Recruitment
How to attract and retain Generation Y and Z
28 JANUARY 2025
What are Generation Y and Generation Z?
Generation Y, also called millennials, are people born roughly 1981–1996. Generation Z are born roughly 1997–2012. Together they make up a growing share of the workforce, and they value flexibility, work-life balance, purpose, development and employers who take responsibility for sustainability and mental health.
| Generation | Born approximately | Common drivers at work |
|---|---|---|
| Baby boomers | 1946–1964 | Security, loyalty, experience |
| Generation X | 1965–1980 | Independence, balance, results |
| Generation Y (millennials) | 1981–1996 | Purpose, development, flexibility |
| Generation Z | 1997–2012 | Security, mental health, sustainability, authenticity |
| Generation Alpha | 2013 onwards | Not yet in the workforce |
The exact cut-off years vary slightly between sources, and individual differences are always larger than generational ones.
Generation Y and Z: what attracts the employees of the future
Flexible work with a focus on human contact, work-life balance, climate action, the chance to drive change and influence decisions in the organisation. That is what the values-driven employees of the future value most, according to the latest insights from Ungdomsbarometern’s Trend Report 2025 and Deloitte’s 2024 Gen Z and Millennial Survey.
Recent years of pandemic, recession and rapid technological change have left their mark on how people see work and life. Both millennials and Gen Z feel they need to take control of their lives, find balance and make a difference, at work and in the world. At the same time, they struggle with financial uncertainty, climate anxiety and technology’s growing impact on everyday life.
There is both hope and worry among young people in today’s job market, and a lot to learn about how they see the world and the future.
Generation Y (millennials)
Millennials, also known as Generation Y, were born roughly between the early 1980s and the mid-1990s. They grew up during a time of rapid technological progress and globalisation.
Generation Z
Generation Z, or Gen Z, follows the millennials and includes people born from the mid-1990s to the early 2010s. They grew up with the internet, social media and a fast-changing technological and political world.
Work takes on a different meaning
For the younger generations, identity has long been central, and career choice still plays an important role. But the view of how work shapes identity is changing. According to Deloitte’s 2024 report, 46% of millennials and 36% of Gen Z see their work as central to their identity, yet status and titles matter less and less, while balance between work and free time is prioritised. Work is now more about how it fits into life than about defining it.
Ungdomsbarometern’s insights also show that balance is what matters to young people today. Looking after physical and mental health is important, and themes such as mindfulness and slow tech, using technology in a more conscious, calmer way to reduce distractions, show that many want to feel more present in everyday life. This also shapes how younger people approach exercise, with hard workouts giving way to walks and low-intensity training.
Interest in more conscious consumption is also rising, prioritising quality and sustainability over quantity. Overall, a simpler, more minimalist lifestyle is trending on most fronts.
Work-life balance and flexibility attract younger generations
Being able to balance work and private life is crucial for both generations. Having time and energy after work for personal interests, family and recovery is central to their lifestyle, and goes hand in hand with the wish to look after their mental health and wellbeing.
Hybrid work has become the norm for both Gen Z and millennials. Two thirds of respondents already work in hybrid models, and expectations of flexibility are high. According to Deloitte, three quarters would consider looking for a new job if their employer required full-time office attendance.
But it is not only about where you work, it is also about how. A growing share say they feel more connected to their organisation and colleagues when they regularly work in the office, while others say mandatory office attendance causes stress and costs, for example through commuting.
While young people value flexibility, human contact and social belonging are increasingly valued too, reflecting a certain longing for in-person meetings after the remote years of the pandemic. What matters is the balance and the freedom to shape your own day.
Mental wellbeing is a priority
Stress and mental ill health remain major challenges. According to Deloitte, only 51% of Gen Z and 56% of millennials are satisfied with their mental health, and 40% of Gen Z and 35% of millennials feel stressed often or all the time. Employers who offer resources for mental wellbeing and create an open culture can expect higher engagement and loyalty.
Sustainability drives choices
Sustainability and climate action continue to have a strong influence and remain one of the most important factors in both generations’ decisions. According to Deloitte, 20% of millennials and 19% of Gen Z have changed jobs or industries because their employer’s values did not match their own. Ungdomsbarometern shows growing interest in the circular economy, DIY and consuming less, underlining an increased awareness of sustainability.
How to attract tomorrow’s workforce
- Involve employees in decisions. Both Gen Y and Gen Z value the chance to influence decisions and shape their workplace. Actively involving employees and showing that their perspectives matter builds loyalty and trust.
- Communicate openly about climate and sustainability. Companies that show clear commitment to climate issues and implement concrete sustainability strategies build trust and attract young talent. Transparent communication about what you do, and how employees can contribute, strengthens both credibility and engagement.
- Enable flexibility and hybrid work. Hybrid models that balance remote work and office collaboration are highly valued. Human contact and community at work also matter, so make room for both. Clear expectations and flexible solutions strengthen wellbeing and productivity.
- Prioritise mental health and a healthy relationship with technology. For these generations, balance equals stability. Realistic goals, respect for people’s time and room for recovery are simple but effective. Minimise unnecessary digital load, such as constant emails outside working hours, and create a clear structure for digital tools.
Priorities in order
Generation Y (millennials)
Work-life balance: Balance between work and private life is the top priority when choosing an employer.
Financial security: Worry about financial uncertainty affects career choices and loyalty.
Sustainability: Credible sustainability strategies influence the choice of employer.
Influence: Being involved in shaping the workplace and feeling that the work makes a difference.
Generation Z
Work-life balance and flexibility: A balanced working life is a priority, with demands for hybrid work and flexibility.
Mental health and wellbeing: Support for managing stress and prioritising mental health is highly valued.
Sustainability: Concrete sustainability actions affect loyalty and choice of employer.
Healthy tech habits: Strong demand for healthy technology use and initiatives such as digital detox.
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FAQ
Frequently asked questions about Generation Y and Z
What years is Generation Y?
Generation Y, or millennials, were born roughly between 1981 and 1996.
What years is Generation Z?
Generation Z were born roughly between 1997 and 2012.
How do you attract Generation Z as an employer?
Be concrete and honest about what you offer, let employees tell their own stories, for example with employee video, and show how you work with development, flexibility and sustainability. A clear EVP is the foundation.
How do you retain younger employees?
Clear development paths, regular feedback, coaching managers and onboarding that creates belonging from day one.
