Generational Gap Grows

Work & Money Outlook Divided

Younger generations are demonstrating notable shifts in attitude about work and life, taking drastic measures to bring balance to their lives, according to Prudential Financial, Inc.’s (NYSE: PRU) latest Pulse research survey, “Generational Gap Grows: Work & Money Outlook Divided.”

The survey finds that while millennials and Gen Z are attracted to more flexible ways of working, they are far more likely than Gen X or baby boomers to turn to gig work, go into debt, or receive financial support from relatives to meet their financial goals. Related findings include:

• Younger generations continue to drive the Great Resignation: One-third of millennials and 46% of Gen Z have switched employers since the start of the pandemic — a stark contrast compared to 29% of all workers.
• Job-hopping for paycheck-bumping: Younger generations are more likely to say that the best way to increase their earning potential is to change employers every few years, with 41% of millennial workers and 44% of Gen Z workers expressing this belief, compared to 36% of all workers.
• Younger generations look to employers for help: Almost 6 in 10 Gen Z (58%) and millennial (57%) workers believe their employer has a responsibility to help them feel more financially empowered.
• Flexibility strong against the dollar: Conversely, over the past year, 29% of millennials who switched jobs took a pay cut, with more than 1 in 4 millennials who took a pay cut explaining they did so in order to achieve a better work/life balance.

“Millennials are acutely attuned to the benefits of a hybrid working model. As the largest generational cohort in the U.S. workforce,¹ and at Prudential, nearly 40% of our employees in the U.S. are millennials, the demand for flexibility in when and where we work is not going anywhere — hybrid demand is here to stay,” said Prudential Vice Chair Rob Falzon. “The biggest opportunity for employers is to fully embrace this new era and redefine the workplace to best meet the needs of employees — regardless of where they are in their lives.”

• Hybrid and happy: According to the survey, 70% of hybrid workers report feeling a strong sense of loyalty to their employer, compared to 64% of in-person and 59% of remote workers. Hybrid workers are also more likely to say they feel fairly compensated for the work they do (68%) and that the benefits their employer provides are tailored to their individual needs (64%).

One watch-out for employers is that many Americans report their main source of income is not enough to pay the bills or save for the future. Turning to gig work, going into debt, or receiving financial support from relatives to close the gap has become the norm: