“Our report illustrates that many Gen Zs and millennials are re-evaluating their priorities in life, trying to put more focus on what matters most to them, especially in view of the turbulences and uncertainties over the past few years. They strive for a better work-life balance, higher compensation for their work commitments but also for a better purpose in their jobs. This means for employers to be more active in addressing societal challenges such as taking action to address climate change, creating an inclusive work environment and offering attractive compensation packages. The whole talent experience needs to be re-imagined as a journey that embraces individual needs,” says Pascal Martino, Partner and Human Capital Leader at Deloitte Luxembourg.
The cost of living is a major concern
This year, Gen Zs and millennials cited the cost of living as their top personal concern, just above climate change. Concerns about the cost of living may be a symptom of the times, given the rise of inflation, but they also speak to issues that these generations have been expressing for the past 11 years that Deloitte has conducted the survey: they don’t feel financially secure personally, and at a broader societal level, they are deeply concerned about wealth inequality.
About a quarter of Gen Zs (25%) and millennials (21%) say they cannot comfortably pay their living expenses each month, and nearly half live paycheck to paycheck. This likely impacts their ability to save and explains why about three in 10 respondents are not confident they will be able to retire with financial comfort. Meanwhile, about three-quarters of respondents believe that wealth inequality is rising, and only 28% believe the economic situation in their countries will improve in the coming year.
Some Gen Zs and millennials are taking on second jobs and redefining their working patterns to alleviate financial concerns. As many as 43% of Gen Zs and 33% of millennials have taken on a paying part- or full-time job in addition to their primary job. They are also capitalizing on the financial benefits of a remote work environment, with a small but growing percentage moving to less expensive cities.
The Great Resignation puts workers in the driver’s seat
Employee loyalty is up from last year’s survey, potentially because many people changed jobs over the last year. But this still leaves four in 10 Gen Zs and nearly a quarter of millennials who would like to leave their jobs within the next two years, and roughly a third who would do so without another job lined up.
Pay, workplace mental health concerns, and burnout are the top reasons why respondents left their jobs over the last two years. But, when choosing a new job, work/life balance and learning and development are the top priorities.
Respondents see flexible work as a way to find balance in their lives: saving money while making time for the people and activities they care about. Three-quarters of respondents say they’d prefer a hybrid or remote work arrangement, and many would like more flexible working hours.
Purpose continues to be pivotal to talent recruitment and retention. Nearly two in five respondents said they have turned down an assignment or role because it did not align with their values. Meanwhile, those who are satisfied with their employers’ societal and environmental impact—along with their efforts to create a more diverse and inclusive culture—are more likely to stay with their employer long-term.
There is a growing emphasis on climate action—at both the individual and organizational level
Climate change continues to be a top concern for Gen Zs and millennials. Three-quarters of respondents agree that the world is at a tipping point in responding to the climate crisis, and roughly two-thirds have already been personally impacted by severe weather events, emphasizing the need for urgent action.
Nine in 10 respondents currently make an effort to protect the environment—primarily focused on everyday actions such as using second-hand and recyclable items or sourcing local and organic food. Gen Zs and millennials are willing to spend more on sustainable products, but financial constraints may make it challenging for them to invest in more expensive items like solar panels and electric vehicles. Still, half of respondents said they plan on making these purchases in the future.
Few respondents believe that businesses and governments are doing enough to combat climate change. As a result, Gen Zs and millennials are advocating for greater action, putting pressure on their employers to invest in visible, everyday environmental actions that they can be directly involved in. A ban on single-use plastics was the No. 1 recommendation, followed by sustainability-oriented benefits and training—ultimately empowering employees to make greener choices in their everyday lives.
Employers increase focus on mental health, but stress and burnout levels remain high
Stress levels continue to be high among respondents, particularly Gen Zs. Nearly half of Gen Zs (46%) and about four in 10 millennials (38%) are stressed all or most of the time. And nearly half of respondents feel burned out due to the pressure of their workloads—about the same percentage of respondents say many of their colleagues have recently left their organizations due to burnout. This signals a retention issue for employers, but about one in five Gen Zs and millennials don’t think their employers are taking it seriously or taking steps to prevent it.
The survey did find that Gen Zs and millennials believe their employers are more focused on well-being and mental health since the start of the pandemic. However, just over half of respondents believe this has not had any meaningful impact on employees.
“It’s imperative that business leaders acknowledge the psychological impact on the workforce as a result of global threats and ongoing disruptions due to the pandemic. This is particularly the case for Gen Zs and millennials whose long-term view of the world has been altered,” adds François Bade, Partner Human Capital at Deloitte Luxembourg. As these are our workers of the future, we must address their challenges head-on by offering effective mental health resources to manage stress and anxiety, respecting the need for boundaries to safeguard a healthy work/life balance, and offering an empowering and purpose-led work environment where people feel like they are contributing to building a better future.”
For more information and to view the full results of Deloitte’s 2022 Gen Z and Millennial Survey, visit the dedicated Deloitte Luxembourg webpage.