Millennials and Gen Z: Half of you plan to quit soon
Switzerland's rampant shortage of skilled workers is likely to worsen in the near future: Almost half of Gen Z and a good fifth of all Millennials plan to quit their jobs in the next two years. The main reasons: lack of meaningfulness and a salary that is too low. This is shown by the Deloitte study "Swiss Gen Z and Millennial Survey 2023".
The Millennial (1983-1994) and Gen Z (1995-2004) generations are less likely to define themselves through their work in Switzerland than in the rest of Europe. Only a quarter of Gen Z (26%) and a third of Millennials (33%) feel that their work creates their identity. The situation is quite different in the 16 EU countries surveyed: 43 percent of Millennials and 57 percent of Gen Z there identify themselves through their work. However, friends and family play by far the most important role for identity awareness in both Switzerland and the EU (details: see chart 1). In contrast to the European comparison groups, however, two other aspects play a much more important role for identity awareness in Switzerland: Fashion and music.
For the study "Swiss Gen Z and Millennial Survey 2023", 1,000 Millennials and 700 representatives of Generation Z were surveyed throughout Switzerland at the beginning of March 2023. The data for the EU was taken from Deloitte's "2023 Gen Z and Millennial Survey".
"Then I'll just look for a new job".
Even if the relevance of work as an identity-forming element varies, Gen Z and Millennials in both Switzerland and the EU want meaningful work, to develop themselves further and to be paid decently for it - although pay plays an even greater role for respondents in the EU, where salaries are lower than in Switzerland. If this does not happen, Gen Z in particular has no problem looking for a new job (see chart 2).
This requires a fundamental rethink on the part of employers and calls for organizational and cultural adjustments: "Companies need to pick up their young employees, take them along on this development journey and show them what they are achieving with their work - not just for their own company, but for society. To create this awareness of the company's purpose, understandable goals, a transparent feedback culture, as well as recognition and clear prospects for the future are essential," says Matthias Thalmann, Head of Human Capital Consulting at Deloitte Switzerland. But other aspects - such as the design of work, flexibility, the place of work and working hours - also play an important role.
Work full time? No thanks.
Suddenly back to working full-time at the company? Unthinkable for many respondents. Around 40 percent of respondents in Switzerland would look for a new job in this case. Even though many companies have already introduced home office models in recent years, the task now is to develop these hybrid work models further for the future and make them more attractive. Consistency and reliability as well as individual balance between home office and office presence play an important role here. For production companies, but also for the catering and healthcare sectors, where home office is only possible to a limited extent or not at all, it is essential to introduce more flexible shift systems in order to improve working conditions and employee satisfaction in the long term.
But physical presence also remains important to maintain and promote social contacts among employees: 18 percent of Gen Z respondents in Switzerland feel excluded if they have to work from home too often. "In the battle for the best talent, companies must be flexible in responding to individual wishes regarding work location, working hours and form(s) of collaboration. Mere declarations of intent are counterproductive; what is needed are lived values and positive role models," analyzes Matthias Thalmann.
Causes for concern: money, climate change and psyche
Concerns about the future are again about money: 24 percent of Swiss Gen Z and 29 percent of Millennials are worried about the increased cost of living - in the EU, the figure is as high as 36 percent (Gen Z) and 46 percent (Millennials). 28 percent of Gen Z and 24 percent of Millennials in Switzerland have a sense of financial insecurity. In the EU, these figures are 36 percent (Gen Z) and 38 percent (Millennials).
Around 25 percent of respondents in Switzerland and the EU (Millennials and Gen Z) are concerned about the consequences of climate change. In contrast, more Gen Z representatives (CH: 18%, EU: 20%) than Millennials surveyed (CH: 14%, EU: 15%) say they are concerned about the mental health of their generation. "Our crisis-ridden times appear to be both financially and mentally challenging for younger workers. The rising cost of living and climate change are concerns for many. This suggests that both an attractive salary and a corporate purpose that is relevant to society and the environment are crucial factors in recruiting young employees and retaining them in the long term," says Matthias Thalmann.
Development opportunities and further training
To attract and retain young talent, employees must be able to develop. Young people in particular have the right to make a visible impact on their work. They want to be listened to and taken seriously and make a measurable contribution to the company's success. This is where internal feedback platforms make an important contribution to the integration and further development of employees. Managers are also well advised to continue their training in empathy and emotional intelligence in order to improve the proactive exchange with their employees.
A lack of career development and training opportunities are also frequent reasons for quitting. Companies should communicate career opportunities proactively and transparently and also keep their promises. A good third of respondents in Switzerland are dissatisfied with the career prospects in their company. These are alarm signals: "Only those who offer their talents further training and open up career opportunities will be able to retain the best people," says Reto Savoia, CEO of Deloitte Switzerland, and warns: "Executives and HR departments need to think fundamentally now - already half of the workforce belongs to Generation Z and the Millennials. If companies fail to retain these young people in the long term, this can have strong negative consequences for the growth prospects and competitiveness of these companies."
Source: Deloitte
