Introducing Generation Z: the near future of your workforce
During the first quarter of 2023, research was conducted on young technology professionals between the ages of 20 and 30 employed by companies in the United States, Australia, the United Kingdom, the Netherlands and Germany, among others. This survey showed that these so-called “Young Generation In Tech” or Generation Z, are not afraid to break existing norms and are ready to disrupt old paradigms
There are, however, some problems with Generation Z in the workforce. They are resilient and driven, but are also considered difficult to work with. Recent surveys show that 40% of business leaders believe Generation Z graduates are not well prepared for the workforce. Of those leaders, 94% say they would not even hire these young people
Generation Z also seems to be somewhat less involved at work. The data shows 54% of Zoomers do not feel engaged in their workplace and often do not feel connected to colleagues, managers or employers. This may explain why 40% plan to leave within two years and about a third would quit their jobs without immediately having another job
Despite these difficulties, companies will not be able to continue to ignore this generation. In fact, by 2030, Generation Z is expected to make up 30% of the workforce. To meet the challenges related to retaining, engaging and motivating this generation, companies need to focus on three key areas:
- Clear career development: Generation Z is interested in growth opportunities and wants to know what opportunities there are to develop within the company.
- Aligned with personal values: This generation wants to work at a company that is aligned with their own values and ethics.
- Creating a community feeling at work: Generation Z wants to experience a strong sense of belonging at work, with support and interaction with peers and managers.
By investing time and resources in these areas, companies can better motivate and retain Generation Z. Understanding the challenges Generation Z faces, as well as the issues they may create, is essential to developing a workforce strategy that successfully addresses the needs of Generation Z
The 11 challenges Gen Z impacts the workplace with
1. Online conversations rather than physical conversations are changing Gen Z’s attitudes at work
Gen Z grew up in a time when online communication dominated. As a result, they may have less experience reading and interpreting nonverbal cues in face-to-face communication. This can lead to misunderstandings and frustrations with colleagues. Employers need to be patient and show Gen Z employees the way in the workplace
2. Gen Z needs face-to-face communication
Although Gen Z is often online, 53% of them prefer face-to-face communication to instant messaging or email. They value a direct, informal and transparent communication style. For employers, this means having face-to-face conversations and getting to the point
3. Gen Z lacks experience with critical technologies
Gen Z has grown up with digital devices, but that does not always mean they are familiar with professional tools and software. As a result, they may struggle to use programs such as Teams, Slack and email. It is important that employers provide Gen Z employees with the support they need to improve their digital skills
4. There is a social skills gap and Gen Z needs guidance
Despite realizing that social skills are essential to growing in the workplace, many Gen Z employees do not receive appropriate guidance in this area. Employers need to pay attention to developing these skills in their Gen Z employees
5. Gen Z seeks financial security and growth opportunities
As opposed to other generations, Gen Z values financial security and career advancement. For them, a good salary package and advancement opportunities are important factors when choosing an employer
6. They are true advocates of mental health and wellness programs
A positive approach to mental health at work and effective health packages are key factors for Gen Z when choosing between employers. They want to work for companies that care about their employees’ well-being
7. Gen Z wants a good work-life balance
A good work-life balance is of great importance to Gen Z. They understand that hard work is inevitable, but expect better working conditions in return
8. Gen Z wants to be offline and out in the real world
Despite their online presence, Gen Z employees also like to be physically present in the workplace and build personal relationships with colleagues. In fact, many of them prefer a hybrid work environment
9. Gen Z expects transparency from their employers
Gen Z values transparency from the employer. They want to know how they fit within the company’s goals and what their career path looks like. This requires clear and honest communication from employers
10. Gen Z prefers real-time feedback
Gen Z employees like to receive regular feedback from their managers. Companies can capitalize on this by adapting appraisal systems to provide more targeted and impactful feedback
11. They take strong diversity and inclusion programs for granted
Gen Z is the most diverse generation to date and values diversity and inclusion in the workplace. This means employers need to ensure an inclusive corporate culture where diverse perspectives and backgrounds are valued
Motivating Gen Z in the workplace: What can you do?
