Is Your Workplace Ready for Gen Z? Virgin Incentives’ COO Has Answers
- 7 Min Read
Gen Z is entering the workforce with a new set of expectations—prioritising wellbeing, purpose, and flexibility over traditional perks and paychecks. But with headlines warning of a “productivity crisis” and rising youth worklessness, are employers truly tuned in to what this generation needs?
- Author: HRD Connect
- Date published: Apr 22, 2025
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Gen Z is entering the workforce with a new set of expectations—prioritising wellbeing, purpose, and flexibility over traditional perks and paychecks. But with headlines warning of a “productivity crisis” and rising youth worklessness, are employers truly tuned in to what this generation needs?
In this Q&A, we speak with Danni Rush, COO of Virgin Incentives, about how businesses can better support, re-engage, and retain Gen Z talent—before it’s too late.
Q: To set the scene – what do you think makes Gen Z employees meaningfully different from previous generations when it comes to how they view work and wellbeing?
Working values have changed, and Gen Z typically place more importance on mental health and wellbeing, a balance between their working and personal lives and meaningful work that aligns with their beliefs. It is because of this that mental health is seen as the main driver of youth worklessness, with many preferring to preserve their wellbeing over working in an environment that doesn’t serve their needs. Moving forward, it’s crucial for employers to evolve with their team members and better understand where they can improve conditions in order to revive the stagnating work ethic.
Q: We’ve seen headlines around a ‘Gen Z productivity crisis’. In your view, what’s really behind the numbers – and how much of this is linked to wellbeing or disillusionment?
Gen Z is actively redefining what productivity means in today’s workplace. They prioritise meaningful work, mental wellbeing, flexibility, and recognition
It’s not entirely fair to label an entire generation as unproductive. In fact, Gen Z is actively redefining what productivity means in today’s workplace. They prioritise meaningful work, mental wellbeing, flexibility, and recognition, and when supported in these areas, they thrive. By providing tailored benefits, performance incentives, and authentic recognition, employers can tap into their full potential and build lasting engagement.
Q: Compared to previous generations, how are younger employees redefining what it means to feel ‘valued’ at work? Are there specific factors or metrics they care about more than others?
Gen Z feels valued when their ideas are heard, their wellbeing is supported, and they see real opportunities for growth and career development. Unlike previous generations who often prioritised job security, financial benefits or autonomy, Gen Z now require more than just financial support, and instead tend to seek purpose, recognition, and a workplace that aligns with their values and lifestyle.
Q: What are some of the most effective ways you’ve seen employers adapt their approach to meet these new expectations – particularly around recognition, flexibility and purpose?
Organisations shouldn’t be approaching their benefits and rewards with a one-size-fits-all approach. Today’s workforce expects offerings that reflect their individual lifestyles, priorities, and personal circumstances. We’re seeing this shift firsthand across our customer base. Employers are moving away from blanket strategies and towards more tailored, flexible solutions. Recognising that employees have commitments beyond work is key. That’s why flexible rewards, like gift cards or redeemable vouchers, are becoming increasingly popular, as they empower employees to choose something meaningful to them, on their own terms.
Q: Can you share a few practical examples of initiatives or strategies—either from Virgin or elsewhere—that have successfully improved engagement and wellbeing among younger employees?
Nowadays, especially the younger generations of employees are most engaged when their work aligns with their personal values. Purpose-led brands like Ben & Jerry’s and Patagonia lead by example, actively involving their teams in social and environmental campaigns that give everyone a sense of shared mission and impact.
Barclays takes a forward-thinking approach with its multigenerational benefits strategy, recognising that employees at different life stages need different things from their workplace. Beyond offering tailored tools, networks, and programmes to help individuals achieve their personal and professional goals, they prioritise inclusion. Initiatives like reverse mentoring – where junior team members share insights with senior leaders – foster genuine intergenerational dialogue and ensure all voices are heard and valued.
At Virgin Incentives and Virgin Experience Days, we have regular team strategy days out. These team days often combine trying one of our own experiences with a session focused on innovation and brainstorming ideas, making the day out both fun and productive. These team experience days out are always well received by our team members and are designed to spark creativity and team building collaboration in a fun environment.
Q: How should HR teams measure the effectiveness of wellbeing and recognition programmes—especially in terms of productivity, retention or culture?
Open communication is key to truly understanding your team. Creating an environment where employees feel comfortable giving real-time feedback is essential for assessing the effectiveness of your wellbeing initiatives and benefits offerings.
At Virgin Incentives, we leverage a feedback platform and engagement surveys to gather insights, enabling us to make data-driven decisions that drive solid ROI. This approach has directly led to initiatives that have significantly boosted engagement.
For example, we recently partnered with Merlin Entertainments to create the Merlin Gift Card, to offer teams the opportunity to have fun, whilst making lasting memories to ensure they feel both rested and rewarded from their hard work. To celebrate this, we treated our team to a day at Legoland, and have found that these regular team treats, away from the desk are very effective in keeping morale and engagement high.
Ultimately, a workforce that feels valued, supported, and appreciated is naturally more engaged and productive. This not only improves retention and reduces turnover, but it also strengthens company culture and colleague dynamics. When employees feel good about coming to work, success tends to follow.
Q: What advice would you give to HR leaders trying to build a compelling business case for investing in Gen Z-focused wellbeing and incentive programmes?
It’s critical that the risks of not engaging Gen Z employees are fully understood. Failing to invest in a comprehensive employee wellbeing strategy leaves companies vulnerable to losing top talent to competitors who offer stronger support, and this isn’t solely relevant to Gen Z. When employees feel unsupported, stress levels rise, leading to disengagement, and in the worst cases, quiet quitting.
The consequences of neglecting wellbeing go beyond morale. Unsupported employees are less likely to give their best effort, directly impacting productivity and the bottom line. Burnout can also lead to long stints of sick leave, leaving work unfinished, colleagues feeling overburdened, and creating a cycle of stress that’s difficult to break.
Q: Finally, looking ahead, how can companies future-proof their culture to ensure it stays relevant and supportive for the next generation entering the workforce?
Rewards, recognition, and employee benefits cannot be a one-size-fits-all approach, nor can they be improved with one quick fix. These programmes must evolve alongside the workforce and, most importantly, be informed by employees themselves. To achieve this, employers should implement continuous feedback channels, such as surveys, focus groups, and one-on-one meetings, to gather real-time insights. However, this feedback becomes ineffective unless employers act on it. It’s crucial to show that feedback is being listened to and applied in a flexible, inclusive way. Ultimately, showing genuine care and investment into employees will foster a more supportive environment, in which employees feel comfortable to grow and thrive.
