How Are AI And Climate Anxiety Reshaping The Career Choices Of Young Professionals?

Why Is Purpose Just As Important As Pay For Gen Z And Millennial Workers?

Uncover key insights from Deloitte’s 2024 Gen Z and Millennial Survey. Learn why purpose, flexibility, and mental health support are now critical for attracting and retaining the next generation of talent. Stop guessing what your future workforce wants. Continue reading to discover the data-backed strategies that will help you build a culture where Gen Z and Millennials thrive.

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In this 13th edition of its Gen Z and Millennial Survey, global accounting firm Deloitte draws on data from 22,800 respondents in 44 countries to explore what matters most to workers of those generations. Despite progress in work flexibility, DEI, and environmental protection since the pandemic, gen Z and millennial workers express significant concerns about living costs, unemployment, climate change, mental health, crime, and the impact of AI on careers. Those who address these might attract and retain a more engaged and adaptable workforce, ready for a changing world.

Take-Aways

• Around the world, gen Z and millennial workers report guarded optimism about the future.
• A sense of purpose and alignment with values influences employee engagement and retention.
• Most millennials and gen Zers have a practical attitude toward AI.
• Gen Zers and millennials value job flexibility, work-life balance, ample learning opportunities, and mental health support.

Summary

Around the world, gen Z and millennial workers report guarded optimism about the future.

Over 30% of those queried for Deloitte’s 2024 Gen Z and Millennial Survey say they feel confident their nations’ economies will improve over the next 12 months, and nearly half believe their financial circumstances will also get a boost. However, more than half of respondents report they live paycheck to paycheck.

“When organizations create value for all people connected to them, it creates better outcomes for organizations and humanity more broadly.”

Concerns remain about the cost of living, unemployment, climate change, mental health, crime, and the impact of AI on careers, with many feeling that businesses are not fully addressing critical societal challenges. Still, gen Z workers and millennials feel confident in their ability to enact change within their organizations — much more so than in society at large.

A sense of purpose and alignment with values influences employee engagement and retention.

Gen Z and millennial employees value a sense of purpose at work and feel it contributes significantly to their job satisfaction. Firms that hope to recruit and retain gen Z and millennial talent should communicate the organization’s purpose clearly and avoid penalizing workers who decline assignments that don’t align with their values.

“Half of gen Z[ers] (50%) and four in 10 millennials (43%) have rejected an assignment or project based on their personal ethics or beliefs.”

While three-quarters of those surveyed say they weigh a firm’s societal impact when considering applying for or accepting a job, less than half believe businesses are helping ameliorate societal challenges. These young people believe businesses can and should be doing much more to support AI’s ethical use and development, environmental protection, education, inclusive employment, and more. Environmental sustainability, in particular, influences millennials’ and gen Zers’ career decisions and consumer behaviors: A majority feel anxious about climate change and are willing to pay more for sustainable products. More than 70% consider a business’s environmental policies when job hunting. About a quarter have changed or plan to switch to jobs that align better with their environmental values.

Most millennials and gen Zers have a practical attitude toward AI.

About a third of respondents say they have yet to use GenAI for work, and between 38% and 42% report they only use it sporadically. Frequent users (about one-quarter of respondents) express more optimism than infrequent users about GenAI’s potential to enhance work-life balance. However, frequent users are also more likely to express the belief that the technology will result in job cuts and that people will need to reskill and upskill to remain employable. Nearly four in 10 plan to participate in AI training within the coming year and more than one in six already have. However, around one in four do not intend to pursue AI-related training.

Gen Zers and millennials value job flexibility, work-life balance, ample learning opportunities, and mental health support.

Gen Zers and millennials value work and feel it contributes significantly to their sense of identity. But they also highly value their personal lives. Work-life balance ranks first in their considerations for selecting an employer — the opportunity for learning and development ranks second. Flexible work arrangements appeal to many gen Zers and millennials, and many also take on side jobs.

“Stress levels continue to be very high among gen Z[ers] and millennials, with 40% of gen Z[ers] and 35% of millennials saying they feel stressed all or most of the time.”

Only about half of workers in these generations feel they have good or extremely good mental health, and their stress levels remain high post-pandemic. Many do not feel comfortable discussing mental health with their managers, and some fear they’ll face discrimination if they’re open about their mental health-related challenges. Among workers who would recommend their employers to others, between 77% and 80% of respondents say their companies prioritize workers’ mental health.

23% of gen Zers and 27% of millennials gave a 9 or 10 when rating their likelihood of recommending their employer to others. These “promoters” report higher satisfaction with skill development opportunities, pay, benefits, work-life balance, values alignment, and mental health support. They also tend to stay in their jobs longer than other workers. Gen Z and millennial workers may seem demanding, but by improving the workplace experience, business leaders can retain their employees and enjoy greater productivity, agility, and adaptability.

About the Author

Deloitte Touche Tohmatsu Limited is a leading global professional services network providing audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services.