By 2030, Gen Zs (born 1997–2012) and Millennials (born 1981–1996) are expected to make up nearly three-quarters of the global workforce, and they are bringing a new set of priorities with them. Having entered the job market in the shadow of a global pandemic and an economic recession, they are reshaping the way we define success, stability, and satisfaction at work. In order to harness the collective strength of the two generations, employers would want to relook their human resource (HR) policies now.
“These generations prioritise work-life balance and meaningful work as they strive for financial stability. And now, as they navigate how generative AI is reshaping the workplace, they’re re-evaluating the skills they need and the support they want from their employers,” says Elizabeth Faber, Deloitte Global Chief People & Purpose Officer.
The latest edition of Deloitte Global’s Gen Z and Millennial Survey1 reveals that Gen Zs and Millennials are seeking a trifecta of money, meaning, and well-being, while building the technical and soft skills that they believe will prepare them for the workplace of the future.
The report shares that financial security is of significant concern, with more than half of Gen Zs (62%) and Millennials (52%) stating that the cost of living is their top concern. Some 56% and 52% of respondents, respectively, indicate that they are living from pay cheque to pay cheque, and 37% and 32%, respectively, worry that they will not be able to retire in financial comfort. Among those who have reported experiencing stress or anxiety, 46% of Gen Zs and 37% of Millennials cite concerns about their long-term financial future as the top contributing factor.
An SG Analytics article on Gen Z hiring trends indicates the young people’s views towards finances. For Gen Zs, fair pay must commensurate with their skills, and they actively monitor salary benchmarks by researching online employee-employer forums. They welcome transparency in the pay structure, and are conscious of what their retirement should look like, even though retirement is in the horizon.
Job satisfaction today is not just about salary – it must align with personal values. An overwhelming 94% of Gen Zs and 98% of Millennials in the Deloitte survey say purpose is key to job satisfaction and overall well-being. And, 34% and 46%, respectively, have rejected a potential employer based on their personal ethics or beliefs, while 40% and 51%, respectively, have left a job because they think it lacks purpose. The SG Analytics article shows a broadly similar attitude – Gen Zs want the brand they work for to boldly pursue diversity, inclusion and sustainability. Additionally, they want their organisation to encompass solid, progressive values, among others.
Gen Zs and Millennials are placing a premium on workplace culture. A Randstad 2025 Workmonitor survey2 shows that two-thirds of them (67% Gen Zs; 64% Millennials) would leave a job if they did not feel welcome or included. One in four (25%) say they have left jobs simply because they lacked a sense of community.
In fact, many would happily trade pay for connection:
But, despite the importance of workplace community, only 49% of respondents in the Randstad survey trust their employers to create a thriving culture. This trust gap is more pronounced among Gen Z workers, with just 37% expressing confidence in their employers.
Flexible work arrangements – including hybrid and remote options – are a must-have. Sixty-five per cent of Gen Zs cite flexible work as a priority when job-hunting, according to SG Analytics. These generations also want leaders who are transparent, empathetic, efficient, and who respect their time, understanding that not every communication needs to be a meeting.
In a rapidly evolving workplace, companies that listen to these voices and adapt their HR strategies will not only future-proof their talent pipelines, they will unlock the full potential of these emerging generations of employees.
1 The 14th edition of the Deloitte survey examined the responses of more than 23,000 participants across 44 countries, including 309 from Singapore.
2 The Randstad study surveyed 750 employees in Singapore. It identified that a positive workplace community is the foundation of employee engagement for higher productivity, happier employees, and cost savings for companies.
© 2024 Institute of Singapore Chartered Accountants
