The Deloitte Global 2022 Gen Z and Millennial Survey

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The Deloitte Global 2022 GEN Z & MILLENNIAL SURVEY
The Great Resignation may continue for some time. While job loyalty is up slightly from last year, four in 10 Gen Zs and nearly a quarter of millennials would like to leave their jobs within two years

Marking its 11th annual edition, Deloitte 2022 Gen Z and Millennial Survey connected with respondents around the globe to gauge their views about work and the world around them.

The survey fielded between November 2021 and January 2022, and the subsequent qualitative interviews, held in April 2022, found Gen Zs and millennials navigating a very uncertain time.

When Deloitte fielded last year’s survey, the world was in the midst of the second year of the COVID-19 pandemic, just as vaccines were starting to roll out.

It had been a difficult year, but the survey revealed that Gen Zs and millennials were determined to create a better post-pandemic world. Fast forward to 2022 and, unfortunately, economic conditions and quality of life have deteriorated in many parts of the world.

Now in the third year of the pandemic, we’re also facing alarming geopolitical conflicts, extreme climate events, inequality, and a steep rise in inflation. Rather than being a temporary condition, disruption seems to have become part of the new normal.

This year’s survey found that Gen Zs and millennials are deeply worried about the state of the world and are fighting to reconcile their desire for change with the demands and constraints of everyday life. They are struggling with financial anxiety while trying to invest in environmentally sustainable choices.

They feel burned out, but many are taking on second jobs while pushing for more purposeful—and more flexible—work. They press their employers to tackle climate change, particularly when it comes to efforts they can get directly involved in, but businesses may still be missing opportunities to drive deeper and broader climate action.

They have inspired organizations to take action to address workplace mental health, but they are not always comfortable talking about these issues or taking advantage of the resources available.

The unprecedented circumstances of the past few years have prompted many people around the world to rethink their priorities, leading to the Great Resignation.

This time of historic voluntary turnover presents significant opportunities for millennials and Gen Zs.

As this year’s survey results indicate, the sustained workplace changes they’ve been asking for—including higher compensation, more flexibility, better work/life balance, increased learning and development opportunities, better mental health and wellness support, and a greater commitment from businesses to making a positive societal impact—are also the strategies that will help employers attract and retain talent.

Struggling with the cost of living and financial concerns Gen Zs (29%) and millennials (36%) selected cost of living (e.g., housing, transport, bills, etc.) as their greatest concern.

Of note, 12% of Gen Zs and 11% of millennials selected political instability, war, and conflicts between countries as their greatest concern, percentages that likely would have been much higher if the survey had been fielded just a few months later, as Russia invaded Ukraine.

Concerns about the cost of living may be a symptom of the times, given high levels of inflation, but they also speak to issues that these generations have been expressing for years: that they don’t feel financially secure personally, and at a broader societal level, they are deeply concerned about wealth inequality.

  • Almost half of Gen Zs (46%) and millennials (47%) live paycheck to paycheck and worry they won’t be able to cover their expenses.
  • More than a quarter of Gen Zs (26%) and millennials (31%) are not confident they will be able to retire comfortably.
  • Around three-quarters of Gen Zs (72%) and millennials (77%) agree that the gap between the richest and poorest people in their country is widening.
  • Amid this financial unease, many Gen Zs and millennials are redefining their working patterns.
  • As many as 43% of Gen Zs and 33% of millennials have a second part- or full-time paying job in addition to their primary job. A small, but a growing, percentage are also moving to less expensive cities with remote jobs.

Deloitte 2022 Gen Z and Millennial Survey on The Great Resignation signals a breaking point, and an opportunity to reassess how we work

The Great Resignation may continue for some time. While job loyalty is up slightly from last year, four in 10 Gen Zs and nearly a quarter of millennials would like to leave their jobs within two years, and roughly a third would do so without another job lined up, signaling significant dissatisfaction levels.

But businesses can learn from this period and implement workplace changes that will help to attract and retain talent.

  • Pay is the No. 1 reason why Gen Zs and millennials left a role in the last two years. However, good work/life balance and learning/development opportunities were the top priorities when choosing an employer.
  • Aligning with Gen Zs’ and millennials’ values is also key. Nearly two in five say they have rejected a job or assignment because it did not align with their values.
  • Meanwhile, those who are satisfied with their employers’ societal and environmental impact, and their efforts to create a diverse and inclusive culture, are more likely to want to stay with their employer for more than five years.

