Gen Z and Millennials are redefining career growth and rewards in South Africa

In the workplace, the traditional notions of career growth and promotions are being reshaped by the ambitions of Generation Z (born 1997 - 2012) and Millennials (born 1981 - 1996).
 
These younger professionals are shifting the focus from tenure-based progression to more dynamic, purpose-driven career paths, forcing organisations to rethink their reward and promotion strategies.
 
The changing landscape of career progression
“Previous generations viewed career success through the lens of long-term loyalty and hierarchical advancement,” says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).
 
Today’s young professionals, however, prioritise learning, flexibility and meaningful work. For them, career progression is not necessarily about climbing a corporate ladder. Rather, it’s about acquiring diverse experiences, continuous personal development, and making an impact.
 
A study by McCrindle revealed that 63% of Gen Z professionals consider opportunities for advancement as a key factor in their workplace decisions. “However, instead of waiting years for a promotion, they expect clear, merit-based progression pathways that reward skills, innovation and contributions rather than time served in a role,” says Smit.
 
Furthermore, job-hopping is no longer considered a red flag but a strategic move for exponential progression. Gen Z and Millennial professionals in South Africa change jobs regularly, not due to a lack of commitment but in search of better growth and career opportunities, better work-life balance, and organisations that align with personal values.
 
What younger generations expect from employers
Gen Z and Millennials are not just seeking a salary; they want to work for organisations that align with their personal values. According to research by Human8, 71% of South African Gen Z employees expect brands and employers to contribute positively to society. Also, 77% are willing to engage more with organisations that prioritise inclusivity and social responsibility.
 
Employers who fail to integrate purpose-driven initiatives into their corporate culture risk losing valuable young talent to competitors who do. Organisations must look beyond traditional corporate social responsibility and embed social impact into their daily operations, whether through sustainability efforts, ethical business practices, or employee-driven community projects.
 
Rethinking reward strategies
“South African organisations must evolve their reward strategies to cater to the shifting expectations of the modern workforce,” says Smit. Some innovative approaches that can help organisations attract, engage and retain Gen Z and Millennial employees:

1. Customisable benefits packages - A one-size-fits-all benefits model no longer appeals to today’s workforce. Employers should offer tailored benefits that allow employees to choose what suits them best, such as mental health support, wellness programmes, extended parental leave, or flexible work arrangements.
2. Frequent and real-time recognition - Unlike previous generations that were satisfied with annual performance reviews and bonuses, Gen Z and Millennials thrive on continuous feedback and recognition. Implementing peer-to-peer recognition programmes, instant reward systems and regular check-ins can boost morale and motivation.
3. Clear career development pathways - Organisations must offer structured career development plans that include mentorship, training and leadership programmes. Providing employees with a roadmap for growth will reduce turnover rates and increase loyalty.
4. Work-life integration and well-being initiatives - Young professionals place a high value on well-being. Organisations should invest in initiatives like mental health resources, employee assistance programmes and work-life balance opportunities to support their workforce’s overall health and happiness.
5. Diversity, equity and inclusion initiatives - Gen Z and Millennials expect workplaces to be diverse and inclusive. Organisations that actively promote gender equality, representation and inclusive policies will attract a more engaged and committed workforce.
6. Purpose-driven work and social impact - Employees are more engaged when they believe in their organisation’s mission. Providing opportunities for employees to contribute to meaningful causes, whether through volunteer days, sustainability initiatives or corporate giving programmes, enhances job satisfaction and loyalty.

 
The future of work in South Africa
As organisations navigate the future of work, they must acknowledge that career success is no longer defined by longevity or title alone. Instead, today’s workforce seeks meaningful engagement, rapid skills development and a balance between professional and personal aspirations.
 
Organisations that cling to outdated models of career progression and rewards risk alienating a generation that is more connected, informed and selective about where they work. By embracing flexible work arrangements, values-driven leadership and modern recognition strategies, businesses can build stronger, more committed teams and drive long-term success in the evolving job market.
 
Smit advises organisations to rethink their approach to career progression and reward structures. “Those that adapt will not only attract top talent but will also be able to foster increased innovation, productivity and sustainable growth,” he says.

ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, [email protected], 060 995 6277, www.atthatpoint.co.za 
 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Associatio

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