Gen Z Embracing Multiple Jobs to Make Ends Meet, According to Fresh Study Findings
Struggling Gen Z Workers Push for Financial Support from Employers
In the face of rising living costs and insufficient compensation, a significant number of Generation Z (Gen Z) workers in the UK are turning to second jobs or side hustles to make ends meet. According to a study, nearly 55-57% of Gen Z workers are either considering or already working a second job to cover basic living costs and manage financial strain caused by inflation, housing costs, and daily expenses [1][2][3].
The financial pressures faced by Gen Z workers are substantial. Nearly half (44%) of Gen Z employees feel financial worries distract them at work, and 19% worry constantly to the point it affects their concentration [1][2]. Less than half (45%) feel fairly compensated amid rising living costs, while only 32% have emergency savings of £1,000 or more [1]. Inflation and housing costs are reported as top financial concerns among Gen Z, with 61% particularly worried about housing affordability [4].
Jo Werker, CEO at Boostworks, emphasizes that financial pressure isn't limited to younger workers, but they are likely to be feeling it most intensely. She states that the vast majority of young workers are taking on second jobs because they simply can't make ends meet [5]. Werker encourages employers to look beyond the assumption that side hustles are simply a sign of ambition or creativity, and to reassess how well their current reward strategies are supporting their people [6].
Employers can address these challenges by providing practical financial support that Gen Z employees value. Offering workplace vouchers, shopping discounts, or cashback rewards to help reduce everyday expenses is preferred by over half of Gen Z workers [1]. Providing access to employer-led financial education and planning services to enhance financial literacy and security is welcomed by about 74% of Gen Z [1]. Introducing or enhancing performance-based bonuses and contributions to savings or investment accounts is valued by 50% of Gen Z, while 35% would appreciate employer contributions to savings [1].
Reviewing compensation packages to ensure alignment with the realities of rising living costs is also crucial to help retain engagement and reduce the mental and physical strain of financial stress [2][3]. By proactively addressing financial worries through tailored benefits and support, employers can help mitigate distractions and absenteeism caused by financial stress, thereby improving wellbeing, engagement, and retention among Gen Z workers [1][2].
The cost-of-living crisis is reshaping how the younger workforce engages with work, rest, and their primary employers. The findings suggest a potential gap between existing support and the realities of rising living costs, reinforcing the importance of employers catering to the varied needs across different generations. Millennials and Gen X employees value shopping discounts, cashback, and reward points as important benefits, while Baby Boomers continue to value performance-based bonuses [7].
In conclusion, employers have an opportunity to strengthen loyalty and help their teams stay focused, energized, and engaged by opening up conversations around fairness, support, and wellbeing. By addressing the financial pressures faced by their employees, particularly Gen Z workers, employers can foster a resilient, engaged, and productive workforce.
Sources: [1] Boostworks (2022). The State of Financial Wellbeing in the UK: 2022. [2] The Guardian (2022). Generation Z workers are struggling with financial stress, survey finds. [3] BBC News (2022). Young workers 'struggling with financial pressure'. [4] YouGov (2022). Generation Z's financial worries: a study into the challenges faced by the youngest workers. [5] The Telegraph (2022). CEO warns employers to address financial pressures on young workers. [6] HR Magazine (2022). Boostworks encourages employers to reassess reward strategies in light of side hustles. [7] Forbes (2022). The Evolution of Employee Benefits: Catering to the Needs of Different Generations.
- Businesses that want to improve engagement and retention among Gen Z employees should consider offering practical financial support such as workplace vouchers, shopping discounts, or cashback rewards to alleviate everyday expenses.
- In the realm of personal-finance, employers can foster a resilient, engaged, and productive workforce by addressing the financial pressures faced by Gen Z workers and proactively providing employer-led financial education services to enhance financial literacy.
