Total Rewards Structures for Gen Z

Welcome to the Vantage HR Influencers Podcast. This podcast is sponsored by Vantage Circle, the simple and AI-powered rewards and recognition platform for employee engagement.

When we talk about total rewards, it's easy to assume that what worked for previous generations will work for Gen Z. But that's not really the case. Gen Z is stepping into the workforce with a completely different mindset, one shaped by financial uncertainty, rapid technological change, and a stronger desire for meaning in work. Unlike previous generations, they don't just want a job with good pay and benefits. They're looking for a more holistic experience, one that aligns with their values, supports their lifestyle, and, most importantly, makes them feel valued as individuals.

This shift is forcing companies to rethink traditional reward structures, so having a conversation on this shift is very important, and that's exactly what we are doing today. I'm your host, Sanjeevani Saikia, and welcome to another episode of the Vantage Influencers Podcast. Joining me today is Ravi Shankar Singh, HR head at Lifestyle International Private Limited. He brings a wealth of experience and insights into how organizations can evolve their total rewards strategies to meet the expectations of today's workforce, especially Gen Z. So let's get started.

Sanjeevani Saikia: Hi Ravi, thank you so much for joining in.

Ravi Shankar Singh: Hi Sanjeevani, good morning. Pleasure is all mine. Thank you.

Sanjeevani Saikia: Good morning. It's a pleasure to have you here. Before starting our conversation on the topic, kindly walk us through your corporate journey so far. I'm sure our listeners would love to know how your journey has been.

Ravi Shankar Singh: Okay, cool. Thanks. I'll try to keep it sharp and crisp. My name is Ravi Shankar Singh, and I have a total of 21-plus years of corporate journey, which started back in the summer of 2003. I began in an IT services organization, and that journey continued for 15-plus years, where I saw many facets of my career. I was fortunate enough to wear multiple hats, move into multiple roles, and even change verticals. I spent those 15-plus years in cities like Delhi NCR, Bangalore, and Vizag, and then I moved on to my second organization: a well-known food-service brand, where I worked for close to four years, leading a large HR portfolio. That was also a wonderful journey, and from there I moved into fashion retail. I'm currently associated with Lifestyle International Private Limited, based out of Bangalore, where our corporate office is located, and in my current role I'm leading the HR function for the retail part of Lifestyle. I'm really enjoying this journey. It's been just 15 months so far, but I'm loving it, and every day is about learning new things and working closely with stakeholders. The journey continues. So that's a small brief about myself, Sanjeevani. Thank you.

Sanjeevani Saikia: Wonderful. Thank you so much, Ravi, for sharing your journey with us. It's been a pleasure to have you once again on the show. With your permission, I'd like to begin today's conversation on the topic.

If you ask older generations what they wanted in a job, you'd probably hear things like stability, a good salary, and maybe a solid retirement plan. And while those things still matter, Gen Z seems to be looking at the bigger picture now. They value things like flexibility, mental health support, and career development opportunities. So it's quite clear that they're not just talking about compensation. They want to feel that their employers genuinely care. So Ravi, from your experience, what do you think Gen Z truly values in the overall total rewards package? Since today we'll be discussing the total rewards package, particularly for Gen Z.

Ravi Shankar Singh: Yeah, that's a great question. Let me give you a bit of context before I answer directly. I think it's important to understand the perspective of Gen Z first. Gen Z are known as digital natives, the first generation who grew up with the internet. As we speak, Gen Z is the second-youngest generation currently, with millennials coming before them, and now we have Gen Alpha after that.

For a Gen Z employee, the watchword is diversity. Diversity matters to them across multiple dimensions, and it's not just about race and gender. It's about identity, orientation, demographics, and the kind of diverse offering an organization can provide.

Beyond that, there are a few things that hold a lot of value for Gen Z when it comes to the workplace. First, they're looking for a workplace full of engagement, one with a lot of tech-enabled processes, because this generation is all about using and leveraging technology across multiple dimensions.

Another aspect is flexibility. They need flexibility when it comes to work-life balance. A great work atmosphere, which really comes down to the culture of the organization, also matters. Gen Z will stick with an organization that has a genuinely strong culture.

Career progression is another piece of the total rewards package: a well-defined career path with a good blend of learning opportunities. And last but not least, comp and ben is the direct benefit we're offering, but it needs to come with flexible benefits for Gen Z if we want a truly well-defined total rewards package.

