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To attract and maintain talent, companies must adapt to meet the needs of Gen Z.
It seems like yesterday that millennials were flooding into the workplace, but we’ve already moved on to the next wave: Generation Z. Members of Gen Z, those born between 1997 and 2012, currently make up 18 percent of the workforce, but the U.S. Bureau of Labor Statistics estimates that they will account for one-third of all workers by the end of the decade. Like the generation before them, Generation Zers have their own workplace tastes, preferences and perspectives that are already affecting workspaces across the U.S.
Preparing your business for the entry of Gen Z workers means understanding their perspectives and expectations and then taking action to adapt your workplace accordingly. While Gen Zers’ needs are shaped by the unique experiences of their formative years — most notably, the pandemic — the changes they bring to the workplace will surely benefit your business as a whole. Let’s take an in-depth look at Gen Z workers and how to prepare your workplace for them.
Gen Z’s priorities at work center around the company culture, the ability to improve their skills and the use of modern technology that is integrated seamlessly into the day-to-day workflow. Here’s a closer look at what you need to be “Gen Z ready” in your workplace.
Gen Z prioritizes workplaces that create a strong company culture that excites both consumers and employees. That means being clear about your values and implementing programs to ensure you’re living up to those ideals.
“[Gen Z isn’t] just looking for a paycheck or a career ladder — they’re seeking a platform to make a meaningful impact on the world,” said Andrea Jill Miller, a senior HR specialist and CEO of LeadWell Company. “This generation has grown up in a time of global challenges and rapid change and is eager to be part of the solution. They’re drawn to organizations that align with their values.”
Transparency is one of those values, so aim to be open about how you do business. That includes pay transparency. Find ways to give the outside world a look behind the scenes, and make sure everyone is treated fairly.
Prioritizing diversity, especially among leadership, is another key ingredient of a strong company culture. Investing in diversity, equity and inclusion programs is only part of the solution; Gen Zers want to see that they actually have an impact.
Invest in creating a growth culture where Gen Z employees can learn the skills necessary to excel at their jobs and move up in your company. Don’t stop at learning programs for new hires; also implement leadership training programs to provide your long-term employees with the skills necessary to give effective feedback and guidance as mentors to their Gen Z counterparts.
“Beyond their generational label, Gen Z are young workers who are often entering the workforce into their first meaningful jobs,” said Laurie Cure, an HR expert and CEO of Innovative Connections. “They need and require clear expectations, skills development, mentoring, constructive feedback and opportunities for safe failure and learning.”
Look for ways to boost learning outside the office, too. In general, Gen Z is worried about the cost of higher education and student loan debt. Offering tuition reimbursement or other ways to pursue learning outside your organization shows that you prioritize helping your employees flourish.
“Preparing your office culture to focus on development will help Gen Z employees find mentors and offer them the chance to engage with their entrepreneurial spirit,” said Alison Stevens, senior director of HR services at Paychex.
Upgrading your technology, especially collaboration tools for remote or hybrid workers and employee monitoring software to keep tabs on productivity, will help your business succeed as Gen Z employees come on board. Adaptability is key, as some employees might prefer certain platforms to others. Listen to your employees, and be open to change if a new or different tool might be a better fit.
“Being the first fully digital generation, modern tools and tech will likely come as an expectation to Gen Z hires,” said Carolyn Walker, global HR director at Tenth Revolution Group. “This doesn’t necessarily mean being on the cutting edge but rather ensuring that platforms and processes are recent and up to date.”
Be aware that equipping your office with up-to-date technology goes beyond getting the right hardware or software; you’ll also need to invest time in training your older workers. These tools should help all employees work more efficiently. Gen Z workers might feel slowed down if older employees struggle with tech.
You’ll have to go beyond the traditional health insurance and 401(k) plans and look for ways to offer employee benefits packages that focus on well-being and mental health. Individual employees’ needs vary, so it’s vital to offer a robust program with a variety of benefits.
“Gone are the days of a cookie-cutter benefits plan,” said Joshua Evans, a TEDx curator and workplace expert. “This younger generation places a much larger emphasis on well-being over pay.”
Well-being means more than just health insurance; it extends to the way your company handles things like work-life balance and mental wellness.
“This means tangible benefits like mental health days, access to therapy, and a culture that promotes a healthy work-life balance,” Walker said.
Remember that when it comes to work-life balance, the tone is set from the top down. Company leaders must demonstrate that they prioritize their own wellness and set clear boundaries between work and personal time. For example, managers can participate in wellness initiatives and refrain from contacting employees after hours.
Flexibility is important to Gen Z workers, so you need to structure your business accordingly. Develop a hybrid work plan that allows employees to work both remotely and in the office. While some companies might have to adapt to accommodate employees who work from home, fully remote companies should plan ways for face-to-face interactions.
