New Data Reveals Rising Expectations for Compensation, Security, and Benefits
Recent research shows that businesses are grappling with the expectations of Generation Z, a demographic that demands more from employers than any previous cohort. This insight comes from Robert Half’s 2025 Salary Guide, which provides an in-depth analysis of the current job market.
Growing Demands for Higher Salaries
The survey, which included responses from 1,000 employees and 500 hiring managers across the UK, found that 67% of hiring managers believe Gen Z has become more demanding regarding salary expectations compared to last year. This trend is closely followed by millennials at 64%, Gen X at 37%, and baby boomers at just 22%. This shift highlights a significant change in the workplace dynamic, as younger generations increasingly prioritise financial compensation over traditional job security.
Prioritising Pay Over Job Security
While 43% of all employees value job security more than pay, the Gen Z cohort stands out as notably more focused on compensation. Almost one-third (29%) of respondents in this demographic ranked pay as more important than job security. In contrast, only 25% of millennials and 23% of Gen X share this perspective. This revelation points to a generational shift in priorities, where financial stability takes precedence over long-term job security.
Decreased Loyalty Among Younger Professionals
The study also revealed a concerning trend of decreased loyalty among younger professionals. Approximately 20% of Gen Z individuals stated they would consider changing jobs if they do not receive the pay rise they desire. Additionally, 12% indicated they would prefer to negotiate for extra benefits instead of waiting for salary adjustments. This lack of loyalty challenges traditional employer-employee relationships and underscores the need for companies to adapt to these changing expectations.
The Importance of Values and Purpose
Despite their focus on remuneration, it’s crucial for businesses to understand that Gen Z workers are particularly motivated by roles that align with their values and provide a sense of purpose. Organisations that make a positive societal and environmental impact, promote a culture of continuous growth, and encourage autonomy tend to resonate strongly with this generation. Companies must therefore craft roles that not only meet financial expectations but also fulfil the intrinsic motivations of their employees.
Strategies for Attracting Gen Z Talent
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, explained the implications of these findings for employers facing budget constraints and skills shortages:
“While Gen Z is the most digitally adept generation in the workforce, our research reveals they are equally the most assertive regarding their salary expectations.” As businesses strive to balance constrained budgets with the need to recruit and nurture emerging talent, developing effective strategies to attract Gen Z will be vital.
“Given that this demographic is the future of the workforce, it’s crucial for employers to find the right balance between pay and retention strategies that foster long-term loyalty. Our data shows that Gen Z is willing to consider additional perks and benefits where salary increases aren’t feasible, highlighting alternative routes for attracting and engaging this generation. By demonstrating how their roles contribute to the wider goals of the company and society, and emphasising the social and ethical dimensions of their work, businesses can enhance engagement.”
Embracing Change for a New Generation
As the landscape of the workforce continues to evolve, it’s imperative for businesses to adapt to the changing expectations of Gen Z. By aligning compensation strategies with their values and providing opportunities for personal and professional growth, employers can create an environment that not only attracts but also retains the next generation of talent. Embracing this change is not just beneficial for businesses; it’s essential for securing a sustainable future in an increasingly competitive job market.