How to Build a Benefits Package That Attracts Gen Z Employees
Generation Z is reshaping the health care industry. This group (born 1997–2012) is tech-savvy, health-conscious, and values flexibility. They’re also more open about mental health and want support for everyday stress not just major medical needs.
If you want to attract and keep Gen Z talent, your benefits package needs to keep up.
What Do Gen Z Employees Want in Their Employee Benefits?
Gen Z employees are looking for more than the basics. They expect “whole person” wellness which is a healthcare approach that looks beyond basic medical needs and supports an individual’s complete physical, mental, emotional, and lifestyle well-being.
A Gen Z friendly employee benefits package should include:
- Flexible health plan options
- Strong mental health support
- Plans with gym access, fitness memberships and holistic health options
- Digital tools and easy access to care
- Benefits that fit their lifestyle and budget
- Pet insurance that provides coverage for their fur babies
- Employers who care about well-being and purpose
In short: personalization, choice, and real-life support.
This Video Discusses what Gen Z Employees Want in Their Employee Benefits in More Detail:
How CaliforniaChoice Helps Small Businesses Offer Modern Employee Benefits
CaliforniaChoice makes it easy to offer modern benefits without compromising your budget.
- You control costs with a fixed contribution (percentage or dollar amount)
- Employees choose what fits them (HMO, PPO, or HSA plans)
- 100+ plan options from seven leading carriers
- Flexibility at renewal to adjust your contribution as needed
It’s a simple way to offer “big company” benefits for small businesses. Here’s the list of premier health plans included in the CaliforniaChoice portfolio:
- Anthem Blue Cross
- Health Net
- Kaiser Permanente
- Sharp Health Plan
- Sutter Health Plan
- UnitedHealthcare
- Western Health Advantage
Keep in mind, plan choices depend on where you and your employees live.
Why Mental Health Coverage Matters to Gen Z Workers
- Counseling
- Therapy
- Behavioral health services
This built-in support helps employees manage stress, stay productive, and feel supported. For full details on EHBs, visit HealthCare.gov.
Employee Benefits With Ancillary Options, Too
Want to stand out even more? Add benefits Gen Z employees want and will actually use:
- Dental (DHMO and PPO options)
- Vision (eye exams and eyewear savings)
- Chiropractic care (including acupuncture)
- Life & AD&D insurance
These can be employer-paid or voluntary, so you stay in control of costs.
Extra Perks Make a Difference
CaliforniaChoice also includes value-added benefits that align with Gen Z lifestyles:
- Pre-tax savings with POP and FSA options
- Prescription discounts (often lower than copays)
- Fitness memberships starting at $28/month
- Savings on travel, entertainment, and more
- Pet insurance and wellness discounts
Build a Gen Z-ready Employee Benefits package — Without Breaking Your Budget
Gen Z is raising the bar for employee benefits. To compete, you need to offer flexibility, choice, and support for the whole person—not just basic health coverage. Gen Z values individuality; they want benefits that adapt to their lifestyle, whether that means prioritizing mental health, finding a plan that covers chiropractic care, or saving on pet insurance.
CaliforniaChoice helps you do exactly that, while keeping your costs predictable. Through its unique defined contribution model, you establish a fixed monthly budget per employee, and your team gets to shop a menu of over 100 coverage options from leading California health plans.
If Gen Z employees want a specialized plan with premium coverage, they can choose it and easily pay the difference through simple pre-tax payroll deductions—meaning they get the exact personalized coverage they demand, while your business’s bottom line remains completely unaffected. Best of all, with CaliforniaChoice’s 12-month rate lock and consolidated single-bill administration, you get total budget predictability and zero administrative headaches.
Your employee benefits broker can provide a custom quote for your business from CaliforniaChoice. If you don’t have one, we can help connect you with a trusted broker in your area to get started.
How CaliforniaChoice Delivers on the Gen Z Employee Benefits Wishlist
| What Gen Z Wants | How CaliforniaChoice Delivers It | Why Your Budget Loves It |
| Personalized Choice | Employees choose from top-tier California health plans (including HMO, PPO, and HSA options). | You set the limit. You contribute a flat dollar amount or a fixed percentage toward a benchmark plan. |
| “Whole Person” Wellness | Built-in access to chiropractic care, acupuncture, and a Member Value Suite with mental wellness and fitness discounts. | No-cost extras. Many of these lifestyle perks and wellness discounts are bundled in at no extra charge to you. |
| Pet & Lifestyle Perks | Gen Z prioritizes their “fur babies.” Members get exclusive savings on pet insurance, travel, and entertainment. | Zero administrative drag. All of these various plans and perks are consolidated into a single monthly bill for your business. |
Your employee benefits broker can provide a custom quote for your business from CaliforniaChoice. If you don’t have a broker, it’s easy to search for one.
Frequently Asked Questions about Gen Z Employee Benefits & Health Insurance Plans
What Benefits Do Gen Z Employees Value Most?
Gen Z employees consistently rank mental health support, flexible health plan options, and digital access to care as top priorities. Research from SHRM finds that 61% of Gen Z workers would strongly consider leaving their job for one with significantly better mental health benefits. Beyond health coverage, this generation also values lifestyle perks like fitness memberships, pet insurance, and pre-tax savings options that fit their day-to-day lives.
Is Mental Health Coverage Required in California Group Health Plans?
Yes, for Affordable Care Act (ACA)-compliant plans. All non-grandfathered Small Group health plans in California are required to cover mental health and behavioral health services as part of the Essential Health Benefits (EHBs) under the ACA. This means employees enrolled in a CaliforniaChoice plan have built-in access to counseling, therapy, and behavioral health services — at no extra cost to the employer. For more information about all of the ACA’s 10 EHBs, visit HealthCare.gov.
Can Small Businesses Afford to Offer Multiple Health Plan Options?
Yes, and CaliforniaChoice is designed specifically for this. You set a fixed contribution (either a dollar amount or percentage of premium), and employees use that amount to choose from 100+ plan options across seven major carriers. You control the budget; your team chooses the plan that works best for them. It’s a straightforward way for small businesses to offer “big company” benefits without taking on unpredictable costs.
What Health Plan Options does CaliforniaChoice Offer for Gen Z Employees?
CaliforniaChoice offers HMO, PPO, and HSA-eligible plans across all four ACA metal tiers through seven leading carriers: Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp Health Plan, Sutter Health Plan, UnitedHealthcare, and Western Health Advantage. HSA plans are especially popular with younger, healthier employees who want lower premiums and the flexibility to save pre-tax dollars for future medical costs.
How Can I Find a Broker to Set up a CaliforniaChoice Plan for My Business?
You can search for a licensed benefits broker directly on the CaliforniaChoice website. A broker will help you compare plan options, set your contribution strategy, and handle enrollment — at no additional cost to you. Whether you have one employee or 100+, a broker can build a package that fits your team and your budget. Find a broker here.
