Dorothy Herson: The Gen Z search for work-life balance – why healthier workplaces will be a ‘must have’ for employers

Generation Z (born between 1997 and 2012) is entering the workforce under unprecedented economic and social conditions. The traditional social contract – wherein hard work leads to stable employment, homeownership, and financial security – appears increasingly unattainable for many in this cohort.

Consequently, Gen Z is prioritising work-life balance and mental health, compelling employers to reevaluate workplace structures to attract and retain this emerging talent pool.

Unlike previous generations, Gen Z isn’t blindly buying into the old system of working long hours in the hope of climbing the corporate ladder. The truth is, many of the traditional rewards for hard work are gone – skyrocketing house prices, stagnant wages, crippling student debts and a brutal job market have rewritten the rules.

So, instead of chasing impossible dreams, Gen Z is shifting its focus to what they can control: mental health, flexibility, and meaningful work.

The erosion of the social contract: why the old rules no longer apply

For decades, the pathway to success was straightforward: go to university, get a degree, secure a well-paying job, work hard, and enjoy financial stability. However, today’s job market presents significant challenges for new graduates. A 2024 Guardian article on the UK’s ‘insane’ job market highlights that although most UK students find employment within 15 months of graduating, a significant number remain underemployed or in jobs that don’t require a degree.

This has led to widespread disillusionment and frustration among young people who were promised that higher education would be their golden ticket. Especially when this education has cost them an average of £48,470 each with astronomical interest rates on top.

The competition for graduate roles has intensified. According to the Institute of Student Employers (ISE), there were an average of 140 applications per graduate vacancy in 2024, a 59% increase from the previous year. In high-demand sectors like digital and IT, the competition is even fiercer, with some positions receiving over 200 applications. This surge in applications means that graduates often need to submit a substantial number of applications to secure a single job offer.

The only thing more brutal than a £50,000 degree that doesn’t secure even a low-paid job is the UK housing market. Nearly 7 million young Brits still live with their parents – 30% of those aged 25-29 – while homeownership has become a distant fantasy. House prices have soared by 60% in a decade, but wages? They’ve barely moved. Renting isn’t much better.

On average, UK tenants are spending over a third (35.7%) of their take-home pay on rent. But for Gen Z, the reality is likely far worse – these figures include older generations, like baby boomers (Telegraph.co.uk). With spiralling costs, many young people are trapped in a cycle of financial limbo.

It’s not just housing – everything is more expensive. From groceries to energy bills, Gen Z is spending a larger percentage of their income just to survive. The idea of saving for a future, let alone investing in assets, feels laughable to many. With no clear path to stability, priorities are shifting.

Marriage rates are in freefall – only a third of women will be married by 30, compared to 90% in 1976. Who can afford a wedding, let alone a house? Instead of chasing outdated milestones, Gen Z is rewriting the script, focusing on mental health, work-life balance, and, frankly, survival.

Why should employers care?

Faced with an uncertain future, Gen Z are not motivated by the same things that drove their predecessors. If homeownership, financial independence, and long-term job security are off the table, why should they overwork themselves for companies that offer little in return? The simple answer: they won’t. And frankly: I cannot blame them. Employers who fail to adapt will struggle to attract and retain young talent. Workplaces that prioritise well-being, flexibility, and purpose will be the ones that succeed.

Mental health is at the forefront of Gen Z’s workplace expectations, with an overwhelming 92% of graduates wanting employers to engage in open discussions about mental health. Prioritising well-being over traditional workplace incentives, 77% of Gen Z workers value work-life balance even more than salary.

Burnout is a growing concern, with younger employees taking more sick days due to mental health struggles than previous generations. As a result, workplaces that fail to provide meaningful mental health support, flexible working arrangements, and a positive, supportive culture will increasingly struggle to attract and retain this workforce.

For employers, failing to prioritise mental health is no longer an option – it’s a business risk. Poor mental well-being among employees leads to higher absenteeism, lower productivity, and increased turnover, costing the UK economy £53-56 billion annually (Deloitte, 2024). Gen Z, more than any previous generation, expects workplaces to take real action in supporting mental health rather than offering token gestures.

Flexible working, access to therapy and coaching, mental health first aiders, and a culture that actively encourages open conversations about well-being are no longer considered ‘perks’ – they are essential. In a job market where young workers have more power to choose roles that align with their values, companies that neglect these changes will find themselves struggling to retain talent.

