The crucial ways for CEOs to understand Gen Z and Millennial needs

Generation Z and millennials drive our future workforce and bring innovation and new perspectives on leadership. Their well-being, talents, and productivity blossom when supported effectively. Deloitte’s 13th Gen Z and Millennial Survey, with insights from 23,000 respondents across 44 countries, reveals their perspectives on work, values, life-goals and the future.

This survey is meant to empower CEOs with the right insights to reach the new generations’ full potential. CEOs must not only meet talent needs but also address wider issues beyond conventional work concerns.

Navigating work-life balance

Throughout the pandemic, adoption of remote work exploded. Returning to the office presented new hurdles. While some noted enhanced engagement and collaboration, others faced elevated stress and reduced productivity—particularly noticeable among Gen Z and millennials.

More than 60% of respondents emphasised the need for flexible working conditions. Gen Z and millennials value work-life balance and flexibility, making it a top priority when choosing an employer. This preference is driving interest in non-traditional work options like part-time roles, job-sharing, and side gigs.

The call for flexibility in work schedules is driven by a growing emphasis on mental health. Roughly half of Gen Z (51%) and millennials (56%) rate their mental health positively. Despite a slight improvement from last year, stress levels are still significant, affecting 40% of Gen Z and 35% of millennials.

‘What’s my purpose?’

The younger generations’ return to offices has prompted them to reassess not just how work is done but the very workplace itself as well as their tasks. Indeed, 43% of both Gen Z and millennials might refuse tasks or roles that conflict with their personal ethics and values.

An overwhelming 86% of Gen Z and 89% of millennials report that having a sense of purpose in their job is crucial for their satisfaction and well-being. This highlights the significant role work plays in their identities, as the survey place work second only to family and friends.

For millennials, work holds particular importance, with 46% considering it central to their identity compared to 36% of Gen Z. While millennials place work above cultural activities and hobbies, Gen Z values cultural pursuits nearly as much as work. This reflects their early career stages and a generational move towards a more balanced-, value-based approach to work.

The demand for sustainability

Environmental concerns are still paramount for these younger generations. A substantial majority expressed dissatisfaction with corporate sustainability efforts. They are looking for companies to lead with strong environmental practices and social responsibility.

Companies that fail to act on climate change risk losing the loyalty of these young consumers and employees.

Questions for leaders to reflect on

• Are you able to offer a flexible work schedule or willing to experiment with new hybrid work setups?
• What are your employees’ main values, and what drives their motivation in their day-to-day life?
• How can your business enhance its sustainability initiatives to meet the expectations of Gen Z and millennials?

To dive deeper into the perspectives and expectations of Gen Z and millennials, explore the full 2024 survey here.