Gen-Z employees driving demand for sustainable benefits - here’s why

Making up more than a third of the world’s population, Gen Z is on track to become the largest generation globally.

But why does this matter to businesses?

Born between the late 90s and early 2010s, this generation has grown up with climate change as a daily headline, and they’re bringing that awareness to work. For employers, this means sustainability isn’t just a nice-to-have; it’s a dealbreaker.

But you don’t have to rethink your whole CSR strategy to make a difference. Even small changes, like tweaking your benefits package, can have a big impact. Companies that offer benefits that genuinely align with Gen Z’s values will be the ones attracting (and keeping) the best talent.

Let’s explore how sustainable benefits are shaping the future of work, why they matter to Gen Z, and how businesses can stay ahead of the curve.

When it comes to deciding on a job, Gen Z employees value salary less than every other generation. If given the choice of accepting a better-paying but less interesting job, versus work that was more fulfilling but didn’t pay as well, Gen Z is fairly evenly split over the choice.

Salaries still matter, but for Gen Z, benefits are just as important. And traditional perks, like gym memberships or pizza Fridays, aren’t cutting it any more. Instead, they’re looking for benefits that help them live more sustainable, more ethical lives.

That could mean:

• Electric vehicle (EV) salary sacrifice schemes, which make it easier and more affordable to drive electric
• Cycle-to-work initiatives that encourage sustainable commuting
• Green pension funds that help employees invest their money in a way that aligns with their values
• Carbon offset programmes, helping reduce environmental impact
• Paid time off for volunteering, especially for sustainable causes

Sustainability-focused benefits like these are a great way for businesses to help Gen Z employees feel proud of where they work.

Sustainability is key to attracting and keeping top talent. In fact, one-third of young people in the UK have rejected job offers based on a company’s sustainability stance. And over 40% of Gen Z and Millennials are willing to switch jobs over climate concerns. Proving that sustainable benefits are a great way to show employees you care about the planet.

<< Insert quote graphic: one-third of young people in the UK have rejected job offers based on a company’s sustainability stance.>>

A great benefits package can boost retention, too, because employees who feel aligned with their company’s values are more likely to stick around. Given that replacing an employee can cost six to nine months’ salary in recruitment and training expenses, investing in sustainable benefits is a cheap, easy way to keep employees engaged and committed for the long haul.

Sustainable benefits can also help companies hit their ESG goals. With regulatory pressure on the rise, and investors taking a keen interest in sustainability, businesses need to show they’re taking action. Offering employees green perks shows a real, measurable commitment to protecting the planet, alongside giving the people what they want

One of the easiest and most rewarding benefits is an EV salary sacrifice scheme. At Octopus EV, we make it simple, offering a fully managed service that includes everything from vehicle leasing to insurance, maintenance, and charging solutions.

Here’s how it works: employees lease an EV through their employer and pay for it from their pre-tax salary. This means they get an electric car at a much lower cost while saving on tax, and you get an easy-to-manage, sustainable scheme that fits seamlessly alongside your other benefits. Win-win.

<< Insert image quote: Half of Gen Z say their next vehicle purchase will be an EV>>

For Gen Z, this is huge. In Europe, half of Gen Z say their next vehicle purchase will be an EV, but affordability is still a big barrier. That’s where salary sacrifice comes in. By spreading the cost and reducing tax, it makes EVs far more accessible, helping young drivers make the switch without breaking the bank. And with government incentives making EVs more affordable than ever, salary sacrifice schemes are a no-brainer for companies looking to boost their green credentials while offering a benefit their employees actually want.

Gen Z is driving the shift toward sustainable workplaces, and they’re not waiting around for employers to catch up. Companies that prioritise sustainability in their benefits packages are accelerating progress towards their CSR goals while attracting engaged, purpose-driven employees who want to make a difference.

But benefits only work when employees understand them. A huge 76% of Gen Z employees don’t fully grasp their company’s benefits, meaning great perks can go unnoticed or underused. To make benefits effective, businesses need to communicate them clearly, make them easy to access, and show employees the real impact they can have.

The rewards for those who get it right are huge. Businesses that align with Gen Z’s values will boost engagement, accelerate progress towards a more sustainable future, and build a workplace that people are proud to be part of.