The new generation of employees is rewriting the rulebook on what it means to work with purpose. For Gen Z and millennial workers – two groups that make up a lion's share of today’s workforce – their aspirations go beyond a steady paycheque. This rising tide of talent is searching for roles that resonate with their values, ethics, and sense of well-being, like a compass pointing towards meaningful work.

A recent Deloitte Gen Z and Millennial Survey that spanned 44 countries and nearly 23,000 respondents reveals a new reality: to retain these purpose-driven employees, companies must prioritise mission, sustainability, and mental health.

1. Purpose as the 'north star'

The most eye-opening takeaway from the Deloitte report is the resounding call for purpose. With 86% of Gen Z respondents and 89% of millennials stressing that a sense of purpose is essential to their job satisfaction, this isn’t just a box to tick – it’s the beating heart of their work life. They’re seeking roles that allow them to be part of something larger than themselves, more substantial than just profit margins. For these generations, purpose is the glue that binds their day-to-day grind to a bigger picture, a vision where work contributes to more than just the company’s bottom line.

Young employees are drawing lines in the sand when values clash. Many are turning down jobs or rethinking assignments if an employer’s practices run afoul of their ethics. Whether it’s a company’s environmental footprint, fair policies, or commitment to mental health, Gen Z and millennials are unafraid to walk away when they feel integrity is on the line. In fact, two in ten have already made a leap to find a role aligned with their environmental values, and a quarter are on the brink of making the same move soon.

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2. The climate connection: A green awakening

Environmental sustainability is another cornerstone expectation, with climate change anxiety casting a shadow over these generations' career aspirations. The Deloitte survey found that 62% of Gen Z and 59% of millennials feel the weight of climate anxiety. They look beyond personal eco-friendly habits, urging companies to do their bit and step up as leaders in sustainability. These young workers are not just hoping for change; they’re demanding it.

Gen Z and millennials expect businesses to be more than just spectators – they want to see companies roll up their sleeves and actively champion environmental solutions. For them, sustainability isn’t a trend; it’s a cause that runs deep. As conscious consumers, they are willing to pay a premium for sustainable products, and as discerning employees, they want to see their employers use their influence to create ripples of societal change. Companies that wear their green credentials on their sleeves are in prime position to capture the loyalty of these generations, while those that ignore climate concerns may find themselves out in the cold.

3. Mental health and well-being: The new workplace currency

The pandemic has shone a light on mental health like never before, and for Gen Z and millennials, wellness at work is no longer a ‘nice-to-have’ but a ‘need-to-have.’ Grappling with anxiety, stress, and burnout, younger employees are calling for a comprehensive approach to well-being. Many feel their employers are falling short, and where mental health support is lacking, so is their loyalty.

Organisations that embrace a 360-degree approach to wellness – addressing physical, emotional, social, and financial well-being – have a better shot at retaining young talent. For these employees, the days of glorifying 'hustle culture' are over; they refuse to mortgage their mental health for the sake of productivity. Work-life balance has become a non-negotiable, and companies that fail to respect this boundary risk seeing a revolving door of young talent.

4. Technology and GenAI: A double-edged sword

Generative AI (GenAI) has become a hot topic for young employees, casting both light and shadow over their career paths. While many are excited about GenAI's potential to streamline tasks and free up their time, others worry that automation could cut into job opportunities for those just stepping onto the career ladder. The more these employees interact with GenAI, the more they feel the tug of both excitement and trepidation.

Frequent users of GenAI see the promise of increased efficiency but also sense the looming challenge of staying relevant. In response, Gen Z and millennials are doubling down on reskilling, eager to keep pace with a shifting technological landscape. Forward-looking companies have a chance to turn this anxiety into empowerment by investing in reskilling initiatives, ensuring young workers feel secure in their careers as the tides of technology shift.

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5. Ethical leadership and the DEI imperative

For Gen Z and millennials, ethical leadership isn’t a cherry on top; it’s the whole cake. They’re looking for leaders who don’t just talk the talk but walk the walk, taking a bold stance on moral and social issues. From fostering diversity and inclusion to holding the company accountable, young employees expect more than just a figurehead – they want a role model.

Their focus on ethical leadership intersects with a desire for workplaces that truly embody DEI values. For these generations, a diverse, inclusive workplace isn’t a perk; it’s a principle. They seek environments where differences are celebrated, not just tolerated, and where transparency is the norm. Companies that fail to meet these standards may find that these purpose-driven employees are quick to vote with their feet.