Gen Z on the Move: Why One-Third Plan to Switch Jobs Within the next Six Months

Overview:

According to State of the Workplace 2025, one in three Gen Z employees plan to switch their jobs within the next six months, highlighting a growing empowerment disconnect between employers and Gen Z workers.*

Confidence has dropped sharply—only 39% of Gen Z feel equipped to succeed in their roles, down more than 20 points year-over-year.

Key factors that may be influencing retention:

• Misalignment on future skills: employers prioritize leadership; employees value AI and upskilling.
• Limited visibility into real growth paths.
• Declines in mentorship and autonomy support.
• Rising demand for flexibility and recognition.

For small businesses: retention in 2025 can mean investing in authentic empowerment, flexible work options, and skill-based development to keep young talent engaged and growing.

In 2025, the workforce is at a crossroads—and no group illustrates that more clearly than Gen Z. They are making a bold statement with 31% of Gen Z employees planning to switch jobs within the next six months, up from 25% in 2024. That’s nearly one in three early-career professionals preparing to switch their jobs.

Employers may not see it coming. Fewer than a third believe their Gen Z employees are actively job hunting, and only 8% think that more than half of their workforce is considering switching jobs. This underestimation goes beyond just a missed alignment—it reflects a potential empowerment disconnect between what Gen Z feels they needs to succeed and what employers may think they’re offering.

For small and midsize businesses (SMBs), this disconnect can pose both risk and an opportunity. Let’s unpack the data behind Gen Z’s mobility and explore retention strategies to help keep young workers engaged, empowered, and on board.

The Confidence Crisis

Confidence is the foundation of employee engagement, but it’s crumbling—especially for Gen Z. Across the workforce, both employers and employees report lower confidence in employees’ ability to succeed in their roles compared to last year.

• Employers’ confidence slipped slightly, from 53% in 2024 to 51% in 2025.
• Employees’ self-assessment fell more sharply, with only 39–63% saying “yes” in 2025 compared to 63–73% in 2024.

For Gen Z, the drop is dramatic: confidence plunged from 59% in 2024 to just 39% in 2025—a 20-point decline in a single year.

A decline in self-confidence can contribute to an increased intention to leave. Employees who feel unprepared or unsupported are more likely to be disengaged and may seek opportunities elsewhere.

Skills for the Future: A Disconnect in Priorities

The confidence gap is reinforced by a clash of priorities on skill development.

• Employees’ view: More than half (51%) see role-related AI expertise as essential in 2025, up from 38% the year before. Upskilling (47%) and reskilling (36%) also rank high.
• Employers’ view: Leadership/managerial skills (53%) and creativity (47%) top the list, with fewer employers (42%) citing AI expertise.

This mismatch is telling. Gen Z, who entered the workforce in a tech-dominated era, tend to view adaptability and technical fluency as essential qualities. Employers, on the other hand, are doubling down on traditional leadership pipelines. The result is a workforce that may feel less prepared for the future—especially among younger employees who value active support in developing emerging skills.

Growth Path Confusion

On paper, employers believe they’re making strides in career development.

• 92% of employers in 2025 say they provide room to grow, compared to 81% in 2024.
• 92% also report offering a clear growth path, up from 80% the year before.

Employees don’t necessarily see the same progress:

• Only 76% of employees agree they have room to grow—unchanged from 2024.
• Just 77% of employees see a clear growth path, compared to 75% last year.

Generational splits sharpen the picture: Gen X shows strong year-over-year improvement (77% vs. 70%), while Baby Boomers slip slightly (74% vs. 76%). Millennials remain flat at 79%. And Gen Z? Stuck at 69% for two years running.

This flatline suggests that despite employer investments in growth programs, younger workers aren’t feeling the impact. For Gen Z, the “growth path” employers proudly highlight often feels more like a mirage than a roadmap.

Engagement Blind Spots

Employers consistently overestimate employee engagement.

• 2025 employer estimate: 45–47% of employees are “extremely engaged.”
• 2025 employee self-reports: Only 31–49% say the same.

The disconnect is sharpest among Gen Z: 42% of Gen Z employers believe their employees are highly engaged, but only 33% of Gen Z employees agree.

Digging deeper, the perception gap widens around key engagement factors:

• Compensation and incentives: Employers rate its influence at 4.22, while employees score it lower at 3.84—a 0.38-point gap.
• Belief in company mission: The smallest gap, at +0.19, with both sides showing modest year-over-year gains.

The pattern is clear: Employers are rating empowerment and engagement factors higher in 2025, while employees are rating them lower. That divergence signals an overlooked gap—especially when it comes to the generation most likely to move on.

