Millenials and Gen Z can engage but demand change

A Gallup poll of the US population hints at a trend that appears to be global. According to the research, "detachment" is general, but there are marked contrasts according to age. While older people grew up with the imaginary that a permanent job was the ultimate aspiration (because of its benefits: secure salary, contribution, smooth retirement, possible promotions), younger people entered the workforce with different paradigms. The have learned that they can work from different places, for different companies; that flexibility is almost or more important than salary; that personal life is part of the equation, and that non-linear careers do not mean instability, but different professional growth.

Let's take a look at some of Gallup´s study findings:

• Since March 2020, the percentage of engaged baby boomers (born between 1946 and 1964) has increased by two percentage points, from 34% to 36%. In parallel, the percentage of actively disengaged baby boomers has decreased by the same proportion, from 17% to 15%. This means that baby boomers have maintained a positive engagement ratio of 2.4 (for every actively disengaged employee, there are more than two engaged).

• The percentage of engaged Generation X employees (born between 1965 and 1979) has dropped four points, from 35% to 31%. Meanwhile, the percentage of actively disengaged Generation X employees has increased by one point, from 17% to 18%. This means that Gen X employees have seen their engagement ratio drop from 2.1 to 1.7. In other words: for every actively disengaged employee, there are now fewer than two engaged.

• The most drastic decline in engagement is among the younger generations, especially the millennials (born between 1980 and 1988). The percentage of engaged older millennials has dropped seven points, from 39% to 32%, while the percentage of actively disengaged older millennials has increased five points, from 12% to 17%. Older millennials have seen their engagement ratio fall from 3.3 to 1.9.

• The younger group of millennials and Generation Z employees (born in 1989 or later) has seen a five-point drop in engagement, from 40% to 35%, while the percentage of actively disengaged employees has increased by one point, from 13% to 14%. In other words: Millennials and younger Gen Z employees have seen their engagement ratio drop from 3.1 to 2.5.

The results of the study do not really come as a surprise: younger generations have not infrequently been accused of being light and uncommitted. But this can be seen in a different light. What if they are committed to a more honest and coherent professional and personal growth, which does not tie them to one place, but takes them where their individual purpose leads them?

It is not that they have stopped attaching importance to work per se or to a professional career, but they are more demanding when it comes to measuring how flexible a job is and how much it allows them to have their own personal life. According to a report by Deloitte (2023), 49% of Generation Z and 62% of millennials say that work is central to their identity. But work-life balance is something they struggle with. Having a good work/life balance is something they admire in their peers and their and their main reason when choosing a new company, according to this study, for which 22,856 young people from 44 countries were interviewed.

Gallup analysts identified individuals in its database who have declined in clarity of expectations from 2020 to 2023. Among this group, across job types and work locations, the largest areas of decline fit into five themes:

• Feedback and Performance Focus

  • Received meaningful feedback in the last week

  • Performance managed to motivate outstanding performance

  • Manager keeps me informed on what is going on

  • Pride in quality of products/services

  • Freedom to make decisions needed to do my job well

• Goals/Priorities

  • Manager includes me in goal setting

  • Feel prepared to do my job

• Wellbeing

  • Organization cares about my wellbeing

  • Able to maintain a healthy balance between work and personal life

• Team

  • Feel like part of the team

  • Know what my coworkers are expected to do

  • Have partners I can always rely on at work

  • Team takes time to reflect on and discuss what we might do better

There are several factors that may have influenced this disengagement of the younger squads from the workforce. The flexibility afforded by remote working, which became widespread during the pandemic, brought to light issues such as the blurring of boundaries between work and personal life, feelings of isolation and difficulties in maintaining team cohesion. Millennials and Generation Z employees prioritise meaningful connections and collaborative environments. This shift could lead to a sense of detachment from their peers and organisational culture.

Unlike previous generations, Millennials and Gen Z place a strong emphasis on finding purpose and meaning in their work. After the pandemia, many younger employees reassess their career paths in search of roles that align with their values and contribute to positive social impact. Companies that fail to demonstrate a clear sense of purpose or social responsibility risk losing the loyalty and commitment of their younger workforce.

However, according to the same Deloitte research, the outlook seems to be improving. Research to explore their attitudes to work and to assess the changes that companies are making to improve aspects important for these generations shed light on a more optimistic attitude. Among the findings that Generation Z and millennials are more satisfied with their work-life satisfied with their work-life balance than they were three years ago. They also feel they have more flexibility in where they work, and believe their companies have made progress in promoting greater diversity, equity and inclusion (DEI).