Gen Z and Millennials Are Redefining Hospitality Work—Here’s How Training Needs to Evolve

Why your next wave of frontline and future leaders expects more than just a job—and what your L&D strategy needs to deliver.

As Gen Z and millennials come to dominate the hospitality workforce—set to make up two-thirds of the global labour force in the next few years—their expectations are reshaping what it means to work, grow and thrive in this industry.

Forget the ladder. These generations see their careers as a web of learning, meaning, and reinvention. They value personal growth, financial security, mental well-being—and they expect their employers to invest in them on all fronts.

For venue groups, hotel brands and operators, this presents both a challenge and an opportunity: evolve your training approach or risk disengagement, high turnover, and talent loss to competitors who do.

Let’s unpack what the latest research means for hospitality teams—and how you can respond.

1. Learning isn’t optional—it’s expected. But not in the way you might think.

According to Deloitte’s 2025 Gen Z and Millennial Survey:

• 70% of Gen Zs and 59% of millennials are upskilling weekly.
• 67% of Gen Zs are developing new skills outside of work hours.
• The most in-demand learning? Soft skills like communication, leadership, empathy and time management—ranked higher than AI and tech skills.

In hospitality, where guest experience and team dynamics are everything, this focus on soft skills is a gift. But only if your training supports it.

What to do:

• Expand your training offering to include emotional intelligence, customer communication, conflict resolution and team leadership.
• Move beyond compliance-only pathways—make L&D a driver of career progression, not just box-ticking.
• Offer bite-sized, mobile-friendly content that fits into a shift-based work environment.

2. Managers aren’t just taskmasters—they’re mentors. And they need help.

88% of Gen Zs and 89% of millennials say on-the-job learning is key to development. But many feel their managers are too focused on admin and tasks to provide real coaching.

And here’s the kicker: only 13% of a typical manager’s time is spent developing their people.

In hospitality, where many managers rise from the floor and juggle operations, the need to support them with structured leadership development has never been greater.

What to do:

• Equip managers with micro-training modules on coaching, feedback and motivation.
• Build mentorship and peer learning into your workforce development plan.
• Promote role-modelling and recognition as part of your leadership culture—not just performance management 

3. Mental health and money worries are killing engagement

Deloitte’s findings are stark:

• Only 52% of Gen Zs and 58% of millennials rate their mental health as good.
• More than 50% live paycheck to paycheck.
• Financial stress is the #1 factor affecting well-being—and by extension, retention and performance.

In an industry known for long hours, tight margins and high emotional labour, these concerns hit especially hard.

What to do:

• Link training to visible career pathways—help staff see how upskilling leads to better roles and pay. 
• Promote financial literacy, stress management and work/life balance within your training mix.
• Make well-being a strategic priority, not a perk. 

4. Purpose is personal—and powerful

A staggering 92% of millennials and 89% of Gen Zs say having a sense of purpose is crucial to job satisfaction. In fact, 44% have quit roles that felt meaningless.

For hospitality businesses, this is a wake-up call. Your team doesn’t just want to serve food or check guests in—they want to make people feel welcome, create memorable experiences, and contribute to something bigger.

What to do:

• Reinforce the “why” behind training—not just the “how.” 
• Highlight stories of customer impact, sustainability, community and cultural pride in your training content. 
• Empower team members to bring their values into their work—and give leaders the tools to support them. 

5. Traditional education is losing ground—vocational learning is rising

Roughly 1 in 3 Gen Zs and millennials are choosing not to pursue higher education. Many question the ROI of traditional degrees, preferring vocational training and practical experience that helps them get ahead faster.

This presents a golden opportunity for hospitality employers and training providers: become the source of industry-ready, role-specific, confidence-building learning.

What to do:

• Offer recognised, modular learning pathways that can act as a degree alternative. 
• Partner with providers (like Allara Global) to deliver engaging, scalable, real-world training built for hospitality. 
• Celebrate vocational success stories in your business—and make learning a point of pride. 

Final thought: Gen Z and millennials aren’t “difficult”—they’re different.

• They want to grow, but not up the same ladders.
• They want to feel secure, but not at the cost of their well-being.
• They want meaning, but not always from their job title.

For hospitality leaders, the question is no longer “Should we adapt?”, but “Are we doing enough?”

At Allara Global, we’re helping hospitality businesses create learning experiences that connect with today’s workforce—and build tomorrow’s leaders.

Because if we train for who they really are, they’ll help take hospitality to where it truly belongs.

Want to future-proof your training strategy?
Let’s talk about how Allara can help you attract, engage and retain your next generation of talent.

Download the Deloitte Gen Z Insights Summary