What Gen Z and Millennials Want: How to Attract and Retain Them

Organizations must tackle a trifecta of money, meaning and well-being if they want to attract and retain top rising talent, according to a new research report from consulting firm Deloitte. 

Key takeaways from the study, which included a survey of more than 23,000 Generation Z and millennial workers across 44 countries, include:

• Eighty percent of Gen Zs and millennials are stressed about money. Forty-eight percent of Gen Zs and 46% of millennials do not feel financially secure in 2025, up from 30% of Gen Zs and 32% of millennials in 2024. More than half of both generations live paycheck-to-paycheck, and 40% are concerned about their ability to retire comfortably.
• Just 52% of Gen Zs and 57% of millennials reported good mental health. Among those who did, 67% of Gen Zs and 72% of millennials felt their job allows them to make a meaningful contribution to society.
• Almost half of respondents (41% of Gen Zs and 46% of millennials) said their primary job is central to their identity. Most Gen Zs (89%) and millennials (92%) consider a sense of purpose integral to job satisfaction and well-being, up from 86% of Gen Zs and 89% of millennials in 2024.
• Purpose and ethics are intrinsically linked to job satisfaction. Nearly half of respondents (44% of Gen Zs and 45% of millennials) have left a role they felt lacked purpose, and around 40% of both groups have rejected an assignment, project or potential employer based on their personal ethics or beliefs.

“Gen Zs and millennials are taking a holistic approach to total rewards in the workplace,” said Elizabeth Faber, the global chief people and purpose officer at Deloitte. “Money is only one piece of the puzzle when it comes to a person’s happiness and job satisfaction, but it is, of course, foundational.”

Assembling the Total Rewards Puzzle

Gen Zs and millennials are projected to make up 74% of the global workforce by 2030, so understanding their motivations and attitudes inside and outside the workplace is important to an organization’s long-term success, Faber said.

“Our survey identified a clear shift in how younger workers define success, with only 6% of Gen Zs saying that reaching a senior leadership position is a primary career goal,” she said.

But this doesn’t mean Gen Zs lack drive; rather, it signals an evolution in priorities among younger generations, Faber added.

“Many are actively focusing on developing skills that could help advance their careers, with 70% saying they spend time on skills development at least once a week,” she said. “This demonstrates that these generations are less concerned with climbing the corporate ladder and are instead placing more value on learning opportunities and career growth, along with other factors like mental well-being and work-life balance, to fulfill their ambitions.”

Prioritizing learning and development offerings will be key for organizations — now and into the future, Faber said.

But don’t skimp on the basics; competitive pay and flexibility are still critical, said Allison Vaillancourt, the vice president of the organizational effectiveness practice at HR and benefits consulting firm Segal.

“While both generations would like their work to align with their personal values, affording groceries, discharging student loan debt and saving up for a house downpayment matters more,” she said. “As inflation persists and housing costs continue to increase, Gen Z and millennial workers feel squeezed, and they are focused on economic survival above all else.”

And while Gen Z and millennial workers may enjoy the sense of community that comes from working with others, they may want to choose their own hours and work from home at least part of the time, Vaillancourt said. Employers that offer flexibility in terms of hours and work location may have a competitive advantage.

“Several employers have reduced flexibility, constrained pay and reduced efforts to make employees feel empowered, thinking that a cooling labor market means they can lighten up on employee-centric programs and services,” she said. “While the labor market is not as tight as it was a few years ago, there is still a fierce battle for top talent.”

Supporting the Future Workforce

According to Vaillancourt, total rewards professionals can focus on several key areas to address the trifecta of rewards sought by young talent. She advised:

• Be strategic about compensation. Offer pay that meets or exceeds market rates, practice pay transparency and add surprising but affordable benefits to the total compensation package, such as a free Spotify subscription or mediation app.
• Provide flexibility. Let teams choose where and when to work, and provide generous paid time off (PTO) benefits.
• Create a culture of continuous development. Clearly define career paths, train managers to provide actionable feedback, offer stretch assignments and use creative titling structures to enable employee “promotions” as they acquire new skills.

Because there is no one-size-fits-all approach, Faber said every organization’s strategy will look different. She recommended that thoughtful leaders:

• Re-examine their benefits and compensation;
• Invest in more learning and development or well-being opportunities; and,
• Re-evaluate how to clearly define and communicate organizational purpose to help employees find meaning in their work.

“For many, workplace happiness comes down to money, meaning and well-being,” Faber said. “Employers should focus on helping their people balance these three interconnected areas, while also helping them build the skills needed to thrive in today’s rapidly evolving world of work. Those that do will likely be better positioned to attract talent, reduce turnover and build a strong pipeline of future leaders.”

Editor’s Note: Additional Content

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