Decoding Gen Z: Why Mental Health Matters at Work

The Rise of Mental Health as a Workplace Imperative

Trends come and go, but one constant in today’s Gen Z zeitgeist is the focus on mental health and how to facilitate a nurturing work environment. A 2022 survey by the McKinsey Health Institute (MHI), which gathered responses from over 42,000 people across 26 countries, found that Gen Z reports the lowest levels of mental and emotional well-being globally, reinforcing that mental health remains a defining concern for this generation.

By 2030, Gen Z and millennials will make up more than half of the global workforce. Conversations around mental health and well-being are increasingly popping up in the workplace. What are Gen Z’s expectations and how can do they blend with the realities of the labor landscape?

Balancing Purpose and Pressure 

A 2025 Forbes article stated that 86% of Gen Zers consider purpose as a key driver to both job satisfaction and overall well-being. Aligning with a company’s mission statement, social responsibility, or even its level of diversity, were all seen as deciding factors for Gen Z. Work-life balance is also deemed a top priority, with 77% of Gen Zers citing flexibility as essential to career success.

According to SHRM’s 2025 Truth About Gen Z’s Mental Health Expectations at Work, 61% of Gen Zers would leave their job for one offering stronger mental-health benefits.

IE Talents & Careers interviewed a number of undergraduate IE students from different majors to understand mental health’s immediate impacts and to deduct whether the research parallels how Gen Zers truly feel.

Lisa Bevill, Director of the IE Center for Health & Wellbeing, said, "Gen Z values mental health and well-being both in learning and at work, recognizing a holistic approach to vitality, resilience and performance."

A Communication and Digital Media student said that after working a number of internships, she decided no salary can compensate for an unsustainable work culture.

"I’ve worked in places where the pressure was constant, and it made me question everything. On the other hand, I have also been part of a company that prioritised mental health first and foremost," she said. "It was people-driven. I saw firsthand how a sense of safety can make employers choose to work harder and actually enjoy their time in the office."

However, several students disagreed. They said if they needed to choose between prioritizing morals and work-life-balance over prestigiousness and income, they would choose the latter.

"In our 20s, now is the time to push," said a fourth-year Bachelor in Economics student.  "Yes, that could require putting ourselves in more challenging environments, but those are the environments you are guaranteed to learn from."

A report completed in Bina Nusantara University of Indonesia found Gen Zers are more risk-averse compared to previous generations and that Gen Z strongly values stability. While the report found the generation generally prefers people-centered management with flexibility in their day-to-day responsibilities, they are also willing to accommodate more stress if it ensures stability.

"Working for a more prestigious company from the get-go solidifies your position in the workforce," explained a third-year Bachelor in Business Administration student. "I instantly become a more desirable candidate for future positions, positions I can then choose to better match my values."

The paradox lies in that Gen Z professionals value purpose and balance, while simultaneously recognizing the demands of early career growth.

Leaders Who Listen

According to a 2023 Workplace Mental Health Trends Report by (CalmHealth) – which gathered data patterns from more than 40 million users and a survey of over 2000 participants – about 70% of both millennials and Gen Zers expect employers to help alleviate anxiety and stress.

"A good leader is someone who listens first," said a third-year Bachelor in International Relations student. "It’s not about having all the answers, it’s about making people feel heard."

Students consistently described a good leader with four words: trust, empathy, accountability, and emotional intelligence.

Bevill added, "A crucial contribution of the Well-being Center is integrating mindfulness and reflection into daily routines, creating a culture where self-care is valued."

For Gen Z, leadership isn’t about authority but about open communication, empathy and inclusive environments where mental health is not stigmatized. According to Forbes, the ideal technique for companies to create this environment is to prioritize well-being through institutional policies and programs that take care of their workers, both professionally and mentally.

"A leader needs to be empathetic with strong intrapersonal skills," said another third year Communications and Digital Media student. "Emotional intelligence can help the leader scope out the stand-out skills each team member has and then hone each unique ability to create both an efficient and satisfied team."

Deloitte’s 2025 Gen Z and Millennial Survey found nearly 46% of Gen Z rank work-life balance and mental well-being as their top priorities when evaluating potential employers.

For employers, the message is clear: mental health is no longer a wellness perk, it’s a workforce strategy. To engage and retain this new generation, companies must move beyond stereotypes and invest in their growth, empathy, and sense of purpose. Companies that integrate flexibility, psychological safety, and people-first leadership will not only attract Gen Z talent but also future-proof their culture for the decades ahead.