Why Flexible Benefits Are Essential for Engaging and Retaining Young Talent in Singapore

Although traditional employee benefits schemes have their merits, companies may risk not being inclusive enough for their younger workforce. (Photo: Freepik)

Let's be real: many workplace benefits today are designed with a crisis in mind. They're geared toward serious illness, accidents, or end-of-life scenarios.

While these safeguards are essential, they often feel distant and irrelevant to younger professionals just starting out. For those in their early careers, especially Gen Z, these offerings can seem outdated and disconnected from their daily lives.

In Singapore, Gen Z workers (aged 13-28) are rewriting the rules of work. They're the most likely of any generation to report mental health conditions, yet the least comfortable talking about them. They value work-life balance more than salary, and they're not afraid to leave a job that doesn't serve their personal or professional growth, staying on average just 2.9 years, the shortest tenure among their Asian peers.

So how can companies attract, retain, and empower this generation? The answer lies in flexible benefits.

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Table of Contents

1. Traditional Benefits' Problems: Rigidity & Crisis-Based

2. Why Flexible Benefits Schemes Work Better For Gen Z

3. Why Singapore Companies Need To Pay Attention Now

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Traditional Benefits' Problems: Rigidity & Crisis-Based

Conventional packages tend to be rigid and poorly explained. For Gen Z, this creates a disconnect. Missy Plohr-Memming, a MetLife executive, highlighted that many Gen Z workers are missing out on valuable resources simply because they're unaware of what's offered. This lack of clarity can lead to disengagement and even premature exits from roles.

This lack of understanding is compounded by the way Gen Z entered the workforce: during or just after the COVID-19 pandemic. Many started their careers in remote or hybrid environments, missing out on the informal "water-cooler" conversations that older generations relied on to learn about workplace norms, including benefits. In Singapore, where hybrid work is now a norm for many industries, this tribal knowledge gap is even more pronounced.

The result? Gen Z employees feel disconnected from their benefits, undervalued, and more likely to leave. In fact, the number of Gen Zs switching jobs in Singapore more than tripled in 2024, with many starting their third or fourth job by age 25. Over 2,400 Gen Z individuals have enrolled in Workforce Singapore's Career Conversion Programmes, up from just over 300 in 2021. Clearly, they're not afraid to move on when their needs aren't met.

Due to the COVID-19 pandemic, many Gen Z started their careers in remote or hybrid environments. (Photo: Freepik)

Why Flexible Benefits Schemes Work Better For Gen Z

Flexible benefits flip the script. Instead of offering a one-size-fits-all package, companies provide a menu of options that employees can tailor to their needs. This approach is especially powerful for Gen Z, who value autonomy, personalisation, and purpose.

Here's how flexible benefits meet Gen Z where they are:

1. Travel Subsidy

Gen Z values experiences as much as material rewards, and travel ranks high on their list of aspirations. A travel subsidy as part of flexible benefits allows employees to recharge, explore new cultures, and return to work with renewed energy and creativity. For companies, supporting travel not only promotes work-life balance but also helps build a more inspired, resilient, and globally minded workforce.

2. Mental Health Support

Gen Z is more likely to report mental health conditions, yet the least comfortable talking about them. In Singapore, 1 in 3 young people report symptoms of anxiety or depression. Flexible benefits can include therapy sessions, mental wellness apps, or even mental health days, creating a safe and supportive environment.

3. Lifestyle & Wellness Allowances

From gym memberships to hobby subsidies, lifestyle benefits help Gen Z maintain balance and prevent burnout. In Singapore, where work-life balance is increasingly valued, these benefits can be a game-changer. A 2025 CNA survey found that 53% of Gen Z respondents cited flexible work arrangements as their top reason for staying in a job.

4. Learning & Development

Gen Z is hungry for growth. Flexible benefits can include budgets for online courses, certifications, or career coaching to help young employees upskill and stay engaged. This is especially relevant in Singapore's fast-evolving economy, where digital skills are in high demand.

Gen Z is more likely to report mental health conditions, yet the least comfortable talking about them. (Photo: Freepik)

5. Remote Work Support

With hybrid work here to stay, benefits like home office stipends or co-working space access help Gen Z stay productive and comfortable, no matter where they work.

6. Financial Wellness Tools

Student loan repayment assistance, budgeting apps, and investment workshops can help Gen Z build financial literacy and security, something many feel unprepared for.

Why Singapore Companies Need To Pay Attention Now

Singapore's workforce is evolving. A Knight Frank study found that 80% of Singapore residents value flexible work and paid time off more than compensation. Emotional and mental well-being ranked as the top factor in defining quality of life, ahead of job security and physical health.

Gen Z workers in Singapore also value team culture, peer learning, and manager relationships more than rigid work structures. 67% of Gen Z workers said they would consider resigning if they didn't experience a sense of belonging at work. This highlights the importance of benefits that foster connection, growth, and inclusion.

Modernising your benefits strategy isn't just about keeping up, it's about staying ahead. A flexible model helps organisation:

• Be more inclusive by recognising diverse needs and lifestyle.

• Attract and retain younger talent who value autonomy and purpose.

• Empower and engage Gen Z by giving them control over their work experience.

• Reduce costs in the long run by improving retention, reducing burnout, and minimising underutilised benefits.

In Singapore's competitive talent landscape, flexible benefits are no longer optional as they're essential. It's time to move beyond the "old and broken" model and build a benefits strategy that's future-ready.