Young adults from Generation Z are contemplating taking on additional jobs to make ends meet, according to a recent study.
In a recent study published by Boostworks, a leading provider of employee reward and recognition, benefits delivery, and wellbeing solutions, it has been suggested that there is a potential gap between existing support and the realities of rising living costs. The research underscores the importance of personalized benefits strategies that cater to different stages of employees' lives.
The study reinforces the idea that a potential gap exists between existing support and the realities of rising living costs. Jo Werker, CEO at Boostworks, stated that the vast majority of young workers are taking on second jobs because they simply can't make ends meet. According to the findings, 19% of Gen Z and 11% of Millennials are already working a second job.
Financial pressure is the biggest motivator for all generations for driving the uptake of side hustles. The study found that over half of Gen Z workers in the UK are considering taking on a second job to help cover basic living costs. Nearly half of Millennials (49%) and 44% of Gen Z said that financial stress was directly affecting their ability to concentrate at work.
Employers in the UK can better support Gen Z and Millennial employees facing financial pressure and considering second jobs by implementing several key strategies focused on financial wellbeing, work-life balance, and open communication. These include:
- Reviewing and potentially increasing pay and benefits to ensure they more closely meet employees’ living costs, helping to reduce the financial necessity of taking second jobs.
- Offering financial wellbeing support programs, such as financial literacy education, emergency financial grants, and savings schemes, which can help employees better manage their money and reduce stress.
- Normalizing conversations about money at work so that managers can respond with understanding and provide appropriate support, demonstrating empathy and reducing stigma around financial struggles.
- Providing flexible working options like flexible hours, wellbeing days, and mental health resources to help employees manage their time and reduce burnout caused by juggling multiple jobs or financial worries.
- Regularly gathering employee feedback to understand individual needs related to financial pressures and workload, allowing employers to tailor support more effectively and show that they are willing to take meaningful action.
Werker stresses that financial pressure isn't limited to younger workers, but they are likely to be feeling it most intensely. She suggests that the strategy of overextending oneself through side hustles isn't sustainable. If more employees are turning to second incomes, it could be a sign that existing pay and benefits aren't fully meeting their needs.
Boostworks is encouraging employers to look beyond the assumption that side hustles are simply a sign of ambition or creativity. By evolving reward packages and integrating practical financial support and flexible, empathetic workplace policies, employers can help retain and engage younger employees, reducing the drain caused by financial pressure and second jobs.
Opening up conversations around fairness, support, and wellbeing can help employers strengthen loyalty and keep their teams focused, energized, and engaged. Proactively addressing this could help businesses safeguard long-term engagement, wellbeing, and retention.
The findings demonstrate varied needs across different generations. Baby Boomers continue to value traditional benefits, with 40% focused on performance-based bonuses. Millennials and Gen X employees value shopping discounts, cashback, and reward points as important benefits.
In conclusion, the study highlights the need for employers to adapt their benefits strategies to cater to the diverse needs of their workforce, particularly focusing on the financial wellbeing of younger generations. By addressing financial strain, employers can create a more supportive and productive workplace, benefiting both employees and the business.
- The study suggests that employers in the UK can help reduce financial strain among Gen Z and Millennial employees by implementing strategies focused on financial wellbeing, work-life balance, and open communication.
- Implementing such strategies, like reviewing pay and benefits, offering financial wellbeing support programs, normalizing conversations about money at work, providing flexible working options, and regularly gathering feedback, can help retain and engage younger employees, improving overall business performance.
