A profound generational shift, spearheaded by Generation Z (born 1997 onward), is redefining traditional milestones and success. Unlike previous generations who often pursued lifelong jobs, early homeownership, or wealth accumulation, Gen Z approaches these concepts with a "reasoned skepticism" and a pragmatic mindset, according to a massive new study from EY’s Generational Dynamics core team. This research, spanning over 10,000 young adults across 10 countries, labels Gen Z as the "pragmatic generation."
Redefining Success and Finances
Gen Z prioritizes long-term stability and redefines success on their own terms. While financial independence is important to 87% of Gen Z, only 42% consider wealth a primary marker of success. Instead, they value mental and physical health and family relationships far more. For them, money is a tool to achieve flexibility, purpose, and well-being, not an end goal in itself. This contrasts sharply with the outdated notion that young adults are postponing adulthood; instead, they are approaching life milestones with a global perspective and a strategic approach.
The Rise of the "Job Hoppers"
Gen Z is dismantling the traditional concept of lifelong employment. EY's research indicates that 59% of young adults expect to work for two to five organizations throughout their lives, with nearly 20% anticipating six or more employers. This flexible approach to employment, which includes embracing job changes and gig work, is a strategic response to rapid change and economic instability. It's not merely a reaction to financial constraints but a thoughtful decision that aligns with their lived experiences and the pitfalls observed in previous generations. They view job hopping as an essential step for career advancement and opening new opportunities, a perspective that defies the "pull yourself up by your bootstraps" mentality of older generations.
An Inside-Out Approach to Life
Success for Gen Z is an "inside-out project," emphasizing emotional well-being, strong relationships, and societal impact over titles and salaries. Traditional milestones like homeownership, lifelong employment, marriage, and children are often postponed not due to rejection, but for pragmatic reasons such as economic insecurity, housing unaffordability, and a desire to be emotionally and financially prepared. They feel like adults earlier than previous generations, with over half (51%) prioritizing physical and mental health as chief markers of success. Authenticity is also paramount, with 84% citing "being true to oneself" as extremely important.
Implications for Employers
This new pragmatism presents both a wake-up call and an opportunity for employers. Gen Z will not be held by money alone; they prioritize purpose, wellness, and flexibility, even if it means sacrificing job security or long-term benefits. Conventional incentives are losing their effectiveness.
To attract and retain this generation, employers must:
Embrace flexibility: Offer hybrid and remote work options, fluid hours, and support for "micro-retirements."
Demonstrate clear values: Be transparent about values around well-being, sustainability, and social justice, and actively act on them. Over 70% expect transparency about values and pay, and are unafraid to challenge leadership.
Prioritize growth and development: Gen Z quickly leaves if growth stalls, with 57% willing to quit for better professional development. They crave mentorship, personalized learning, and upward mobility.
Foster loyalty through reciprocity: Gen Z has low brand or employer loyalty unless it is returned. Empathetic leadership and honest, two-way communication are expected, not a bonus.
Include them in decisions: Gen Z expects a seat at the table and wants to be included in company decisions. This aligns with research indicating that emotional intelligence is now a standard expectation for managers.
Employers slow to adapt to these realities risk not only struggling to recruit Gen Z but also losing overall relevance. The pragmatic playbook requires companies to redesign everything from hiring and communication to values and pay structures.
Do you have any questions about how your organization can adapt to these shifts, or would you like to explore specific aspects of Gen Z's characteristics in more detail?