How Gen Z is winning the Great Resignation, from pay increases to better work-life balance

• Americans are still leaving their jobs, with 4.4 million people quitting in April alone.
• Gen Zers have benefited the most in the Great Resignation, per LinkedIn and Bank of America data.

Gen Zers are winning the Great Resignation.

They're the generation more likely to switch jobs and are landing the biggest pay increases when they do, according to a report from the Bank of America Institute and data from LinkedIn provided to Insider.

And even more young professionals are thinking about handing in their resignation letters in the next two years, based on a global survey from Deloitte — although the share who said this is down from last year's result, signaling that the Great Resignation could be slowing a bit after a year of record-high quits.

But for now, Gen Z is taking advantage of the labor shortage and their flexible position in life to find the right job for the right money.

Gen Zers who are changing jobs are taking home more pay

Recent data from LinkedIn, where Gen Z is defined as ages 20 to 24, shared with Insider shows Gen Z job transitions in April 2022 were 29.5% higher than a year earlier. That's roughly 20 percentage points higher than the 9.6% increase millennials saw, according to the LinkedIn data. Gen X job transitions were 8% higher in April 2022 than in April 2021.

Bank of America internal data shows a similar story, where roughly a quarter of Gen Z, those up to age 25, have job-hopped over the past six months, the highest share among generations during this period.

Karin Kimbrough, the chief economist at LinkedIn, said in a statement that "it's normal for career starters to be in an experimental phase where they're still figuring out what they want out of a job, and aren't always ready and willing to settle."

Jason Dorsey, who researches Gen Z, told Yahoo Finance that "it's really a perfect time for them to make that jump." For one, he said the generation "have the least responsibility in terms of family, child, houses, cars, and so forth."

The Bank of America Institute report found that "the average pay rise associated with job moves," based on annual pay data from May 2021 to April 2022, is around 17.6%.

"In other words, and perhaps unsurprisingly, it has paid off to move jobs," the report said.

For Gen Zers, this pay increase is 29.7%, the highest percentage among generations, according to Bank of America data.

But it's not just young workers switching jobs who are seeing more money in their bank accounts. Internal data of annual pay growth from May 2021 to April 2022 shows that, in general, Gen Zers are seeing higher pay bumps compared to other generations.

David Tinsley, the director of the Bank of America Institute, told Insider that Gen Zers' level of education could be related to higher pay.

"Some of the Gen Z rise will simply reflect that people in this group are embarking on their career journeys from education, which inevitably involves significant pay changes," the Bank of America Institute report said.

Millennials are also seeing pay growth above the average of 9.2%. Tinsley said millennials may have in-demand skills that companies want, and it could also be because of "the big rotation away from goods spending into services spending." He said that service industries like travel, entertainment, and leisure tend to hire younger workers.

Young professionals are thinking critically about whether a job actually fits what they want

Regardless of changing jobs, Gen Z are thinking about the jobs out there, the benefits they offer, and the duties they entail.

"The notion that they are just 'flighty' is a mischaracterization — from what we hear from Gen Z members on LinkedIn, they are thoughtfully evaluating the pros and cons of each opportunity and are willing to leave for a company that better aligns with their values and invests more in skills development and career growth," Kimbrough said. "In this tight labor market we're in, the bargaining power is still tilted in favor of the worker, and Gen Z is well aware of that."

According to a global Deloitte Gen Z and millennial survey, 37% of Gen Z and 36% of millennials said "they have rejected a job and/or assignment based on their personal ethics." They also won't stick around if they have to head back to office desks. A global survey from ADP Research Institute found that Gen Z is more likely to think about a new job if their company requires them to come back to the office full time.

"This group is certainly job-hopping at an even higher rate than we might expect, and when we survey LinkedIn members, Gen Z stands out as the group most likely to walk away from a job if it doesn't offer certain benefits like a flexible work policy," Kimbrough told Insider.

Deloitte and the Network of Executive Women noted in a recent report that employers are going to need a "different mindset" for hiring and retaining Gen Zers.

"Employers will need to understand the behaviors and tendencies of a generation that expects much more personalization in how they want to be treated by their employer and is seeking more than just filling cookie-cutter roles," the authors wrote.

Regardless of age, the labor market is hot for job seekers

Tinsley said that despite some signs of cooling, "the labor market for most generations, but particularly the younger age groups, have been white-hot."

Businesses have been increasing pay and offering other benefits to find and retain workers. According to the Bank of America Institute report, the pay increases may not last, though, and that job changes "may now have peaked."

Daniel Zhao, a senior economist at Glassdoor, previously told Insider the labor market situation looks "healthy" for people looking for jobs. But he warned that this isn't permanent.

"This is still a labor market that leans towards workers," Zhao previously said. "There's no guarantee that that will last forever, but generally speaking, what I tell job seekers is that this is a good time to look for a new job and try to lock in those gains while the labor market is still strong."

Are you a Gen Zer who has quit or is thinking about quitting your job? Contact this reporter at mhoff@insider.com.