How Gen Z Is Changing Business and the Workplace

Source: Dall.e/OpenAI

As the first true digital natives enter the workforce, employers face the challenge of understanding and meeting the unique psychological needs and expectations of Generation (Gen) Z. According to the Pew Research Center, Gen Z includes those born between 1997 and 2012, many of whom are entering the workforce today.

A greater understanding of the unique needs of Gen Z can help organizations develop strategies to attract, hire, retain, and engage this up-and-coming generation. For example, as I discuss in my latest book, Experiential Intelligence, engaging in diverse life experiences not only develops new skills but also fosters resilience and agility—traits crucial for future personal and business success. Gen Z intuitively understands this; 90% of Gen Z want to participate in internships, and 70% consider certification courses outside traditional college as a viable path for professional development.

These statistics and more come from a recent survey of over 10,000 students across all 50 U.S. states by the National Society of High School Scholars (NSHSS), which revealed that:

• A majority (59%) of youth believe AI will negatively impact society over the next decade. More than half (55%) are highly concerned about AI’s impact on personal privacy, and 62% worry about job displacement.
• Student debt remains a significant concern, with one-quarter of students expecting to incur $10,000 to $50,000 in debt, but only 14% anticipate family financial assistance
• Preferred employers include Google, Amazon, and Apple, yet health care and STEM fields remain top job targets.
• Nearly half (48%) of Gen Z prioritize clear communication skills in an employer.
• Two-thirds (66%) plan to live at home when starting their first job, with 73% intending to stay for one to two years.

So, how can employers effectively engage this next-generation workforce?

1. Communicate Clearly. Transparency and straightforward communication are crucial for Gen Z. Nearly half of respondents ranked clear communication as the top employer quality. Organizations should ensure job descriptions, role expectations, and growth opportunities are transparent.
2. Provide Financial Guidance. Gen Z faces unprecedented financial pressures, with many expecting significant student debt and limited family assistance. Employers can differentiate themselves by offering robust financial benefits. Forty-four percent of Gen Z expect employers to help with student loan repayment. Financial wellness programs, tuition reimbursement, and clear career advancement paths can make an organization more appealing to debt-burdened graduates.
3. Promote Social Responsibility. Social responsibility and fairness are paramount to Gen Z. Organizations must cultivate inclusive cultures where everyone’s contributions are recognized and valued. Engaging in corporate social responsibility (CSR) initiatives and providing volunteer opportunities can enhance employer attractiveness. Ensuring workplace policies reflect a commitment to fairness and social responsibility can resonate deeply with Gen Z values.
4. Offer Hybrid Work. While Gen Z values flexibility, they also seek in-person interactions. Despite the rise of remote work, only 23% consider remote work options very important. Offering a hybrid work environment that balances remote flexibility with opportunities for in-person collaboration and community building is essential. Investing in modern office spaces that foster collaboration and innovation can also be beneficial.
5. Foster Development and Recognition. Continuous learning and development are critical for Gen Z retention. They value in-person training and opportunities to develop skills. Implementing structured development programs with mentoring, workshops, and clear career pathways can keep Gen Z employees engaged. Recognition programs, such as employee awards, can also boost morale and retention.
6. Support Mental Health and Well-Being. Gen Z is highly aware of mental health issues, partly due to their experiences during the pandemic. Offering mental health resources, promoting work-life balance, and creating supportive environments can significantly impact retention and engagement.
7. Leverage Technology. Gen Z grew up with and relies heavily on technology. Employers should use technology to enhance engagement, streamline processes, and personalize work experiences. AI-driven onboarding, personalized learning platforms, and digital collaboration tools can make the work environment more appealing to tech-savvy employees.

High performance and solid results come from organizational cultures that foster inclusion, engagement, and collaboration. By understanding and addressing Gen Z’s nuanced preferences and concerns, employers can create a workplace environment that not only attracts but also retains and engages Gen Z employees. In a very real sense, Gen Z is the future of work.