Why Gen Z Prioritizes Salary More Than Any Other Generation

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

When looking for a new job, there are many factors to consider. You likely want a reasonable salary, a strong benefits package, and to be provided with a strong work-life balance. However, the importance of each depends on the individual person and what they value the most.

A recent GOBankingRates.com survey found that 46% of Gen Z respondents care more about salary than they do about their work-life balance. This was the highest percentage of any generation. So why is salary such an important factor for so many Gen Zers? Keep reading as we dig into some of the potential reasons.

Economic Trends and Timing

Gen Z has lived through multiple global recessions and economic downturns in their lifetime already. They’ve grown up watching their parents, mostly Gen Xers, deal with the financial struggles that came from each event. They may have watched their parents lose their homes, jobs, or savings. This could have had an impact on their sense of security and development. It might have given them a desire for financial stability and practicality. 

In addition to that, older Gen Zers entered the workforce around the time of the COVID-19 pandemic. This may have delayed their professional growth, as many companies were not focused on expansion or professional development opportunities during this time.

Layoffs and postponement of promotions were common in some industries as well. This may have led to worry among Gen Zers, who wondered if they would ever progress in their careers and finances. When companies started to return to normal, Gen Zers may have realized that they needed to prioritize their salaries to make enough to live.

“Growing up amid economic uncertainties, Gen Z faces unique financial challenges that shape our priorities,” said Mohammed Mukhtar, founder of PocketAI. “The rising cost of living, especially in urban areas, is a significant factor. As someone from Gen Z, I’ve witnessed the struggle to afford necessities like housing, transportation, and healthcare. Prioritizing a higher salary isn’t just about earning more; it’s a practical response to the reality of needing sufficient income to maintain a decent standard of living.”

Growing Inflation and Expenses

The past few years have been known for inflation, and nearly everyone still feels the effects of a higher cost of living. However, Gen Zers may feel it the most, as they are still earning starting salaries and may not have had time to build a sizeable emergency fund to cover unforeseen expenses. Plus, many are still paying off student loans and will be for several more years.

Coupled with this, rent and mortgages are higher than they were for previous generations toward the beginning of their careers. This has caused many Gen Zers to feel like they can never afford to own their own home unless they work harder and get paid more.

“Student loan burden weighs heavily on many in Gen Z,” says Mukhtar. “Pursuing higher education often comes with substantial debts that need to be managed and repaid. Prioritizing salary is, in part, a strategic move to tackle these financial obligations effectively. We’re looking for ways to not only secure a stable financial foundation but also to address the practicalities of repaying student loans without compromising our overall well-being.”

The Job Market Is on Their Side

Although the job market is not as hot as during the pandemic, there are still plenty of job openings. With historically low unemployment, the employee currently has the upper hand in the hiring process and may be able to make demands of potential and current employers.

Although this won’t last forever, Gen Z employees are taking advantage of it by going after higher-paying jobs. They are not afraid to move from company to company to make more money either.

Money Transparency

Gen Z is becoming more comfortable talking about money than their parents. Perhaps social media has played a role in this. There are influencers who focus on sharing how much money they make, tips for negotiating higher salaries, and how to save enough money for retirement.

Discussing financial matters with friends, family, coworkers or others on the internet may have previously been taboo, but it is becoming less so — especially among Gen Z.

This money transparency makes it easier to determine how much others are making. Women have become aware and less tolerant of making less than men. This is a positive move for employees who might not have been paid what they deserved previously.

“Access to social media has made Gen Z more financially literate in many ways,” said economist Carson Markley. “Organizations like Fishbowl make it easy to see what your colleagues are making and, therefore, make salary negotiations based on those numbers. Social media creators, like comedian Joe Fenti for example, have shown how companies have underpaid employees, and Gen-Z has adjusted accordingly.”

The Bottom Line

There are many potential reasons why Gen Z prioritizes salary more than any other generation. For many, it has to do with inflation, growing expenses, and poor economic experiences. In fact, a recent Cigna survey of 12,000 workers showed that 39% of Gen Zers say financial insecurity is their number one stressor. This is compared to 34% of millennials and 29% of 50-to-64-year-olds.

Or, perhaps salary is becoming more important to everyone, but Gen Z is just more likely to admit it. Regardless, employers should take note of this trend and understand that pay will be the best way to retain top young talent for years to come.

Share This Article: