The restless generation’s impact on the UK workforce

The UK workforce is going through a significant generational shift, with Millennial and Gen Z employees now making up more than half of the workforce. Their expectations are reshaping what people look for from work and how they build a career.

Research from Barnett Waddingham (BW) suggests these generations are more open to change and less likely to follow a single, linear career path. More than one in four (26%) 25–34-year-olds plan to change the industry they work in in the near future, while 22% of the same age group have already taken an extended career break.

Stress, anxiety and burnout appear to sit behind some of these decisions. BW’s research found 86% of 18–24-year-olds have experienced stress at work, 79% have experienced anxiety and 74% have experienced burnout – all at higher levels than any other age group recorded.

As the incidence of mental health challenges rises, employers may need to rethink how they attract and retain talent. Organisations that fail to respond risk falling short of what this restless generation expects from work.

A good starting point is to understand what’s driving the change.

Why are young workers so restless?

Younger generations have grown up in a period of ongoing economic uncertainty. From the 2008 financial crisis, to the societal upheaval brought about by the Covid-19 pandemic and the subsequent cost-of-living crisis, there has been little sustained stability for many Gen Z employees.

In the developed world, some traditional markers of success, such as home ownership and long-term job security, feel less attainable and, in some cases, less desirable. As a result, many younger employees prioritise quality of life and autonomy over financial gain. BW’s research shows that a quarter (25%) of younger workers have taken a lower-paid job in exchange for better work–life balance.

Technological change has amplified these cultural shifts. People have unprecedented access to information and a vast choice of opportunities. Many young people therefore see work as something that can be done in different ways and in different places, which means a linear career path is not always their preferred route.

Unlike previous generations, they are also less likely to view a long tenure at a single organisation as something to aim for. This fluidity translates into a greater willingness to change employers, or even industries, if their current work environment does not align with their values or aspirations.

What it means for employers

For employers, there is a real business cost if these shifts are left unaddressed. When burnout is ignored, productivity falls, staff turnover rises, and institutional knowledge drains away. Teams can become fragmented when key performers leave, forcing those who remain to carry additional workload, which can perpetuate the cycle of stress and burnout.

Over time, this can affect workplace culture. Employees may disengage, contributing to what’s often described as ‘quiet quitting’, where people do the bare minimum not out of laziness, but as a way of coping. Organisations can then risk becoming less innovative and less collaborative.

There is also a direct financial impact in replacing employees. In some cases, a replacement can cost up to twice the role’s annual salary once recruitment, training and lost productivity are factored in.

Rising to the challenge

For forward-thinking organisations, adaptation is possible through the smart use of data-driven insight, combined with a clear focus on wellbeing and flexibility.

By analysing workforce data such as engagement survey results, turnover patterns and absence records, HR teams can spot early warning signs of burnout and disengagement. Robust analytics and the right tools can highlight departments or demographic groups at higher risk, allowing targeted interventions, such as coaching, tailored mental health support, and workload redistribution.

Alongside understanding the underlying challenges, employers should also build a culture of trust, inclusion and transparency. In practice, this may include:

• Redefine the employee value proposition (EVP): Traditional EVPs often focus on salary, pension and prestige. Younger generations tend to look for a more holistic offer that reflects modern working life, including flexibility, purpose and development.
• Prioritise wellbeing and prevent burnout: BW’s research suggests burnout and its associated symptoms are a major driver of turnover among younger workers. Employers can respond by promoting sustainable workloads, treating work–life boundaries seriously and investing in mental health support.
• Support continuous learning and build resilience: Younger employees still value development, but often not as a straight-line progression. Many want variety and the chance to build different skills. Learning and development should also help people build resilience – so they can manage modern pressures and recover well from setbacks.
• Give people a voice in how work is done: Employees increasingly expect input into how work is designed and delivered. Traditional top-down management can reduce engagement, particularly among younger workers. Options include regular listening sessions, pulse surveys and workshops, as well as networks that help co-create policies and working practices.

The workplace now faces a distinct set of people challenges and younger generations are at the centre of many of them. Employers can build a strong, healthy and productive workforce by being proactive and by genuinely listening to their people.

A version of this blog originally apeared in the Asset Finance Young Professionals Report 2025.