Sanjeevani Saikia: Yeah, absolutely. Now, speaking of traditional benefits, companies have always primarily leaned on retirement plans as a key part of their reward structure. But Gen Z is entering the workforce at a time when financial priorities look very different. Many are dealing with student loan debt, skyrocketing rents, and overall uncertainty about what their financial future will look like. So the idea of saving for retirement decades down the road might not feel as urgent to them. Would you agree with that? What do you think?

Ravi Shankar Singh: I'd agree to an extent, certainly yes. This generation has its own preferences in life. They're not very bothered about traditional benefits like a good retirement plan. Gen Z wants to earn money faster and build a strong bank balance in no time.

As the modern workforce evolves, many employees, especially Gen Z, have expressed a desire for flexibility in their benefits package. As an organization, we have to get attuned to their needs and wants, and restructure or modify our reward packages accordingly.

You mentioned student loans and other loans. The bigger question is: as an organization, am I able to provide a platform where an employee can access some of these benefits at the click of a button? Let me give you an example. In our organization, we have something called a salary advance process, custom-curated with Gen Z in mind. If you need money for an urgent need, or for whatever reason, this program doesn't ask why you're opting for a salary advance. You just use an app, through a partner we've collaborated with, and it doesn't ask for a reason. The amount is there in your kitty. You just tap a button, and within thirty minutes it's credited to your bank account. Then it gets deducted from your salary later, without any additional interest or penalty.

I think Gen Z is looking forward to things like this rather than long-term retirement benefits. In the current scenario, financial wellness is something organizations need to focus on differently. We should have financial wellness programs for Gen Z that can guide and advise them on how to invest rightly and make sure they have money set aside for any emergency, rather than a long-term retirement plan or other traditional benefits.

Sanjeevani Saikia: Ravi, you just mentioned how your organization introduced this custom salary advance initiative, which is basically a policy you have, and I feel it's very Gen Z-friendly as well. Do you think other organizations are also taking similar steps while welcoming the Gen Z workforce? Do you see other organizations doing the same? What's your opinion?

Ravi Shankar Singh: Yeah, definitely. I'm sure there are many other organizations offering something similar, if not the same, then in their own unique way. They're offering some of these flexible benefits because, at the end of the day, it's about taking care of your workforce and making sure your people stick with you.

In today's world, Gen Z always has this question in mind: what's in it for me if I'm working for an organization? So as an organization, you need to be ready with that offering on the table so that talent doesn't move out. Gen Z wants a lot of things in life within no time, so they won't be as patient as the previous generation was with an organization. Organizations offering these benefits need to be ready to keep improvising, keep bringing newness to the offering, and keep innovating, so that talent doesn't move from one place to another.

Sanjeevani Saikia: True. Thank you. Lately, we've witnessed a significant change in Gen Z's mindset and sense of purpose. They no longer wish to simply be a cog in the machine, and they're constantly looking for a solid purpose in life. Surprisingly, this generation is very vocal about that too, which I believe is amazing. But how are organizations responding to that? What efforts are they putting into designing rewards that focus more on purpose, flexibility, and well-being?

Ravi Shankar Singh: That's a great question. It directly resonates with what we'd call a purpose-driven approach to curating a total rewards package.

First and foremost, the organization must have a culture where every team member's voice is heard and felt at the table. Gone are the days when a mandate came from the top and people were simply expected to follow it. With Gen Z especially, they want to be part of the conversation and part of key decisions. So as an organization, we must build a culture that gives everybody a platform to speak. Hearing them is just one part of it; acknowledging their input and creating action plans based on it is the next step. Not every idea will be considered, and there will be multiple ideas during any brainstorm, but even if 30 to 40 percent of the ideas discussed get executed, Gen Z will feel valued, because this generation wants to feel valued at the workplace.

Another aspect is well-being. As an organization, we must focus on financial wellness, which I've already spoken about, and on mental well-being too. We keep hearing about workplace fatigue and other incidents that aren't great to hear about, so organizations must focus on mental well-being and ensure they provide appropriate flexibility.

And last but not least, when it comes to purpose, a strong recognition program matters. Recognition doesn't always have to mean a gift, a trophy, or a certificate. There are multiple ways to reward and recognize people, because this generation wants to feel valued and recognized every time they do something well. It could be as small as a thank-you message, a quick shoutout on a team channel, peer-to-peer recognition, a team lunch, appreciation from a customer, or even a recognition wall or a dedicated appreciation day or week, depending on your organization's scale and size. There are many ways to customize a recognition program, and instant gratification in recognition works tremendously well in any organization. People genuinely appreciate and value that.

