Gen Z workers: values matter, and so does financial security

Despite appearances and tongue-wagging from older observers, it turns out that Gen Z is much more eager to work hard for both social good and long-term financial security than some might think, according to new research from Ateneo de Manila University.

Steeled by economic uncertainty leading up to—and most especially in the wake of—the COVID-19 pandemic, the youngest Filipinos now entering the workforce greatly value both a stable income and personal achievement. These idealistic yet pragmatic members of Gen Z (born between 1995 and 2012) tend to look for meaningful and fulfilling work environments but also willingly forego creature comforts in favor of long-term financial stability.

In their seminal study of Filipino Gen Z employees, Ateneo researchers uncovered clear distinctions in workplace motivation versus previous generations, particularly Millennials (or Gen Y, born between 1980 and 1994); Gen X (depending on the research agency, born in either 1961 or 1965, up to 1979); and Baby Boomers (born after World War II, in 1946 to 1960/1964). These differences reflect how the unique socioeconomic context of each generation influences their motivations and overall outlook.

Family matters

Filipino cultural expectations concerning familial responsibility play a unique role in Pinoy Gen Z employees' work decisions. Many in this cohort are motivated by the need to support their families financially—an intrinsic motivator in Filipino culture. For Gen Z Pinoys, contributing to family well-being is a main reason for why they seek competitive salaries and benefits that can support both themselves and their loved ones.

“Family is a significant motivator for their work, as they strive to provide a good life for their loved ones. Some participants (of the study) who are the eldest child also reported feeling a greater sense of responsibility to provide for their family,” the researchers noted.

Personal achievement and career growth

Moreover, Gen Z puts a premium on personal achievement in the form of career growth and skill development. This focus is reflected in their desire for rapid advancement and fulfillment in their roles. Meanwhile, Gen X, who typically value job security and stability over rapid career growth, are less likely to switch jobs for career advancement alone. Baby Boomers also have a strong sense of organizational loyalty—they often stay with one employer for extended periods—but are less driven by the desire for rapid career advancement. 

Also, while Gen Z and Millennials are both technologically savvy and open to flexible work arrangements, Gen Z has a preference for hybrid or flexible remote work as they value autonomy and balance. In contrast, Millennials, who largely came of age during the rapid expansion of digital workplaces, are more accustomed to structured team-based settings and in-person collaboration.

“Compared to Millennials, who put more value on interesting work and collegial work environments, Gen Zs tend to focus on securing their future through savings and investments,” the researchers said.

On a personal level, Gen Z’s emphasis on meaningful work also differs from other generations. Many Gen Z employees are motivated by work that aligns with their passions and allows them to make a positive impact on others and on society at large. This is partly driven by their experience of growing up in a digitally-connected world, where social issues and values-driven missions are increasingly visible and influential. Millennials, who came of age just as the digital world was emerging, also share some of this values-driven focus and likewise seek out work environments that foster a sense of community and purpose. However, Baby Boomers and Gen X tend to prioritize job security and are generally less motivated by the need for their work to align with personal or social values.

What employers should know

All of these generational differences suggest that companies aiming to retain Gen Z employees should focus on fostering career growth; aligning organizational values with broader social impact; and providing robust financial benefits that cater both to immediate needs and long-term security. Otherwise, companies that rely solely on traditional job security and loyalty strategies might find themselves less effective in engaging and retaining this youngest cohort of employees.

Overall, Gen Z’s workplace motivations combine financial pragmatism, personal achievement, and values-driven work in a way that distinctly sets them apart from older generations. 

“Financial security is one of Gen Z’s motivating factors, as they view work as an avenue for them to earn and save money for their future. Even though Millennials

put a premium on compensation, the Gen Z respondents are more specific as to how they want to use their salary,” the Ateneo researchers explained.

“They also want their work to have an impact on others and society. They want to see how their work contributes to the organization’s mission in general,” they added.

Mikee C. Talamayan, Dr. Mendiola Teng-Calleja, and Dr. Jaimee Felice Caringal-Go of the Ateneo de Manila University Department of Psychology and the Ateneo Center for Organization Research and Development published their paper, “Motivating Filipino Generation Z employees at work: enablers and outcomes,” in the journal Evidence-based HRM in October 2024.

SOURCE:

https://archium.ateneo.edu/psychology-faculty-pubs/461/  

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