Ireland's Gen Z workers are far less naïve than millennials. They can't afford to be

Gen Z are interested in meaningful work but insist on being paid accordingly. They are less interested in whether their office has beer on tap or ping pong tables.

Beanbags, free beer, and bring-your-pet-to-work days: these are often thought to attract Generation Z graduates. Because Gen Z doesn’t care about salary, only some vague notion of “meaningful” work, right?

Nothing could be further from the truth.

The pandemic, mass layoffs, soaring living costs and geopolitical uncertainty have reshaped the priorities of recent graduates. 

Unlike Millennials, who were said to value “meaningful” and “mission-driven” work ahead of traditional benefits, Gen Z is focused on financial stability and career progression.

Studies indicate over 62% of Gen Z prioritise salary above job satisfaction, company culture and social impact initiatives. This emphasis on compensation stems from the economic hardships they face, with over 50% “extremely worried” about not having enough money and 39% citing financial insecurity as their top stressor. 

A desire for rapid career growth and advancement is also palpable among Gen Z, with many candidates expecting a promotion within their first year on the job.

With financial considerations and quick promotions taking precedence, Gen Z is reporting higher job dissatisfaction than other generations. Unrealistic workplace expectations, partly fuelled by social media influencers dispensing prescriptive career advice on LinkedIn, TikTok and YouTube, may contribute to this dissatisfaction.

Not only does Gen Z have a constant sense of the grass always being greener elsewhere, but productivity-obsessed influencers and gurus often try to instill feelings of guilt or shame into those who spend their weekends hanging out with friends or watching Netflix — rather than taking ice baths and running marathons.

Mental health crisis

But the mental health crisis is real. Over 64% of employers report an increase in student hires seeking help with mental health issues and nearly a third report lower-than-expected ‘resilience’ in graduate hires. 

However, this may be less about a lack of inner resilience and more about Gen Z’s refusal to sacrifice mental health for career progression. It shouldn’t be “either-or”. Employers have a responsibility to create supportive environments where employees feel comfortable seeking help for psychological struggles.

Yet the most significant factor behind this seismic shift in graduate expectations may be an overall shift in the employer-employee relationship and a widespread erosion of trust in leadership.

While Gen Z are prioritising job security, compensation and career progression, this should not be confused with a return to a ‘traditional’ benefits package. In the past, an employee could expect a good salary, pension, perhaps health and insurance benefits — and a career they could grow at one company for 20 years. By contrast, over half of Gen Z have already been employed in multiple companies already in their short careers.

Gen Z aren’t job hoppers by choice — it’s a forced necessity. While millennials were sold on false promises that sacrificing salaries and traditional benefits initially for more “meaningful” work — with expectations to be always “on” and digitally available — would lead to a steady climb up the career ladder and pay scale, Gen Z are far less naïve.

They can’t afford to be.

While early 2019 research showed recent graduates did not consider compensation to be the leading factor when making career decisions, 2020 saw a distinct shift in priorities. On the heels of an economic collapse brought on by the pandemic, Gen Z witnessed high-profile layoffs, job freezes, rescinded job offers, and a state of total uncertainty. Compensation became more critical than company culture or job satisfaction.

Demand for high pay

A brief economic recovery in mid-2021 to early 2022 deepened the demand for high pay and quick promotions, as graduates enjoyed a seemingly thriving economy. 

However, by late-2022 the rebounding economy was beginning to falter. Further economic turmoil and fresh layoffs soon followed, eroding confidence in job prospects.

Mass layoffs, particularly in tech, are still a regular occurrence. Uncertainty remains the only constant.

The fallout of this turmoil and the overall erosion of trust in leadership isn’t unique to Gen Z. Microsoft research found lack of confidence in leadership was the main reason workers (at all levels) switched roles last year, with over half the survey respondents deeming their leadership out of touch, along with finding trust difficult to build in their current workplace.

To attract and retain Gen Z workers, organisations must understand caring about compensation is a baseline requirement. It's not necessarily about the money itself, but the psychological safety of having a salary that can support them in these turbulent economic times, tremendous geopolitical unrest and unprecedented uncertainty. Gen Z, while driven by an entrepreneurial spirit, desires job stability, security and clear career progression.

The rise of remote and hybrid work introduces new complexities. Virtual communication barriers and feelings of isolation challenge professionals trying to build meaningful connections. Misalignment can be more likely to creep in under remote conditions, and it is often harder for dispersed employees to connect with their organisation’s mission, vision and values.

In a recent IMI focus group, senior managers from top tech companies noted recent Gen Z hires, working under remote and hybrid conditions, were not progressing like previous entirely office-based cohorts. This has been primarily attributed to a loss of ‘osmosis learning’, whereby employees soak up critical knowledge from working in physical proximity to experienced peers.

Challenges of remote and hybrid working

But remote and hybrid working is here to stay — and it’s the responsibility of management and leadership teams to overcome the challenges such models give rise to. Gen Z embraces remote work but also craves in-person interactions and collaborative environments. While hybrid roles should blend the best of both worlds, there’s still a lot of work to be done.

Investment in upskilling and continuous learning is crucial: not only for graduates to keep pace with evolving technologies, but also to develop and enhance communication skills, emotional intelligence and adaptability. Eighty-seven per cent of undergrads say learning and development benefits are important when evaluating job opportunities, and 23% would consider resigning if these opportunities are not offered.

IMI’s graduate development programme gives graduates and developing talent the commercial acumen, leadership and critical thinking skills needed in the workplace, accelerating the development of top young talent and creating the next generation of leaders for the Irish economy and beyond.

Simultaneously, Gen Z is also keen on artificial intelligence (AI) and its transformative potential. Familiarity with AI tools is widespread, with many seeking to harness AI in their careers. 

Organisations must navigate AI integration while ensuring employees have the skills to thrive in an AI-driven workforce, along with addressing fairness, bias and transparency in AI recruitment processes. Technology is the greatest driver of human flourishing, and AI may become the greatest driver of workplace productivity, but the process is not automatic and requires intervention.

Employers are facing challenges in attracting and retaining Gen Z graduates. Engaging employer branding, personalised communication, and a focus on sustainability and diversity remain essential, but fair compensation is crucial. 

Organisations must continue to prioritise flexibility, learning and development opportunities, and robust mental health support. Gen Z are interested in meaningful work but insist on being paid accordingly. They are less interested in whether their office has beer on tap or ping pong tables — Gen Z want employers who invest in their professional development through L&D.

Invest in your graduates and regain the trust eroded in recent years. For organisations prioritising transparency and fairness, there is a great opportunity to win with Gen Z.

• Ben Davern is head of Research and Insights at the Irish Management Institute