Source: cyprus-mail.com
Gen Z and millennials prioritise wellbeing over promotions, survey finds
Gen Z and millennials are increasingly prioritising stability, wellbeing and skills development over rapid career advancement, according to findings released by Deloitte, as younger generations redefine success in an economy shaped by financial pressures and artificial intelligence.
The 15th annual Gen Z and Millennial Survey, whose findings were shared locally by Deloitte Cyprus, gathered responses from more than 22,500 Gen Z and millennial participants across 44 countries and included qualitative insights from business leaders.
The findings indicated that Gen Z and millennial workers are redefining progress at work, often placing wellbeing, stability and long-term development ahead of promotions and traditional markers of success.
Elizabeth Faber, Deloitte Global Chief People & Purpose Officer, said the study demonstrates how both generations are continuing to adapt to change while also influencing it.
“They’ve already transformed work in tangible ways and are now making deliberate choices about when and under what conditions they pursue leadership and major life decisions,” Faber said.
“This year’s findings show that these generations are adaptable, pragmatic and intentional about progress, even as economic pressure and rapid technological change raise the stakes,” she added.
The report showed that the cost of living remained the leading concern for both generations for the fifth consecutive year, far exceeding other societal issues.
According to Deloitte, financial pressures are increasingly contributing to a “maybe later” mentality, with ambitions remaining intact but timelines for major milestones being pushed back.
More than half of respondents reported postponing important life decisions because of their financial circumstances.
Specifically, 55 per cent of Gen Z respondents and 52 per cent of millennials said they had delayed plans such as starting a family, continuing their education or launching a business.
Housing affordability also emerged as a major factor affecting employment decisions.
The survey found that 69 per cent of Gen Z respondents and 64 per cent of millennials said housing availability and affordability directly influence where they can work and the career choices they make.
Despite these challenges, optimism about personal finances remained relatively strong.
Some 53 per cent of Gen Z respondents and 45 per cent of millennials expect their financial situation to improve within the next year.
Although leadership positions remain attractive, the study showed that younger workers are not rushing to attain them.
Only 6 per cent of Gen Z respondents and millennials identified reaching a leadership position as their primary career objective, in line with last year’s findings.
Deloitte said concerns over the trade-offs associated with leadership roles were contributing to this reluctance.
The survey found that most respondents favour steady career development over rapid promotion.
Among Gen Z respondents, 44 per cent preferred gradual advancement compared with 25 per cent who favoured fast-paced progression.
Among millennials, 45 per cent preferred steady growth while 21 per cent opted for rapid promotion.
Meanwhile, 21 per cent of Gen Z respondents and 20 per cent of millennials said they would even accept lateral moves or step backwards temporarily to secure the right role for long-term success.
Concerns surrounding stress and burnout emerged as the most frequently cited barriers to leadership positions.
Half of Gen Z respondents and 49 per cent of millennials highlighted stress and burnout as a concern.
In addition, excessive responsibility was cited by 50 per cent of Gen Z respondents and 48 per cent of millennials.
Work-life balance concerns were identified by 41 per cent of Gen Z respondents and 46 per cent of millennials.
Despite these reservations, leadership ambitions remain widespread over the longer term.
Three-quarters, or 76 per cent, of Gen Z respondents and 67 per cent of millennials expressed interest in pursuing senior leadership roles at some stage in their careers.
The report also found that the adoption of artificial intelligence in workplaces has accelerated significantly.
Nearly three-quarters, or 74 per cent, of respondents said they use AI in their daily work, compared with 57 per cent of Gen Z respondents and 56 per cent of millennials recorded a year earlier.
Respondents generally viewed AI positively, saying it helps improve efficiency, enhances output quality and contributes to better work-life balance.
However, Deloitte found that organisations are often struggling to keep pace with technological changes.
The influx of digital tools and their limited integration with existing systems has also contributed to growing digital fatigue among workers.
AI is increasingly being used as a career development tool.
The survey showed that 79 per cent of both generations use AI to identify learning and development opportunities.
Some 72 per cent of Gen Z respondents and 69 per cent of millennials use AI to seek career advice.
Another 67 per cent of Gen Z respondents and 65 per cent of millennials said they use AI to help manage work-related stress.
The findings also revealed a growing AI readiness gap between workers and their employers.
Nearly one-third of respondents believe their organisations are not adequately prepared for the changes AI will bring.
This view was shared by 30 per cent of Gen Z respondents and 31 per cent of millennials.
At the same time, 33 per cent of Gen Z respondents and 32 per cent of millennials described the AI tools available at work as only somewhat sufficient or entirely inadequate.
Digital fatigue emerged as another important challenge in technology-driven workplaces.
The survey showed that 58 per cent of Gen Z respondents and 54 per cent of millennials experience exhaustion linked to constant notifications, switching between tools and managing multiple digital platforms.
Deloitte also highlighted the generational transition facing organisations as baby boomers retire and Generation Alpha prepares to enter the labour market in significant numbers before the end of the decade.
The study warned that preserving institutional knowledge represents a growing challenge.
Only 54 per cent of Gen Z respondents and 60 per cent of millennials believed their teams would maintain performance levels if a key expert departed unexpectedly.
Limited incentives, time constraints, confidentiality concerns and high staff turnover were cited as obstacles to effective knowledge sharing.
Artificial intelligence is also influencing hiring patterns. Nearly a quarter, or 23 per cent, of respondents said AI is prompting their companies to create new entry-level positions.
However, concerns over job losses remain. One-fifth, or 20 per cent, of Gen Z respondents and 17 per cent of millennials said their organisations are reducing entry-level roles.
At the same time, respondents generally expressed optimism regarding the impact of AI on career development opportunities for newcomers.
Some 26 per cent of Gen Z respondents and 28 per cent of millennials said AI enables entry-level employees to gain experience more quickly.
A further 25 per cent of both generations said AI allows employees to focus on higher-value tasks.
Another 25 per cent from both groups believe AI is accelerating career growth opportunities.
“Gen Zs and millennials are adapting to a world that has demanded resilience early and often,” Faber said.
“They are moving forward thoughtfully, selectively and on their own terms,” she added.
“How they navigate uncertainty, how they define success, weigh trade-offs and engage with employers, will help set the norms that Gen Alphas encounter as they begin entering the workforce in a few years,” Faber continued.
“This underscores a broader reality that what generations need, want and expect from their work will continue to evolve, and the organisations that keep up will be those willing to evolve with them,” she said.
The survey reflected the responses of 8,211 millennials born between January 1983 and December 1994 and 14,384 adult members of Generation Z born between 1995 and 2007.
Research was conducted between November 2025 and January 2026 through online self-completed interviews, one-to-one ethnographic qualitative interviews and in-depth discussions with business leaders focusing on workforce trends and intergenerational dynamics.