Gen Z, the generation that follows Millennials, is opting to "work to live" rather than "live to work" like the generations before them. They believe that they are not getting the same rewards for their hard work, according to Ravin Jesuthasan, global leader for transformation services at consulting firm Mercer and a future-of-work expert. Speaking to Business Insider at the World Economic Forum in Davos, Switzerland, Jesuthasan explained that Gen Z has a different attitude towards work because they are one of the first generations that will not have wealth greater than that of their parents or grandparents. Additionally, they have already experienced significant disruptions like the COVID-19 pandemic.
Jesuthasan said that Gen Z has more of an "attitude of work to live" because they have seen the legacy of broken promises. In the past, many companies would promise employees a defined benefit pension, retiree medical care, and other benefits if they worked with them for 30 years. However, these promises have been taken away from their parents and grandparents, and now Gen Z believes that they are only as good as the value they deliver today. As a result, they want to work on their terms, and companies need to meet them on an individual basis.
Gen Z has watched as millennials struggled through economic hardships, including multiple recessions and a pandemic that put a dent in their income and dreams of homeownership. Due to the increased cost of living, skyrocketing house prices, and student debt, millennials are struggling to accumulate wealth and buy homes. As a result, Gen Zers are quitting their jobs or taking a step back at work because they are painfully aware that their hard work could amount to nothing.
Jesuthasan believes that companies need to start meeting people on their individual terms rather than taking a one-size-fits-all approach. This includes being able to pick and choose a "portfolio of rewards." Gen Z has been criticized for their flippant attitude towards work, with one survey last year finding that 74% of managers say they're the most challenging generation to work with. However, these accusations may not be entirely accurate, as Gen Z is facing setbacks due to high levels of inflation and rising prices. They are even shopping less and eating at home more to save money. The younger generation has hit back at some of these accusations, saying that they're not prioritizing work because wages have stagnated, they're unfulfilled by the mundane nine-to-five life, and they're burned out.