What measures can employers take to keep Gen Z employees engaged?
The cost-of-living challenges in Australia are impacting young employees' aspirations in the workplace, as a new report found that pay has surpassed purpose when it comes to Gen Z employees' priorities.
Findings from Deel's latest research showed that 85% of Australian Gen Zs are carrying at least one workplace worry, with financial instability being their most common concern.
The report found that 48% of Gen Z employees struggle with costs or fear of income loss, while 37% worry about burnout.
This is also reflected in their long-term goals, as 68% identified financial security as one of their goals in the next 10 years.
Shannon Karaka, Deel's country manager for Australia, said their findings shed light on Gen Z's aspirations, their worries, and their priorities.
"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 in a statement.
What do Gen Z employees want?
The data comes as Gen Zs officially become the youngest members of the labour force, with Australian Bureau of Statistics data showing that workers aged between 18 and 29 will now make up almost a quarter of the country's workforce.
Deel's findings revealed that 72% of Australian Gen Z workers are now prioritising pay that keeps up with living costs, followed by job security (57%).
Learning and career development emerged as the fourth-highest priority (47%) among Gen Z employees, followed by work that aligns with their values (44%).
The report further found that 72% of Gen Z employees are now taking on extra work or are looking for it, with about 40% already doing paid work outside their main job.
According to the findings, about half of those who have extra work cited financial needs, while the other half said they do so because they enjoy it.
"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," Karaka said.
"If workplaces are going to attract and retain young people, they need to understand the fundamentals of what motivates them. And that starts by moving past the stereotype. Our data shows Gen Z aren't the entitled, job-hopping generation they're often painted to be."
