With unemployment in the technology industry hovering around 2%, companies will have to fight to meet the concerns of new employees if they are to attract and retain the best talent. Two new studies show what younger workers want and what exactly companies need to do to cope with the Great Resignation and the job changes caused by the COVID-19 pandemic.
According to studies, one of the business consulting company Deloitte and another from workplace management software maker Robin Poweredyoung older workers feel burnt out, face financial anxiety, take a second job and want a more focused – and flexible – job.
Oh, and they want their careers to be in line with personal and global ethical issues.
“They’ve burned out – 58% of Generation Z are currently on fire,” said Robin CEO Mika Remley. “And while compensation is crucial, it will not help fight stress. This group says that extra rest and mental health resources would help them cope better. “
The nickname Gen Z usually refers to those born between 1997 and 2012, which means that the oldest members of this cohort are already approximately 25 years old. By 2025, Generation Z will make up about 27% of the world’s workforce, according to the World Economic Forum (WEF), although other figures put the figure even higher. (Millennials make up about 37% of the workforce today, according to the WEF.)
Of the two studies, Deloitte focused specifically on Generation Z and millennial workers. Found:
- 46% of Generation Z and 45% of millennials feel burned out due to the intensity / requirements of their work environment.
- 44% of Generation Z and 43% of millennials say many people have recently left their organization due to stress at work.
- Almost half of Generation Z (46%) and millennials (47%) live from paycheck to paycheck and worry that they will not be able to cover the costs.
- More than a quarter of Generation Z (26%) and millennials (31%) worry that they may not be able to retire comfortably.
- About three-quarters of Generation Z (72%) and millennials (77%) agree that the gap between the richest and poorest people in their country is widening.
Total living costs were also cited by Gen Z (29%) and Millennials (36%) as their main concerns.
“Concerns about the cost of living may be a symptom of the times, given high levels of inflation, but they also speak to problems that these generations have been experiencing for years: they do not feel financially secure personally and in the wider public. level, they are deeply concerned about wealth inequality, “Deloitte said in a report.
“If we talk to Boomers or Gen Xers about the mental health benefits, they would say it’s my job, not my employer’s, while Gen Z wants mental health help from their employers. – Chief Executive Officer of Robin Mika Remley
Against this background of financial unrest, many Generations Z and millennials are redefining their working models. Up to 43% of Generation Z and 33% of millennials have a second part-time or full-time job in addition to their main job.
Deloitte also found that a small but growing percentage of workers are moving to cheaper cities with remote jobs – emphasizing the importance they attach to flexible working conditions.
“This seems to be a growing trend – approximately 15% of Generation Z and millennials say they did it this year, compared to 9% of respondents in last year’s survey who said they moved temporarily or permanently from a big city.” , Deloitte reported.
When it comes to when they would like to work, 36% say the traditional 9-5 format works for them Monday through Friday. A similar number of respondents (28%) prefer a four-day working week, while 28% prefer flexible working hours outside the usual 9 to 5 during the five-day working week.
“As Gen Z continues to enter the workforce, flexibility will continue to be the name of the game,” Deloitte said.
There is a clear demand for more flexible work: currently 49% of Generation Z and 45% of millennials work remotely at least part of the time, while three quarters say that remote control would be their preferred mode of operation.
Robin’s data reflects this desire for a hybrid or flexible workplace. It has been found that 66% of Generation Z full-time office workers want to be hybrid (46%) or completely remote (20%), while more than 73% of remote workers say they like it. The study also showed that if they could design the ‘ideal’ office space, most Generation Z workers would like to have certain office spaces defined by walls rather than booths.
Companies are already or are preparing to expand the collaboration space in their office buildings to accommodate a hybrid workforce that is more transient.
Deloitte and Robin research shows that Generation Z and millennials want a better work-life balance, better learning and development opportunities, improved support for mental health and wellness, and greater business commitment to have a positive impact on society.
“The recurring theme with Gen Z – in addition to compensation – is the focus on workplace flexibility and mental health. “These are two places where we see a huge divergence from other generations,” Remley said. “If we talk to Boomers or Gen Xers about the benefits of mental health, they would say it’s my business, not my employer’s business, while Gen Z wants mental health help from its employers.
The benefits are ranked high in both studies as reasons why workers are attracted and want to stay in the organization. At the top of the list: good mental health and health benefits in general.
And employers seem to be making progress when it comes to prioritizing mental health and well-being at work, Deloitte reports.
“More than half agree that workplace well-being and mental health have become a bigger focus for their employers since the beginning of the pandemic. However, there is mixed feedback on whether the increased focus actually has a positive impact, “the Deloitte report said.
A a third study published Wednesday The Quest Diagnostics Clinical Laboratory found that organizations are working hard to attract and retain talent – but most employees are still thinking about changing jobs anyway.
Quest surveyed 423 managers and executives in favor of human resources with decision-making powers (HREs) and 846 office employees in companies with at least 100 employees. He found that nearly two-thirds (66%) of the workers surveyed are thinking of changing jobs next year, have taken steps to do so or have recently started a new job. More than 22% are actively looking for a new job.
The prospect of making more money is the main motivator for 55% of employees who expect a change of job – followed by better benefits in general, including health benefits and work-life balance, according to Quest.
Not surprisingly, the importance of pay was reflected in other studies. Robin, for example, found that 44% of Generation Z workers will stay in jobs where they are unhappy – provided they are well paid. Conversely, 47% said they would choose happiness over money.
In fact, Deloitte has found that pay is the number one reason for Generation Z and millennials to leave the role in the last two years, a trend that is not lost on technology companies that are increasing compensation to retain talent. However, when choosing a new employer, a good work-life balance and learning and development opportunities were top priorities.
Robin found that 39% of Gen Z employees want to start a family and 49% want to buy a home over the next five years, “so it’s not surprising that they’re so driven by compensation,” said Roblin’s Remley.
For companies trying to decide how to keep their employees happy, wage increases – especially over 10% – have helped keep employees considering leaving. “Given that most respondents make less than $ 40,000, employers need to consider raising salaries from $ 4,000 to $ 8,000 to keep Generation Z talent,” Remley said.
Generation Z and millennials are also pressuring their employers to tackle climate change, especially when it comes to efforts in which they can be directly involved. But businesses may still miss opportunities for broader climate action, studies have found.
Alignment with workers’ values is key for employers who hope to attract and retain young talent. Almost two out of five Deloitte respondents said they rejected a job or appointment because it did not meet their values. Meanwhile, those who are satisfied with the social and environmental impact of their employers, as well as with corporate efforts to create a diverse and inclusive culture, are more likely to want to stay with their employer for more than five years.
“If you look at earlier generations, they didn’t have the opportunity to ask for these things,” said Roblin of Remley. “Gen Zers is coming of age right now in a very stable economy, where power has shifted to employees. They want the basics, and a lot of them, but what you see is that they’re not afraid to ask for other benefits like a four-day work week. They come to the labor market at a time when, due to the limitations of talent in the labor market, they may want a lot and get it. ”
Deloitte gathered responses from 14,808 Generation Z workers and 8,412 millennials from 46 countries in North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa and the Asia-Pacific region. Generation Z respondents ranged in age from 19 to 27; Millennial respondents (also known as Generation Y) are between 28 and 39 years old. (Robin surveyed 600 workers between the ages of 18 and 25 in the United States.)
The Deloitte survey was conducted between November 2021 and January 2022, with subsequent interviews in April 2022.
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