The impact of Gen Z values in the workplace

The cost of living, housing affordability, and overall financial situations are steering younger workers away from traditional goals.

In its 2026 Gen Z and Millennial Survey, Deloitte identified how Gen Z and Millennials are turning away from fast-paced career progression in favour of sustainable careers, reflecting wider generational trends that favour health, financial security, stability, skills development, and fulfilment.

Featuring 22,595 respondents from 44 countries, the findings indicate that financial pressure, wellbeing, and technology are the strongest accelerants of this shift.

For Deloitte Australia chief people and purpose officer Pip Dexter, “what stands out this year is the level of realism coming through the data. Gen Zs and Millennials are not disengaged from work or growth, but they are far clearer about what they are prepared to trade off.”

“They are looking for careers that are sustainable over the long term, and they expect employers to meet them there with the right support, skills and pathways,” Dexter said.

Rhiannon Yetsenga, associate director at Deloitte Access Economics, added: “Younger Australians are making career decisions against a backdrop of persistent cost-of-living pressure and growing concern about their financial future. This is shaping when they enter the workforce, the roles they pursue, and their expectations around pay.”

Cost of living, in particular, remains a top concern, rating number one for 46 per cent of Gen Zs and 54 per cent of Millennials in Australia; at the same time, 55 per cent of Gen Zs and 45 per cent of Millennials have delayed major life decisions due to finances.

While the survey found that housing affordability was less likely to influence Australian Gen Z and Millennial career decisions, this could point to the fact that it isn’t seen as a possibility, rather than it being less of a priority.

These generations are also choosing careers and advancements that align with their values and support balance, flexibility, and sustainability.

Purpose was almost universally cited as important to job satisfaction (98 per cent of Gen Zs and 99 per cent of Millennials), with 40 per cent rejecting a potential job for this reason.

Dexter said: “When work lacks meaning or balance, younger generations are prepared to walk away.”

Work/life balance was the top career goal for both generations, ranking above financial independence and leadership. While approximately three-quarters of Gen Zs and Millennials reported an interest in leadership roles, only 6 per cent of each generation identified it as the primary career goal.

Unsurprisingly, technology continues to define the perceptions and preferences of younger workers. While they lead on AI adoption – and usually exhibit the strongest digital literacy – training gaps and experience continue to be strong barriers to overall use, with only 37 per cent of Gen Zs and 55 per cent of Millennials finding employer-supplied AI tools are mostly or completely sufficient.

Yetsenga said: “The challenge for employers was never adoption but keeping pace with how quickly young Australians expect AI to be embedded into everyday work.”

Gen Zs and Millennials also lead the charge on mental health, with Australian workplaces showing especially strong confidence and communication. And it’s starting to affect organisations from the top down, with the rate of Gen Z and Millennials agreeing that employers are taking mental health seriously rising by 9 per cent and 6 per cent, respectively, between 2024 and 2026.

Similarly, comfortability in communicating about mental health with a manager has risen to 82 per cent for Gen Zs and 76 per cent for Millennials.

Dexter said: “It is very encouraging to see Australian workplaces continuing to lead globally on mental health, with employees feeling more supported and comfortable speaking openly at work.”

As Gen Zs and Millennials continue to make waves in the professional landscape, it remains to be seen what impact upcoming and future generations have on a continuously dynamic workplace.

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