76% of young people do not want a leadership role if it comes at the expense of their free time

Gen Zers and Millennials are open to taking on leadership roles, but not if it comes at the expense of their work-life balance. In addition, topics such as mental health and a sense of purpose are issues they believe should be discussed at work. These and other findings emerge from Deloitte’s annual survey on the workplace aspirations of Gen Zers and Millennials. The survey reveals seven key insights for leaders in the food and hospitality industry.

Many companies are on the verge of a demographic shift. Older generations are retiring. Both younger and older generations fear the loss of critical business knowledge and an increased workload when these experts leave the company. At the same time, this creates opportunities for Gen Zers and Millennials to advance within the company. However, their expectations are quite different from those of the generations before them. If your company wants to retain and attract young people, it’s important to understand what they want and how you can address those needs to build their loyalty to your company.

1. Important life-decisions are being put off

For the fifth consecutive year, Deloitte has found that the cost of living remains the biggest concern for young people. Buying a home is financially out of reach for many of them, and the financial pressure is high. This is causing many young people to postpone important milestones – such as getting married, moving in together, or starting a family. This “maybe later” reality is acknowledged by 55% of Gen Zers and 52% of Millennials. Nevertheless, there is optimism. 53% of Gen Zers and 40% of Millennials expect their financial situation to improve next year.

As an employer, you can help young people navigate this challenge by, first and foremost offering competitive salaries and benefits. Organizations that help address financial constraints, such as housing or relocation support, student debt assistance, or greater choice in how rewards are allocated, may be better positioned to attract and retain younger employees.

2. Leadership ambitions but not at any cost 

Whereas in the past people wanted to climb the corporate ladder as quickly as possible and a top position was something virtually everyone aspired to, things are different for Gen Zers and Millennials. For most of them, leadership is no longer an immediate priority. In fact, only 6% see reaching the top as their primary career goal. They often associate top positions with stress, excessive workloads, and burnout. 

This doesn’t mean that young people aren’t ambitious, but they prefer to take steady career steps. While 76% of Gen Zers and 67% of Millennials are interested in a senior or executive role, they’re only willing to take on such a leadership position if the work environment offers the necessary flexibility and support – and if it doesn’t come at the expense of their work-life balance.

This shift calls for a reevaluation of leadership. Organizations that continue to insist that success requires linear promotion or personal sacrifice run the risk of losing touch with young talent. 

3. Continuous learning and adaptation

Because the work environment is constantly changing, younger generations are making their adaptability a conscious career strategy. They continuously invest in developing their personal skills to remain relevant. The focus is on areas where human judgment and technology converge, such as leadership, communication, and AI.

Employers can support their employees in this by creating opportunities for learning and developing new skills and integrating these into their daily work.

4. The AI gap in organizations

The use of AI is now mainstream for most companies. 74% of the survey respondents use it weekly for work – not only to boost productivity, but also, for example, as a tool for career development and stress management. However, about one-third of Gen Zers and Millennials indicate that there is a clear gap between their willingness to learn how to work with AI and the time and training their managers provide for this purpose. 

Employers would therefore be well advised to invest time and money in AI training for the entire company – including themselves – if they don’t want to fall behind.

5. Mental health as a prerequisite

Although more than 60% of young people report that their mental health is currently good, about one-third also experience constant stress, and nearly half feel fatigued. This is due, among other things, to financial worries, long workdays, and “digital fatigue” caused by an overload of notifications and screentime. 

According to most of them, the topic of “well-being and mental health” should therefore not be viewed by their employer as a perk, but as a prerequisite for good performance and as a subject that needs to be discussed regularly. 

Employers should focus more on mitigating the conditions that may create stress in the first place. This includes treating (mental) well-being as part of how work is designed and managed – meaning realistic workloads and clarifying priorities. Wnen managers are able to spot early sigtns of overload, set boundaries, and normalize conversations about mental health this helps shift from a reactive to a preventive work culture.

6. When purpose and connection converge

For virtually all young people (97%), having a sense of purpose in their job is an important part of their job satisfaction and well-being. They want to feel that their work matters and contributes to a better society. Approximately 40% even refuse employers or assignments that conflict with their personal ethics. 

When a company’s “values” are factored into day-to-day decisions, employees are more likely to feel aligned and committed. It is therefore up to managers to continually evaluate business decisions against that higher purpose and adhere to it.

7. Friendships at work lead to longer tenure

Beyond purpose, social connection is critical for creating an ideal workspace for younger people. More than two thirds of respondents say they have at least one close personal friend at work. Friendship has proven to be crucial for retention: employees (especially Millennials) who have close friends at work are much more likely to stay longer (5+ years) with their employer than employees who do not have friends at work. 

Organizations can foster friendships among employees through team-building activities, collaborative work arrangements, and time set aside for building relationships with one another. It may take time, but it will ultimately result in longer-term engagement, greater loyalty, and more support from your employees.