The traditional approach to work is being rejected by younger employees, with burnout, industry shifts and career breaks on the rise, according to new research.
Findings from a study by independent consultancy Barnett Waddingham reveal that two-thirds (66%) of 18- to 24-year-olds and 61% of 25- to 34-year-olds have taken extended sick leave in the past five years — more than double the rate of older workers, highlighting growing wellbeing concerns in the workplace.
More than a quarter (27%) of younger employees reported being absent from work for one to five months, raising serious concerns for employers about retention and productivity.
Mental Health and Burnout Driving Extended Sick Leave
The research reveals that younger workers are experiencing higher levels of anxiety, stress, depression and burnout than older colleagues, placing them at greater risk of long-term absence or leaving the workforce entirely.
- Anxiety: 79% of 18- to 24-year-olds and 76% of 25- to 34-year-olds report experiencing anxiety, compared with 68% of 45-54 year-olds and 50% of workers aged 55 and over.
- Stress: 86% of 18- to 24-year-olds and 85% of 25- to 34-year-olds say they have suffered from workplace stress, compared with 73% of 45-54 year-olds and 62% of those aged 55 and over.
- Depression: 71% of 18- to 24-year-olds and 66% of 25- to 34-year-olds have experienced depression, far higher than the 56% of 45-54 year-olds and 38% of older workers.
- Burnout: 74% of 18- to 24-year-olds and 72% of 25- to 34-year-olds say they have experienced burnout, compared with 55% of 45-54 year-olds and just 40% of those aged 55 and over.
The figures suggest that workplace wellbeing strategies are failing younger generations, who are twice as likely to take long-term leave due to health issues than workers aged 55 and over.
Career Breaks and Industry Shifts Becoming the Norm
Burnout and dissatisfaction with traditional career paths are also leading to an increase in career breaks and industry changes.
- 28% of 18- to 24-year-olds have already taken an extended career break, with 29% planning to in the future.
- 22% of 25- to 34-year-olds have done the same, with 23% considering it.
At the same time, a growing number of young workers are switching careers entirely:
- 22% of 18- to 24-year-olds have already moved to a completely different industry, with 37% planning to do so.
- Among 25- to 34-year-olds, 23% have switched careers, with 28% looking to make the jump.
Younger workers are also willing to take pay cuts for a better work-life balance.
Work-Life Balance Now a Priority Over Pay
More than a quarter (26%) of 25- to 34-year-olds have moved to a lower-paying job to improve their quality of life.
Even a quarter (24%) of 18- to 24-year-olds — those still in the early stages of their careers — have already prioritised wellbeing over salary, with 30% planning to do so.
Despite many businesses pushing for a return to the office, the research shows that flexibility and remote work remain non-negotiable for younger employees.
‘A Fundamental Redefining of Attitudes Towards Work’
Julia Turney, Partner and Head of Platform and Benefits at Barnett Waddingham, said businesses must adapt to the changing expectations of younger workers or risk losing talent and engagement.
“We are witnessing a fundamental redefining of people’s attitudes towards work. Younger workers are rejecting the traditional corporate ladder, while prioritising their wellbeing and work-life balance above all else. The figures are clear: if businesses don’t offer the flexibility that these people expect, they could struggle to retain crucial talent while risking a disengaged workforce and stretched bottom line.”
Turney also warned that businesses face rising costs in the coming months, making employee retention and engagement more critical than ever.
“At a time when business costs are set to skyrocket in coming months, employers are now walking a financial tightrope — with a requirement to minimise employee risk, while remaining productive and profitable.”
She pointed to the UK government’s Get Britain Working whitepaper, which calls on businesses to prioritise workforce health as an economic necessity.
Turney added that there was now “an urgent need for business to prioritise the health of their workforces; not just as a moral imperative, but as an economic and business necessity”.
What Employers Can Do to Retain Younger Workers
With younger employees demanding more flexibility, better mental health support, and a healthier work-life balance, businesses that fail to adapt could struggle with retention, engagement, and productivity. Here’s what employers can do:
Prioritise Mental Health Support
- Offer mental health days and early intervention support to prevent burnout before it escalates.
- Provide Employee Assistance Programmes (EAPs) and workplace counselling.
- Train line managers to recognise and address mental health concerns.
Offer Career Growth and Industry Flexibility
- Create internal mobility opportunities so employees can shift roles within the company rather than leaving.
- Support career breaks or sabbaticals to prevent long-term exits from the workforce.
- Develop clear career progression paths, ensuring employees feel valued and supported.
Redefine Work-Life Balance
- Offer flexible working arrangements, including remote work options and flexible hours.
- Avoid excessive workloads and unrealistic expectations that lead to stress and burnout.
- Introduce clear policies on overtime and out-of-hours work expectations.
Adapt to a New Workforce Mindset
- Acknowledge that younger employees prioritise wellbeing over salary and offer benefits that support work-life balance.
- Regularly survey employees to understand their needs and motivations.
- Invest in wellbeing and engagement initiatives that create a positive, sustainable work culture.
The Future of Work Is Changing — Are Employers Ready?
The data shows that younger workers are no longer willing to sacrifice wellbeing for career progression. With high rates of anxiety, stress, and burnout, businesses that fail to adapt risk losing their workforce to career breaks, industry switches, and long-term absence.
By embracing flexibility, wellbeing, and personalised career paths, employers can future-proof their workforce and retain the next generation of talent.