Generational shifts in workplace dynamics
With four generations working side by side today, each group brings its own set of values, expectations and work styles, contributing to the changes we’re seeing in the workplace.
“We all have different circumstances, perspectives and ways of thinking,” said Kate Smucker, Robert Half’s Program Manager, Enterprise ESG and Inclusion. “Gen Z’s prioritization of flexibility and positive workplace culture reflects a generational shift toward valuing holistic well-being over traditional compensation metrics. For organizations, this signals a need to evolve beyond pay-focused retention strategies to foster environments where employees feel empowered to contribute, supported through connection and aligned with the company’s values.”
“Mental health and wellness used to be things that were rarely, if ever, mentioned in the workplace,” said Ryan Chan, Senior Manager, ATI, at Robert Half. “But Gen Z professionals are showing that they prefer things like a healthy office culture over making a little more money. It might sound like a strange tradeoff to some, but why not? We spend a lot of our time working, and what happens at work often affects our personal lives. So it can make a lot of sense to choose an employer that provides a positive environment over one that might pay a little more but drags down your overall level of happiness.”
"This trend also reflects the growing preference among Gen Z and millennials to work for companies that align with their social values," Leigh added. "These professionals recognize their potential contributions and seek meaningful connections with organizations that share their ideals. For many, work is about more than just financial gain. As this mindset becomes increasingly prevalent in the workforce, employers may need to adjust their recruitment and management strategies accordingly."
The importance of salary transparency
Another pay-related trend that’s catching on, especially with younger generations, is salary transparency. For many years, salary discussions among colleagues were considered taboo, and employees often had little insight into how their pay compared to that of their peers. As younger generations enter the workforce, however, they’re challenging these norms and advocating for greater openness.
Salary transparency can take many forms, from putting good-faith pay ranges in job postings to providing detailed explanations of how salaries are determined. Companies that embrace it are likely to see a solid return on investment, including increased employee trust, reduced pay gaps and, as a result, a more engaged workforce.
"Transparency around compensation is a direct reflection of an employer's workplace culture," Leigh said. "Organizations that embrace it demonstrate a commitment to openness and honesty, which resonates strongly with Gen Z and other professionals who value a positive work environment. Even companies that may not offer the highest salaries can foster trust by being upfront about pay structures early in the hiring process, even before candidates apply."
Transparency also helps impart a better understanding of compensation expectations and can help reduce pay equity problems.
“When both parties know the salary range from the outset, it prompts a shift in dialogue from a one-sided question like ‘How much are you looking to make?’ to a more meaningful conversation about mutual value,” Kate said. “This approach fosters a collaborative tone and helps establish trust, which the research shows is important to Gen Z—valuing relationships that feel authentic and partnerships that go beyond transactional exchanges.”
“It also makes conversations about pay among colleagues easier,” Ryan added. “Those types of discussions can be difficult, but facilitating open dialogues can do a lot of good in creating a positive company culture, putting people first, and helping businesses attract and retain top performers.”
