The Latest Findings on Gen Z as Consumers and Colleagues

For decades, I’ve attempted to stay on top of realities within the youngest populations entering the workforce and entering the marketplace as customers. Each new generation introduces change, as they break with the previous generation, correct two generations ahead of them, and replace three generations before them. Consider the different narratives each new population brought with them into their careers:

• The Silent Generation, 1929-1945 (Builders): Be grateful you have a job.
• The Baby Boom Generation, 1946-1964 (Boomers): I want more.
• The Baby Buster Generation, 1965-1982 (Gen Xers): Keep it real.
• The Millennial Generation, 1983-2000 (Gen Yers): Life is a cafeteria.
• The Centennial Generation, 2001-2015 (Gen Zers): I’m coping and hoping.

“I’m Coping and Hoping”

This mantra is my summary of research from Gallup, McKinsey, and the Pew Research Center, as well as hosting informal focus groups with members of Generation Z. They’re “hopeful” because they’re still young but feel they are “coping” with current, less-than-optimal realities. I’d like to help you climb into their brains to understand them as consumers and teammates. To make this memorable for you, their characteristics form the word COPING:

• C – Cynical: This is a shift from Millennials at the same age. They watched adult leaders argue over how to handle a pandemic and are polarized over most political issues. McKinsey reports that they have “less than positive outlooks, with lower levels of emotional and social wellbeing than older generations.” Looking ahead, they see an unstable economy, mass shootings, volumes of bad news coming at them on a smartphone, and aging, almost geriatric leaders in Washington, D.C. They use words like “skeptical” and “pessimistic” to describe their outlook. This may explain their distrust in leaders or suspicion of plans they feel benefit the org, not the people.
• O – Overwhelmed: Almost every Gen Zer we interviewed agreed this word best describes their life. Nine in 10 say it’s the number-one word they use to define themselves. Both Gallup and McKinsey studies report Gen Z has the “least positive outlook and the highest prevalence of mental illness of any generation.” Their angst has many sources: global unrest, climate anxiety, and educational interruptions leaving them feeling “postponed” and like they have reduced economic opportunity. Further, 58 percent of Gen Z report not having a basic social need met in their life. This may explain an inability to “pull their weight” or their need for lots of paid time off for mental health reasons.
• P – Pragmatic: They’re more pragmatic than Millennials were at the same age. In fact, the comparison is not unlike one between Boomers and Gen X. The cultural mood migrated from confidence to caution. As youth, their pragmatism is a mix of complicated idealism and worries about the future. Gen Z dreams of personal career satisfaction but expects economic struggles, which nudges them to be more private, individualistic, and realistic in their choices than Millennials were at their age. They hoped to avoid many of the traps and debt Millennials faced. This may explain their apprehension to jump on board with projects or their need for reasons when making decisions.
• I – Inclusive: More than previous generations, Gen Z deeply values racial justice, climate change, social equality, and building a sense of belonging in their community. Even consumption for Gen Z is more about access than ownership. (Think movies, music, rides, and travel stays). It’s a community feel. Ironically, Gen Z is individualistic, yet inclusive. Belonging isn’t about changing themselves so they can “fit in” but about being themselves and yet “belonging.” Gen Zers are progressive: Most see the growing ethnic diversity in the United States as positive and are less likely than elders to see the United States as superior to other nations. They want to see equity at work.
• N – Nuanced: Whatever you do, don’t pigeonhole Generation Z. Even these characteristics are meant to help you understand them, not stereotype them. They are nuanced about their preferences. Because Gen Zers are more likely to engage in educational endeavors, according to Pew Center research, and because new information is always available, Gen Z is fluid in their beliefs, sense of identity, and gender, and has cyclical preferences on goods and services. McKinsey research reveals they have an ever-changing sense of style, from retro to postmodern. This may explain their unpredictability and their avoidance of embracing absolute facts in deference to relativism.
• G – Globally savvy: Gen Z has been the most well-informed generation of youth because adults left them to their own devices; portable devices have been in their hands since middle school. This has given them a high sense of empowerment and agency, according to Australian researcher Mark McCrindle. They follow K-Pop in Asia and a climate movement centered in Europe. But globally savvy isn’t the same as tech savvy; for many, tech is about entertainment. Three in four managers say they find the new generation difficult to work with. According to ResumeBuilder, the top three reasons Gen Z is difficult to work with are lack of technological skills, effort, and motivation.

How Do We Lead Them?

1. Earn their trust. Although you have a title and tenure, earn their trust through connecting. Ask questions, listen, empathize, and then guide them. You may have to slow down to accelerate later.
2. Build their incentive. While older staff see their jobs as a large part of their identity, Gen Z sees their job more as a hobby. Since your voice competes with so many others, offer a “why” before your “what.”
3. Invest in their future. Gen Z doesn’t want to be managed, they want to be mentored. I’ve approached supervisory roles by offering tips to succeed and coaching them to get ahead on the job.
4. Offer them hope. Since their perspective is cynical, choose your words and actions well. Provide hope for them as you lead them. Communicate faith in them and their future on the team.