Turnover Intentions on the Rise

Turnover intent is growing across the board:

• 17% of all employees plan to switch jobs in the next three months (up from 11% in 2024).
• 31% of Gen Z employees plan to switch jobs in the next six months (up from 25% in 2024).

When it comes to why, compensation is still the top factor—but its grip is loosening.

• Compensation fell slightly as a turnover driver: 31% in 2025 vs. 34% in 2024.
• Flexibility rose by 2 points to 20%.
• Commute concerns climbed 6 points to 21%.
• Leadership dissatisfaction ticked up 3 points to 13%.

Employers are catching on. They’re broadening their understanding of turnover drivers, reporting higher recognition of growth opportunities (+10 points to 35%), flexible hours (+7 points to 30%), benefits (+6 points to 36%), and commute challenges (+6 points to 32%).

But recognition alone isn’t enough—execution is what will keep workers from walking out the door.

The Empowerment Disconnect

Perhaps the most revealing disconnect lies in empowerment. Employers believe they’ve made strides:

• Mentorship: +11% to 40% in 2025.
• Autonomy over time: +9% to 42%.

Employees tell a different story:

• Mentorship fell –3% to 32%.
• Autonomy plunged –7% to 27%.

This mismatch suggests that even well-intentioned programs aren’t landing in ways that feel meaningful or effective. Gen Z, having grown up with more emphasis on collaboration, feedback, and personalization, may perceive this gap more clearly.

What SMBs Can Do: Insights to help Retain Gen Z

For small and midsize businesses, retaining Gen Z isn’t just about competing with the biggest salaries. It’s about building environments where empowerment, clarity, and adaptability are felt—not just promised. Here are insights SMB leaders can consider:

1. Reframe Growth Paths as Journeys, Not Ladders

Gen Z wants to see how skills connect to opportunity. Instead of offering abstract “growth paths,” SMBs can design skill-based roadmaps that clearly illustrate what employees can benefit from = mastering AI tools, customer success metrics, or cross-functional projects.

2. Close the AI and Skills Gap

With 51% of employees prioritizing AI expertise, SMBs can invest in targeted workshops, certifications, and cross-training opportunities. Working with vendors, offering stipends for online courses, or creating peer-led learning circles can make technical adaptability a reality.

3. Measure Empowerment Through Employee Eyes

Rather than reporting on mentorship or autonomy from a leadership perspective, SMBs should ask employees directly: Do you feel supported? Do you feel trusted to make decisions?Quarterly pulse surveys can reveal whether initiatives are landing.

4. Balance Flexibility with Structure

Flexibility is now a core driver of retention, climbing steadily year over year. SMBs can differentiate by offering flexible work arrangements, compressed workweeks, or choice in scheduling, where possible,—without compromising on responsibility.

5. Turn Engagement into a Two-Way Street

Employers may overrate engagement because they’re measuring outputs (performance, attendance) instead of inputs (how employees feel about purpose and connection). Create forums—like monthly town halls or reverse mentoring programs—where Gen Z employees can voice what motivates them.

6. Reassess Recognition and Leadership

With leadership dissatisfaction rising, SMBs should re-evaluate how managers are trained. Recognition doesn’t have to be costly—it needs to be consistent and meaningful. Celebrate small wins, encourage public acknowledgment, and train leaders to give feedback that fuels confidence.

Conclusion: A Tipping Point for Retention

Gen Z is sending a clear message: they’re on the move, and employers underestimate the urgency. With one in three planning to switch jobs in the next six months, SMBs may face a retention challenge that goes beyond just offering higher pay.

The empowerment disconnect—between what employers believe they’re providing and what employees feel—threatens to widen if left unaddressed. But it’s also a roadmap. By aligning growth paths with real skills, empowering employees through measurable feedback, and doubling down on flexibility and recognition, SMBs can rewrite the story.

Retention isn’t about preventing Gen Z from switching—it’s about offering meaningful reasons for them to stay. For SMBs, those reasons don’t have to be grandiose. They just have to be genuine.

* This article draws from the TriNet State of the Workplace 2025 report and reflects TriNet’s perspective based on survey data from over 1,000 participants. The findings offer insights into employer and employee views within the U.S. small business community, highlighting trends in engagement, wellbeing, AI use, and benefits understanding. Data may not represent all industries or regions, and while accuracy is a priority, applicability may vary by organization.

This content is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance. It may contain links to third-party sites or information for reference only. Inclusion does not imply TriNet’s endorsement of or responsibility for third-party content.