There is also an apparent demand for more flexible working:

Currently, 49% of Gen Zs and 45% of millennials work remotely at least some of the time, while three-quarters say this would be their preferred mode of working. Saving money, freeing up time to do other things they care about, and spending more time with family are the top reasons Gen Zs and millennials like to have the option to work remotely.

Deloitte 2022 Gen Z and Millennial Survey on Prioritizing sustainable choices and environmental action by employers

Protecting the environment remains a top priority for Gen Zs and millennials. About three-quarters of respondents believe the world is at a tipping point in responding to climate change, but less than half are optimistic that efforts to protect the planet will be successful.

Deloitte 2022 Gen Z and Millennial Survey on Workplace mental health continues to be a challenge

Gen Zs are regularly stressed and anxious. Nearly half say that they feel stressed all or most of the time. Millennial stress levels are also high but are down slightly from last year. Long-term financial futures and day-to-day finances continue to be top stress drivers for both generations.

Meanwhile, burnout is very high among both generations, and signals a major retention issue for employers:

  • 46% of Gen Zs and 45% of millennials feel burned out due to the intensity/demands of their working environments.
  • 44% of Gen Zs and 43% of millennials say many people have recently left their organization due to workload pressure.

Employers do seem to be making progress when it comes to prioritizing mental health and well-being in the workplace. More than half agree that workplace well-being and mental health have become more of a focus for their employers since the start of the pandemic.

However, there are mixed reviews on whether the increased focus is having a positive impact.

In the third year of the pandemic, Gen Zs and millennials are adapting. Health care/disease prevention, a predominant concern last year, is now slightly less pressing as vaccines and therapeutics to fight COVID-19 have become more widely available and adopted.

Gen Zs and millennials also continue to be very concerned about wealth inequality, and trust in business is declining.

  • 72% of Gen Zs and 77% of millennials agree that the gap between the richest and poorest people in their country is widening.
  • Only 28% of Gen Zs and millennials expect the economic situation in their country to improve over the next 12 months, consistent with last year’s findings.
  • Less than half of Gen Zs (45%) and millennials (44%) agree business is having a positive impact on society, marking the fifth consecutive year this percentage has dropped.

Deloitte 2022 Gen Z and Millennial Survey on The financial benefits of hybrid working

Saving money—on expenses like commuting, clothes, dry cleaning, and more—is one of the top reasons that many Gen Zs and millennials prefer hybrid or remote work.

A smaller percentage are taking advantage of remote work to relocate to less expensive cities. This appears to be a growing trend, with roughly 15% of Gen Zs and millennials.

The focus on learning and development is perhaps not surprising given evolving work demands and skills requirements. Gen Zs (37%) and millennials (38%) predict that the most notable workplace shift within the next 10 years will be artificial intelligence (AI) and other technologies being used to fully automate many jobs or job functions. So, employers who can help professionals adapt to this changing workplace are likely more appealing.

The purpose is also critical. Gen Zs and millennials are willing to turn down jobs and assignments which don’t align with their values. This is particularly true among Gen Zs and millennials in leadership positions.

Nearly two in five (37% of Gen Zs and 36% of millennials) say they have rejected a job and/ or assignment based on their ethics Nearly half (46%) of Gen Zs and millennials in senior positions have rejected a job and/or assignment based on their personal ethics While societal and environmental impact.

A diverse and inclusive culture, are not always at the top of the priority list when choosing a job, these continue to be critical issues in terms of retention. Those who are satisfied with their employers’ societal and environmental impact and their efforts to create a diverse and inclusive environment are more likely to want to stay with their employers for more than five years.

Deloitte 2022 Gen Z and Millennial Survey on Empowering people to drive change within their organizations is key to fostering a sense of belonging and driving loyalty

Gen Zs and millennials aren’t afraid to speak up to ask for change, but it’s critical for employers to listen to their people, across all levels, and implement their feedback. While just over half of respondents feel their organization does a good job on this front, roughly a third don’t feel empowered to drive change.

