Gen Z and millennial three-year rule: Stair-step and lily pad careers – what employers need to know

For decades, professional success followed a predictable path: join a company, stay loyal, climb the ladder. But for Gen Z and millennials, that model feels outdated. 

Instead, today’s workforce is building “stair-step” and “lily pad careers,” moving laterally, diagonally, and even across industries to gain skills, experience, and fulfillment.

This shift isn’t about job-hopping for the sake of it. Instead, it’s about progress. Many younger professionals live by an unwritten rule – if they don’t see meaningful growth opportunities within three years, they’ll leap to an organization that offers them.

The numbers behind the movement

Gen Z recently officially surpassed Baby Boomers in the labor force, marking a generational turning point. In mid-2024, Gen Z made up 18% of U.S. workers, while millennials led the pack at 36%. Presently, these two generations represent more than half of the American workforce.

Their approach to work, however, is anything but traditional. Millennials average two years and nine months in a job before moving on. Gen Z isn’t far behind at 2 years and three months. Even though many Gen Zs are just beginning their careers, early data shows the same pattern: they’re motivated by growth, not tenure.

That doesn’t mean they lack ambition. In fact, 70% of Gen Z employees report developing new skills weekly to advance their careers. Their goal is to grow fast, gain experience, and build paths that prioritize learning, balance, and purpose – not just title changes.

Why “three years up or out” is the new normal

This trend is less about impatience and more about intentional planning. In a volatile economy, stability often comes from flexibility. Gen Z and millennial workers have seen market shifts, layoffs, and automation reshape entire industries. Their solution? Stay adaptable.

For many, that means stair-stepping within or across companies, moving into roles that stretch their skills or open new doors. It’s also why so many prioritize employers who invest in development. In a survey of Gen Z graduating college seniors, opportunity for growth ranked as the number-one factor when evaluating employers. Moreover, nearly one-third expect to be promoted within their first two years, and if that doesn’t happen, they’ll move on.

Employers that fail to provide a clear growth trajectory risk losing talent before it even fully integrates. This means that transparency around advancement timelines, mentorship access, and skill-building opportunities is a baseline expectation.

The role of learning, development, and upskilling

The three-year rule puts pressure on organizations to create meaningful, structured development programs. While previous generations often waited for promotions, Gen Z and millennial workers expect ongoing learning that translates into measurable progress.

Upskilling, once considered a “nice to have,” is now essential for retaining workers. 65% percent of millennials say they are actively building new skills, and 77% believe doing so is key to job security. For Gen Z, they view their employer’s investment in learning and mentorship as a direct reflection of how much the company values them.

Employers that embrace this mindset can benefit from the stair-step model rather than fearing it. Offering rotational roles, leadership development tracks, or clear three-year progression plans can help high-potential employees see a future within the organization. We can infer that companies that encourage lateral mobility also tend to retain younger workers longer.

The rise of career minimalism

While Gen Z is ambitious, they define success differently than previous generations. 68% say they wouldn’t pursue a management role unless it came with a higher salary or more prestige, and only 6% cite reaching leadership as their top career goal.

This doesn’t mean a lack of drive; it reflects a shift in priorities. Younger workers are motivated by autonomy, purpose, and personal growth as much as promotion. They want to be challenged, not chained to a title. 

What employers can do now

For employers, this means rethinking how to reward contributions. Career growth may look less like hierarchy and more like skill-building, mentorship, and flexibility. Organizations that adapt accordingly will have a competitive advantage in recruiting and retention:

• Create visible paths by documenting and communicating how employees can advance within three years.

• Encourage managers to coach rather than simply supervise. Employees who feel guided are far more likely to stay.

• Reframe performance reviews – use them as forward-looking development discussions, not backward-looking evaluations.

• Embed learning into culture through providing consistent access to upskilling opportunities.

The workforce has spoken: career growth is the new currency of loyalty. Employers who listen and adjust will retain their best people and build teams equipped for whatever the next leap requires.