Gen Z prefers paychecks over promotions, survey says

• Most Gen Zers prioritize financial security over climbing the corporate ladder, new research shows.
• Less than one-third of Gen Zers said they are in good financial condition.

As young Americans make career decisions about where to work and what roles to accept, most are prioritizing long-term financial security over climbing the corporate ladder.

Healthcare coverage, retirement funds, and paid leave top Gen Z's wish list of benefits, according to new research from the financial product and services firm the Standard. Between August 7 and 25 last year, a third-party company asked 1,250 adults between the ages of 18 and 26 about career ambitions and benefit priorities on behalf of the Standard.

Gen Zers feel "financially vulnerable," per the report, with economic circumstances forcing many to live paycheck to paycheck. Less than one-third of the generation said they are in good financial condition.

US inflation rates are double what they were 10 years ago, according to the Bureau of Labor Statistics. The consumer price index in US cities — a metric used to assess the cost of living — rose by about 8% in the last 10 years.

"Since 2021, Gen Z has been living with rates of inflation not seen in the US in decades," the Standard reported. "Contending with rising costs for healthcare, housing, and education has increased the financial pressure faced by this age group as they begin their working lives."

Young workers want stability

Gen Zer's priorities align with other generations on financial planning goals but the Standard reported that "the difference between what this generation has and what it wants is significant."

Young people tend to be savings-focused, but early-career jobs often don't offer high pay or competitive benefits. Nearly half of all young workers said that worries about long-term savings, inflation, and lack of emergency funds keep them up at night.

Additionally, Gen Zers' top determinants of health are economic. Many workers say their well-being relies on their economic situation, employment security, and healthcare coverage — with access to food, medicine, and housing being key concerns.

"Give a livable wage, consider the rate of inflation today," one survey respondent said. "Many people like myself are making above the minimum wage and are still struggling to live day to day."

Young workers have also shown a desire for more pay and budget transparency with their peers. "Loud budgeting" has become a popular trend on TikTok, with young adults sharing budgeting tips and lower-cost lifestyles.

Gen Z priorities are shaping the job market

Young workers face growing economic challenges — and they want employers to take more helpful action.

Where Gen X and boomers looked toward banks and credit unions for benefits in the past, the Standard's report said Gen Z labor force is putting trust in their companies.

Access to loans, a strong 401(k) retirement account, and reliable insurance coverage are benefits that Gen Zers expect from employers. This might include support in homebuying, student loan repayment, and financial education.

And young workers aren't afraid to switch jobs in search of higher pay and better benefits. Over 90% of Gen Zers and millennials said they're considering leaving their jobs, per a 2023 LinkedIn survey.

If companies want to look attractive to young employees, the Standard suggests they invest in mentoring Gen Z workers and take steps to ease financial burdens.

"Gen Z's near-constant connection to media makes it hard for them to think about larger societal problems…Carriers (and companies) who show they've focused on working to improve societal and economic conditions will gain greater brand affinity from this generation," The Standard report said.

By offering intentional tools toward sustained economic stability, The Standard said companies will have better luck recruiting and retaining Gen Z workers.

Are you a Gen Z worker and willing to share details about your economic stability goals and how you plan to achieve them? Contact this reporter at allisonkelly@insider.com.