Despite grappling with an average student loan balance exceeding $24,000, Gen Z workers prioritize time off over employer assistance with loan repayments.
A recent survey by Handshake found a clear preference for benefits that foster work-life balance, even amidst significant financial burdens from education debt.
The survey, which gathered the opinions of over 2,500 students at the end of 2023, found that while only 22 percent of undergrads consider student loan repayment support essential, a significant 72 percent say they prefer time off as a benefit from employers.
Unlike previous generations that might have placed a premium on salary and job titles, Handshake's poll found a broader reevaluation of career success among younger workers, with 78 percent of respondents saying that they prefer a sustainable work-life balance over the 51 percent who want higher salaries and traditional financial incentives.
The poll found that the preference reflects a generational shift towards valuing mental health and personal time, influenced by witnessing the work habits of previous generations and the impacts of the COVID-19 pandemic on workplace norms.
The survey also found that Gen Z, those born between 1997 and 2012, is rejecting traditional work models while actively seeking flexibility in their professional lives. A considerable 82 percent believe remote work should remain an option, indicating a preference for a hybrid model of in-person and remote work, with 70 percent more likely to apply for positions offering flexible schedules.
Beyond just competitive salaries, the survey said that companies should consider how they can facilitate a better work-life balance through flexible work arrangements and ample time off, acknowledging the benefits as key to attracting the new generation of workers.
The younger generation is increasingly concerned with retirement as well. Sixty-five percent of respondents said that retirement benefits from their employer are essential. Amidst concerns shaped by witnessing their parents' retirement plans disrupted by economic turmoil, according to the study, Gen Z's emphasis on retirement readiness reflects an understanding of potential uncertainty that lies ahead.
Read more: How to Retire Early
To mitigate that potential uncertainty and lay a solid foundation for their future, Gen Z is placing an emphasis on skill-building as an important component of career success. The survey found that nearly two-thirds of undergraduates consider developing advanced skills in their field essential, outranking the desires for senior-level positions.
They're also looking to employers to provide financial literacy programs, with 75 percent of respondents saying that such educational initiatives are important.
With a strong consensus around the need for financial education, Gen Z points to a gap in their current learning experiences, suggesting that both employers and educational institutions have a role to play in preparing them for financial independence.
In the words of one respondent, the demand for financial literacy courses stems from a desire to understand the world of finances better, which many feel ill-prepared for as they transition from college to career.
Read more: Types of Investment Accounts
As employers look to attract and retain the emerging talent pool, addressing their wants may be key. Their collective voice is calling for a holistic approach to workforce integration, one that equips them with the tools needed for both immediate and long-term success.
The future of work, as envisioned by the Gen Z respondents, is about crafting a career path that is as financially savvy as it is fulfilling.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
To read how Newsweek uses AI as a newsroom tool, Click here.
