The silence of resignation marks the disappearance of hope in numerous generations — yet Generation Z is shifting the benchmarks in the corporate world.
The burgeoning Gen Z population now constitutes over a third of the workforce and they are an unyielding power. They are set to redefine the corporate world, albeit disenchanted with the corporate maze that remains the inheritance from their forefathers.
Yet, we criticize them undeservingly.
The age-old stereotype often linked with Baby Boomers resounds, portraying Gen Z as indolent, privileged, and obstinately resistant to hard work.
However, is it fair to hold them at fault, considering the system they’ve been bequeathed? How many among us have actually experienced the equilibrium between professional and personal life that is vital for a person’s holistic success?
The current professional desert we inhabit is riddled with an escalating cost of living that is impossible to sustain, static pay, an affordability crisis in housing, and a severe mental health situation.
A Short-sighted Fiscal Nightmare
Working in corporate USA may not always be a pleasurable experience, but it has traditionally been a means to an end – paying for our livelihood. But in these unprecedented times of economic uncertainty, this old-fashioned financial blueprint of earning a degree, landing a satisfying job (that promises lifelong support from your employer), purchasing a house, and starting a family – isn’t as effective as it once was.
Generation Z, however, is not prepared to replicate the missteps of their forebears.
Educational Loans
There’s been a significant shift in the job market starting from the 1980s, stretching over four decades where higher education became an increasing requirement. In the period from 2010 to 2016, a bachelor’s degree was a prerequisite for nearly 75% of jobs, marking a 12% rise since 1980.
Fast forward to 2021, this trend saw a considerable decline with only 44% of jobs demanding a degree. Despite this change, the initial batch of Generation Z graduates, who invested heavily into higher education, now find themselves at a disadvantage. Feeling misled by their high-cost, low-value degrees, they are left grappling with the financial consequences.
The lion’s share of student debt is shouldered by Generation X and millennials, largely due to the non-negotiable nature of the repayments. One can disburse tens of thousands before even touching the principal, in pursuit of careers that may not necessarily demand a formal degree and offer modest wages that necessitate lifelong toil to clear these loans.
Generation Z exhibits an increasingly skeptical attitude towards tertiary education, despite the persistent promotion of this path.
Progressive enterprises are beginning to shift from the traditional requirement of a four-year degree, favoring experience and proficiency-based hiring — a trend deserving of expansion.
Many emerging roles in the technology and marketing sectors no longer hinge on a degree. They tap into the competencies Generation Z has acquired as the pioneering generation to come of age surrounded by digital technology. Social media marketing, for instance, is a domain where their inherent understanding and unique navigation abilities surpass those of many older generations.
The Illusion of House Ownership
The concept of house ownership being the gateway to economic prosperity was largely promoted by the Baby Boomers (presently aged 57–75). They were fortunate to embark on the homeownership journey at the onset of the property bubble. Securing residences at reasonable prices, these homes appreciated significantly over time, contributing to their retirement funds.
Though it’s a well-known grievance of millennials (currently aged between 27–42) that we’ve been pushed out of the property market, the existence of low-interest rate mortgages kept the door ajar for us.
“From 2019 to 2022, there was a near 10 percentage point surge in property ownership amongst American millennials. Approximately 34 percent of households led by a millennial owned a home in 2016. By 2022, this rose to 53 percent,” according to Financial Review.
Yet, Gen Z face the harsh reality of soaring interest rates and escalating property values. As it currently stands, a mere 41% of Gen Z harbour hopes of affording a home someday. Unless there’s a significant shift, this dream may be mercilessly trampled underfoot.
For most Americans to be capable of owning a median-priced residence at $433,100, an estimated annual salary of $166,600 is required. Yet, the average household brings in a mere $74,580 with entry-level jobs providing even less than this figure as indicated by Forbes.
The task of striving for success can feel daunting when the reward is returning to your childhood home after a grueling day at work.
However, in keeping with their inherent resilience, Gen Z has readjusted their targets. Rather than striving for homeownership, they’re channeling resources into investment. As it stands, about 54% of Gen Z have some form of investment in stocks, EFTs, or NFTs. Despite half of them wrestling with knowledge gaps that hinder confidence, they are on an upward learning curve.
Transforming the Corporate Landscape
By 2025, Gen Z is projected to make up 27% of the labor force, bringing a unique skillset that for many of us is the stuff of fantasy. In the face of rather grim economic predictions, they are set to turn the corporate world into one that catifies their needs.
They are pursuing the work-life equilibrium that many of us have grappled with throughout our careers. Similar to the imbalance that caused my own parents to miss major parts of my upbringing, time which can never be reclaimed. Close to 80% of Gen Z affirm that achieving a work-life balance is of utmost importance, and they are increasingly asserting this need.
In today’s interconnected world, they are conscious that Americans are working more intensely than their European peers without much to show for it (though still working less than many Asian nations).
Money.com reports that “The typical 40-hour-a-week American employee is logging in 400 additional hours each year – equating to 10 extra weeks – than their German counterparts.”
The past practice of organizations ‘slimming down’ by eliminating roles and transfusing the duties onto others without remuneration – well, Gen Z is not standing for it. They are resisting.
They are silently resigning.
Silent resignation has been in existence for quite some time, but it’s a mounting trend that is currently impacting six out of every ten personnel. A trend that is costing the global economy a staggering $9 trillion per year. It happens when individuals mentally withdraw from their work, limiting their tasks to those that fall strictly within their job specification.
Rather than simply seeking jobs, individuals are in pursuit of vocations that provide a sense of fulfillment, personal growth, and support. They are attracted to corporations that embrace their cherished values, including work-life balance, authenticity, transparency, enjoyment, and social commitment.
However, some businesses have reacted negatively to these desires, resorting to “unobtrusive dismissals” by deliberately making working conditions unbearable, thus pushing the employee to resign. On the other hand, the more insightful companies are striving to turn their environment into the preferred spaces for Generation Z. These enterprises aim to acknowledge their talents, provide lattice-shaped career paths, ensure remote working flexibility, and grant flexible time off.
It’s not surprising then that a minority are turning to movements like the TradWife, where women adopt extreme, traditional roles of stay-at-home wives and mothers. We need to cultivate greater adaptability in the employment landscape for young parents.
Instead of staying and tolerating less than desirable conditions, they’re deciding to clock out and no one can fault them for it.
From Desolate to Dynamic
Years ago, I too abandoned the conventional employment field, sharing the same disheartenment that many of my contemporaries experienced as corporate America drained their vitality. The work-life equilibrium has gone haywire. The inheritance we passed on to them wasn’t commendable, and it didn’t have a positive impact on many of us.
In the absence of the assurance of a house and a secure financial outlook, they have wiser ways to utilize their time. Why does it infuriate us when they don’t feel the necessity to sacrifice their lives for work — is it because of the regret that we did? It’s peculiar to desire such a fate for others.
We need to refrain from disparaging their digital-age pursuits merely because they’re doing what we yearned for. Considering that the average individual spends a third of their lifespan (90,000 hours) working — isn’t it rational to aspire for better?
The manner in which they’re tailoring and transforming the market to fit their envisioned future is commendable. And I’m eager to witness the world they redesign for themselves. It’s their universe to shape, hence it’s high time we made way for them to craft the environment they desire.
And I genuinely wish they surpass our efforts in doing so.