“Our recent survey showed that Gen Z employees favor office settings for quality of life — the highest among all cohorts — a preference that aligns with their self-reported improved productivity in on-site environments,” said Cristina Itze, lead analyst and vice president of marketing and customer success at Big Chalk. “If you do not have a structure to offer on-site work opportunities, the time to start building a plan is now.”
Even if a full-time office rental isn’t a practical option, consider coworking spaces or other locations for one-off meetings or team building exercises. Occasional in-person interaction can go a long way in helping Gen Z excel.
Also consider allowing employees to set their own work schedules. Whether due to family commitments, continuing education or even a side gig, workers often struggle to manage their responsibilities with a traditional 9-to-5 job. Flexible working hours can alleviate some of that pressure and could even increase productivity.
The flexibility Gen Z has come to expect should also carry over to your leave policies. Traditional sick days and vacation time won’t cut it with most of the new workforce. Offering a generous paid leave policy is good for your business because it can increase productivity and keep employees happy.
A solid leave policy should also cover mental health and disabilities. Beyond paid leave, look for ways to accommodate all potential employees, both in the office and remotely. You want to show your workers that you understand they are human beings with lives outside of work and that you’re willing to help them when they need to focus on other priorities.
As the first generation to grow up with smartphones and to experience remote and hybrid work at a formative stage of their lives during the pandemic, Gen Z’s experience is markedly different from those of other generations, and so are their expectations.
Gen Zers are focused on finding a high-paying job because they are worried about the economy, layoffs and student debt. According to a study by Handshake, the Gen Zers who are currently entering the job market cite financial security as a top concern. Almost 70 percent said student loan debt will influence the types of jobs they consider, and the same percentage said they are more likely to apply to jobs with high starting salaries.
However, only 24 percent plan to negotiate their salary, with respondents claiming fear of a job offer being rescinded as a top concern. That makes companies that offer competitive salaries up front more attractive to Gen Z workers.
Gen Zers who are about to enter the workforce are increasingly worried about their ability to get an internship or a high-paying job, with 52 percent surveyed in spring 2024 not confident about obtaining a position, RippleMatch reported. Compare that to spring 2022, when only 38 percent lacked confidence in finding a position. Gen Zers also worry about the cost of living, according to Deloitte’s recent Gen Z and Millennial Survey. It is the top concern for 34 percent of Gen Z, with over 50 percent living paycheck to paycheck.
>> Learn More: Managing Tips for a Multigenerational Workforce: From Baby Boomers to Gen Z
Gen Z workers want their bosses to treat them with empathy, not just as cogs in the corporate machine. This means more personal interaction and an awareness of and sensitivity to their emotional states, rather than interacting and assessing them solely via key performance indicators. When asked in a 2023 Deloitte survey what employees want from a leader, Gen Z respondents ranked empathy second after patience.
In contrast, bosses ranked empathy a distant fifth, so there is a need to close that gap. In practice, this misalignment of priorities is keenly felt by Gen Z workers, since they are the generation that’s least likely to say their manager treats them with respect. One-third of Gen Zers report that they feel like their employer doesn’t care about them.
Nearly half of Gen Z workers feel burned out by their work, while less than half think their bosses help them maintain a healthy workload, according to an earlier Deloitte survey. They want jobs that do not damage their mental health. They are also more open to disclosing mental health conditions and needs than workers from other generations are.
One factor behind this preference is that Gen Zers see work as a less-important part of their personal identity than other generations do. While 61 percent of currently working Gen Zers view work as a significant part of who they are, this is a far lower percentage than their bosses, 86 percent of whom feel this way. Because work is less significant to these workers’ identities, they prefer additional time off as a reward for a job well done or overtime work, and they rank it as their top choice for a reward or recognition.
For Gen Z, setting boundaries for work-life balance is a supremely important consideration, and it should be just as vital to their employers. Companies should worry about employee burnout, as overworked employees are less productive and more likely to take sick days or quit their jobs.
A 2024 survey from Seramount found that Gen Zers have strong preferences about where they work, with only 11 percent indicating that fully remote work was a must-have. Gen Z prefers the traditional office experience while prioritizing some form of flexibility concerning location. The survey found that three-quarters of Gen Zers prefer a hybrid work arrangement, compared with half of workers in other age groups.
“They are looking for hybrid positions which allow the possibility of developing in-person connections, meaningful collaborations, and an ability to establish mentoring relationships,” Walker said.
Despite their desire for flexibility, Gen Zers are aware of some downsides of fully remote work, especially in terms of learning in the workplace. They feel that online-only training is not only isolating but also ineffective. In fact, research by FDM Group found that 80 percent of Gen Z workers prefer an office environment to remote work because of the ability to learn from or shadow experienced colleagues.
