, Gen Z’s benefits priorities look different from those before them.

Financial wellness is a priority

Money-related stress weighs heavily on Gen Z employees. According to PwC’s 2026 Employee Financial Wellness Survey, 85% of Gen Z respondents agreed financial stress affects their mental health, and 71% say it cuts into their productivity at work. Roughly half don’t feel confident planning for long-term goals like retirement or buying a home, and 41% say their education didn’t adequately prepare them to manage money well.

But there’s good news: when employers step in, Gen Z takes action. The PwC research found that 83% of Gen Z employees with access to employer-sponsored financial wellness services use them, the highest participation rate of any generation.

Mental health coverage matters

Financial stress and mental health are closely linked. Deloitte’s 2025 Gen Z and Millennial Survey reflects this, revealing that the cost of living is the top financial concern for Gen Z and that 40% feel stressed or anxious all or most of the time.

Comprehensive mental health support, including therapy coverage and access to an employee assistance program (EAP), signals that your organization takes mental well-being seriously.

During open enrollment, employers should make these benefits easy to find and understand. If mental health resources are buried in a lengthy benefits guide, employees may never realize they’re available.

Student loan debt shapes overall financial standing

Student debt is a reality for a lot of Gen Z employees. Gen Z borrowers owed an average of about $21,000 in student loans as of 2025, and this age group now makes up 35% of all borrowers, the largest generational segment.

This debt affects more than take-home pay. It can delay everything from retirement contributions, to home buying, to whether an employee feels ready to enroll in optional benefits. Employers who offer student loan repayment assistance can ease some of that pressure while lowering their tax liability.

Open enrollment is a good opportunity to make sure employees understand how it works and whether they’re eligible.

HDHPs paired with HSAs are a natural fit

When given the choice, Gen Z employees select high-deductible health plans (HDHPs) more often than any other generation. This is likely due to the appeal of HDHPs’ lower premiums, particularly for younger employees who tend to have fewer immediate healthcare needs.

Pairing an HDHP with a health savings account (HSA) can tie into Gen Z’s financial goals, since HSA contributions, growth, and qualified withdrawals are all tax-free. And adding an employer HSA match sweetens the deal further, reducing out-of-pocket medical costs while helping this generation build savings that could benefit them for decades to come.

In a sense, an HSA does double duty. It acts as a healthcare tool and a financial wellness benefit rolled into one, reinforcing the savings habits Gen Z values.

The key during open enrollment is education. Younger employees may appreciate the lower premium of an HDHP without fully understanding how the deductible, HSA, and out-of-pocket costs work together. Clear examples can help them make an informed decision.

Better education can help close the enrollment gap

Nearly one-third of Gen Z employees don’t enroll in benefits because the options feel confusing. One way employers can make the process easier is by using relatable examples instead of relying solely on benefits terminology.

In fact, 85% of Gen Z workers say they want to see what people like them choose during enrollment, such as real-life scenarios or peer comparisons.

Instead of simply explaining what a plan covers, employers can show how it might work in everyday situations:

• What would an employee pay for a typical doctor’s visit?
• How could an HSA help someone manage a larger medical expense?
• When might an employee use an EAP?
• What happens if someone gets married or has a baby during the year?

These examples can turn abstract benefits information into something employees can more easily understand and apply to their own lives.

Meeting Gen Z where they are

Gen Z is the first generation of true digital natives, and their benefits communication habits reflect that. Half say they turn to social media platforms like TikTok and Instagram to learn about benefits, and clear, concise messaging tends to land better with them.

However, this doesn’t mean they want less information. In fact, 83% of Gen Z workers say they want extensive or substantial details during open enrollment, and they prefer to receive it one to two months in advance. Microlearning modules and bite-sized content delivered well before open enrollment begins can strike that balance.

Supporting a multigenerational workforce

Of course, Gen Z is only part of the workforce. Today’s SMBs may have employees from several generations, each with different financial priorities, healthcare needs, and communication preferences. Creating a benefits strategy that works across the workforce can be challenging, especially for employers with lean HR teams.

Working with a professional employer organization (PEO), a type of HR outsourcing provider, can help make sure your benefits packages and communication methods get the attention of your entire workforce, including Gen Z.

PEOs give SMBs access to benefits packages that are typically out of reach for smaller companies, along with the administrative support to manage them. And ExtensisHR, for example, offers an Employee Solution Center that helps staff understand healthcare terms, compare plans, and navigate qualifying life events. A mobile-friendly app also gives employees convenient access to review and manage their benefits wherever they are.

That support can extend beyond benefits, too, with resources for payroll, compliance, HR strategy, and recruiting.

Getting these pieces right, from financial wellness to plain-language communication, can be the difference between benefits that sit unused and a package that builds loyalty.