To date, Gen Z already constitutes around 24% of the global workforce, and this figure should reach 30% by the end of the decade. Based on the same estimates from Worldmetrics, next year already, millennials and Gen Z will ‘take up’ 99% of the workforce – a number to be reckoned with. The good news for employers and HR is that these two generations are a good mix that, if managed right, can boost business performance through innovation and creative out-of-the-box thinking.
At the same time, some challenges remain, especially regarding Gen Z. Last year, three-quarters of managers who took part in the ResumeBuilder survey named Gen Z the most challenging generation to work with. But that doesn’t have to be the case – digital natives can be an extremely valuable asset to any company, especially in today’s age of generative AI and the digital transformation of businesses.
So, attracting and retaining the young Gen Z talent is already a business priority – not only for managers and HR but also for recruiters who play an increasingly important part in building the company’s reputation. Since the percentage of digital natives in the workforce will only increase, it’s essential to understand what drives this new generation. Below, we list the most important things to consider – what are Gen Z looking for in the workplace?
Table of Contents:
Mobility & work-life balance
According to the Deloitte study, work-life balance remains one of the top priorities for choosing an employer – which is as true for Gen Z as it is for millennials. And yet, there are differences – the digital native generation, despite its technical proficiency, values face-to-face communication way more than its millennial predecessors, with 88% of Gen Z respondents claiming that face-to-face collaboration is the primary driver that brings them to offices.
At the same time, the majority of respondents acknowledge that flexible work hours are among the largest factors affecting productivity and job satisfaction. Such a mindset clearly indicates solid time management qualities and self-motivation – the top soft skills employers and recruiters are looking for in 2024. The impact on recruitment is also undeniable because HRs need to emphasize hybrid and flexible work hours right from the start – preferably straight in the job ads.
Work purpose & social accountability
Aspiring to a purpose in life and at work is another feature millennials and Gen Z have in common, but once again, there are subtle differences. The Deloitte study mentioned above indicates a slightly higher percentage of millennials who state that work purpose is important for them. However, based on the same survey, only 40% of millennial respondents have turned down employers based on their personal beliefs – and in the Gen Z category, this figure already reaches 44%.
Clearly, Gen Z takes the ‘purpose’ more seriously and is more prepared to act on it than the previous generation. Again, the impact on recruitment and management is huge, especially considering that the same Deloitte study reveals that half of Gen Z workers refuse to work on assignments and projects they deem unethical, even if they’ve previously accepted the employer. And we all know that actions speak louder than words, which seems to be the case with the new generation of workers.
Demand for a clear career trajectory
Possibilities for career growth are among top Gen Z expectations from their employers. However, this generation’s acute sense of honesty makes itself tangible here as well. Gen Z representatives prefer clear career paths with no underhand policies, nepotism, or any other kind of unfairness. From an employer’s perspective, this trait is surely a positive development that encourages productive collaboration and a focus on tangible results.
On the other hand, failing to outline a clear path for career development (or deliver on one’s established policies) may result in increased job disengagement, also known as quiet quitting. When the situation is not adequately addressed, quiet quitting could well result in literal quitting, thus increasing employee turnover and leading to a snowball effect of job dissatisfaction from other team members. Ideally, career pathways should be clearly defined at the job negotiation stage and delivered on later.
Prioritizing values over money
Monetary compensation matters for Gen Z, which we will discuss in more detail below. In many cases, salary is the primary consideration when choosing a job – and yet there are other factors that have not been so important for previous generations, with values coming to the forefront of Gen Z’s attention. Clearly, ‘values’ is too subjective a concept to build upon, but employers cannot go wrong with emphasizing business sustainability and inclusion – something we’ll also discuss shortly.
What matters most is that Gen Z is prepared to pursue values they believe in – alongside their employers, if given a chance, or independently as a side hustle that may eventually turn into an enterprise of their own. From an HR perspective, this highlights the need to carefully analyze each candidate’s cultural fit to minimize employee turnover and boost productivity at work.
Focus on mental health and well-being
Statistically, Gen Z and millennials are the most stressed out and disengaged generation in the workplace, which explains their demand for adequate mental health programs. The topic of mental health has gained special prominence, especially in the US, but Europe and other developed countries are starting to catch up on the trend. In late 2022, the American Psychological Association conducted a survey to discover that over 90% of workers claimed that an organization’s focus on employee psychological health is very (57%) or somewhat (35%) important to them.
Considering that the most stressed-out demographics, millennials and Gen Z, are already the dominant workforce, this calls for introducing mental health counseling at work and, possibly, including psychological leave days in the organization’s work policy.
Commitment to tech innovation
The proverbial elephant in the room, the mass adoption of AI, is another tendency revolutionizing today’s workplace. As digital natives, young workers expect access to the latest tools and technologies and, differently from older generations, they do not see AI as a threat to their jobs.
Notably, Gen Z is also the most adaptable demographic as far as new tech trends are concerned, often acting as mentors for less tech-savvy colleagues. Clearly, employers can (and should) leverage this to their advantage – especially considering that many businesses today are still looking for the optimal ways to integrate AI into their business routines.
However, to attract the best young tech, a company’s commitment to tech innovation should be visible from the very start – that is, from handling their job offers. The prolonged hiring process and red tape are huge dealbreakers for this demographic, who are used to the fast pace of the digital world.
Work culture, ethics, and DEI policies
Emphasis on work purpose, employee well-being, and business accountability can roughly be summed up as a strong work ethic – something the majority of Gen Z applicants expect to see at job negotiation stages. The only aspect we have not touched upon yet is the need to embrace diversity, equity and inclusion (DEI) practices at work.
A non-inclusive work environment is a deal breaker for most Gen Z representatives, with most Zoomers doubting that their current employers are showing enough DEI commitment. Again, estimating just how much is ‘enough’ will vary from business to business, but conducting regular surveys can help kill two birds with one stone – discover what your employees are thinking and prove that their opinion counts.
Money matters, after all
The last, but definitely not the least, consideration is money. Even though Gen Z are generally prepared to sacrifice money for their beliefs, they are also the most pragmatic demographic as far as salaries are concerned – and that has a major impact on recruitment, too. Unlike previous generations, Gen Z expects to make good money right from the start, which is not surprising considering they’ve witnessed a few economic and social crises already. The definition of good money differs, of course – with some studies indicating below-average expectations from the Gen Z demographic.
In any case, from a Gen Z perspective, a good salary is the safety pillow they’ll need when another emergency like a pandemic or mass layoffs occurs. Alternatively, an emphasis on job security (as far as it is possible in today’s environment) could help attract the best talent – perhaps with a higher likelihood than high salaries.
Conclusion
Gen Z can become a valuable addition to any company, driving innovation and inspiring business growth. While this new generation brings new values and priorities to the workplace, the change is not necessarily for the worse. Combined with a higher percentage of millennials, already making up the majority of the active workforce, Gen Z can become the ‘moral’ backbone of any company while ensuring its steady growth by optimizing the adoption of emerging technologies.
At the same time, human interaction matters – in a way, even more than it did to previous generations. A business that takes accountability for its actions and treats all employees fairly, without underhand politics or prejudice, should have no difficulty attracting and retaining Gen Z to its ranks. This process clearly starts with embracing people-centric work policies – and you might want to check out our separate post on encouraging a positive corporate culture that boosts employee engagement and productivity. More HR- and recruiting insights will follow shortly, so bookmark our blog for the latest market updates and analytics!
