What is Micro-Retirement, and Why is it Becoming Popular Among Gen Z?

Generation Z (often shortened to Gen Z) have been working for a while now, and many are already tired of working in organisations. For this, they are taking ‘Micro-retirement’ from their work. The concept of ‘micro-retirement has been trending on social media again, but what does the term mean?

What is ‘Micro-Retirement’?

Micro-retirement means taking a short-term break from work. The concept is almost similar to a sabbatical. However, unlike a sabbatical, micro-retirement is a personal choice. This means that the employer doesn’t give this break to you, and you would not get paid during the break. Additionally, there is no guarantee that you will get your job when you come back. Gen Z takes this break to recharge, avoid burnout, travel and focus on their hobbies. According to experts, not only Gen Z but also companies should focus on micro-retirement.

Experts say that employers should offer breaks like micro-retirements as a benefit to their workers, especially when working from home is no longer possible. Giving employees a chance to take “micro-retirement,” which sounds more fascinating than “sabbatical,” could be a way to keep them satisfied and loyal to the company. It’s like offering perks such as matching 401(k) contributions, stock options that take time to fully own, or even health insurance—things that make employees want to stay because they provide long-term value.

It sounds challenging for workplaces to make changes based on what young people want, and older employees or bosses might address it as just a “kids these days.” But they should remember that young workers have also influenced how things work in an organisation. Over the decades, everything, from dress codes to how we talk to our coworkers and even who works in the office has changed because of younger employees. Gen Z just shares their ideas, like “quiet quitting” or “lazy girl jobs,” on social media, which makes them sound like passing trends.

However, before ignoring the concept of micro-retirement, Companies should focus on the challenges they are facing. They should aim for retention of 18% and 36% of the workforce having Gen Z and millennials, respectively. Replacing an employee can be time-consuming and expensive. The companies have to start the recruitment process for hiring a new workforce. The HR managers will have to conduct interviews. Additionally, the company might have to offer higher salary packages to attract quality talent to the vacant position. Then, they need to train the new hire, which can also slow things down until the new person is fully trained. According to Salary.com, replacing an employee can cost between half to double their salary.

On the other hand, micro-retirement could be considered as parental leave, where the work gets spread out among other team members. It could be a benefit that can be availed after working at a company for three years, lasts up to four weeks, and can be taken again every three years. The main idea is that everyone has the same chance at this break, which could help avoid any bad feelings that might come up among co-workers when someone takes parental leave.

Key Difference Between ‘micro-retirement’ and ‘sabbatical’

The term ‘micro-retirement’ is a different concept as compared to sabbatical. Sabbaticals were mostly related to academics, where the break was spent on research or improving skills to be more helpful to the employer when returning. But “micro-retirement” suggests a complete break from work to enjoy life while you’re younger and healthier. The break doesn’t have to be an expensive vacation you share on social media. It could just be a chance to

In the US, people are living shorter lives now—women live about 80 years and men just under 75, according to the CDC. A 2023 Gallup poll shows most people think they’ll retire at 66. But if you work for over 40 years and only have about 15 years to enjoy life after retiring, that doesn’t seem like enough. Additionally, research found that 4 out of 10 workers don’t use all their vacation days. According to statistical data, the average worker gets 11 vacation days after one year of work and only 18 days after 10 years on the job in the US.

Even though it might sound unlikely, companies probably won’t start offering micro-retirements anytime soon. So, anyone who wants to take one will need to save up for their time off. They’ll also need to make sure they can find another job or figure out health insurance so they don’t have to worry about it during their break.