The labor landscape is undergoing a transformative shift, as Gen Z and millennial workers grapple with burnout and dissatisfaction in their current jobs. In a comprehensive survey conducted by Deloitte in 2025, alarming statistics shed light on the challenges faced by the younger workforce. From mental health issues to climate change concerns, these factors are reshaping the expectations of young professionals.
To respond effectively, forward-thinking companies are turning to strategic workforce planning to align their talent strategies with evolving employee values and long-term business goals. This analysis explores the survey findings and presents key strategies for employers to attract and retain Gen Z talent in this rapidly changing environment.
Success Isn’t Just About Climbing the Ladder—Managers Matter More Than Ever
Fewer than 1 in 10 Gen Zs and millennials see leadership roles as their ultimate career goal. But that doesn’t mean they’re unambitious. In fact, opportunities for learning and development are among the top reasons they choose to stay with their current employers—right alongside work/life balance and clear pathways for advancement. These younger workers are looking for mentorship, hands-on learning, and real-world experiences that help them build practical, career-relevant skills. They view managers as key to this growth—providing guidance, support, and inspiration. However, many feel their managers are more focused on supervising daily tasks than nurturing development. This disconnect reveals a significant gap between what younger employees expect from their managers and what they actually experience. Deloitte’s Global Human Capital Trends report confirms that many managers are aware of this gap. They admit to spending more time putting out fires than developing their teams—and many don’t feel adequately equipped to be strong people leaders. This underscores the urgent need to make learning and development a continuous priority and to structure work in a way that creates more space for growth.
deloitte insights gen z shows Mental Health Struggles
According to the Deloitte survey, a staggering 36% of Gen Z respondents feel exhausted all or most of the time, while 35% feel mentally distanced from their work. An equally concerning 42% of Gen Zs often struggle to perform to the best of their ability due to burnout. These statistics are mirrored in the millennial workforce, highlighting the urgent need for employers to address mental health issues proactively.
In addition to offering emotional support, companies are increasingly relying on compensation analytics to ensure fair pay and reduce one of the primary drivers of stress and attrition among younger workers. Implementing robust mental health initiatives and creating supportive work environments that encourage work-life balance are vital steps in addressing burnout and fostering employee well-being.
Higher Education Still Matters—But Its Value Is Being Reassessed
While many Gen Zs and millennials still see a college or university degree as worthwhile, a growing number are beginning to question how well traditional higher education prepares them for the workforce. In this year’s survey, nearly one-third said they chose not to pursue higher education, with cost being the most common reason. But the concern goes deeper than just finances. Many are uncertain whether a degree offers a strong enough return on investment—especially when it comes to gaining the practical, job-ready skills employers expect. Some believe that trade schools or vocational programs offer a more effective path to hands-on experience and relevant training. At the same time, many employers continue to struggle with filling roles due to experience gaps. This creates an opportunity for business leaders to rethink how they source and develop talent—broadening their approach to include alternative education paths and creating stronger pipelines for skilled, work-ready candidates.
The Great Resignation
Reasons for Job Transitions: Deloitte’s survey reveals that pay, workplace environment, and burnout are the top drivers pushing young workers to consider leaving their jobs. The study underscores the significance of holistic job satisfaction, where monetary compensation is just one piece of the puzzle. For employers looking to attract and retain Gen Z and millennial talent, offering work-life balance initiatives is paramount, with 72% of respondents ranking it as a top priority.
Learning and development opportunities are equally crucial, with 62% of respondents indicating their importance. Additionally, the survey found that 49% of Gen Zs and millennials prefer hybrid or remote work arrangements, emphasizing the need for flexible work models to accommodate their evolving preferences. Yet, traditional hiring methods often fail to surface these priorities—highlighting why reliance on resume screening software can lead employers to overlook high-potential candidates aligned with impact and purpose.
Source: Deloitte survey, page 15
Embracing Values and Purpose
Deloitte’s findings indicate that Gen Z and millennials place immense value on ethical considerations when choosing an employer. A remarkable 44% of Gen Zs and 37% of millennials state that they have rejected assignments due to ethical concerns, while 39% and 34%, respectively, have turned down job offers from companies that do not align with their values.
Companies must take note and prioritize climate action, social responsibility, and inclusivity to attract and retain young talent. To better anticipate these shifts, organizations are beginning to harness the power of AI in HR decision-making—allowing them to design more ethical, personalized, and value-driven employee experiences. Gen Z and millennials seek organizations that prioritize environmental and societal impact, creating an inclusive culture that aligns with their core values.
Conclusion
Deloitte’s 2025 survey provides critical insights into the challenges faced by Gen Z and millennial workers, illustrating the prevalence of burnout, mental health issues, and climate change concerns in the workplace. Employers seeking to attract and retain young talent must leverage these statistics to create comprehensive well-being programs and flexible work arrangements. By embracing core values that align with the aspirations of Gen Z, companies can forge strong connections and build a purpose-driven work culture. Successfully navigating these challenges will not only attract top talent but also cultivate a dynamic and thriving workforce, poised to shape the future of work