Provide a clear path for professional growth
Gen Z looks beyond short-term rewards and wants opportunities that support their professional growth in the long-term. To keep Gen Z’ers satisfied and engaged, you can support their career path by:
- Providing managers with the tools and training needed to be reliable advisors to their employees
- Create clear job descriptions and levels, along with structured performance reviews
- Provide structure and guidance for formal mentoring programs (58% of satisfied Gen Z’ers are part of such programs)
- Provide space for incremental growth early in their careers to remain engaged
Aligning with personal values, diversity and well-being
Gen Z sets high expectations for alignment between their personal values and company mission and policies. This can mean promoting inclusive hiring practices and environmentally conscious programs
Patch your employer brand and company culture to Gen Z’s personal values by:
- Promote inclusiveness and diversity through gender-neutral policies and facilities
- Encouraging mental well-being with internal training and campaigns, along with manageable workloads
- Encourage dialogue and feedback and really listen to what employees have to say
- Set up affinity groups and employee advocacy groups
Fostering community and relationship building
Gen Z’ers value a sense of community in the workplace. Create opportunities for employees to connect with each other in meaningful ways. For example, you can make Gen Z feel more connected by:
- Introducing affinity groups and clubs
- Organizing meaningful, face-to-face meeting opportunities
- Providing tools and opportunities for online connections between teams and departments
- Create formal mentoring and social programs between departments
- Provide flexible schedules and opportunities to spend time in the office with colleagues to build relationships
In addition, integrate collaboration, trust and transparency into your corporate culture by:
- Having regular team meetings
- Making sure managers have regular (weekly or bi-weekly) one-on-one meetings
- Make every employee aware of the impact of their work on the company
- Talk openly about the state of the company, including the reasons behind certain actions or considering layoffs due to macroeconomic influences
How to use HR technology to solve Gen Z challenges in the workplace
HR automation
With a premier Human Capital Management solution, you can automate HR activities while providing personalized employee experiences connected to company-wide initiatives. This way, you help create the sense of belonging and community that Gen Z craves
Performance Management
Research shows that Gen Z needs clear and measurable career paths to know they are on track to achieve their ambitions. Fortunately, the right HR technology gives you 360-degree assessments for all employees, with clear, actionable goals and growth plans that align with team, department and company objectives
Surveys
Keep your finger on the pulse of your employees so Gen Z’ers feel engaged and valued throughout the employee life cycle. You can track various milestones, such as time spent with the company, or regularly measure satisfaction to get the data you need to adjust your HR strategy
People Analytics
Place diversity, equality and inclusion (DEI&B) at the top of the agenda as a measurable KPI with advanced people analytics. Gain the insights you need about the composition of your workforce and receive customized dashboards on employee numbers, retention, absenteeism and growth
Compensation management
Increase transparency around payment with compensation bands and ensure fair payment for new and current employees. Keep all stakeholders aligned for a data-based, fair and equitable process – exactly what Gen Z is looking for
Gen Z: They change everything
Gen Z employees are motivated and loyal when they experience transparency, visible career growth, alignment with personal values, mentorship and direct, personal contact. This generation can have a significant positive impact on the future of work, social justice and the generation of new ideas
By deploying HR technology, strategy and carefully aligned management, employers can harness the potential of Gen Z employees:
- Transparency: Be open about company goals and decisions. This makes Gen Z employees feel valued and engaged.
- Career growth: Provide opportunities to learn new skills and develop professionally.
- Personal Values: Demonstrate your company’s commitment to social and environmental responsibility.
- Mentoring: Provide support and advice to help Gen Z employees thrive.
- Direct contact: Although they are digitally proficient, they prefer face-to-face communication for better connection and understanding.
When Gen Z employees feel seen, heard and understood, they demonstrate their ability to be creative, dynamic, innovative and driven – making them a powerful driver for your company and the world
Frequently Asked Questions
What does Generation Z look for in a work environment?
Generation Z looks for a work environment where they can develop, utilize their talents and experience commitment from the employer. They prefer flexibility and look for career opportunities that can enhance their growth
What are the characteristics of Generation Z workers?
Generation Z workers tend to be technologically savvy, independent and value diversity. They are good at multitasking and have a strong need for personal development and growth
What are Generation Z’s primary needs in the workplace?
The primary needs of Generation Z in the workplace are:
- A stimulating work environment
- Flexible working hours
- Opportunities for personal growth and development
- Open communication and collaboration
- Opportunities to learn new skills and stay up-to-date with technological developments
What trends are visible among Generation Z employees?
Some visible trends among Generation Z employees include:
- Increasing telecommuting and hybrid work situations
- Growing importance of mental well-being and work happiness
- Striving for a healthy work-life balance
- Emphasis on diversity and inclusion in the workplace
How do generation Z employees deal with stress at work?
Generation Z employees often deal with stress at work in different ways. They may use self-care techniques, time management and prioritization to reduce stress. They also often seek support and feedback from supervisors and colleagues to better manage stress at work
Does Generation Z have a strong work ethic?
Generation Z may have a strong work ethic, but their approach to work may differ from earlier generations. They value a healthy work-life balance and often seek work that is meaningful and challenging. They are also willing to work hard, provided they receive the right support and guidance
