A massive new study from EY’s Generational Dynamics core team, spanning more than 10,000 young adults across 10 countries and five continents, finds Gen Z is often misunderstood—and their measured approach should define them as the “pragmatic generation.” The authors, Marcie Merriman and Zak Dychtwald, wrote Gen Z approaches “life’s traditional milestones” with a sort of “reasoned skepticism.”

According to Joe Depa, EY Global chief innovation officer, the research reveals how 18- to 34-year-olds are taking a surprisingly pragmatic approach to adulthood, finances, and their future. “Far from being financially reckless,” Depa tells Fortune Intelligence, “this generation is focused on long-term stability and redefining success along the way.”

Money, for them, is necessary but not the be-all and end-all: 87% say financial independence is important, yet only 42% rate wealth as a primary marker of success, trailing far behind metrics like mental and physical health and family relationships. Put simply, for Gen Zers, financial stability is a tool—not a goal. They use money to open doors to flexibility, purpose, and well-being.

Depa says the research “tells a different story” about Gen Z. “The idea that young adults are postponing adulthood is outdated.” They’re approaching life milestones not with rebellion but with “reasoned skepticism and a global perspective.” As employees and customers, Gen Z will challenge organizations that have been wired around a different way of doing things. For business leaders, understanding this shift will be vital to attracting and retaining talent.

The job-hoppers

Where baby boomers and Gen Xers often stuck with one employer for decades, Gen Z is dismantling that concept.

EY’s research found 59% of young adults globally expect to work for two to five organizations throughout their lives, and nearly 20% say they will work for six or more. This flexible approach to employment—embracing job changes and flexible gig work—reflects not only a desire for varied experiences but also a strategic response to rapid change, uncertainty, and a lifetime of economic instability.

“Younger generations are not merely reacting to financial constraints,” the EY Generational Dynamics team writes, but making rational and thoughtful decisions about what aligns with both their own lived experiences and the pitfalls suffered by previous generations. EY says it’s a perspective that contrasts sharply with the “pull yourself up by your bootstraps” mentality often espoused by older generations, with Gen Z finding that to be dismissive of their specific context.

Redefining success: inside out, not outside in

Success, in Gen Z’s eyes, is an inside-out project: emotional well-being, strong relationships, and impact outrank titles and salaries. It’s no longer about ticking the boxes of homeownership, lifelong employment, or even traditional family milestones. Landmarks such as marriage and children are being postponed—not out of rejection, but for pragmatic reasons: economic insecurity, housing unaffordability, and a desire to be emotionally and financially prepared.

The rise of job-hopping has replaced the well-worn “script” of adulthood: Only 59% see working for a single organization as a viable path, whereas nearly 20% of respondents said they plan to work for six or more employers in the course of their careers. Linear career ladders and employer loyalty are giving way to “project-based” growth, taking new jobs, and side hustles, all in search of variety, autonomy, and purpose. “Job-hopping is not viewed as a negative, but an essential step to open doors and advance opportunities,” the EY team writes.

The average Gen Z respondent reports feeling like an adult earlier than previous generations, and as a result, more than half (51%) said they prioritize physical and mental health as their chief markers of success, with family ties also outranking wealth in many countries. The push for authenticity is also striking; 84% cite “being true to oneself” as extremely important.

Employers, beware (and evolve)

For Gen Z, a job is not a life sentence, nor is money alone enough to keep them engaged. Employers used to loyalty and linear career ladders may be blindsided by Gen Z’s willingness to prioritize purpose, wellness, and flexibility—even if it comes at the expense of job security or long-term benefits. Conventional incentives are losing their grip.

For employers, this new pragmatism is both a wake-up call and an opportunity. Flexibility is mandatory, with hybrid and remote work, fluid hours, and support for “micro-retirements” between jobs becoming nonnegotiable.

Gen Z expects employers to have clear values around well-being, sustainability, and social justice—and to act on them. Over 70% want their employer to be transparent about values and pay, and are unafraid to challenge leadership if authenticity is found wanting. This generation will quickly leave if growth stalls: 57% would quit for better professional development. They crave mentorship, personalized learning, and a sense of upward mobility.

Gen Z is less loyal to brands or employers unless that loyalty is returned; nearly half say they have “zero loyalty” to brands, and only about 60% feel any loyalty to their employer. Empathetic leadership and honest, two-way communication are expected, not a bonus.

Gen Z wants to be included in company decisions and expects a seat at the table. This finding aligns with separate research from Glassdoor, whose Worklife Trends report in June 2025 found emotional intelligence is now a standard expectation held by workers, many of them Gen Z. “The bar on what constitutes a good manager has been raised,” Glassdoor chief economist Daniel Zhao previously told Fortune Intelligence.

Employers slow to adapt to these realities won’t just struggle to recruit Gen Z—they’ll risk losing relevance altogether. The pragmatic playbook demands companies redesign everything from hiring and communication to values and pay structures.

The flip side? Gen Z’s pragmatism can also be an asset: They are technologically adept, mission-driven, and resourceful. But their skepticism can also translate into disengagement or even open dissatisfaction if workplaces fail to address their real priorities. Businesses would be pragmatic in their own right to tune into what Gen Z values most—authentic leadership, transparent communication, and support for well-being—if they want to retain this generation.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.