The key to achieving high job satisfaction and improving retention rates for both Gen Z and Millennial workers is providing purposeful work and a more flexible work life.
According to Deloitte’s 2024 Gen Z and Millennial Survey, which engaged nearly 23,000 respondents across 44 countries, there is a strong desire by young professionals to improve their financial security while finding purpose-driven work and greater work-life balance.
Notably, 56% of Gen Z and 55% of millennials are living paycheck to paycheck. Both figures are up when compared to last year (Gen Z is up five points and Millennials are up three points).
The survey reveals these financial stressors are greatly influencing both generations in how they approach work and professional life.
“Only about half of Gen Z (51%) and Millennials (56%) rate their mental health as good or extremely good,” according to the Deloitte survey. “And while stress levels have improved slightly since last year, they remain high, with 40% of Gen Z and 35% of millennials saying they feel stressed all or most of the time. Financial concerns, and family welfare are major stressors, alongside job related factors such as long working hours and lack of recognition.”
Nearly one-third of respondents believe their country’s economic situation will improve over the next year — marking the highest level of economic optimism since before the COVID-19 pandemic. Additionally, almost half of Gen Z workers (48%) and four in ten millennials (40%) expect their personal financial situations to improve.
While improving personal finances is high on the list for both generations’ job satisfaction, it’s meaningful work that remains one of, if not, the defining factor.
Surprisingly, the survey reveals that employers might be catching on to that notion. 81% of Gen Z respondents, and 82% of millennials, say their current job gives them a sense of purpose. Moreover, 71% of Gen Z and 72% of millennials said they are “currently satisfied that their employers’ values and purpose align with their own.”
Purpose is such an important factor for younger professionals that 86% of Gen Z and 89% of millennials said they would turn down assignments or employers that do not align with their values.
Climate change is another concern, with many respondents actively seeking to align their careers and consumer behaviors with values they believe are necessary to drive change.
According to Deloitte, about two-thirds of Gen Zs (64%) and millennials (63%) are willing to pay more for environmentally sustainable products — and a notable portion (20% of Gen Z, and 19% of millennials) have changed jobs or industries due to environmental concerns.
The advent of artificial intelligence (AI), more specifically generative AI (GenAI), also presents both opportunities and uncertainties for younger generations.
While frequent users of GenAI report positive perceptions, such as improved work efficiency and improvements to work/life balance, there is widespread uncertainty about its long-term impact on job security. This has led to more focus on upskilling and training, although only 51% of Gen Z, and 45% of millennials feel adequately supported by their employers.
Work/life balance remains another top priority for Gen Z and Millennials, yet many struggle to achieve it. Long working hours and a lack of control over work conditions are reported to be contributing significantly to higher stress levels.
Despite some progress in workplace mental health initiatives, Deloitte suggests there is still a stigma around discussing mental health openly.
Employers who address these issues are likely to see higher employee satisfaction and productivity. The data reveals younger generations are not only navigating financial and technological changes but are also advocating for workplaces that align with their values and support their well-being.
