New research suggests Gen Z workers are not as happy as their colleagues from other generations.
SEEK’s inaugural Workplace Happiness Index has found just 52% of Gen Z employees (generally those aged 18 to 27) are satisfied at work. At the other end of the age scale, Baby Boomers are the happiest at the office, with 72% reporting satisfaction at work.
The survey of more than 1000 people identified five key drivers to workplace happiness across all ages, namely:
- Purpose at work
- Day-to-day responsibilities
- Company culture
- Salary
- And stress levels
But SEEK Country Manager Rob Clark said the key drivers were quite different for Gen Z workers, with salary coming in at number one and an employer’s commitment to ESG (environmental, social and corporate governance) second.
“Things like commitment to ESG is the second most important driver of happiness [for Gen Z workers] but only three in 10 are actually happy about it at work,” he said. “So, you see this gap between what’s important to [them] and what’s actually happening.”
Clark said it wasn’t a surprise to see salary was the number one factor when it came to younger employees’ satisfaction at work.
People traditionally start their careers at the lower end of the pay scale, but today’s young workers are having to contend with some trying circumstances on top of that.
“Only four out of 10 [Gen Z workers] are happy with their salary,” Clark said.
“That’s not unusual when it comes to salary, but if you think about that generation ... they’re experiencing some of the highest costs of living, both from an inflationary point of view and a house price point of view.”
This means younger workers generally have less disposable income, with everyday expenses costing more and eating away at any potential savings.
“And when we talk about unemployment, it's highest for that generation, so there's a few things stacked up against them when it comes to salary and that's why we see a degree of unhappiness.”
Public Service Minister Nicola Willis revealed new guidance for agencies today, but not everybody is happy about the signalled shift. (Source: 1News)
A generational divide?
While a commitment to ESG wasn’t one of the top five contributors to job satisfaction in New Zealand workers overall, it was considered very important to Gen Z employees.
“I think that generation is just far more in tune with ... environmental and social factors,” Clark said.
“Obviously climate change is probably front and centre of a lot of that, but so is social good.
“They are holding organisations more accountable.”
Such generational divides could be why only four in 10 Gen Z employees were happy with the leadership at their work, Clark said.
“Different factors drive happiness [for different generations], so it’s really important for leaders to stay in tune with what's important for Gen Z,” he said.
“Happiness is crucial for both employers and employees. A happy employee is more productive, they're more willing to go the extra mile. In fact, seven out of 10 employees who are happy [say they] will go the extra mile [at work].
“And importantly for employers, happy employees are far less likely to go and look for a new job.”
How to make employees happier?
Both employers and employees could benefit from better communication, Clark said.
“There are lots of engagement surveys that you can do with your employees to understand what motivates them and that will help you address [those issues],” he said.
“When we talk about salary, what we do know is, apart from your core remuneration, what's really important to people is having a process or policy around salary reviews. Being able to have a conversation about it on a regular basis and understanding what the opportunities are is really important.”
Clark said communication is also key to employees improving how they feel about work.
“They can certainly communicate really clearly what's important to them and then have that dialogue with their managers or colleagues to try and find a happy medium,” he said.
“There is this divide between the leadership and the employee and so that communication is certainly a key way to try and overcome that.”
SHARE ME