50% of Gen Z feel underutilised at work: Are we misreading the 'entitled' generation?

The generation we have often labelled as wanting too much may actually be getting too little. The stereotype has become a bubble from which there seems to be no escape. Countless stories have been rolling out on LinkedIn and Instagram about how Gen Z is saying "no" to work, and they are sticking to their own rules.

One or two years back, we were talking about sobriquets and the slang they use in cubicles. Now is the talk around their impatience and unwillingness to pay their dues. A generation that demands flexible schedules, meaningful work, and six-figure salaries before turning 30. Yet, beneath all of the layers of criticism lies a striking question: What if Gen Z is being treated as a scapegoat? Perhaps the problem is not that Gen Z expects too much, but that workplaces are asking too little.The latest evidence comes from Resume Now's "Untapped Talent Report," which paints a striking picture of a workforce filled with unused potential. Among Gen Z employees, nearly half report feeling underutilised in their jobs, a finding that challenges one of the most persistent narratives about young workers.It seems like the problem is not Generation Z, maybe it never was. The main ordeal might lie in the systems of the organisations.

Our institutes are not ready to accept them in a proper manner.

The hidden crisis nobody is talking about

Underutilisation rarely makes headlines. Unlike layoffs, resignations or burnout, it is difficult to measure and even harder to spot. Employees still show up. Projects continue moving. Performance reviews appear satisfactory.But beneath the surface, something important is happening. According to Resume Now's survey of 1,018 US adults conducted in November 2025, 69% of employees say their skills and abilities are not being fully used in their current roles.

Even more concerning, 77% believe this lack of utilisation has slowed their career progression.The findings suggest a widespread mismatch between what workers can do and what employers are asking them to do.

For Gen Z, that mismatch may feel particularly acute

Unlike previous generations, many entered the workforce after spending years hearing that creativity, innovation, digital fluency, and entrepreneurial thinking would define the future economy. They arrived equipped with new skills and new expectations.Instead, many found themselves performing repetitive tasks, going through rigid hierarchies, and waiting endlessly for opportunities to unleash their potential. It might appear entitlement on the surface, but can be frustration garbed in the form of rebellion.

When recognition becomes symbolic

One of the survey's most revealing findings is that recognition alone is not enough. Many employees say managers acknowledge their strengths but rarely provide opportunities to use them in meaningful ways.According to the report, 62% of workers say their strengths are recognised but not central to their daily work. Only 9% report that their unique abilities directly influence projects or initiatives.This distinction matters. A workplace can praise employees endlessly while simultaneously limiting their influence. Compliments become symbolic when they are not accompanied by responsibility.For Gen Z workers, who have grown up in educational environments emphasising participation, collaboration and impact, this disconnect can be particularly demoralising.

Being told you have potential is not the same as being allowed to use it.

The challenge deficit

The survey also reveals a striking absence of challenge in modern workplaces. Only 13% of employees describe their work as extremely challenging. Nearly one-third say their jobs are barely challenging or not challenging at all.Conventional wisdom often assumes employees seek comfort and stability. Yet psychological research has repeatedly shown that people are most engaged when their skills are stretched rather than ignored.Humans do not thrive solely on rewards. They thrive on growth. This may help explain why Gen Z frequently places purpose and development opportunities near the top of workplace priorities. These demands are often interpreted as signs of impatience.But another interpretation exists. Perhaps young workers are not rejecting hard work. Perhaps they are rejecting work that feels meaningless.

The great misunderstanding of Gen Z

The "entitled generation" label did not emerge in a vacuum.

Many employers observe younger workers questioning long-established workplace norms. They are more likely to seek feedback, challenge outdated processes and leave jobs that fail to meet their expectations.To some managers, these behaviours signal a lack of resilience. To others, they reflect a generation unwilling to settle for inefficiency.History offers a useful perspective.Nearly every generation has been criticised by the one that came before it.

Millennials were once accused of being entitled. Before them, Generation X was portrayed as cynical and disengaged. Even baby boomers faced criticism from their elders during periods of social change.What often appears as entitlement is sometimes a collision between changing expectations and established systems.Gen Z entered a labour market transformed by technology, remote work and rapid economic disruption.

Their expectations evolved accordingly.The challenge for employers is determining whether those expectations are unrealistic, or simply ahead of current workplace practices.

A retention problem disguised as a talent problem

Possibly, the most consequential finding from the Resume Now report concerns employee retention. Underutilisation is not merely a morale issue. It is becoming a business risk.The survey found that 72% of employees would likely search for a new job if they consistently felt underutilised.

Two-thirds said they would consider leaving their employer within a year if the situation persisted.This finding reframes an increasingly common workplace complaint. When organisations struggle to retain younger workers, they often focus on compensation, loyalty, or generational attitudes.But what if employees are leaving because they feel invisible? What if turnover is not being driven by excessive ambition but by unrealised potential?The distinction is important because the solutions are radically different.

One requires changing workers. The other requires changing workplaces.

The leadership blind spot

The report also points to a troubling management gap. Four in five employees say leadership either fails to notice underutilisation or notices it but rarely takes meaningful action. More than one-third believe leaders do not recognise the issue at all.This may be the most alarming statistic in the entire study. A workforce can tolerate temporary stress, heavy workloads and difficult projects when employees believe their contributions matter.It is far harder to tolerate feeling overlooked. When talent remains unused for long periods, employees begin questioning not only their organisation but also their future within it.That erosion happens silently, until resignation letters begin appearing.

Beyond the entitlement narrative

The debate surrounding Gen Z often focuses on what young workers want. Higher salaries, flexible work, faster advancement, and better work-life balance.But the Resume Now findings suggest another conversation is overdue. What are organisations failing to provide?If nearly half of Gen Z employees feel underutilised, the issue may not be a lack of motivation. It may be a lack of opportunity.The danger of the "entitled generation" label is that it encourages employers to dismiss dissatisfaction as immaturity rather than investigate its causes.Sometimes employees leave because their expectations are unrealistic. Sometimes they leave because their potential is being ignored.The challenge for today's leaders is distinguishing between the two. Because a generation repeatedly accused of wanting too much may, in reality, be asking for something far simpler: The chance to contribute everything it has to offer.