February 24, 2025 from HR Reporter
For many young Canadian workers, higher wages are no longer the top priority when choosing a job. A recent study published in BMC Public Health has revealed that workers aged 18 to 29 now place a higher value on workplace benefits, organizational policies, and stability over salary increases.
Health and Wellbeing: Top Priorities for Gen Z
The study, conducted by researchers from the University of Manitoba, highlights that health and wellbeing are key drivers of employment preferences for young workers in Canada, especially during and after the COVID-19 pandemic.
Key Findings from the Study:
- Extended Health Insurance: Women in particular place the highest value on extended health insurance, with a willingness to pay (WTP) of $6.32 per hour to secure this benefit.
- Employee Recognition Policies: Workplace policies that promote employee recognition are also highly valued, with women willing to forego $4.86 per hour to work in an environment where they feel valued.
- Paid Sick Leave: For younger workers aged 18 to 21, paid sick leave is a top priority, with a WTP of $1.72 per hour for 1.5 sick days per month.
Job Stability and Opposition to Precarious Work
The study also found that job stability is a major factor influencing job choices. Young workers expressed a strong preference for stable employment contracts and showed opposition to precarious work arrangements. Respondents were unwilling to accept contracts that could end at any time, with WTP penalties ranging from $1.87 per hour for younger workers to $1.30 per hour for those in retail, food service, transportation, manufacturing, and security sectors.
The Importance of Workplace Culture
The research also underscored the importance of workplace culture and respectful policies in influencing employment decisions. A respectful workplace policy was among the most valued attributes:
- Younger workers: WTP of $4.17 per hour for respectful workplace policies.
- Respondents with post-secondary education: WTP of $3.28 per hour for similar policies.
BIPOC Workers and the Value of Paid Vacation
The study noted that BIPOC (Black, Indigenous, and People of Colour) respondents placed a high value on paid vacation, with a WTP of up to $3.71 per hour for 21 paid vacation days per year. This preference may stem from the higher exposure of BIPOC individuals to frontline and essential work during the COVID-19 pandemic, which led to increased workplace stress and health risks.
Alignment with Broader Workforce Trends
The findings align with broader workforce trends, particularly among Generation Z workers. A Randstad Canadareport cited in the study revealed that 80% of Gen Z workers prioritize finding a job that aligns with their values and interests.
This growing emphasis on workplace policies, stability, and respect signals a shift in how younger workers perceive job satisfaction and career longevity.
What This Means for Canadian Employers
As Canadian employers scale back salary increase budgets for 2025 and return to pre-pandemic norms, it’s critical to recognize that benefits, policies, and workplace culture can significantly influence recruitment and retention.
How Employers Can Respond:
- Expand Benefits Offerings: Consider adding extended health insurance, paid sick leave, and flexible leave options to attract and retain young talent.
- Promote Recognition and Respect: Develop policies that promote employee recognition and foster a respectful workplace culture.
- Offer Job Security: Avoid precarious work arrangements and provide stable, long-term contracts that appeal to younger workers.
Young Canadian workers are shifting their priorities, placing a higher emphasis on workplace benefits and respectful policies rather than focusing solely on higher wages. As organizations look to attract and retain young talent, understanding and adapting to these changing preferences will be key to building a satisfied and loyal workforce.
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