Summary of this article
50 per cent Gen Z prioritise work life balance
Pay matters, but flexibility and transparency rank higher
Learning opportunities influence early career job choices
For young professionals, workplace decisions are no longer centred on pay. The latest study by Naukri, titled The Gen Z Work Code Report 2026, has revealed that 50 per cent of Gen Z professionals value work-life balance over pay when considering job offers, indicating a new way for early-career workers to define a great workplace.
The findings indicate that Gen Z working professionals consider workplaces based on a broader range of criteria, such as flexibility, clarity at work, and development opportunities, rather than compensation alone.
Work-Life Balance Leads Job Decisions
Work-life balance is the leading factor for Gen Z employees. 50 per cent Gen Z value work-life balance over pay, with another 32 per cent listing it as one of their top two considerations.
The results indicate that long working hours and lack of predictability lead to dissatisfaction in the workplace. 46 per cent of respondents associate poor work-life balance with stress and burnout, while 41 per cent associate high workloads with decreased productivity. Flexible working hours and clear boundaries around working hours are therefore key to a great workplace.
Pay is Important, but Not Enough
Salary remains important, but it is no longer the key driver. The report reveals that 48 per cent of Gen Z employees are willing to take a pay cut if the job provides better work-life balance and flexibility.
However, 52 per cent of Gen Z professionals believe that fair and competitive compensation is a basic requirement. This indicates that compensation is a foundation, not a differentiator, and other workplace aspects are more important in the final decision-making process.
Transparency Drives Trust at Work
Transparency is a major driver of workplace satisfaction. The report indicates that 62 per cent of young employees believe in transparent communication about performance and career growth.
Around 57 per cent say unclear promotion criteria lead them to not trust employers, while 54 per cent associate regular feedback with engagement at work. Clear communication from managers and leadership is therefore seen as critical to building confidence among younger employees.
Learning and Growth Remain Key Priorities
Despite the emphasis on work-life balance, learning and growth remain important. The report indicates that 59 per cent consider learning opportunities when selecting jobs.
Structured training programmes are preferred, with 51 per cent favouring formal skill development over informal learning. Mentorship also plays a role, as 44 per cent say access to mentors improves their confidence and performance at work.
Technology Should Reduce Workload
Gen Z employees are tech-savvy, but they have clear expectations about technology. The report indicates that 61 per cent of Gen Z employees expect technology to simplify their work and make it more efficient.
However, 49 per cent believe that the constant connectivity offered by digital technology increases work pressure. There is a clear view that policies on communication outside working hours are important in maintaining a balance and preventing work overload.
What Employers Need To Note
The results indicate that pay-led retention strategies may not be very effective. With a 50 per cent rating for work-life balance over compensation and over 60 per cent rating for transparency and learning, the way an organisation is structured and communicates is increasingly becoming the key to employment.
With Gen Z employees pouring into the workforce in increasing numbers, these trends are set to influence how employers design jobs and performance systems in the years to come.
