How to Attract and Engage a Generation Z Workforce

 

Flexible benefits are emerging as a critical tool for engaging Generation Z talent in Asia, offering the personalisation and purpose they expect.

 

Meeting the needs of Asia’s diverse workforce, including Generation Z, has become a strategic imperative for organisations. A growing number of organisations are using flexible benefits to meet these needs, build cultural alignment and respond to the unique priorities of a new generation entering the workforce.

“For HR leaders, a well-designed flexible benefits strategy is no longer a ‘nice-to-have’, said Rice Loh, head of total benefits advisory and management for Aon in Asia. “It’s a critical tool for staying competitive in a tight talent market, managing cost pressures and delivering a compelling and engaging employee experience.”

Gen Z: Personal, Purposeful and Proactive

Across Asia, younger employees are looking for more than a salary. They expect personalisation, transparency and alignment with their values. “The next generation of talent isn’t just looking at pay,” said Thanh Anh Quoc Phan, actuarial analyst and Generation Z employee with Aon in Vietnam. “They’re asking: ‘Does this employer understand me? Will I be able to make choices that support my lifestyle, values and wellbeing?’”

Aon’s 2025 Employee Sentiment Study confirms this shift. In Singapore, 65 percent of employees say they would give up existing benefits for a better choice of options. This rises to 76 percent for employees in India, and in Hong Kong, more than half of employees (54 percent) would make the same trade-off.

 

“Designing benefits for relevance is essential,” says Loh. “That means listening to what different groups really value and giving them choices that reflect those priorities.”

Mental wellbeing is another growing area of concern for Gen Z. Aon’s Asia Mental Health Index shows that younger generations are at higher risk of developing mental health issues than their older peers. While Gen Z are digital natives, their constant screen exposure can contribute to feelings of isolation and stress. “We see a real tension,” said Loh. “Gen Z are incredibly connected, but they also experience higher levels of loneliness. Employers have an opportunity to address this through targeted mental wellbeing support.” Incorporating benefits like mental health apps, wellness coaching and access to in-person or virtual counselling can support better outcomes for mental health and resilience.

Regional Variations, Shared Priorities

While Asia is home to a diverse workforce, research from Aon highlights consistent themes relating to benefit preferences. In Singapore, Hong Kong and India, for example, medical coverage, work-life balance programs and retirement savings are among the most highly valued benefits across all the generations.

How employers are responding to demand for flexible benefits varies from country to country. In India, where take up is 20–30 percent, employers are in a scale-up phase¹. Singapore and Hong Kong, on the other hand, are regional leaders in flexible benefits design, with 30–40 percent take up¹ and growing use of data analytics to refine offerings. Employers in these countries are introducing AI tools and curated benefit experiences triggered by life events such as marriage or becoming a parent.

“Among younger workers there is increasing adoption of digital platforms to manage benefits choice,” says Derek Wee, graduate associate at Aon in Singapore. “But success depends on how well employers communicate, as well as what they offer.”

Matching Flexible Benefits to Culture and Strategy

A carefully designed, strategic flexible benefits program can reflect and foster company culture

 

This alignment can also demonstrate a genuine commitment to diversity, equity, inclusion and belonging (DEIB). Offering choice allows employers to address equity issues more effectively, by providing access to women’s health benefits, LGBTQ+ family coverage, or support for caregivers. “Flexible benefits are a powerful way to bring your DEIB strategy to life,” says Denisse Jan Rosimo, senior associate consultant, communications for Aon in the Philippines.

This is important for Generation Z as they reach the age when they might consider becoming parents. According to Aon’s research, 36 percent of global employees expect employers to help with childcare costs¹ and this is the number one family care benefit claimed in flexible benefit programs in Asia². Flexible benefits are uniquely positioned to respond to these family building priorities in a cost-efficient and culturally sensitive way.

 

To move from planning to impact with flexible benefits, organisations need to start by listening to employee needs and designing for diversity. The next steps are to connect their offer with their culture and talent strategy, and to communicate clearly. Finally, it is vital to use data on benefits participation, claims and other key indicators, along with employee feedback, to keep ensuring benefits are relevant and valued by the workforce.

 

 

^[1] Aon 2025 Employee Sentiment Study
^[2] 2024 Aon Internal Flex Benefits database