Gen Z is entering the workforce in numbers too large to ignore. By 2030, they’ll make up nearly 40% of South Africa’s working population. They are young, ambitious, tech-savvy, and largely uninsured.
In a country where private medical aid remains unaffordable for many, a worrying number of Gen Z employees are going without any form of health cover. This isn’t due to negligence. It’s economics. The average Gen Z worker, either fresh out of university or early in their career, simply doesn’t earn enough to justify paying thousands of rands a month for traditional medical aid schemes. As a result, many are walking a tightrope without a safety net.
The high cost of poor coverage
The implications for employers are bigger than they may realise. A generation under financial pressure and health-related stress is not a productive, engaged, or loyal workforce. Gen Z’s top stressors include money (58%), career anxiety (54%), and family responsibilities (45%), making mental and physical wellness not just a “nice-to-have” but a survival priority. Yet, without access to affordable health insurance through their employers, too many are forced to choose between a GP visit and groceries.
This is where businesses need to step in, not only from a moral standpoint but from a practical one. Offering tailored, affordable health insurance benefits isn’t just the right thing to do; it’s a strategic move to attract and retain top talent in an increasingly competitive market.
One-size-fits-all is a thing of the past
But the days of one-size-fits-all medical schemes are over. Gen Z is rewriting the rulebook. They want healthcare benefits that are flexible, accessible, and aligned with their lifestyle. They want access to mental health support, telemedicine, and preventative care. And most importantly, they want to be able to afford it.
This generation grew up with personalised digital experiences. From curated music playlists to AI-driven fitness coaching, Gen Z expects the same level of customisation in every aspect of life, including healthcare. It’s why, globally, 66% use wearable devices and 55% are already engaging with telemedicine platforms. Therefore, healthcare must be digital, personalised, and easy to access.
The power of tailored benefits
That’s where progressive employers can make a difference by partnering with expert health insurance providers who understand that benefits need to reflect the DNA of the organisation. These providers don’t just slap on a standard medical aid offering; they assess the age, income brackets, life stages, and wellbeing priorities of the workforce to create truly tailored solutions.
For a company with a young, predominantly Gen Z team, that might look like affordable hospital plans, basic cover with optional add-ons, or plans that prioritise mental health and lifestyle disease management over expensive in-hospital procedures. And let’s be honest-at this life stage, Gen Z isn’t thinking about knee replacements or chronic disease coverage. They want the peace of mind of knowing they can see a doctor when they need to, access therapy without paying out of pocket, and get affordable medication without standing in long queues at public clinics.
Delivery is just as important as the benefit
And it’s not just about the healthcare itself. The way it’s delivered matters. Real-time access to benefits information via mobile apps, wellness dashboards, AI-driven health assessments, and proactive outreach goes a long way in building trust and engagement. Gen Z doesn’t want to call a helpline and wait on hold. They want intuitive platforms that put their health in their hands.
There’s also the matter of mental health, a silent crisis for many young professionals. Burnout, anxiety, and depression are rising, particularly among entry-level workers facing unstable economic conditions and sky-high living costs. Providing access to mental health services through Employee Assistance Programmes, therapy benefits, or even just mental health days integrated into leave policies can have a huge impact. These are necessities in a generation that deeply values holistic wellbeing.
The future belongs to businesses that care
The bottom line is this: if businesses want to attract and retain the next generation of talent, they must rethink how they structure their benefits-starting with health insurance. And they can’t do it alone. Partnering with health insurance providers who specialise in designing benefits aligned to an organisation’s workforce makeup is essential. These partners can unpack the demographics, job roles, and income levels of the company and build flexible solutions that speak to each group, whether it’s entry-level Gen Zs, mid-career millennials, or pre-retirement Gen Xers.
Ultimately, businesses that invest in benefits that matter, not just benefits that look good on paper-will gain the edge. In a world where rising living costs and health risks are constant threats, providing affordable, flexible healthcare isn’t a perk; it’s a responsibility. It’s also the smartest way to future-proof your workforce. And companies that invest in personalised, accessible healthcare will earn the trust and long-term commitment of the workforce that’s shaping our future.
Opinion piece by Reo Botes, Managing Executive at Essential Employee Benefits.
