More than half of Gen Z and Millennials are considering a second job to help with the cost of living, according to research findings released yesterday (24 July) by benefits provider Boostworks.
The report highlighted that 57% of Gen Z and 71% of Millennials are exploring side hustles and second jobs, to help cover basic living costs.
Boostworks’ study – which involved more than 5,600 working adults, including 1,200 from Gen Z – found that financial pressure is the main motivation for all generations to pursue side hustles: 71% of Millennials, 69% of Gen X, 59% of Baby Boomers, and 57% of Gen Z identify financial pressure as the key driver behind wanting to get a side job.
The research showed that 19% of Gen Z and 11% of Millennials currently hold a second job. Additionally, nearly half of Millennials (49%) and 44% of Gen Z reported that financial stress is directly impacting their ability to concentrate at work.
“Employers should be encouraged to create a more supportive, flexible and forward-looking work environment for employees who are struggling with the cost of living,” said Jon Sleightholme, director of outplacement and talent acquisition solutions at NFP, a people and insurance risk management business, speaking to HR magazine.
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“There are several options employers can look at. For example, reviewing flexible or hybrid working where possible, to help cut down on travel costs, and conducting regular salary reviews reflecting inflation and the cost of living challenges.”
To address younger workers’ financial pressures, Sleightholme advised organisations to prioritise pay transparency. He said: “[Employers] can demonstrate transparency in pay structures and promotion criteria. In very high-cost areas, employers could potentially offer cost of living adjustments. In short, communication with your employees is critical.”
Matt Russell, chief executive officer of employee benefits companies Zest and Epassi, told HR magazine: “With increased employer national insurance contributions, pay rises aren’t always possible; employee benefits offer a more cost-effective and personalised approach for employers to support staff.”
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Personalised employee benefits contribute to a more compelling workplace proposition, providing targeted support for employees, Russell suggested, “making them happier, more productive and more engaged at work, which in turn, provides increased value and a better ROI for businesses”.
Boostworks’ research demonstrated differing desires for employee benefits: among Gen Z, 74% expressed a desire for financial education and planning tools; Baby Boomers prioritised ‘traditional benefits’, with 40% focusing on performance-based bonuses.
Russell added: “Younger employees say that a good benefits package is the most important thing they look for in employment. This can often prove as effective, if not more so, than increasing salaries alone.”
He explained that younger employees ranked private medical insurance, increased pension contributions and shopping discounts as some of the most sought-after benefits, which demonstrates their priority for support with their financial wellbeing.
