The salary trade off: Less pay, more purpose?

For most people, a better salary is usually near the top of the list when pursuing their next move. But money isn't everything – work-life balance, good relationships and feeling motivated by your work all have significant, if less tangible, value.

In the UK, flexibility is one of the key asks for many workers – even in a flatter jobs market. According to LinkedIn data, a third of UK professionals say they would actually take a pay cut for more flexibility in where they work. And among gen Z employees (aged 18 to 27), that rises to almost half (45%).

As a recruiter, it’s something Dominic Joyce recognises. "When we're talking to candidates, they're a lot more aware now of their purpose and what they want. I think gen Z is also more socially aware of their value and what they can bring."

More broadly though, he believes technology plays a role for all generations as we can see more of what we’re missing out on via social media. "You open your phone and see food markets, forests, restaurants in Croatia… People are being shown life outside of work and want to have more time to live it."

What would people take a pay cut for?

Greater flexibility isn't the only reason people would be prepared to sacrifice some of their salary. More than a quarter say a more reasonable workload, a company that better aligns with their values, or greater opportunities for upward mobility would be worth taking a pay cut for.

The benefits people are offered by companies often don’t align with how people live their lives, Joyce says. "Companies should look at modernising all sorts of benefits packages – do you want a cycle to work scheme if you're remote or hybrid? Perhaps paying for broadband or a local gym would work better," he says.

The oldest generation currently in the workforce, baby boomers (aged 60 to 78), are least likely to say they'd take a pay cut for progression opportunities (just 12% would) but also for a lower workload – 22% say they would consider it, compared to more than a third of the younger workforce. They'd be more likely to sacrifice pay for a company that better aligns with their values, in line with millennials and gen X.

Notably, gen Z are the most likely to say they'd take a pay cut for a better values match with their employer – something that Joyce corresponds with the way work has changed in the past few decades.

"Twenty years ago, there weren’t as many conversations about inclusion. For instance, neurodivergence – now we talk about it in different ways and set up work for people to flourish… give everyone the right platform to come and work from based on the working environment," Joyce says.

The link between transparency and loyalty

Progression is also a concern for the youngest generation – with 43% of gen Z professionals in the UK saying they'd drop some salary for greater opportunities for upward mobility. Among Millennials (aged 28 to 43) – now the largest generation in the UK workforce – 32% agree.

Transparency around opportunities could go a long way, Joyce suggests. Knowing that there is room for growth means people are more likely to stay and do their best work, which ultimately benefits the company.

One way of doing that is celebrating internal mobility. If someone has been there for years and progressed, showcase them to their colleagues, or even on the company LinkedIn page, says Joyce. "If someone goes to their company page or site and sees, 'this person got promoted', they know they’re not just a number on a sheet – and it’s a powerful branding move too."

Reported by: Siobhan Morrin