What do Gen Z and millennial employees want? How can business leaders do a better job of retaining and attracting younger talent?
According to the Deloitte Global 2023 Gen Z and Millennial Survey, Gen Z and millennial employees — though often portrayed as only caring about work-life balance — are values-driven, concerned about the environment, the state of the world, and the future they see developing ahead of them.
“Gen Z and millennial employees are looking for employers who can help empower them to make a difference,” said Michele Parmelee, Deloitte Global Deputy CEO and Chief People and Purpose Officer.
The Deloitte Global 2023 Gen Z and Millennial Survey collected responses from 14,483 Generation Zs and 8,373 millennials (22,856 respondents in total), from 44 countries across North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia Pacific, Deloitte said.
As defined in the study, Gen Z respondents were born between January 1995 and December 2004 and millennial respondents were born between January 1983 and December 1994.
Survey highlights
Workplace progress
- About one-third of Gen Zs and millennials in full- or part-time work say they are very satisfied with their work-life balance, compared to only one in five in 2019, and satisfaction with flexibility at work, along with diversity, equity, and inclusion (DEI) efforts have also increased.
- While nearly half of Gen Zs and a majority of millennials say their job is still central to their identities, they place a strong focus on work-life balance—the top trait they admire in their peers, and their top consideration when choosing an employer.
- Many respondents now have hybrid or remote work models, a benefit they value deeply. Meanwhile, flexible work arrangements, which offer a range of work structures that alter when work gets done, or the number of hours worked, are a growing priority.
- Gen Z and Millennial employees would like to see their employers offer better career advancement opportunities for part-time employees, more part-time jobs overall, and the option for more flexible hours for full-time employees (e.g., condensed four-day work weeks).
- While Gen Z and Millennial employees acknowledge the progress that employers have made in recent years, there is still work to do. And they worry that the momentum will stop as businesses reckon with external challenges like economic uncertainty and the impacts of the war in Ukraine.
Cost of living concerns
- About six in 10 Gen Zs and two-thirds of millennials think the economy will worsen or stay the same in their country over the next year.
- Among them, many think that this will result in it becoming harder or impossible to ask for a raise or promotion, get a new job, or seek greater flexibility at work.
- Their economic concerns are also impacting their ability to plan for their future on a more personal level, with many saying it will become harder or impossible to buy a home or start a family.
- Gen Z and Millennial employees continue to cite the cost of living as their top societal concern, above unemployment and climate change.
- More than half of Gen Zs (51%) and millennials (52%) say they live paycheck to paycheck (up five percentage points from 2022).
- Despite their desires for better work-life balance and the ability to reduce working hours, many Gen Zs (46%) and millennials (37%) have taken on either a part- or full-time paying job in addition to their primary job to make ends meet.
- Top side jobs include selling products or services online, engaging in gig work like food delivery or ride-sharing apps, pursuing artistic ambitions, and social media influencing.
- While social media is perceived as a source of income for some, it also exacerbates financial anxiety—51% of Gen Zs and 43% of millennials say social media makes them want to buy things they cannot afford.
Stress and burnout
- Nearly half of Gen Zs (46%) and four in 10 millennials (39%) say they feel stressed all or most of the time, and stress levels are even higher among women, LGBT+ respondents, ethnic minorities, and those with disabilities.
- In addition to concerns about their personal finances and the welfare of their friends and family, poor work/life balance and heavy workloads contribute to their stress levels.
- And respondents are struggling to disconnect from work, with 23% of Gen Zs and 30% of millennials saying that they answer work emails outside of normal working hours at least five days a week.
- These workplace pressures may also be driving the increased levels of burnout since last year.Also affecting their well-being is social media, which makes approximately four in 10 Gen Zs and millennials feel lonely and inadequate.
- However, more than half of each generation say that accessing mental health resources has become easier because of social media and that social media has an overall positive impact on their lives—particularly given the ability to connect with friends, family, and social causes.
- Caregiving responsibilities are also a factor—more than one-third of Gen Zs (34%) and four in 10 millennials (39%) have daily or periodic caregiving responsibilities for both children and parents or older relatives.
- While Gen Zs are less likely than millennials to have daily caretaking responsibilities for children, they are slightly more likely to care for parents or older relatives.
- More than four in 10 Gen Zs and millennials say these responsibilities have a significant impact on their mental health.
Environment and social issues
- Six in 10 Gen Z and Millennial employees say they have felt anxious about the environment in the past month, and roughly the same percentage cite extreme weather events and wildfires as a stress driver.
- These concerns impact their decision-making, from family planning and home improvements, to what they eat and wear.
- Respondents are taking a range of actions, such as purchasing an electric vehicle or avoiding driving a car altogether, making their homes more energy-efficient, eating a vegetarian or vegan diet, and avoiding fast fashion in favour of second-hand clothes.
- Some are deciding to have fewer or no children to reduce their environmental impact.
- More than half of respondents say they research a brand’s environmental impact and policies before accepting a job, while notably, one in six say they have already changed jobs or sectors due to climate concerns and around a quarter of respondents say they plan to do so in the future.
- In fact, the ability to drive change on social issues overall has the potential to make or break the recruitment and retention of these generations.
- Nearly four in 10 say they have rejected work assignments due to ethical concerns, while more than one-third have turned down employers that do not align with their values.
- Gen Z and Millennial employees want to be empowered to drive change within their organisations, but while they tend to feel they can positively influence their organisations in areas related to products and services, DEI, development and training, and workload management, influence in other critical areas, such as social impact and sustainability, is lagging.
Talent attraction and retention: How employers should act
As businesses face new headwinds, it will be important to talent recruitment and retention efforts for employers to maintain the progress they’ve made and help drive greater momentum, Deloitte said.
Gen Z and millennial employees are facing a unique combination of challenges during a pivotal point in their lives as they progress in their careers, grow their families, and care for loved ones, said Parmelee.
“It’s crucial for employers to understand these generations and continue to drive progress on the challenges that matter most to them,” she advised. “This will not only help boost productivity and retain talent—it will ultimately build trust and value for business in society more broadly.”