Sanjeevani Saikia: I think you've highlighted some really crucial points. Thank you so much. Another big thing with Gen Z is personalization. They don't just prefer it, they expect it, whether it's their work schedule, career path, or even the benefits they receive. They want options that fit their individual needs. But the tricky part is that companies may not have the bandwidth to personalize every single time, and it might turn into a logistical challenge. So in terms of total rewards, how can organizations really strike the balance?

Ravi Shankar Singh: Personalization is the need of the hour. Every Gen Z employee today expects it. For large organizations, and even small ones, this becomes a tedious task at times, especially for the people making policy and executing processes on the ground.

But the most critical part is acknowledging why Gen Z expects this. We've already spoken about flexibility: work-life balance, and the ability to work flexible hours or from different locations. Covid taught us how to leverage technology. Before Covid, most people probably hadn't thought about a work-from-home option, but Covid was, in a way, a blessing in disguise for all of us. Remote or flexible location working isn't only about work from home; Gen Z expects that kind of offering, so as an organization, we have to custom-curate and provide that platform.

Another thing that comes to mind is instant gratification, and in a very personalized manner. That can be something as simple as a thank-you card with the person's name and an impactful, positive message about the good work they've done. That's instant gratification, and it's personalization too. There are plenty of vendors out there where you can offer small goodies or gift items and personalize them with the person's name. That's more than enough.

Let me give you an example. Think about one of the most popular coffee chains in the world, Starbucks. Why do people prefer going there? It's not just about the coffee or the product, it's about the experience. Starbucks sells experience, and people get a personalized coffee cup with their name on it. I'm sure you'll see a lot of Gen Z going to Starbucks these days because they feel valued, just by seeing their name written on the cup. If Starbucks can do that for millions of customers, why can't an organization do it for, say, five thousand, ten thousand, or twenty thousand Gen Z employees?

One last thing that comes to mind is being diverse. Gen Z will come from different backgrounds, demographics, and experiences, so the role of people managers becomes very important here. As a people manager or leader, you need to understand where your people are coming from, what excites them at work, and what they're not so appreciative of. You need to have an ear for them, give them a platform to open up, listen to them, and act on their input and feedback to create an inclusive, welcoming workplace culture. Those are some of my thoughts on this question. Thank you.

Sanjeevani Saikia: Yeah, absolutely, well said. We're coming to the end of today's episode, Ravi, but before we wrap up, there's one more thing I must ask you. If you had to design the perfect total rewards strategy for Gen Z, what are the top three must-haves according to you?

Ravi Shankar Singh: Okay, can I talk about the top four or five instead of just three?

Sanjeevani Saikia: Absolutely, that would be amazing. Yes, sure, why not?

Ravi Shankar Singh: So, four or five things come to mind. Number one is flexibility, and we've already spoken enough about that, so I won't elaborate. Second is regular and open communication and transparency, which is very important. Third is opportunities to collaborate and grow together: offering certification courses, partnering with institutes for certification programs depending on the type of organization and workforce you have, and working a lot on upskilling and reskilling your workforce.

Another one, which we've already spoken about but I'll summarize, is strong recognition delivered in a personalized manner as much as possible. And last but not least, flexible benefits: things like an interest-free instant loan, cards with good offers from partner banks, health insurance coverage, regular health checkups with a focus on well-being, and never forgetting mental health in the current scenario. Those are the four or five top things I could think of to summarize our discussion. Thank you, Sanjeevani.

Sanjeevani Saikia: So you've actually given us six takeaways, Ravi: flexibility, regular and open communication with transparency, opportunities to grow, instant gratification in a personalized way, flexible benefits, and mental health support. I think these are going to be the biggest takeaways for our listeners today from this episode. Thank you so much for sharing that with us. We've reached the end of today's episode. Before we sign off, do you have any last thoughts or a message for our young listeners? I'd love to hear any final insights from you. Also, if anyone wants to connect with you after this episode, what's the best way for them to reach out?

Ravi Shankar Singh: Thank you so much, Sanjeevani. The message I'd leave for our Gen Z listeners is that they need to always be agile, keep their learner's mindset alive, and always be prepared to learn, unlearn, and relearn. That's one mantra that will certainly help them in their professional journey. One last thing I'd advise is to never forget your roots and always stay humble, with a lot of humility in life.

If somebody wants to connect with me, they can always reach out to me on LinkedIn. That's the one platform where I'm always active, and I'd love to connect and contribute to people's lives to whatever extent I can, to the best of my capacity. I'd be more than happy to connect. They can just search my full name and easily find me on LinkedIn. Thank you so much, Sanjeevani, for having me here. It was my pleasure. All the best to you and your team. Thank you.

Sanjeevani Saikia: Thank you so much, Ravi. Thanks for joining us today.