CURATED READS ON GEN Z IN THE WORKPLACE

Welcome to the latest edition of Mind the Gap. We hope you find our perspectives useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

first up

CEOs of consumer-facing businesses love to say they are “customer obsessed.” But can the same be said of companies in the healthcare sector?
 
While US consumers have the same expectations for their healthcare experiences as they do for other goods and services, there’s room for many healthcare organizations to improve how they prioritize the consumer experience, according to a new article from McKinsey Partner Jenny Cordina and coauthors. They found that factors including convenience, cost transparency, affordability, and trust each play a role in whether dealing with healthcare payers or providers is great—or grueling.
 
To better understand US consumers’ healthcare experiences, the authors surveyed respondents across all age groups. They found that Gen Zers were often more sensitive than others to inconveniences, including long wait times or opaque pricing.

For example, booking appointments with a preferred healthcare provider can be challenging for anyone. But Gen Zers were more likely than older generations to seek a walk-in appointment at a clinic or urgent care center when they couldn’t see their preferred doctor (31 percent versus 19 percent).
 
Another factor Gen Zers value more than other generations is cost transparency. In the healthcare survey, about half of Gen Z respondents said they looked up provider pricing ahead of time, compared with 38 percent of consumers of all ages. (Across all age groups, 76 percent of consumers said they choose a lower- or medium-cost option when they know the cost of care.) This is no surprise, given the financial difficulties many Zoomers face. In McKinsey’s most recent US consumer sentiment survey, many Gen Z respondents felt financial strain, with fewer reporting income gains and more indicating that they dipped into their savings at higher rates.
 
And while many Gen Zers might distrust big corporate, cultural, and government institutions in the United States, physicians are still consumers’ most trusted source for health information. Even so, compared with the other ages surveyed, a smaller proportion of Gen Z respondents said they trust hospital systems and doctors (50 percent of Gen Zers versus 64 percent overall). Of those Gen Z respondents, 29 percent trusted health and wellness apps for information, 23 percent consulted social media, and 34 percent turned to family or friends.

What’s the prescription for healthcare players? Leaders should look to other sectors—including retail and tech—for inspiration to solve consumer experience pain points and build trust with Gen Zers. For example, offering discounted nonurgent appointments during off-peak times, similar to off-peak discounts on ridesharing services, could appeal to cost-conscious Zoomers. On average, US consumers reported low to medium satisfaction in their healthcare journeys. The healthcare players that focus on helping consumers understand benefits, get coverage, and pay for care can improve overall satisfaction rates. Not a bad prognosis.

VISUALIZE IT

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CROSSWORD

—Edited by Alexandra Mondalek, editor, New York