Health, wellbeing 'highly valued' by young workers
The fact that salary is a key preference when it comes to workers’ considerations around employment may no longer be applicable to younger Canadians.
That’s because a new study published in the BMC Public Health journal has found that young Canadian workers aged 18 to 29 prioritize workplace benefits and policies over higher wages when choosing employment.
These young workers (YW) value attributes such as extended health insurance, paid vacation and workplace respect policies more highly than salary increases, according to the report.
“The findings suggest that health and wellbeing are highly valued by YW and are among key drivers of employment preferences for Canadian YW during and after the pandemic, and therefore call for policies in the workplace that support the health and well-being of YW.”
Canadian employers are scaling back salary increase budgets for 2025, moving closer to pre-pandemic norms, according to a recent survey.
Health benefits and stability for Gen Z
Women place the highest value on extended health insurance, demonstrating a willingness to pay of $6.32 per hour to secure this benefit, according to the study titled The employment preferences of young people in Canada: a discrete choice experiment.
The research by Woodgate, R.L., Isaak, C.A., Witt, J. et al, was done by several academics at the University of Manitoba.
They found that workplace policies that promote employee recognition are also highly valued, with women willing to forego $4.86 per hour in exchange for policies that ensure they feel valued as employees.
For younger workers aged 18 to 21, paid sick leave is a key consideration, with a willingness to pay (WTP) of $1.72 per hour for 1.5 sick days per month.
More Canadian employers are offering fertility, gender affirmation and obesity-medication benefits, according to a Willis Towers Watson (WTW) report.
The study also finds that wage stability plays a significant role in job preference, with respondents strongly opposing precarious work arrangements. Researchers found that workers are 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.
Workplace culture plays critical role
The study found that workplace culture and organizational policies were significant factors in employment decisions. A respectful workplace policy was among the most valued job attributes, with a WTP of $4.17 per hour for younger workers and $3.28 per hour for respondents with post-secondary education.
The findings align with broader workforce trends, particularly among Generation Z workers. The study cites a Randstad Canada report stating that “80% of Gen Z young people prioritize finding a job that aligns with their values and interests”.
This preference is particularly pronounced among black, Indigenous and people of colour (BIPOC) respondents, who place a high value on paid vacation, with a WTP of up to $3.71 per hour for 21 paid vacation days per year, found the University of Manitoba study.
Researchers suggest this may be due to the overrepresentation of BIPOC individuals in frontline and essential jobs during the COVID-19 pandemic, which exposed them to higher levels of workplace stress and health risks.
