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Key points
- Gen Z makes up nearly a quarter of the workforce, with its oldest members having entered the workforce about four years ago.
- Gen Z is known for its progressive perspectives on technology, diversity, and climate change.
- Gen Z's perspectives align with current trends on the future of work, creating a strong business case for investing in Gen Z talent.
As a society, we tend to scoff at our younger counterparts. What do they know? They haven’t been around long enough to “get it.” This perspective is misguided.
In fact, organizations that embrace Gen Z talent will be ahead of the curve with respect to addressing some of the biggest challenges of the 21st century. Namely, the balancing act of productivity and ethics while leveraging artificial intelligence (AI), the threat of climate change on our global economy, and the need to make real and lasting progress in diversity and inclusion initiatives.
In terms of representation, Gen Z is taking over the workforce. Although their youngest members are only eight years old, the oldest members entered the workforce about four years ago, and they make up nearly a quarter of today’s workforce.
Having witnessed both the Great Recession and the COVID-19 pandemic, Gen Z is ecstatic just to have a job. And in turn, they are eager to contribute and prove their worth. As stated by Dr. Megan Gerhardt, leadership professor and author of Gentelligence: A Revolutionary Approach to Leading an Intergenerational Workforce, “Gen Z shares the Millennial mindset of wanting workplace opportunities for empowerment and early-career impact.”
But the conversation goes beyond motivation. Dr. Gerhardt notes that it's Gen Z’s perspectives that uniquely position them to help organizations navigate today’s challenges.
Technology
AI is rapidly disrupting the way we work, and organizations will face difficult decisions in the near future. Specifically, they’ll need to weigh the benefits against the costs of AI, such as whether it is fair to replace people with machines and whether it is ethical to make important decisions (e.g., hiring, promotion) based on AI algorithms.
Gen Z is the first generation fully composed of digital natives—those who have spent their entire lives with the internet, social media, and online shopping. The adoption of AI is not something that worries them, as technological advancements are part of their generational identity.
Gen Z understands AI’s potential to streamline business processes but is also aware of the practical challenges it poses, putting them in a credible position to help make decisions about AI’s role in the workplace. Gen Z understands the inevitability of an AI-infused world and is ready to add their perspectives.
Climate Change
Highly influential investment companies, like Blackrock, have issued strict calls for organizations to take action on climate issues. Businesses have responded by announcing plans to cut carbon emissions and donate to climate-related causes. In the years to come, pressure will mount for businesses to be even more aggressive in these actions.
When it comes to sustainable business practices, it is no secret that Gen Z cares a great deal about climate change. So much so that it informs their lifestyle decisions and voting patterns more than any past generation.
For example, in the 2020 election, Gen Z voters cited climate as one of their top issues in choosing candidates. This makes sense. Gen Zers have the largest stake in the fight against climate change, as its impact will be most visible during their lifetime.
The pushback against sustainability has typically been that it is costly in the short term. However, failing to address said concerns will not only lead to long-term environmental damage, but it will also eventually lead to long-term organizational failure.
Now more than ever, society expects environmental accountability. It would, therefore, behoove organizations to embrace the interests and perspectives of society’s newest generation of employees and consumers.
Diversity and Inclusion
Ever since the Black Lives Matter protests, organizations have had a renewed focus on diversity and inclusion initiatives. The organizational ecosystem is also evolving. For example, to remain on Nasdaq’s exchange, organizations must meet specific diversity criteria. These initiatives are important; but to sustain this progress, diversity and inclusion must come from within.
Growing up in the most diverse generation in history, Gen Z is accustomed to working with those from different backgrounds and prefers to continue doing so. They report that a company’s diversity and inclusion are high on their wish list when considering where to work.
Gen Z fully understands the benefits of diversity and inclusion. But perhaps even more important, they understand that maintaining diversity can be hard and that maintaining an inclusive culture takes work.
Through high school and undergraduate education, Gen Z has been indoctrinated—in a good way—with personal and procedural methods for overcoming the challenges associated with diversity (e.g., communication) and maximizing its potential benefits (e.g., diversity of thought).
No other generation has spent as much time as Gen Z learning how to make diversity work. This is a prime opportunity for reverse mentoring.
It’s About Perspective, Not Just Experience
Age has a strong, positive correlation with work experience. Indeed, work experience is important because it ensures that employees have directly witnessed complex situations instead of just reading about them in a textbook.
It is important to keep in mind, however, that people of different ages come to the table with different perspectives. For any specific age-based generation, the cohort has been molded by the critical life events of their time.
Interestingly, Gen Z employees are digital natives who care deeply about climate change and have embraced diversity—all of which are topics currently being debated in the C-suite.
Instead of ignoring these newbies, it’s time to start including them in the conversation. For two reasons, the organizations that do so now will be a step ahead for generations to come.
First, organizations that can embrace “gentilligence” will not only recruit and retain top Gen Z talent but also have unique perspectives that they can leverage for day-to-day decisions.
Second, investing in Gen Z is simply a smart investment with respect to cultivating an enduring competitive advantage. Their unique perspectives are precisely what organizations need right now to help solve some of the most pressing problems of today’s business environment.
Click here for more of Scott Dust's resources, including the generational tendencies at work assessment.
This post is co-written with Rachel Cleveland, a Compliance Analyst at Goldman Sachs, and Anthony Massa, a People Advisory Consultant at EY. Both are recent graduates of the Farmer School of Business at Miami University and are passionate about solving for the future of work in their respective organizations.
