For WorldatWork Members
- What Makes Gen Z Valuable to Employers? Workspan Daily Plus+ article
- Address Gen Z Struggles with Targeted Mental Health Benefits, Workspan Daily Plus+ article
- How Total Rewards and Career Development Go Hand in Hand, Workspan Daily Plus+ article
For Everyone
- Salaries, Signing Bonuses on the Rise for Class of 2025, Workspan Daily article
- What Does the Near-Future U.S. Workforce Want in Benefits? Workspan Daily article
- How to Get Gen Z On Board with Employee Benefits, Workspan Daily article
- How Gen Z is Redefining Total Rewards, Workspan Daily article
Members of the Class of 2025 may soon be applying for a job at your organization. What should you be aware of when it comes to their expectations?
For one, they’re optimistic but realistic about their job search, according to Monster’s 2025 State of the Graduate Report.
Data from the employment website found:
- 83% of surveyed new graduates who are job hunting are confident they will receive a job offer shortly after leaving school.
- 73% of these graduates feel their skill set matches that of an entry-level role, which has risen 4 percentage points from 2024 (69%).
Yet, 75% of recent graduates shared in the report they are worried there will be an impact on their job prospects due to the economy, with concerns rising 6 percentage points compared to last year’s class (69%).
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“Today’s graduates are entering a challenging job market, and they know it,” said Randy Tarnowski, the director of research at Handshake, a career platform for Gen Z workers. “For many, this is a time of high stress and uncertainty.”
Handshake’s Class of 2025 Career Outlook Report pointed to four contributing factors:
- Stiff competition for jobs
- Student loan debt
- The rise of generative artificial intelligence (AI)
- The current political climate
Christopher Nickson, a vice president at HR and benefits consulting firm Segal, noted traditionally stable employers like governmental agencies and departments, as well as automotive and other manufacturing companies impacted by tariff policies, are facing increased ambiguity.
“Even some grads who already have job offers are concerned that those offers will be revoked or deferred,” he said.
With this high level of uncertainty in the job market and economy, what can total rewards professionals offer this young workforce to address their needs and alleviate their concerns?
Pay Driving Decisions
Salary is the number one factor for graduates evaluating job offers, according to the Monster report.
Additional research from employment website ZipRecruiter found nearly half of polled students planned to negotiate for a higher salary to preserve their expected standard of living, but 42% ended up lowering their lifestyle expectations because they couldn’t get the pay they wanted, and only 31% were able to demand higher pay.
A National Association of Colleges and Employers (NACE) survey also found annual salary increases as a top priority for Gen Z workers.
“They’re looking for economic security: job stability, benefits, medical, retirement,” said Mary Gatta, the director of research and public policy at NACE. “And, they understand what they need.”
Therefore, employers shouldn’t skimp on incentives like pay raises, company-matched retirement options and medical coverage, she said.
Think Outside the Office
Recent graduates also say workplace location weighs heavily in their job hunt.
The Monster report found:
- 69% of surveyed graduates are more likely to apply for remote roles.
- 42% say they won’t accept a job without hybrid options.
Traditional structures are also under scrutiny, according to the report, with 67% of graduates stating the 9-to-5 workday is outdated, and 64% saying the same about the five-day workweek.
ZipRecruiter’s report found similar results:
- 90% of polled graduates said schedule flexibility is important.
- 82% hope to work remotely at least one day a week.
“Don’t underestimate flexibility of work environment as a perk to [attract and retain] employees,” Gatta said.
Career Development and Well-Being
According to the Monster report:
- 94% of new graduates are interested in learning or upskilling opportunities when applying to a position.
- 54% would reject a job that lacks advancement opportunities.
“Students who engaged in professional development, networking and mentoring programs were more likely to report that their careers accelerated faster than expected, making these programs good options for keeping employees engaged with your organization,” Gatta said.
Megan Yost, Segal’s head of thought leadership and insights, added new graduates are looking for purpose, flexibility, and pathways for growth and advancement — signs that their potential employer will care about their overall well-being.
“They’re worried about inflation and economic uncertainty, so they’re most interested in financial benefits that can help them repay student debt and mental health benefits,” she explained. “They’re also more likely to be interested in perks and programs that they can use now, including gym discounts, wellness reimbursements and first-time homebuying credits.”
Additionally, employers should consider rethinking how they communicate with potential employees, Tarnowski said, adding that Handshake data found 73% of graduates would be more likely to apply to a job after seeing additional behind-the-scenes content from an employer.
“Students want to know what it would be like working at your company, so provide them with content they crave like advice, day-in-the-life videos, and insights into your benefits, culture and values,” he said.
Yost agreed, stating employers should communicate often, even after the applicant starts working.
“Remind employees regularly about what’s available to them to cultivate the supportive culture new grads are looking for,” she said. “Younger workers are struggling, especially in the areas of financial and mental health. Employers need to demonstrate the ways in which they’re fostering supportive workplaces, and benefits and career development programs are great symbols of that.”
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