72% Gen Z values job satisfaction, work-life balance over salary, study reveals

Gen Z is also keen on clear career progression, with many seeking a balance between a positive company culture and tangible opportunities for advancement.

As the newest generation enters the workforce, their approach to employment is reshaping corporate priorities. A recent study by talent platform Unstop has highlighted that, contrary to common assumptions, Generation Z employees are more focused on job satisfaction and work-life balance than merely earning a higher salary.

The study, which surveyed over 5,350 Gen Z employees alongside 500 HR professionals, found that 72% of Gen Z workers prioritised job satisfaction over pay. Additionally, 77% of respondents said they would prefer to work for a company offering growth and development opportunities rather than higher wages. The findings suggest a significant shift in workplace priorities compared to earlier generations, where long-term job stability and salary were often the key factors for employees.

Another key insight from the study is that nearly half of Gen Z professionals, around 47%, are considering changing jobs within the next two years in search of more meaningful and fulfilling work , Business Insider reported. Work-life balance has emerged as a crucial consideration, with 47% citing it as a make-or-break factor when evaluating new opportunities.

The study also revealed a disconnect between HR professionals and Gen Z employees regarding the latter's reasons for job-switching. While 78% of Gen Z respondents cited career growth as their primary motivator for changing jobs, 71% of HR professionals believed higher pay was the driving force behind job changes. In fact, only 25% of Gen Z workers considered salary the most important factor, underscoring the divergence in perceptions between employers and their younger workforce.

Gen Z is also keen on clear career progression, with many seeking a balance between a positive company culture and tangible opportunities for advancement. According to the survey, 44% of HR professionals believed that company culture would be the top priority for Gen Z workers. However, the findings indicate that this generation is equally focused on career growth and development.

Ankit Aggarwal, Founder and CEO of Unstop, emphasised the changing workplace landscape, noting, "For the youngest generation in the workforce, work isn't just a place you go to every day to get your account credited regularly. It has to fit into several key aspects of your life seamlessly."

Gen Z: The Emerging Workforce

Gen Z is projected to become a dominant demographic in the global workforce, with predictions from the World Economic Forum suggesting they will make up 27% of workers by 2025. By 2030, Adobe expects this figure to grow to 30%. In the U.S., Gen Z is already on track to surpass Baby Boomers in the workforce by the end of 2024, according to a report from Glassdoor.

As Gen Z continues to grow in numbers and influence, their expectations are likely to drive significant changes in how companies approach employee engagement, development, and work culture. Employers who adapt to these evolving priorities will be better positioned to attract and retain talent from this emerging generation.

Conclusion

The Unstop report offers crucial insights into the values and priorities of Gen Z employees. While salary remains a consideration, factors like job satisfaction, career growth, and work-life balance are far more significant in shaping their decisions. Employers and HR professionals must recognise these preferences to align recruitment strategies with the changing workforce dynamics.