Highlights from the 2026 US New Graduate and Generation Z Compensation Survey

The job market for new graduates and Gen Z professionals continues to shift in meaningful ways. If you're hiring early-career talent, the latest data tells a clear story about what this generation expects from employers. The 2026 US New Graduate and Generation Z Compensation Survey reveals that your hiring practices, compensation strategies, and workplace culture all play a role in attracting the talent you need. Here are the four important insights that matter most right now. 

1. Pay transparency
2. Work flexibility
3. Monetary bonuses
4. Work-life balance perks

Your pay transparency practices are a differentiator

Gen Z values knowing where they stand. In 2026, 51.7% of organizations now provide pay transparency to new graduate hires, representing steady progress since 2025 when 47.3% offered transparency. That increase shows employers are listening. Young professionals are evaluating whether companies are being honest about compensation before they even apply. If you're one of the organizations that hasn't yet shared salary ranges, you're likely losing candidates to competitors who have. The transparency gaining traction includes posting salary ranges in job postings, sharing compensation structures during onboarding, and making salary bands visible through internal systems. Some organizations go further, ensuring employees can access their salary range through their intranet or compensation portal. Taking action here signals trust and attracts candidates who appreciate authenticity. The message is clear: transparency isn't just a compliance issue. It's a competitive advantage.

Hybrid work and flexibility: what new graduates really want

Your work location policy has real consequences for recruitment. Just 37.8% of organizations require new graduate hires to work on-site full-time, while 43.6% offer a hybrid model combining office and remote work. Only 6.4% allow full-time remote work. The hybrid option is winning because it delivers what this generation wants: the ability to collaborate in person while maintaining control over their schedule. Two-thirds of organizations are not imposing strict geographic requirements, meaning talent can live where it makes sense for them. If you're considering a mandatory on-site requirement, expect resistance. Young talent is making location flexibility a factor in their decision to accept or decline an offer.

Bonuses are no longer optional

Offering a competitive base salary is the bare minimum in 2026. Bonuses are what close the deal. The data shows 70.6% of organizations offer annual bonus programs to new graduates. More importantly, 74.2% of those organizations pay bonuses to more than 75% of their new hire cohort. This continuity with 2025 indicates bonuses are a core component of the entry-level compensation package. Young professionals see bonuses as part of their regular compensation, not a special perk. The average bonus target is 6-10% of base pay. For new graduates earning between $67,000 and $80,000 depending on degree level, that means an expected annual bonus of $4,000 to $8,000. For employers unable to increase base salaries quickly, bonuses provide a practical way to remain competitive while maintaining salary equity across cohorts.

Perks that support daily life and well-being drive attraction and retention

Gen Z's appetite for perks has evolved. Traditional amenities like office perks are still offered, but what truly resonates are benefits that address real priorities. The data shows strong interest in flexible work arrangements, casual dress codes, and tolerance for personal expression. Health and wellness programs resonate across the board, along with paid leave for volunteering and mental health support. Social perks like community service opportunities and corporate challenges appeal to a generation that values meaning at work. Gen Z hasn't shifted its priorities dramatically from 2025, but the emphasis remains clear: well-being comes first. Your focus should be on perks that enhance daily well-being and signal that you care about the whole person, not just the employee.

The takeaway for your hiring strategy

The message from Gen Z is consistent: be transparent, offer flexibility, pay competitively, invest in the early career pipeline, and build a workplace culture that respects who they are as people. The employers winning in this market aren't just offering higher salaries. They're rethinking how they communicate about compensation, how they structure work, and what values matter to their culture. Your 2026 hiring strategy should reflect these priorities. The data shows that when you do, you attract talent that's engaged, committed, and ready to grow with your organization.

Looking for more details?

The US New Graduate and Generation Z Compensation Survey covers compensation and total rewards for a variety of entry-level work arrangements such as new hires, internships, and co-ops.  Additionally, you can review how starting pay varies by education level and field of study.

Give our Marsh colleagues a call today to see how this survey or our other surveys and workforce insights products could add value to your compensation strategy and administration.

Get in touch with us at 855-286-5302 or Surveys@mercer.com.

About the author

Rebecca Hall, Principal

Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.