The world of work has changed in dramatic ways in an incredibly short amount of time. Hybrid working alongside social and technological changes have not only transformed work – but also the very employees who deliver this work each and every day.

Expectations of what a career should deliver have shifted with it. Employees today expect more autonomy in how, where and when they deliver their work, alongside a hybrid work model that fits their requirements – as well as a dedicated focus on mental health and wellbeing. They expect a greater emphasis on flexibility, work-life balance and the latest technologies that support a positive, collaborative, friction-free employee experience. After all, they leave their homes, often equipped with Apple TV, Netflix, and Sonos speakers – to be greeted by a twenty-year-old desktop computer waiting for them in the office that is no longer going to fit the bill.

And on top of the ‘foundational’ aspects of work, expectations of workplace benefits have changed too. But herein lies the rub. Alight’s Workplace Benefits in a Changing World study revealed a gap between employer and employee benefit needs and priorities. While three-fifths (58%) of companies believe they understand their workforce’s needs, fewer than two-fifths (37%) of employees agree.

Part of the current challenge facing employers is the changing shape of the workforce. With Generation Z now coming into work in increasingly significant numbers, they bring with them their own views, expectations and needs. They have been active on social media since before they started high school, have been able to ask Google their burning questions ever since they can remember, and instead of Cabbage Patch dolls for Christmas, iPads were at the top of their Christmas wish list.

As a consequence, what they expect from their careers differs vastly to those millennials – who are now entering their 40s – as well as Generation X and Boomers who come with their own point of view. Generation Z expects work to fit into their lives (not their lives fit around work) – and they aren’t afraid of making their opinions heard.

The current socio-economic climate plays a part too: we are in the midst of a cost-of-living crisis, which is impacting all of us. We all have less money in our pocket but for those earning entry-level salaries, it means their salaries aren’t able to cover the downtime discretionary spend most closely associated with young people. Generation Z is cutting back on going out and having fun to simply meet the rising costs of rent, gas & electric, and groceries.

That so, benefits need to shift from a nice to have to something much more fundamental – if delivered in the right way.

To prioritise the overall employee experience, employers must rethink their approach to benefits and offer personalised, tailored options that meet their employees’ needs. Employers instead should involve their employees in the design process to ensure that the benefits offered align with expectations, rather than assuming what employees want. Crafting effective employee benefits packages requires an acute understanding of the unique needs of the workforce. What works for one employee might not work for another. To offer a positive employee experience, companies should steer clear of a one size fits all approach to benefits. It’s best thought of as a dialogue rather than an instructional monologue sent from on high. Bespoke benefits are critical not just for employee satisfaction but, crucially, for staff retention.

Closing the gap between employee expectations and benefits offerings is crucial. Our research shows that while 91% of employees rank benefits as important for job satisfaction, only 37% feel their needs are being met by their employer.

Companies need to offer benefits that are relevant, and which are communicated clearly and regularly through multiple channels, and most importantly, understand and see their employees as individuals. Companies that align their benefits with the evolving needs and expectations of their workforce can improve retention rates and keep their employees happy and motivated.