Gen Z reshapes workforce with pay rise demands & mobility

Gen Z employees are actively reshaping the workplace with distinct expectations, different job-seeking behaviours, and unique approaches to employment, according to new research by ELMO Software.

The ELMO Employee Sentiment Index (ESI) report, surveying over 1,000 Australian workers during the final quarter of 2024, highlights significant generational workplace trends amidst a challenging cultural and economic outlook.

ELMO's research indicates that Gen Z, which comprises individuals born between 1997 and 2012, are the most motivated generation to request pay rises, driven by current economic conditions. 43% of Gen Z workers have expressed their willingness to ask for a pay increase, a rate notably higher than that of Baby Boomers at 3%, Generation X at 22%, and Millennials at 36%.

Contrary to common stereotypes that portray Gen Z as prioritising purpose, culture, and community, the research indicates that remuneration is their top concern, cited by 22%. Furthermore, 34% of Gen Z workers believe they are not fairly compensated for their work, compared to 28% of Millennials and Gen X, and 19% of Baby Boomers. Job stability ranks second at 13%, with culture and career development each at 10%.

Despite placing a strong emphasis on job stability, Gen Z workers are less inclined to show loyalty to their current employer. They are twice as likely to interview for new positions compared to the national average. Specifically, 17% applied for new roles while 15% successfully secured interviews.

The findings also suggest that early 2025 may see Gen Z pursuing new opportunities, with 72% feeling that they are in the right role but nearly 70% believing that the start of the year is an ideal time to search for a new job. Gen Z leads in career-focused New Year's resolutions, with 34% making such commitments, compared to a 30% national average.

Concerns about the recruitment and onboarding processes are prevalent among Gen Z, who are identified as the most mobile generation. One-fifth of them rated their recent onboarding experience five or less out of ten. 38% cited delayed salary information as the most frustrating aspect of recruitment, echoed by 37% of the national workforce. Additionally, delays in decision making, lack of feedback, extensive interview rounds, and post-interview "ghosting" are viewed as significant irritants during recruitment.

In this context, with the average hiring period reaching an all-time high of 44 days, ELMO CEO Joseph Lyons calls for a revamp of HR processes to better cater to Gen Z's requirements. "Gen Z has often been labelled as the most challenging workers, but as a generation that is driving innovation and challenging the status quo, they bring fresh perspectives to the workplace. The future of tech-driven business transformation will largely be shaped by this cohort, and to thrive, businesses must foster people-centered change," Lyons stated. He advocated for enhanced focus on software automation, analytics, and robust support to unlock workforce potential and understand evolving employee needs.

Job uncertainty remains a concern for Gen Z workers, who feel the pressure to work harder and longer to secure their positions, a sentiment shared by 49% of them. This is more than observed in Millennials (40%), Gen X (29%), and Baby Boomers (17%). Furthermore, 38% of Gen Z express anxiety over potential redundancies, a factor likely influencing their job-seeking behaviour.

The advent of new technology and automation has not alleviated such concerns, with 28% of Gen Z fearing that their roles could be automated within the next five years, compared to a national average of 22%.