Gen Z and Millennials are redefining career growth and rewards in SA

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.

“Previous generations viewed career success through the lens of long-term loyalty and hierarchical advancement,” said 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,” said 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.

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.

“South African organisations must evolve their reward strategies to cater to the shifting expectations of the modern workforce,” said Smit. 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 said.