Salary still matters, but it is no longer the sole deciding factor in attracting top talent. Increasingly, job seekers evaluate employers based on whether their benefits reflect real life, personal values, and day-to-day needs.

This change has put renewed focus on voluntary benefits as a strategic tool for talent acquisition, employee satisfaction, and long-term retention. When designed thoughtfully, voluntary benefits allow employers to offer meaningful support without significantly increasing costs, while giving employees the freedom to choose what matters most to them.

So where should employers focus their attention? The most effective voluntary benefits are those that support real-life priorities and give employees meaningful choice. But first:

Understanding What Gen Z and Millennials Look for in Employers

Although Gen Z and Millennials are often grouped together, their expectations around work and benefits are shaped by different life stages and experiences.

• Gen Z, the newest generation entering the workforce, tends to place a strong emphasis on purpose, transparency, and values alignment. According to Deloitte’s 2024 Global Gen Z Survey, many Gen Z workers are willing to pass on job opportunities or assignments that conflict with their personal beliefs, and purpose often plays a larger role than pay in how they evaluate job satisfaction. As digital natives, they also expect benefits to beintuitive, accessible, and easy to understand, with clear communication and minimal friction.
• Millennials, now largely in mid-career roles, often face a different set of pressures. Many are balancing rising housing costs, student loan debt, childcare expenses, and long-term financial planning. Deloitte’s 2025 Gen Z and Millennial Survey consistently shows that Millennials value benefits that help reduce financial stress, manage risk, and support family responsibilities alongside career growth.

What connects both generations is a shared expectation that benefits should feel relevant, flexible, and grounded in real life. Rather than rigid cookie-cutter programs, Gen Z and Millennial employees are drawn to benefits that acknowledge their priorities outside of work and give them options to choose what fits their lives best.

Why Traditional Benefits Aren’t Enough

Core benefits like medical, dental, and retirement coverage are still essential. But for many employees, they’re now seen as table stakes rather than standout perks. These plans tend to follow a standard structure, leaving little room for personalization or choice, which isn’t optimal for a workforce made up of different life stages, family situations, and financial priorities.

That’s what makes voluntary benefits so important: by including flexible, employee-paid options, employers can fill gaps without increasing costs or adding administrative burden.

Voluntary Benefits as a Strategic Advantage

Voluntary benefits are optional programs that employees can elect and typically pay for themselves.From an employer perspective, this model offers a unique advantage: meaningful expansion of the benefits portfolio with minimal financial impact.

When used strategically, voluntary benefits support:

• Talent acquisition - by differentiating the employer brand
• Employee satisfaction - by allowing choice and personalization
• Employee retention - by aligning benefits with evolving life needs

Rather than guessing what employees want, voluntary benefits allow them to choose the support that fits their circumstances, whether that’s financial protection, pet benefits, or family-focused coverage.

Voluntary Benefits That Resonate Most with Gen Z and Millennials

Several categories of voluntary benefits consistently stand out with younger workers:

• Financial wellness benefits: student loan assistance, savings tools, and supplemental insurance, help employees manage uncertainty and unexpected expenses.
• Mental health and wellbeing support: Employee Assistance Programs (EAPs), digital coaching platforms, and wellness memberships, reflect a growing recognition that mental and physical health are interconnected. Surveys show that both Gen Z and Millennials expect employers to play a role in supporting holistic wellbeing.
• Legal and family-focused benefits: legal services plans and caregiving support, are gaining traction as employees navigate housing, family planning, and complex life events.
• Lifestyle-aligned benefits, such as pet benefits, represent a newer but rapidly growing category, one that resonates deeply with younger generations.

Of All Voluntary Benefits, Here’s Why Pet Benefits Matter More Than Employers Expect

For many Gen Z and Millennial employees, pets are family members. According to MarketGenics 2025 research, pet ownership remains highest among Millennials, with Gen Z close behind. Veterinary costs, however, continue to rise, creating financial strain when unexpected care is urgent.

Pet benefits stand out as a powerful voluntary benefit because they combine emotional value with practical support. Importantly, they are typically no-cost-to-offer for employers, as they are usually 100% employee-paid. This makes them an attractive option for organizations looking to expand benefits without increasing budgets.

There are three primary types of voluntary pet benefits available today:

• Pet insurance, which helps reimburse employees for accident and illness expenses
• Pet discount plans, which provide immediate savings on veterinary services and pet products
• Pet wellness plans, which support routine and preventive care

Plus, According to Pet Benefit Solutions’ 2025 HR Benefits Survey, employer interest in offering pet benefits continues to grow, driven by employee demand and ease of implementation. 

Benefits providers like Pet Benefit Solutions offer access to all three types of pet benefits, giving employers and brokers flexibility in designing programs that meet varying employee needs.

Using Voluntary Benefits to Drive Satisfaction and Retention

Voluntary benefits tend to work best when they’re positioned as part of a genuine commitment to employee wellbeing, not just an add-on during open enrollment. When employees feel supported in areas that affect their lives outside of work, they’re more likely to stay engaged and build long-term loyalty. Research from Harvard Business Review has shown that benefits aligned with real-life needs contribute to higher job satisfaction and lower turnover.

For HR teams and benefits brokers, voluntary benefits also offer welcome flexibility. They make it possible to respond to shifting workforce priorities without overhauling core benefit plans. At the same time, they give employees the choice and autonomy they increasingly expect, allowing them to select the benefits that make the most sense for their situation.

What the Modern Workforce Is Really Asking For

Gen Z and Millennials aren’t asking for “more benefits”, they’re simply asking for better-aligned ones. Voluntary benefits give employers a practical way to meet these expectations by offering choice, relevance, and support without unnecessary cost or complexity.

Pet Benefit Solutions helps employers and benefits brokers build voluntary benefits programs that resonate with today’s workforce. To learn how pet benefits can support your talent acquisition and retention goals, visit https://www.petbenefits.com/.