Do Your Employee Benefits Meet the Needs of New College Graduates?
In some ways, the concerns of today’s college graduates are similar to those of their predecessors — finding a job, securing health insurance and paying bills.
To that end, employee benefit mainstays like a competitive salary, retirement plan access and health care coverage remain top draws for the class of 2025.
But these future employees also bear the unique, undeniable imprint of attending school during a global pandemic. Many young adults report mental health challenges and missed opportunities for in-person internships and other professional connections.
One way to differentiate yourself in the hiring market is to align your offerings with the benefits recent grads are seeking. In-demand benefits include:
- Mental health coverage and accessibility
- Inclusive, healthy workplace practices
- Paid time off, midday breaks and mental health days
- Professional connections and mentorship opportunities
Mental health coverage and accessibility
People just entering the workforce are facing higher rates of mental health challenges and are more willing to discuss them than previous generations. According to Business Insider, almost half of Generation Z employees say they feel stressed or anxious.
However, access and cost remain obstacles to care. A survey by Indeed and the Born This Way Foundation revealed that about half of respondents ages 18 to 29 did not have insurance for mental health services. And nearly three-quarters (72%) said cost prevented them from receiving mental health treatment.
This mismatch between need and treatment means more employees are leaning on employers to provide mental health benefits. In fact, 92% of college seniors expect employers to provide mental health resources, according to a survey by the student telehealth company TimelyMD.
To address mental health needs, your benefit offerings may include:
- Expanded in-network coverage for mental health professionals and services
- An employee assistance program with mental health resources
- Mental health coaching
- Online cognitive behavioral therapy programs
- Ongoing mental health education and resources
Inclusive, healthy workplace practices
Providing a sustainable, inclusive work environment is another way to support mental health and attract new graduates. The Born This Way Foundation reports that a supportive workplace is a key factor for young employees. In fact, 77% say they would be more likely to apply to a company that mentions kindness in its core values.
Following years of high stress and uncertainty, new graduates are looking for organizations that offer:
- Supportive colleagues and managers
- Diverse and inclusive practices
- Pay equity
- A firm stance on social causes
- Community and volunteer opportunities
Potential benefits include:
- Management training focused on empathy, well-being, mental health and workplace accommodations
- Employee resource groups to share ideas, support and encouragement
- Salary transparency, career paths and professional development training
- Employer donations to employee-led causes
- Volunteer opportunities, including during work hours
Paid time off, mental health days and midday breaks
Work-life balance is another top priority for the class of 2025. In fact, paid time off is among the most coveted benefits for Gen Z employees, according to the communications company Firstup.
College graduates want time off to address their mental health, with separate surveys finding that about 80% of employees under 25 want employers to offer mental health days.
They also value flexibility and want time during the day to manage their lives, including time to exercise, take mental health breaks, visit the doctor and take care of other personal needs.
The human resources association SHRM reports that some companies are encouraging 30-minute challenges to improve mental and physical health during the workday. Examples include mindfulness seminars, fitness classes and therapy sessions.
Benefit offerings for work-life balance include:
- Increased paid time off for all employees, including those with less tenure
- Mental health days
- Flexible schedules
- Work-from-home options
- Wellness initiatives during work hours
Professional connections
The pandemic upended traditional ways of connecting to working professionals for a large percentage of the class of 2025. Internships sometimes took place at home instead of in an office. Conferences and networking opportunities were largely canceled for two years. These fledgling professionals missed out on spontaneous, informal chats and scheduled, formal gatherings alike.
To make up for lost time, today’s graduating class wants your help getting to know others in your organization. SHRM highlights the importance of mentorships in helping new employees understand your culture and develop interpersonal communication skills that may have been hindered by years of holing up at home.
Other ideas include setting up formal and informal meetings with colleagues at all levels of your organization and developing cross-departmental projects to encourage collaboration.
Benefit offerings could include:
- Professional development programs
- Mentorship opportunities
- Attendance at professional conferences
- Registration costs for local networking opportunities
- Team-building events
- Reskilling and upskilling certifications
- Tuition reimbursement
- Student loan repayment programs
Align your benefit offerings
For more ideas to attract the class of 2025, talk with your insurance broker or benefits adviser. They can help you examine your current benefits, identify new trends and opportunities, and align your compensation package with the offerings new graduates are seeking.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.