Two thirds of UK Gen Zs and millennials opt for remote and hybrid working

• More than three-quarters of UK Gen Zs (77%) and millennials (71%) would consider looking for a new job if their employer asked them to go into their workplace full-time;
• Cost of living remains the top concern for UK Gen Zs and millennial with more than half of respondents saying they live from pay-day to pay-day;
• Stress and anxiety levels remain high, driven by financial and environmental concerns, as well as workplace pressures.

More than three-quarters of UK Gen Zs (77%) and millennials (71%) would consider looking for a new job if their employer asked them to go into their workplace full-time, according to Deloitte’s 2023 Gen Z and Millennial Survey. In its 12th year, the survey gathers insights from more than 22,000 Gen Z and millennial respondents across 44 countries.

At the same time UK respondents feel they are less likely to be able to ask for more flexibility at work if the economy doesn’t improve (72% of Gen Zs/68% of millennials globally versus 46% of Gen Zs/42% of millennials in the UK). In addition, respondents report that they are struggling to disconnect from work, with 25% of UK millennials saying that they answer work emails outside of normal working hours at least five days a week.

Kate Sweeney, partner and human capital lead at Deloitte, said: “We know that the first question recruiters are asked by job applicants is about hybrid working arrangements – and that work patterns are a major influence in their choice of employer. Younger workers expect to be able to flex their work to accommodate their personal life.
“Employers who recognise this desire for choice and support this are more likely to attract, retain and motivate the best talent from these two generations.”
 

Cost of living – working hard but not making progress

For the second year in a row the cost-of-living crisis remains the top concern for UK Gen Zs and millennials, chosen by 50% and 55% respectively. Significantly higher than the global average (35% of Gen Zs and 42% of millennials) and last year’s survey (31% of Gen Zs and 38% of millennials).

Nearly half of UK Gen Zs (48%) and over half of millennials (55%) say they live pay-day to pay-day and worry that their monthly income will not be able to cover all their expenses. To make ends meet, 42% of Gen Zs have taken on a side hustle, compared to just over a quarter of millennials (26%) and value remote working because it helps them save money (25% of Gen Zs and 26% of millennials).
 

Economic outlook

The study also found that 65% of UK Gen Zs and 55% of millennials think the economy will worsen or stay the same in their country over the next year. Their economic concerns are also impacting their ability to plan for their future on a more personal level, with many saying it will become harder or impossible to buy a home (67% of UK Gen Zs and 62% of UK millennials) or start a family (56% of Gen Zs and 45% of millennials.) Overall 36% of Gen Zs and 39% of millennials expect their personal finances to worsen over the next 12 months.

Respondents are finding ways to save money, 29% of UK Gen Zs and 25% of UK millennials choose not to drive a car. Making their homes more sustainable and energy efficient is something 42% of UK Gen Zs and 37% of UK millennials plan to do in the future.

Sweeney added: “Gen Zs and millennials are responding to financial pressures by taking on side hustles, postponing big life decisions like buying a house or starting a family, and adopting behaviors that save money, such as insulating their homes, buying second-hand clothes or not driving a car.”
 

UK Gen Zs and millennials report persistent stress and burnout

Over half of UK Gen Zs (51%) and 47% of UK millennials say they feel stressed all or most of the time, higher than the global average. Stress levels are even higher among women, LGBT+ respondents, ethnic minorities, and those with disabilities. These workplace pressures are driving similar levels of burnout to last year.

Sweeney added: “Wellbeing must become a strategic priority for organisations of every size – not only to support employees experiencing anxiety and stress, but also to prevent people from becoming overwhelmed in the first place. Strategies to manage wellbeing differ from person to person based on their circumstances, so organisations need nuanced support to enable their employees to thrive. In the race for talent, we know employers who invest in staff wellbeing are more likely to report having staff who are happy, productive and more committed to stay and build their career.

“Leadership should set the tone at the top: whether continuing to invest in training to help managers and employees spot signs of poor mental health and understand how to reach their employees and help.”

Ends

Notes to editors

To learn more about the Deloitte Global 2023 Gen Z and Millennial Survey, visit: www.deloitte.com/genzmillennialsurvey.

Methodology

The Deloitte Global 2023 Gen Z and Millennial Survey reflects the responses of 14,483 Generation Zs and 8,373 millennials (22,856 respondents in total), from 44 countries across North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia Pacific. The survey was conducted using an online, self-complete-style interview. Fieldwork was completed between 29 November 2022 and 25 December 2022. In addition to the survey, in March 2023, qualitative interviews were conducted with 60 Gen Zs and millennials from Brazil, Germany, India, Japan, the UK, and US.

About Deloitte

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Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.