Forget passion – the Gen Z dream is stability

The myth that younger workers are entitled, job-hopping and lazy is very quickly being replaced by the reality that they are facing – and it’s starting to impact businesses.

In the third instalment of its “How We Work Series”, Deel research revealed the extent to which young workers are grappling with the new Australian dream.

According to What Gen Z Workers Want – Australia, more than half of young workers rank pay as their top priority, with living costs polling at 72 per cent and job security at 57 per cent.

Learning and career development – arguably tied to job security, and more so in the age of AI – as well as work that aligns with values, and flexibility, ranked third and equal fourth at 47 per cent and 44 per cent, respectively.

In the same vein, 68 per cent said achieving financial security was one of their top goals in the next decade.

With workers in the Gen Z age bracket – 18 to 29 – now making up 24 per cent of the workforce, with the numbers only rising, the findings suggest some of the toughest labour and economic conditions for young employees.

Deel Australia country manager Shannon Karaka said the research also reveals deficiencies in contemporary workplace sentiment around young workers.

“This is a generation that has done the maths. Gen Z are prioritising pay over purpose, as they deal with increasing cost-of-living pressures,” he said.

“By 2030, Gen Z will make up almost a third of the workforce across OECD countries. But they remain poorly understood in the workplace.”

Karaka said workplaces need to understand the fundamentals of Gen Z priorities if they are going to attract and retain this ever-growing workforce – and it begins with moving past stereotypes.

Core to this is acknowledging the conditions during which many young workers entered the workforce, including a pandemic, cost-of-living crisis and global instability. In accordance with these factors, 85 per cent of Australian Gen Z workers agreed that they carry at least one workplace worry, with nearly half citing concerns about costs or losing their income, while 37 per cent fear burnout.

At the same time, many Gen Z workers have or are looking for additional work or a side hustle – revealing the core contradiction that seemingly demands workers choose between money and wellbeing.

The survey found that 72 per cent of young employees either have extra work or are looking for it, while 40 per cent already complete paid work outside of their main job. Within this proportion, at least half say finances are the primary reason, while another half are passion-motivated.

In this way, those pursuing their dreams often sacrifice extra income or recovery time.

As recently reported, Future of Work expert Dr Jo Winchester said financial anxiety is dictating career selections that can accelerate burnout and poor wellbeing.

In the current employment conditions, employers are being urged to offer flexible working where they can, and consider non-monetary and/or wellbeing support if salary increases are not possible.

“The businesses that win over Gen Z and keep them engaged won’t be the ones with the slickest purpose statement. They’ll be the ones that pay fairly, offer security and show young people a way forward,” Karaka said.

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