New research from Designit, an experience innovation company, has found that the work-life balance expectations of Generation Z are the top challenge faced by employers looking to engage this younger workforce.
Nearly half (49%) of respondents cited Gen Z’s demands for better work-life balance as their biggest concern, followed closely by the need to align with Gen Z’s values (38%).
These factors far outweighed other concerns such as retaining creativity (8%) or embracing the technology innovations necessary to engage digital natives (6%). With Generation Z set to comprise 25% of the global workforce by 2025, companies are under increasing pressure to adapt their work environments to attract, engage, and retain younger talent.
Shifting Expectations in the Workplace
Dr Pardis Shafafi, Global Responsible Business Lead at Designit, explained that many employers view Gen Z as difficult to engage, often perceiving their insouciance as a lack of effort or motivation. However, Shafafi argues that these attitudes are a reflection of the broader cultural and historical context Gen Z has inherited, rather than an inherent problem with the generation itself.
“There is a general sentiment that Gen Z is hard to work with – that they are insouciant and actively withhold their creativity, energy, and commitment. The desire for greater work-life balance is at the forefront of that perception,” said Shafafi. “But rather than blaming Gen Z’s seeming lack of effort, a better approach for employers is to realise that insouciance is not a problem to be fixed; it’s an evolution in mindset from a generation facing the consequences of history.”
Shafafi emphasised that companies must adapt to these changing expectations if they are to successfully attract and retain Gen Z employees. Employers should focus on creating environments that reflect the values of this generation, including transparency, integrity, and commitment to the common good. This, in turn, will foster greater engagement and loyalty from younger workers.
Aligning with Gen Z’s Values
As businesses continue to focus on employee experience, the need to align company practices with the values of younger workers has become more apparent. Gen Z is driven by a desire for workplaces that offer a fair and transparent exchange for their time and energy, alongside a commitment to communal values.
“Increasingly, Gen Z is motivated by a common good, strong company values, and the offer of a fair and transparent transaction for their time. If neither are available, insouciance will reign,” said Shafafi. She added that companies that proactively respond to these changing attitudes will be better positioned to thrive in a future where Gen Z dominates the workforce.
In addition to work-life balance and value alignment, the research highlights the growing expectations of Gen Z regarding pay and benefits. According to Robert Half’s 2025 Salary Guide, 67% of hiring managers reported that Gen Z has become more demanding in terms of salary expectations compared to the previous year. This figure was higher than any other demographic, with millennials following at 64%, Generation X at 37%, and baby boomers at 22%.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, pointed out that these rising expectations are putting further pressure on employers already dealing with tight budgets and skills shortages. He noted that while Gen Z is the most digitally savvy group in the workforce, they are also the most demanding when it comes to remuneration.
“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 remuneration,” Weston said. “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.”
Alternative Routes to Attracting and Retaining Gen Z
Although salary remains an important factor for Gen Z, the research also indicates that this generation is open to considering alternative perks and benefits when pay increases are not feasible. Weston suggested that companies could engage Gen Z employees by offering additional benefits that align with their broader goals, such as opportunities for social impact, ethical work practices, and involvement in sustainability initiatives.
“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,” Weston stated. “Emphasising the social impact or ethical dimensions of their work and involving them in sustainability or social responsibility initiatives can go a long way.”
As Gen Z continues to enter the workforce, businesses will need to balance financial constraints with creative strategies to attract and retain this values-driven generation. Developing a deeper understanding of Gen Z’s motivations, and adapting workplace practices to reflect them, will be key to building lasting engagement with this emerging workforce.