Gen Z and mini-retirements: What HR leaders need to know

Who hasn’t daydreamed about taking a few months or even a year off work to take a bucket-list trip or pursue a passion project? Then your Teams pings with an urgent request, that important meeting starts, or the project you’ve been working on kicks into high gear, and those thoughts vanish until another day. We’ll all have time for those plans when we retire, right? 

Some members of Gen Z are saying, “Why wait?” They’re taking mini-retirements, making their daydreams a reality long before they reach official retirement age. Mini-retirements are often used for personal development, travel, exploring new interests, starting businesses, or simply taking a break to recharge and reassess life and career goals.  

As an HR leader, I think this workforce trend, like all others, is fascinating. And I’m betting you agree. But when mini-retirements go from a concept you’re reading about to a real situation in your organisation, there are some questions you might want answered. Let’s dive in. 

Are mini-retirements really that new and different? 

While mini-retirements might sound like another term for sabbaticals, the two are pretty different. Sabbaticals are typically offered by employers, often with a guarantee of returning to the same job. Mini-retirements are more self-directed and typically don’t involve returning to the same role or company. 

It can also be tempting to think of mini-retirements as extended vacations, but there are some significant differences. Even on the longer side, vacations are shorter breaks that last only a few weeks. They’re most often focused on relaxation or visiting family. Mini-retirements involve a more significant time commitment and frequently a more substantial life change, goal, or experience.  

Why are mini-retirements becoming a trend? 

Younger generations have different ideas about the role work plays in their lives. Dayforce research has shown how much they value flexibility and work-life balance and often reject the typical linear career path. Mini-retirements are just one way this Gen Z perspective manifests.  

Burnout is also a significant contributing factor. The stress and overwhelm of the past few years in an uncertain and ever-changing business climate have pushed many workers over the edge and spurred them to look for solutions that can help them recharge in the long term. The extended time off affords them more opportunities to improve their mental health. 

With career changes no longer a rarity, mini-retirements can be good preparation for those planning a new career. They provide time to learn new skills, get necessary certifications, or do temp work in their field of interest to see if it’s a good fit. These breaks can also be helpful for people who want to try their hand at a freelance career or start a business. 

Mini-retirements can revolve around travel as well. For many people, taking a short trip of a few days or weeks is not enough to have meaningful experiences. These mini-retirements can involve various activities, such as participating in missionary or volunteer work, spending an extended period in a specific country or region to learn a new language, checking multiple destinations off a travel bucket list, or embarking on trips that they feel they might not be able to take when they are older and officially retired — such as hiking the Appalachian Trail. 

What should HR consider when encountering these candidates when they return to work? 

Generally speaking, everyone’s mini-retirement comes to an end. When returning to the workforce, some might find that the unconventional aspects of a mini-retirement make it challenging to find employment again.  

But I think automatically rejecting these candidates is a missed opportunity. Here are some tips I believe my fellow HR professionals should keep in mind: 
 

• Be open-minded about resume gaps. Many organisations still frown on resume gaps, but let’s all remember that the world of work has drastically changed in recent years. Work is fluid, and people can have resume gaps for various reasons that don’t reflect negatively on their work ethic. Mini-retirements are one of them. 

• Dig into their mini-retirement experiences. Did they develop new skills? Learn new things? Experience different cultures? These can all have benefits for your organization. A candidate returning from a mini-retirement can bring unique experiences to the table that other candidates might not. 

• Think about their mindset. What’s one big advantage of a candidate returning to work after a mini-retirement? Their time away from the workforce makes them more likely to be rested, recharged, and ready to jump into new experiences and challenges. They’re returning to work with a renewed sense of focus and passion. They can have greater clarity on goals. And they’re less likely to be weighed down by the work-related burnout that’s so common today.  

• Hire them back. If you have an employee who decides to take a mini-retirement, consider rehiring them when they return. While that’s not always possible due to job availability, it’s worth keeping in touch with employees who leave for a mini-retirement in case they are interested in returning. It helps you hang on to valuable organisational knowledge and experience. And employers shouldn’t take mini-retirements as an affront, as the decision to take one is often bigger than work in the employee’s mind. 

Organisations can tap into a diverse talent pool that values flexibility and creativity by being open-minded towards candidates with unconventional career paths. As the workforce continues to evolve, understanding and adapting to trends will enhance employee experience and contribute to a more resilient, agile, and engaged workforce.