32% of Gen Zs and 33% of millennials say decisions are made from the top down within their organizations and employee feedback is not often acted upon Gen Zs and millennials in senior leadership positions are more likely to say their organization seeks input from employees at all levels and incorporates their feedback.

  • 65% of Gen Zs in senior positions agree with this statement versus 43% in junior positions
  • 64% of millennials in senior positions agree with this statement versus 37% in junior positions

This suggests that organizations have work to do to ensure that all professionals feel empowered to speak up and drive change within their workplaces. Gen Zs want workplaces with less rigid hierarchies, where they feel they can speak openly with their employers, and where they can be part of shaping their workplace’s culture.

Empowering people across an organization helps foster a more inclusive environment.

Of the 52% of Gen Zs and millennials who feel empowered to drive change within their organizations, 89% of Gen Zs and 90% of millennials say they feel a sense of belonging.

When people feel their voices are heard, they tend to feel more connected and loyal to their organizations.

Deloitte 2022 Gen Z and Millennial Survey on There’s a huge demand for more hybrid ways of working, but businesses have work to do to get it right

The pandemic has accelerated remote work and many would prefer not to go back to the office, at least not full time. The vast majority of Gen Zs (75%) and millennials (76%) would prefer working patterns where they either split their time between remote and on-site work or work entirely from home.

This is, however, significantly higher than the proportion currently able to do so—only 49% of Gen Zs and 45% of millennials say they currently have the option to work remotely at least some of the time.

In addition to where they work, Gen Zs and millennials want flexibility in how and when they work. They’d like their organizations to offer flexible working hours and potentially reduced work weeks. They see flexible work as an important strategy to enable better work/life balance.

Deloitte 2022 Gen Z and Millennial Survey on Those who have been able to work remotely cite benefits such as:

  • Frees up time to do other things I care about.
  • Helps me save money
  • Allows me to see family more often
  • Makes getting work done easier
  • Positively impacts my mental health

While the survey shows a clear case for enabling flexible and hybrid working, it also highlights the challenges that it can bring if not effectively implemented. One in five Gen Zs and millennials who have worked remotely say it has made forming connections with colleagues more difficult, and just under 14% say it made opportunities for mentorship or sponsorship harder to find.

Deloitte 2022 Gen Z and Millennial Survey on Hybrid work and equality

At a global level, this survey did not find significant differences between genders when it comes to working pattern preferences. But, several other studies have shown that women and minorities are more likely to prefer remote work, compared to their white male colleagues.

As a result, there are concerns that hybrid work could deepen inequalities, as in-office workers have more contact with managers and leaders, potentially leading to more opportunities to progress in their careers.

However, many in-person workplaces aren’t equitable either. The gender pay gap, along with the relatively small proportion of women and minorities in leadership roles, underscores that.

Hybrid work is not a cure-all for inequality in the workplace. But giving people the flexibility to work where and when they want is a critical starting point to address inequities in the workplace and enable better work/life balance.
Businesses have a responsibility to make hybrid work arrangements work for everyone.

A big part of that will be fostering more diverse and inclusive work environments, which account for different working patterns and preferences.

Deloitte 2022 Gen Z and Millennial Survey on Key takeaways for business leaders

Support people struggling with economic uncertainty and financial stress One of the most direct actions organizations can take to address wealth inequality is to focus on supporting their own people.

By understanding employees’ priorities, organizations can align benefits and compensation accordingly. Competitive salaries are important, as are benefits like paid time off, health care, and retirement savings.

But there are more organizations can do: they can offer financial education and resources, given finances are such a significant source of stress for young people. They can offer learning and development opportunities that help employees to advance professionally.

And they can offer flexible work models that enable people to take the time they need for personal responsibilities. Another key factor is focusing on closing the pay gap, which will include working to ensure that women and minorities are represented at all levels and that they have equal opportunities to grow.

Empower people to lead and drive change

Gen Zs and millennials want to make their voices heard and drive change. The Great Resignation has made this even more critical for employers to pay attention to.

Gen Zs and millennials are demanding workplace changes that they’ve long been asking for, and if these changes don’t happen, many are willing to leave. Beyond better compensation, work/life balance, learning and development, and flexibility, they want to derive a sense of meaning from their work, and to work for organizations that are having a positive societal impact.

