Gen Z professionals are increasingly building portfolio careers-combining multiple roles, side projects and entrepreneurial ventures-rather than following a single-employer path, according to research from International Workplace Group (IWG). The data, collected from 1,000 UK-based Gen Z respondents, shows 33 per cent already have or are considering a side hustle, with nearly half driven by the need for extra income and financial security amid rising living costs. This shift, coming as AI alters job functions, signals that HR teams will need to adapt how they attract, develop and retain early-career talent.
AI as a catalyst
Fifty-five per cent of Gen Z workers believe AI will reshape their careers, prompting many to develop new skills and pursue multiple income streams to remain adaptable. Rather than viewing AI as a threat, these professionals treat it as a signal to reduce reliance on any single employer. In Australia, LinkedIn research found that 56 per cent of Gen Z entrepreneurs maintain multiple income streams, reflecting a growing appetite for careers beyond conventional employment as digital tools lower barriers to entry.
Redefining success and the value of human skills
For Gen Z, career success is measured differently. In Australia, 59 per cent of entrepreneurs cite personal freedom and flexibility as their top motivator, ahead of financial gain at 48 per cent. Autonomy and control over time now outweigh a linear climb up a corporate ladder. IWG's research also looked at HR leaders' perspectives: 90 per cent believe failing to prioritise human capabilities risks innovation, 65 per cent say AI cannot replicate human empathy, and 53 per cent say leadership remains a distinctly human skill. For HR teams, balancing AI adoption with human-centred strategy is becoming a priority, making resources like AI for Human Resources Courses increasingly relevant.
Salary, side hustles and the career lily pad
Earning power still drives decisions. Thirty per cent of Gen Z professionals who changed roles in the past three years did so primarily for a higher salary, and 43 per cent made two to three moves in that period. Many are not climbing a single corporate ladder but hopping between roles, industries and projects-a pattern described as "career lily pads"-to increase pay and stay ahead of financial commitments.
Why flexibility matters: commutes and hybrid work
The daily commute is emerging as a dealbreaker. IWG found that 65 per cent of Gen Z professionals would be less likely to pursue entrepreneurship or multiple income streams if required to commute long distances. In Australia, 93 per cent of hybrid workers consider access to a local workspace a top priority when job hunting. Hybrid work directly enables portfolio careers: 24 per cent say reduced commuting frees up hours for personal projects, 20 per cent use the flexibility to test new career paths without leaving their main role, and 21 per cent collaborate with professionals outside their main industry. Financially, 81 per cent of Australian hybrid workers report saving money by working locally, with average savings of $236 per month.
Lisia Roth, IWG Australia's Senior Vice President and Country Manager, said the trend reflects a structural shift. "With AI rapidly reshaping industries and job roles, Gen Z is adapting by developing new skills, building multiple income streams and creating portfolio careers that strengthen their value proposition," Roth said. "They are an ambitious and hardworking generation, and more flexible ways of working is helping them to unlock greater potential. By reducing long daily commutes and allowing people to work closer to home, it gives young professionals the ability to upskill, collaborate and unlock new opportunities."
The expectations set by Gen Z are already extending to the next generation. IWG found that 75 per cent of Gen Alpha-those aged 11 to 17-say eliminating wasted travel time will be fundamental to how they structure their working day. The company added more than 1,100 locations in 2025 and now operates over 5,000 sites across 120 countries.
Why this matters for HR professionals
These shifts demand that HR teams rethink workforce planning. Portfolio careers mean talent may be less tethered to a single employer, requiring more flexible engagement models, project-based hiring and policies that support side projects. Emphasising human capabilities-the creativity, empathy and leadership that AI cannot replicate-will be a competitive advantage in attracting and retaining Gen Z workers. Offering hybrid work that cuts commute times and provides local workspace access is no longer a perk; it is a baseline expectation. HR leaders who adapt to these preferences will be better positioned to compete for the next generation of talent.
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