7 research-backed findings that cut through the stereotypes and drive real results
Let’s be honest about what’s happening in most workplaces right now.
Older leaders complain that young employees are entitled and job-hopping. Young employees say leadership is out of touch and resistant to change.
Everyone’s frustrated, and nobody’s really listening.
But here’s what gets lost in all that noise:
By 2030 – in just four years! – employees aged 24-35 will make up 75% of the global workforce.
Smart leaders know: leading these young employees well starts with understanding them better. That’s exactly what my incredible team at the Novak Leadership Institute at the University of Missouri set out to do with their 2025 Young Employee Survey.
They surveyed over 1,500 full-time employees across the country, aged 25-34. Here’s what they found.
1. Meaningful work matters more than a bigger paycheck
The #1 driver of engagement for young employees isn’t pay or flexibility. It’s meaning.
When employees see how their work connects to something bigger, everything else clicks. It matters more than salary, benefits, or job security.
Right now, 72% of young employees find their work meaningful. That’s encouraging. But 28% don’t—and they’re at risk of walking out the door.
🛠Takeaway: Help people connect the dots between their daily tasks and your company’s mission. Make it specific. For example: “You processed 200 orders this week” becomes “You helped 200 families get what they needed.” It’s a small shift that can have a big impact.
2. Recognition and communication go hand in hand
We all know how important it is to communicate with our team members and recognize them often.
But the data reveals they’re most powerful when practiced together — not thought of as individual skills.
The study found a strong correlation between that integrated approach and overall engagement. Recognition without clarity doesn’t build trust. Communication without appreciation doesn’t inspire commitment. The combination is what unlocks performance.
In other words, saying “good job” isn’t enough if you’re not also listening, explaining, and staying connected.
🛠 Takeaway: The best leaders weave recognition into regular conversations. Don’t separate your “check-in meetings” from your “recognition moments.” Make them the same thing.
3. Learning opportunities beat fancy perks
The report makes this point unmistakably: development opportunities are the biggest driver of job satisfaction for young employees.
In fact, growth, learning, and mentoring predict job satisfaction more strongly than compensation, workplace perks, or even work-life balance.
That insight challenges a lot of conventional retention strategies. You can’t “perk” your way around a lack of development.
And while most respondents are satisfied with their growth opportunities, one in four aren’t. Those are the ones updating their résumés.
🛠 Takeaway: Ask each person on your team: “What do you want to get better at this year?” Then help them do it. It doesn’t have to be complicated. Stretch assignments, mentoring relationships, and learning time all count.
4. Psychological safety + respect = performance
Here’s something every leader needs to hear: the teams that consistently outperform others aren’t necessarily more talented. They’re the ones that say they feel safer and more respected at work.
Young employees expect workplaces where they can speak up, take risks, and admit mistakes without fear—and where their colleagues genuinely value their contributions.
When your team is afraid to fail, they stop innovating. When they don’t feel respected, collaboration suffers.
But when teams get both right, the results show: teams with high psychological safety are 67% more likely to be high-performing.
🛠 Takeaway: Start your next team meeting by sharing a recent mistake you made and what you learned from it. When leaders model vulnerability, everyone else feels safer taking smart risks.
5. Side hustles aren’t a sign of disloyalty
This report reveals that nearly 1 in 5 young employees (20%) are working side jobs. And it’s not about the money. It’s about exploring interests and building different skills.
Some leaders see this as a red flag, but I see it differently. The risk isn’t that they have side hustles. The risk is that you ignore what they’re building until they leave to do it full-time.
These are your most entrepreneurial, self-motivated people. They’re learning things outside your organization that could benefit you inside it—if you’re smart enough to tap into it.
🛠 Takeaway: Talk to team members about their side hustles. Ask what they’re learning and where they see connections to your business.
6. Benefits need to support real life, not impress recruiters
Forget the trendy perks. Young employees want the basics done really well: health insurance (95%), paid time off (96%), and retirement plans (92%). Mental health support matters to 70% of them—with strong family support options at 71%.
In other words: they’re asking for security and wellness, not air hockey tables.
🛠 Takeaway: Review your benefits. Are you investing in what actually supports people’s lives, or are you chasing what looks good in job postings? The gap between those two things might be costing you your next wave of top talent.
7. Flexibility is about trust, not convenience
Yes, flexibility matters to this generation. Nearly 74% say flexible work improves their performance and motivation.
But here’s what matters more than the policy itself: flexibility signals that you trust people to do their jobs well without constant oversight.
Most leaders are still debating flexibility through the lens of productivity and efficiency—can people get as much done at home as in the office? But that’s missing the bigger point. When you offer flexibility, you’re saying “I respect your judgment.” When you fight it, you’re signaling the opposite, even if that’s not what you mean.
🛠 Takeaway: Flexibility works when it’s paired with clarity. Set clear goals and outcomes, then trust your team to figure out when and where they work best.
The bottom line
Here’s what might be the most important insight from this entire study: the things that engage young workers engage all workers.
A lot of workplace advice tells you to create different strategies for different employee segments. That creates complexity, eats resources, and rarely works.
The Novak Leadership Institute found something simpler: meaningful work, strong leadership, growth opportunities, and psychological safety aren’t just one generation’s preferences. They’re what bring out the best in anyone, on any team.
Which of these findings surprises you most? If you’re already putting some of this into practice, what’s working? Drop a comment below and tag another leader who needs to see it.
Oh, and I highly recommend you read the full 2025 Young Employee Survey report at the Novak Leadership Institute. It’s free and includes a phased action plan to help you implement what we’ve learned. Download it here.