To attract and retain talent, business leaders need to listen to their people and empower them to drive change. They can do so through initiatives like reverse mentoring, and by providing opportunities for upskilling and stretch projects, which give people opportunities to grow and explore their potential.

Deloitte 2022 Gen Z and Millennial Survey on Implement hybrid work strategies

The last few years have shown many organizations that remote, or hybrid work is possible for a wide range of roles, and many people prefer these arrangements. They value the flexibility and the potential for better work/life balance that it brings.

With this in mind, businesses should develop hybrid work strategies that enable employees to choose where and when they work. The key to creating an effective hybrid work strategy is offering flexibility while fostering an inclusive workplace culture, where everyone has equal opportunities to form connections, learn, grow, and advance in their careers.

There are several strategies that organizations can leverage to ensure that those who choose to spend less time in the physical office are not penalized for it. Steps in this direction include unconscious bias training for leaders to prevent and overcome proximity bias, tracking promotion rates to ensure that remote workers are promoted at the same rate, and managers schedule equal one-on-one time with their reports, regardless of where they work.

Deloitte 2022 Gen Z and Millennial Survey on Prioritize climate action, and empower people to help

Gen Zs and millennials believe that urgent action is needed to address climate change. They are doing their part to reduce their personal environmental impact, and they want businesses and governments to do more.

Businesses have a need and an opportunity to provide more sustainable products and services. And as employers, they should set climate strategies and look for ways to consistently engage and inspire their people to take part.

This includes everyday actions like banning single-use plastics. It should also include longer-term strategies to achieve net-zero greenhouse gas emissions, which will require efforts such as educating people about how to make sustainable choices, offsetting current carbon emissions, reducing business travel, and greening office locations, fleets, and supply chains.

Gen Zs and millennials care about these issues, and they want to be directly involved. By empowering their people to help fight climate change, businesses will be better positioned to drive change at scale.

Deloitte 2022 Gen Z and Millennial Survey on Support better workplace mental health

Stress and anxiety levels are high among Gen Zs and millennials and are unlikely to ease as global threats continue to affect their daily lives and shape their long-term view of the world.

In this context, business leaders have a crucial role to play in supporting mental health at work, and in mitigating the causes of stress and burnout. Providing better mental health resources is a critical first step—from supportive leaders to educational resources, to company-sponsored counseling or therapy.

To ensure that people feel comfortable accessing these resources, business leaders must make a consistent and vocal commitment to designing stigma-free work environments that value well-being, where workers feel able to speak up about their needs without fear of judgment.

The trust needed for people to open up and seek help rests on the everyday behaviors and accessibility of their managers, which is why business leaders must act on building empathetic leadership skills, and helping managers learn how to recognize and help with mental health challenges.

Organizations should also take a broad view of their employees’ well-being. Disruption is here to stay, which means it’s important for employers not only to try to help reduce stress and anxiety levels but also to help address their root causes.

This includes showing people how to set boundaries to protect their work/life balance and supporting them in doing so. It also means having a clear purpose and allowing employees to address societal problems through their work.

Deloitte 2022 Gen Z and Millennial Survey on Research Methodology

Deloitte 2022 Gen Z and Millennial Survey reflect the responses of 14,808 Generation Zs and 8,412 millennials (23,220 respondents in total), from 46 countries across North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia-Pacific.

The survey was conducted using an online, self-complete-style interview. Fieldwork was completed between 24 November 2021 and 4 January 2022.

In addition to the survey, in April 2022, a virtual qualitative assessment was conducted with 15 Gen Zs and millennials from Australia, India, Japan, the UK, and the US.

The participants shared their thoughts on questions related to their societal concerns, finances, the future of work, climate change, and mental health. Their quotes are included throughout the report, attributed to them by first name, age, and location.

To ensure that the initial survey results and report content did not influence their responses, the participants were not given an advance copy of this report to review. Their views are their own and do not necessarily represent Deloitte’s views.
The report represents a broad range of respondents, from those with executive positions in large organizations to others who are participating in the gig economy, doing unpaid work, or are unemployed.

Additionally, the Gen Z group includes students who have completed or are pursuing degrees, those who have completed or plan to complete vocational studies, and others who are in secondary school and may or may not pursue higher education.

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