Businesses are struggling to manage Gen Z as new research reveals that they demand more from employers than any previous generation.* According to the data – which surveyed 1,000 employees and 500 hiring managers across the UK – 67% of hiring managers feel that Gen Z has become more demanding when it comes to salary expectations compared to last year. This is followed by millennials (64%), Gen X (37%) and baby boomers (22%).
While the data revealed that job security is valued as more important than pay by 43% of all employees, Gen Z was more likely than any other age group to prioritise remuneration. Almost a third (29%) of respondents in this demographic rated pay over job security, compared to 25% of millennials and 23% of Gen X.
The study also revealed that younger professionals are less loyal to their employers, with 20% of Gen Z revealing that they would move jobs if they didn’t get the pay rise they want, while 12% would ask for more benefits instead.
Nonetheless, businesses need to be aware that Gen Z workers are particularly motivated by jobs that align with their values and give them a sense of purpose. The types of organisations that resonate with Gen Z are the ones that make a positive impact on society and the environment, promote a culture of continuous growth and development, and encourage autonomy and entrepreneurship.
As Matt Weston, Senior Managing Director UK & Ireland at Robert Half explained, this is putting further pressure on employers that are already contending with budget constraints and skills shortages:
“Gen Z might be the most digitally-savvy demographic in the workforce, but according to our research they are also the most demanding when it comes to pay and renumeration. As businesses struggle to balance already limited budgets with the need to recruit and develop emerging generations, carefully developed talent attraction strategies that appeal to Gen Z will be a priority.
“Given that this demographic is the future of the workforce, it’s critical that employers find a way to strike the right balance between remuneration and retention strategies that build loyalty longer-term. The fact that our data shows that Gen Z is willing to consider additional perks and benefits where pay increases aren’t feasible shows that there are alternative routes to attracting and engaging this generation.
With Gen Z ultimately driven by meaning and purpose, businesses could employ alternative engagement methods, such as showing how their role contributes to the larger goals of the company and the world. Emphasising the social impact or ethical dimensions of their work and involving them in sustainability or social responsibility initiatives can go a long way.”
*Robert Half’s 2025 Salary Guide.