The healthiest workplaces are those that view mental health as a long-term investment, not just an HR box to tick. This requires a shift from reactive to proactive policies. Instead of waiting for employees to reach burnout before offering support, businesses must implement preventative measures – normalising mental health days, integrating stress management programmes, and fostering an environment where employees don’t feel guilty for prioritising well-being.

Research underscores the financial logic of this approach: for every £1 spent on mental health interventions, businesses see an average return of £5 through improved productivity and reduced absenteeism (Mental Health Foundation, 2024). Investing in employee well-being isn’t just ethical – it’s an undeniable business advantage.

The traditional 9-to-5 model is fast becoming obsolete, especially for Gen Z. A World Economic Forum report found that 73% of Gen Z employees expect permanent flexible work arrangements – and they’re willing to walk away from jobs that don’t offer them. With rapid advancements in technology, young professionals see no reason to be chained to an office desk five days a week. Employers who resist flexibility risk alienating an entire generation of workers, leading to higher turnover and difficulty attracting top talent. The message is clear: adapt or lose out.

Beyond flexibility, Gen Z expects workplaces to reflect their values. A Vantage Circle study found that 83% of Gen Z workers consider a company’s commitment to diversity and inclusion essential when choosing an employer. They won’t tolerate outdated corporate cultures that ignore gender inequality, racial bias, or LGBTQ+ rights. Companies that fail to prioritise these issues will quickly lose young talent to more progressive organisations. For businesses that want to stay relevant, diversity and inclusion can’t be just a mission statement – they need to be embedded in workplace culture.

The rise of ‘micro-retirements’

In recent years, the concept of “micro-retirements” has gained traction among Gen Z, reflecting a shift in how young people approach work and life balance. Traditional milestones such as securing a pension or owning a lifelong home have become increasingly elusive due to economic instability and the rising cost of living. Consequently, the appeal of long-term saving has diminished, and the notion of retiring at the end of one’s career is losing its allure.

Compounding these concerns are escalating anxieties about climate change, geopolitical tensions, and global conflicts. A 2024 study published in The Lancet Planetary Health revealed that 85% of young Americans aged 16 to 25 are at least moderately worried about the climate crisis, with 57% being extremely worried. This pervasive sense of uncertainty about the future has led many in Gen Z to prioritise living in the present. Micro-retirements involve taking short, frequent breaks from work to pursue personal interests, travel, or simply recharge.

This approach allows individuals to integrate meaningful life experiences into their careers, challenging traditional work trajectories. Employers who recognise and accommodate this desire by offering flexible sabbatical policies or extended leave options are more likely to attract and retain Gen Z talent. By supporting their employees’ need for balance and personal growth, companies can foster a more engaged and loyal workforce.

Conclusion: the future of work is changing – adapt or lose talent

I am a Millennial, but my experience feels more aligned with Gen Z’s grim reality. I went to a woeful state school in Reading that left most of my peers without a fighting chance and worked relentlessly, earning A*s at A-level, securing a first-class degree, then pushing myself even further – an MSc, an MA, and qualifying at a Magic Circle law firm. That wasn’t enough.

I published a novel, articles in major newspapers, poured over five hours a day into unpaid work for NGOs, journals, and charities, and threw everything I had into building two businesses from the ground up. And where has that got me? I still rent and couldn’t dream of ever owning my own home.

If this is where relentless ambition gets you, what hope is there for Gen Z? They have it even worse. They aren’t “lazy” or “entitled” – they’ve simply recognised the truth faster than I did: the social contract is broken. Hard work no longer guarantees stability, let alone success. Relentless grind doesn’t guarantee homeownership. Degrees don’t secure good jobs. The cost of living is higher than ever, and financial independence is increasingly unattainable.

Given these realities, it’s no surprise that Gen Z prioritises well-being, mental health, and flexibility over outdated corporate expectations. Who can blame them for checking out? Who can judge them for refusing to burn themselves out for a system that has failed them so completely? At this point, safeguarding our mental health isn’t a luxury – it’s survival, and for many of us, it’s all we have left.

Employers who fail to adapt – who cling to rigid hours, minimal mental health support, and performative “perks” – will struggle to attract young talent. But those who embrace change, support their workers, and create genuinely healthy workplaces will find themselves with a workforce that is engaged, productive, and loyal. The future of work isn’t about hustle culture anymore. It’s about balance, well-being, and fairness. And that’s a future worth investing in.