By 2030, Gen Z and Millennials are expected to make up 74% of the global workforce—a demographic shift that carries many implications for employers.

This insight comes from Deloitte’s 14th annual Global Gen Z and Millennial Survey, which highlights how these generations are redefining workplace expectations. Their views on Diversity, Equity, and Inclusion (DEI) are reshaping how organisations must recruit, retain, and cultivate talent.

The study captured the views of 23,482 respondents—14,751 Gen Zs and 8,731 Millennials—from 44 countries across six continents. These voices span diverse work situations, including full-time employment, gig work, unpaid roles, and unemployment, offering a panoramic view of how young workers think and feel about the evolving workplace.

The research paints a rich picture of generational sentiment. 

Generation Z and millennials are looking for more than just a paycheck. They have three goals: money, meaning, and well-being. Behind these three “non-negotiables” lies an expectation that DEI will be integrated into their individual and collective work experience.

#1 Purpose and Values, the essential alignment

For many young professionals, work is part of who they are. Some 41% of Gen Z and 46% of Millennials view their job as central to their identity, second only to relationships with friends and family. And with this identity-driven view comes a strong demand for purpose.

Purpose, as defined by respondents, varies from adequate salary and skill development to value-driven work and societal contribution. An overwhelming 89% of Gen Z and 92% of Millennials say a sense of purpose is key to their job satisfaction and well-being.

When this purpose is lacking, the impact is tangible: around 40% report increased stress and anxiety, and nearly half (44% Gen Z; 45% Millennials) have left roles due to a lack of meaningful work.

A further 40% have declined job opportunities based on ethics or personal beliefs—clear evidence that DEI and value alignment are deal-breakers.

Interestingly, when they cannot find direct purpose at work, some prioritise flexibility and salary to support causes outside the workplace. 

#2 Mental Health and Inclusive Cultures

Mental health is a key concern. Only 52% of Gen Z and 58% of Millennials rate their mental health as good or very good. For Gen Z in particular, mental well-being is the second most pressing societal issue, trailing only the cost of living.

The workplace plays a significant role in their mental state. One-third of respondents say their job is a major source of stress.

Long hours, lack of recognition, and toxic cultures are frequently cited. Alarmingly, 44% of Gen Z and 45% of Millennials identify toxic work environments and unfair decision-making as leading causes of stress.

Manager´s rol is seen as essential to fostering a healthy culture. While over 40% believe their managers should be creating inclusive, positive environments, only 22% of Gen Z and 21% of Millennials feel that’s currently happening. The disconnect is stark and signals a leadership gap in delivering inclusive team dynamics.

Furthermore, stigma around mental health persists. While around two-thirds feel comfortable discussing their mental health with their line manager, 26% still fear discrimination if they do. This has real consequences: although the majority have needed time off due to stress (74% of Gen Z, 68% of Millennials), many did not take it—and when they did, nearly half cited alternative reasons.

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#3 Environmental and Ethical Expectations

While sustainability isn’t a traditional DEI metric, it represents broader ethical alignment—another area where Gen Z and Millennials expect action.

Around 23% of Gen Z and 22% of Millennials have investigated a potential employer’s environmental impact before accepting a job. A smaller but significant number (15% and 13%, respectively) have left a job due to environmental concerns.

Importantly, nearly half (48% of Gen Z and 47% of Millennials) say they and their colleagues have actively encouraged their employers to adopt more sustainable practices.

This collective advocacy often goes hand-in-hand with expectations for transparent, socially responsible business practices—including a credible commitment to DEI.

There’s also a noticeable trust gap. While executives may be optimistic about their ESG efforts, 80% of Gen Z and Millennials believe businesses could—and should—do more to operate sustainably. Their scepticism in this area reflects broader concerns around whether companies are truly walking the talk.

Implications for Business and HR Leaders

• Empower managers with people leadership skills: Train managers not only in task management but also in inclusive leadership, mentoring, mental health support, and setting healthy boundaries. These are the skills that drive engagement and inclusion at the team level.
• Redesign work to prevent burnout: Companies must proactively address structural causes of stress, including workloads, recognition gaps, and inequitable practices. Mental health initiatives should focus on building psychological safety rather than reactive solutions.
• Make purpose and values visible and credible: Gen Z and Millennials expect employers to clearly articulate and demonstrate their values. A well-defined purpose that resonates with employees’ personal missions can be a powerful driver of loyalty and productivity.
• Open pathways to diverse talent: As technology reshapes entry-level roles and degree requirements come under scrutiny, shifting to skills-based hiring can help unlock diverse talent and better reflect the workforce of the future.
• Be transparent and accountable: Whether on DEI, sustainability, or ethical governance, transparency matters. These generations expect businesses to act responsibly and communicate their impact with honesty.