Employers plan average pay increase of 3.5% in 2026
 
December 11, 2025
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Good morning!

Today, we're taking a look at high rates of burnout among Gen Z. Also in this issue:

🤝Mentorships could boost Gen Z's career confidence
☕ Bridging the gap between Gen Z, employers
💰 Employers plan average pay increase of 3.5% in 2026

Here's a look at what we're seeing, what it means, what we're anticipating, what's resonating and what you think about today’s workplace. Let's get SMART!
 
Tired student at home
(ArtMarie/Getty Images)
Gen Z faces high burnout rates driven by stress, job mismatch
Gen Z workers are experiencing unprecedented levels of burnout. This trend is attributed to entering the workforce during the pandemic, economic pressures, and the rapid integration of AI in the workplace. Experts suggest that building workplace connections, setting boundaries and flexible work arrangements can help mitigate burnout.
Full Story: The Conversation (12/8)
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What That Means
 
Mentorships could boost Gen Z's career confidence
A report from Big Brothers Big Sisters of America highlights a mentorship gap for Generation Z, with 74% lacking access to mentors. Although 83% of Gen Z workers recognize the importance of mentorship, only about half have mentors. This gap affects career confidence and soft-skills development, with Generation Z projected to become the largest workforce demographic by 2035.
Full Story: Forbes (tiered subscription model) (12/11)
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Bridging the gap between Gen Z, employers
A study by New York University professor Suzy Welch reveals a significant gap between Generation Z's values and those sought by employers. While companies prioritize achievement and learning, Gen Z values self-care, individuality and making a difference, creating a challenge for employers.
Full Story: Psychology Today (12/9)
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What We're Anticipating
 
Employers plan average pay increase of 3.5% in 2026
US employers plan to keep salary increases flat in 2026, with an average merit base salary increase of 3.2% and an overall increase of 3.5%, according to a Mercer survey. Most employers plan to distribute increases evenly rather than focus on employees with in-demand skills.
Full Story: HR Dive (12/10)
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Focusing on skills over titles part of 2026 workforce trends
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What's Resonating
 
 
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What Do You Think?
 
What is the best way to help Gen Z navigate the workforce?
VoteFlexible work arrangements.
VoteMentorships.
VoteNothing, they don't need special treatment.
VoteOther (email me!)
 
 
 
 
Editor's Note
 
Nina Snyder
Gen Z refers to the generation born between 1997 and 2012. My son is Gen Z, and he is the epitome of a digital native. I ask him for tech support on a daily basis.

As always, let me know if there's a subject area or topic you want to see covered more. 


If you like CHRO, hate CHRO or want to submit a story, email me at nina.snyder@futurenet.com. The kindest compliment you can pay CHRO SmartBrief is to send this link to your friends and colleagues so they can subscribe. Thanks!
 
 
 
 
SmartBreak: Question Of The Day
 
King Solomon's mines are said to be in Ophir. Christopher Columbus thought he found it when he landed where?
Oddly interesting: This archived New York Times article points to Peru as the source of Solomon's gold.
VoteAmerican continent
VoteBelize
VoteCuba
VoteDominican Republic
 
 
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