In general, Gen Z is looking to learn, with 76 percent saying that opportunities to learn or practice new skills is a priority when they’re job hunting, according to LinkedIn. They expect the company they work for to help them grow, not hold them back.
“This generation has a desire to try things out,” Evans said. “They want to experience all available options and don’t want to feel trapped. If new opportunities aren’t available at their current workplace, they may begin to look elsewhere.”
Gen Z puts a high value on workplace diversity, so any company hoping to retain top Gen Z talent must prioritize diversity, too.
According to Tallo survey findings, 48 percent of working Gen Zers said they had personally experienced discrimination in the workplace based on race, ethnicity, gender identity or sexual orientation. A lack of diversity in the workplace is a big red flag for this generation, with 99 percent saying diversity, equity and inclusion are important, and 87 percent saying such initiatives are very important.
Gen Z cares about corporate ethics, activism, sustainability and authenticity, so they want to work for an organization that has these values as part of its culture. In fact, 75 percent of Gen Z respondents in the 2024 Deloitte study said it was important to work for a company whose values aligned with theirs, and 44 percent had actually rejected an employer due to their personal ethics or beliefs.
To successfully recruit and retain Gen Z workers, consider implementing these changes.
Where possible, try to make your entry-level employee compensation package competitive in your market. If higher salaries are not possible, consider other options. For example, add a performance-based way for Gen Z workers to earn more via commissions or bonuses or giving them a clear career path that allows them to advance to a higher pay grade after they meet certain performance or time requirements. You can also assure job candidates about the company’s outlook, since job stability is just as important as a good salary to Gen Z.
Your management training and your corporate culture should highlight why and how to manage with empathy. This doesn’t mean managers should be pushovers. In a practical sense, it means being aware of and acknowledging workers as human beings, as well as listening and being understanding. If an employee is underperforming, respond with concern rather than judgment, and work with the person to improve their skills.
One way to give Gen Zers the flexibility they want is to allow them to reap the benefits of flextime, flexible schedules, and hybrid or remote work. With remote work on the rise in almost every industry, employers are discovering that it not only improves employee satisfaction but can also increase their productivity. In many ways, allowing employees to work remotely is a win-win.
An effective way to promote a healthy work-life balance is to limit work hours. Many major corporations have prohibited weekend work and have found that insisting employees take a few days off increases their effectiveness afterward. Offering a sabbatical as a benefit is an incentive for employees to stay with the company for the long term.
You can also put a greater emphasis on efficiency as opposed to raw time spent. Let your employees know that achieving results matters far more than putting in a certain number of hours.
There are many ways to increase the diversity of your workforce. One way is to actively work to eliminate bias. This can be more difficult than it sounds. One well-known anecdote involves a major bank using analytics to study how their hiring managers selected candidates. The bank found that when the hiring managers were fatigued or stressed, they were more likely to hire candidates that resembled themselves. By tweaking the hiring process, the bank eliminated a large amount of unconscious bias.
Another way to improve workplace diversity is to be open, aware and motivated. Mandate diversity training for the workforce to make employees aware of any unconscious or lingering biases they might harbor. Attracting diverse candidates to your company is a lot easier if you create a welcoming atmosphere.
While all-online video training may save your company money, it is tedious and not very effective. Use in-person and synchronous video training to really engage Gen Z workers and prepare them for their jobs. Invest in employee training in person, and pair new hires with a mentor in the organization who can show them the ropes and advise them on how to be successful. Use in-person group training to bring remote employees together and create stronger connections among co-workers and between remote employees and the company.
Look at how leaders provide feedback at your company. Gen Z’s expectations differ from the usual way of doing things, so you should invest time in training company leaders on how to guide Gen Z employees.
“[Gen Z workers] prefer real-time check-ins rather than future-focused l reviews, as this gives them a better idea of how they’re progressing,” Walker said. “If you don’t show Gen Z how they’re moving forward, it’s likely they’ll take their next step forward somewhere else.”
Be clear up front with new recruits about your company’s values, culture and policies. Have an easy, anonymous way to solicit and act on feedback from employees about the company’s mission, vision and policies that relate to the company culture. If the company fails to live up to its values, be truthful about this and get employee buy-in to improve.
Although the prospect of preparing your workplace for Generation Z can seem daunting at first, a closer examination of these workers’ desires and preferences reveals that they’re more traditional than they might want you to know. Behind their facade of tech dependence, they’re an essentially rational generation, with a healthy self-interest moderated by an innate sense of decency and a striking degree of community mindedness. Preparing your company for Gen Z could result in a more decent, fair and vibrant workplace.
Jennifer Dublino and Ben Mizes contributed to this article.