CEO at BrightHR and COO at the Peninsula Group, responsible for the global rollout of HR tech supporting over 90,000 organizations.
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Nap pods. Arcade games. On-site massage therapists… ever since Google opened its headquarters, the software giant has been renowned for its lavish facilities.
And ever since, we see generous office-based perks as a sign of success: a means for affluent tech firms to attract the best talent. Free beers and office dogs have become an Instagrammable cornerstone of startups and agencies.
However, on-site perks don’t seem to hold the pulling power they once did.
Data certainly indicates that perks like these are less important for employees. Glassdoor reported that, out of 70,000 tech worker reviews, only 4% mentioned “workplace benefits” in December 2022. That’s a significant drop compared to 8.3% back in 2019.
Since “Generation-Z” has entered the working population, a new attitude around workplace benefits seems to have emerged. When you’re hiring, you might be disappointed in a lack of applicants—especially if you’re investing in expensive perks to appeal to new recruits.
So why are office perks lower down on the list for a younger workforce—and what does that mean for the future of recruitment?
Gen-Z is more socially aware.
Gen-Zers are often known as the “climate change generation.”
This tells us that members of this generation are more ethically motivated than their predecessors. When searching for a new role, Gen-Zers are going to be more concerned with your moral stance and opportunities to make an impact than with flashy office-based perks.
Even if your workspace is bursting with niceties, you might still struggle to recruit if you work in a morally gray area or have questionable values.
A study from Deloitte showed that 77% of Gen-Zers said it was important to work at organizations whose values aligned with theirs. Plus, CNBC reported that 56% of workers wouldn’t even consider a position at a company that didn’t share their values.
It’s clear that you’ll have more recruitment success if you signpost the positive impact you have within the community.
A new generation expects more.
Along with being the “climate change generation,” Gen-Z has also been dubbed, perhaps less favorably, as “entitled and anti-capitalist.”
This seems like a cruel assessment.
In reality, they simply expect more from their employers. Having seen their Millennial predecessors suffer from burnout, they are wary of an unfair working relationship.
Plus, given that Gen-Z is more likely to struggle in a tough economic landscape, it’s easy to see why they are prioritizing financial well-being. In fact, according to CareerBuilder, their biggest priority is higher pay.
As a result, it’s now normal to see LinkedIn or TikTok posts slamming employers who boast of disingenuous perks. Office freebies are often seen as a cheap substitute for real perks, like a decent wage or a good work-life balance.
Amid a perfect storm of self-awareness and cynicism, it’s harder for businesses to hide behind gimmicks. Gen-Z has grown wise to clichéd office freebies and wants to see more meaningful benefits.
Burnout is a major factor.
A new wave of workers brings a rise in workplace burnout.
Research suggests that Gen-Z is more stressed than any other demographic. A combination of economic insecurity and environmental responsibility causes significant strain—making the “hustle” lifestyle deeply unappealing.
Instead, these workers want firmer boundaries between personal and work time. This comes at great odds with on-site benefits.
Many office perks have an ulterior motive for employers. Free lunches are often a means to lure remote workers back into the office, while free dinners normalize the idea of working late.
One ex-Google employee claimed that the perks made staff “work more for less.” Google, he argued, delayed free dinners until around 6:30 p.m. to encourage staff to stay beyond their regular hours. And he argued the pet-friendly offices helped prevent staff from leaving the office to go take care of their dogs.
It’s no surprise that office-based perks—like on-site gyms—aren’t exactly tempting for a generation of workers who are keen to limit their time in the office.
The future of recruitment looks different.
If you’re already struggling with higher costs, it may feel hard to justify blowing the budget on flashy perks. Especially if you realize it has little impact on your recruitment or retention metrics.
So now that you know why office-based perks are less enticing for younger workers, you’re in a good position to start making changes.
Here are a few ideas to successfully appeal to the new, emerging workforce.
Emphasize your ethics. Make sure you outline your workplace values and highlight the positive impact your business has on the environment and wider community. You can do this by creating an ESG policy and sharing this on your website and in job adverts.
You could also provide employees with paid time off to volunteer in their community—above their normal annual leave entitlement. This kind of perk will appeal to a more ethically driven demographic.
Focus on your financial perks. Since Generation-Z naturally has less experience, lower pay may be expected. However, it’s important to consider the cost of living in your area and whether or not employees can maintain a decent lifestyle. If annual cost-of-living pay rises are out of the question, consider whether you can subsidize any of their monthly costs. You could do this with travel-to-work schemes, gym discounts, and childcare or healthcare perks. Equally, performance-based bonuses are another good financial incentive. This means employees can benefit from healthier finances while you benefit from a more productive and successful workforce.
Create a better work-life balance. Gen-Zers are conscious to reduce their stress levels. So you may see more interested candidates if you promote perks that emphasize a better work-life balance, like the option to work remotely or stagger or compress hours.
While flashy perks may attract some candidates, this novelty will soon wear thin. Above all else, this emerging generation of workers prioritizes flexibility and financial health—which means you should, too.
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