Generation Z healthcare workers prioritize financial wellness and mental health support — and hospitals and health systems are responding.
Given changing demographics and labor shortages, organizations across the U.S. are focused on recruiting and retaining the newest generation to enter the workforce. Gen Z employees include new college graduates and those with a few years of professional experience, with the oldest members age 28.
Becker’s connected with human resources leaders from five organizations — ranging from large academic health systems to community hospitals — to learn how they are tailoring benefits to meet workforce demands.
A head start on retirement savings
Gen Zers are contributing to 401(k) plans more often than millennials did when they entered the workforce, with about 20% across industries saving for retirement, according to 2023 and 2024 reports.
At Arlington-based Texas Health Resources, more than 42% of Gen Z employees are participating in its 401(k) plan. The system offers a matching contribution starting at employees’ six-month anniversary, Jenny Perkins, vice president of total health and rewards, told Becker’s.
The share of Gen Z employees participating is higher than what the system has seen in benchmarking data for this group, Ms. Perkins said.
“But this isn’t particularly surprising to us, as we know financial well-being is very important to Gen Z,” she said. “It’s likely that having Generation X or older Millennial parents may be a factor. This generation has seen their loved ones face many of life’s financial challenges: economic instability and recession, ‘sandwich generation’ pressures and uncertainty with Social Security.”
Of Blairsville, Ga.-based Union General Health System’s 1,294 employees, about 36% are participating in its retirement offerings. Among Gen Z workers, about 17% are participating — less than 3% below the national average, Stacy Plante, corporate HR director, told Becker’s.
A thorough explanation of the system’s retirement accounts during new hire onboarding and orientation — as well as a live phone meeting with a retirement representative — is a key reason for Gen Z’s participation, Ms. Plante said.
Financial wellness
UC San Diego Health has seen a growing interest among Gen Z employees in long-term financial wellness — but not in the traditional sense, interim Chief Human Resources Officer Kim Eskierka told Becker’s.
“Many are seeking guidance on student loan repayment, budgeting, and investing,” Ms. Eskierka said. “This interest is often driven by economic uncertainty, rising living costs and a desire for financial independence earlier in life.”
UCSD Health has also noticed trends in the types of financial or retirement planning resources Gen Z employees seek.
“They are generally not interested in traditional retirement seminars — those are filled with retirement ready individuals. Instead, they are looking for mobile tools, and on-demand financial coaching,” she said. “It’s less about the distant idea of retirement and more about achieving financial flexibility and freedom on their own terms.”
The primary focus of younger employees at Knox County Hospital District in Knox City, Texas, appears to be wages, benefits and work-life balance — similar to millennials and older employees, due to household budgets and financial obligations, David Troublefield, PhD, director of human resources, told Becker’s.
“Retaining Gen Z adults can be a challenge, as they are somewhat ‘monied and mobile’ and sought after by other employers elsewhere with plans to develop them as workers during the coming years,” Dr. Troublefield said.
Overall well-being
In recent years, Fountain Valley, Calif.-based MemorialCare employees have asked for more support in financial security and mental, emotional, spiritual and physical well-being. This led leaders to reinvigorate its Good Life Program, which supports events and education focused on well-being, said Suzanna Winslow Hazboun, vice president of human resources and assistant general counsel.
At its financial wellness event, MemorialCare leaders offered access to vendors about saving money, paying off loans, and planning for home ownership, retirement and children’s educational expenses, Ms. Winslow Hazboun said.
“What our Gen Z employee population seems most interested in is our debt programs, and finding viable solutions to tackle their student loan debt,” she said. “MemorialCare utilizes a student loan consolidation service that supports individuals through planning, borrowing and repayment.”
While MemorialCare’s Gen Z workforce is interested in aspects of financial wellness, they are most interested in mental, emotional and spiritual well-being support services, she said.
Mental health, paid time off
Gen Z places an emphasis on mental health benefits, which is not unexpected given the toll the last five years have taken on society, Ms. Eskierka said.
“They have been very vocal about advocating for access to therapy and environments that support psychological safety, especially in high-stress healthcare roles,” she said.
UCSD Health has implemented several offerings, including free or subsidized counseling sessions, behavioral health benefits through medical plans, and its team member well-being program and physician wellness program.
In addition to financial wellness, Texas Health Gen Z employees have shown an interest in more paid time off, flexible schedules and mental health resources, Ms. Perkins said. To offer greater flexibility, the system added an extra paid day off in 2024. The flex day supplements its PTO program and can be used for a mental health day, holiday or any other reason.
