Given the concerns expressed by Generation Z and Millennials in 2024, according to the most recent study by the firm Deloitte, companies must design a series of strategies to address the consumption of services and products, in addition to reorienting internal activities in the workplace.
Generations Z (people born in the 21st century) and Millennials (born between 1980 and 2000) show different consumption and purchasing habits than previous generations and according to Deloitte’s Global Gen Z and Millennials 2024 Survey, the cost of living is the main concern of these generations.
But respondents also asked about the importance they place on the purpose of the organization they work for, climate change, artificial intelligence, work-life balance, and policies for returning to the office after teleworking was implemented during the pandemic.
Deloitte Global People and Purpose Director Elizabeth Faber explains that the 2024 survey highlights two generations struggling with 4 characteristics such as:
- Financial insecurity.
- High levels of stress.
- Growing climate anxiety.
- And they are considering how technology, including generative AI, will impact their jobs and career decisions in the long term.
The 6 topics analyzed
Economy
According to the survey, optimism about the economy is increasing despite financial concerns, but it warns that for the third consecutive year, the cost of living is the main concern for these young people.
- The results show that around 3 in 10 people in these segments do not feel financially secure, while 6 in 10 are constantly making payments. This figure means 3 to 5 percentage points more than in 2023.
- One third believe that the economic situation in their country will improve over the next year. This is “the highest percentage since the 2020 Millennial Survey, conducted before the start of the pandemic.”
- Additionally, 5 in 10 Gen Zers and 4 in 10 Millennials expect their personal financial situation to improve in the coming year.
Company purpose is key
The other topic analyzed in the survey is the purpose of organizations, an aspect that is considered key to job satisfaction for these generations.
- Here the result indicates that for 9 out of 10 members of Generation Z and millennials, “purpose is key to satisfaction and well-being in the workplace.”
- It is becoming increasingly common for these generations to reject jobs or employers based on issues of ethics or personal beliefs.
- 50% of Gen Z and 43% of millennials have turned down jobs or employers. Among the reasons they mention: that the employer generates a negative environmental impact or contributes to inequality through non-inclusive practices; or due to more personal elements such as a lack of support for employees’ mental well-being and work-life balance.
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Climate issue
The segment analyzed considers that organizations have the opportunity and influence necessary to promote action in favor of the climate issue and to protect the environment, driving change.
But in these challenges, almost 6 in 10 people from these two generations feel anxious or worried about climate change, and they use their careers as well as their consumption habits to drive action in favor of it.
Deloitte explains that around half of Generation Z (54%) and millennials (48%) responded that together with their colleagues, they pressure their employers to take action on climate change, a trend that continues to increase.
- Similarly, 2 in 10 people in these segments have changed jobs or industries due to their environmental concerns, while another quarter plan to do so in the future.
- As consumers, two-thirds are willing to pay more to buy environmentally sustainable products or services.
- For example, many are taking personal steps, or planning to do so, on how to avoid the call fast fashion or fast fashion (rapid production of garments to meet market demand), also reducing air travel, following a vegetarian diet or buying electric vehicles.
Uncertainty from generative artificial intelligence
Both Gen Z and Millennials are unsure about generative AI, however positive perceptions are seen to increase as these technologies are more widely used, which will have a significant impact on their careers and the way they work.
- Nearly 6 in 10 believe that this tool will make them look for job opportunities with less tendency to become automated, such as skilled trades or manual labor.
- Uncertainty is the top emotion people in these two segments feel when thinking about generative AI, and of these, women are the ones who “express the most concern and are less likely to be comfortable working hand-in-hand with it.”
- One of the challenges mentioned by both generations as a response to these concerns is retraining and training, but half of respondents still believe that their employer does not prepare them sufficiently about the capabilities, benefits and value of generative AI.
Work-life balance is a priority
When choosing an employer, work-life balance remains the top priority for Gen Z and millennials and is the ability these generations most admire in their peers, far above other traditional markers of success, such as jobs and material possessions.
- Around a third of respondents said their job and work-life balance contribute greatly to their stress levels. They also cited long working hours and a lack of control over how or where they work.
- In the case of teleworking, almost two-thirds reported that their employers have recently implemented return-to-office policies, either with a hybrid model or fully in-person.
Stress and mental health
Stress and stigma around mental health in the workplace persist, despite a decline this year, the company said.
- These issues remain a cause for concern for these generations, as only half of those surveyed rate their mental health as good or extremely good.
- Four out of 10 people said they feel stressed all or most of the time. Apart from work as a determining factor for this anxiety or stress, finances, health and family well-being are also among the main causes of stress.
- Nearly 3 in 10 people in these groups fear that their manager will discriminate against them if they show stress or other mental health issues, and around 3 in 10 do not believe that leaders prioritize mental health in the workplace.
The 14 suggested strategies
After knowing these results, it is also necessary to observe which strategies companies can implement to satisfy the demand for services, consumption by customers and also address human capital trends:
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Carla Coghi, managing partner of Deloitte for Central America, Panama and the Dominican Republic, recommends a series of behaviors that companies should pay attention to and establish strategies to address them:
- Companies seeking to attract Generation Z and millennials must be very clear about their consumption and purchasing characteristics, so it is recommended to educate themselves on this matter.
- Some strategies are related to the need for digital presence in companies, since these generations are digital natives and were born in the Internet era, so they spend a lot of their time online. Therefore, they must have easy-to-use websites, social media profiles and constantly generate content.
- Influencer marketing can have a significant impact on these people’s purchasing decisions.
- Generation Z and millennials value brands with a strong social commitment and companies must communicate their values, practices and social responsibility transparently.
- Both segments expect personalized shopping or service experiences; using data from communications can help you get to know and serve customers, address them by name, offer them options to change or improve their experience.
- Regarding sales channels, there are also strategies such as the omnichannel shopping experience and having physical stores but also online stores and mobile applications, with attractive and easy-to-use features.
- Other measures include mobile payments and flexible financing options. This segment also values convenience and immediacy, being able to send money back and forth without complications, electronic payments and the use of credit cards on mobile phones.
- Companies must learn to respond quickly and immediately, as these generations are eager for new things.
- Attracting talent also requires attractive and modern technology, which is why companies need constant innovation.
- Despite all the changes, it is important for companies to remain authentic and true to their brand, as current generations are highly sensitive to marketing and if they perceive something forced or insecure, they will not accept it.
- In order to meet consumer habits, it is important for companies to work hard to reduce their carbon footprint, both in the materials and production processes used, and in services such as travel, since many young people no longer travel in business class but in economy class to generate a smaller consumption footprint. This is why demand for low-cost airlines has also increased.
- Consider the purchasing experience, as the new generations bring the issue of awareness as a chip linked to sustainability. For example, apart from their production processes and materials, companies have to put a lot of effort into the clothing label, explaining how and with what materials it was made, whether animals were used, recycling, and others.
- The issue of reuse also came up and there are now websites offering clothes for sale for reuse by another consumer.
- On the employer’s side, employee participation in social projects such as volunteering to help the community, cleaning a river, planting trees, etc. should be encouraged.
Data and information: Global Gen Z and Millennials Survey 2024. This was conducted by Deloitte between November 24, 2023 and February 13, 2024. Reflect responses from 14,468 Gen Z and 8,373 Millennials (22,841 total), from 44 countries across the Americas, Western Europe, Eastern Europe, the Middle East, Africa and Asia Pacific.
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