Generation Z (those born between 1997 and 2012) is growing as a percentage of the global workforce and will comprise more than 25% of all workers in the next few years. This generation is taking a different approach than previous generations, so understanding Gen Z in the workplace will challenge all organizations in the coming decade.
In their 2023 Gen Z and Millennial Survey, Deloitte found several continuing trends for Gen Z and Millennials relating to their expectations for work.
They both have high expectations for businesses to positively impact society, including sustainability and diversity, equity, and inclusion initiatives. 48% of Gen Z believe companies are making an impact.
With inflation over the past year, it’s no surprise that the cost of living is their top concern, followed by unemployment and climate change. Gen Z is more optimistic that their financial position will improve in the coming year, with 44% expecting it to improve.
This could be partly driven by their willingness to take on part-time jobs. Just 49% of Gen Z say work is central to their identity, and they enjoy the benefits of remote and hybrid work arrangements. Work/life balance is their top consideration when looking for a new role.
Finding the right balance where they can still afford the lifestyle they would like has led to 46% of Gen Z employees saying they are stressed or anxious at work a majority of the time. While mental health is getting more attention from employers, burnout and worries about the future persist.
While these and other concerns from the Deloitte study are areas businesses can focus on to attract Gen Z talent, Korn Ferry identifies other traits of this generation that are important for employers to understand.
Their path to the workforce is different from their predecessors. Higher education has become too expensive for many people, with one-third of Gen Z, that is, students saying they will not pursue a four-year degree. And even those who start a four-year degree program, only two-thirds finish within six years.
With more prospective employees taking an alternative path to the workforce, employers must adapt their hiring process and reconsider their expectations for qualified candidates. One way to do this is by shifting to skills-based hiring methodologies. This is only the beginning, with LinkedIn stating that between 2021 and 2022, the number of jobs that don’t require a four-year degree increased by 33%.
Companies that work to understand Gen Z will be more successful in attracting top talent. Aligning their values with their careers is essential to the generation, and according to the article, more than a third of Gen Z employees say they have rejected an opportunity that didn’t align with their values.
Starting to enter the workforce through the pandemic and subsequent great resignation, flexibility is paramount to their career expectations. “Employers can incorporate the benefits of gig work—including independence, career growth, and income-driven outcomes—into more interim or project-based assignments, which would make career paths more attractive to highly skilled Gen Z employees, drawing them to the company.”
HR and executive teams should consider that qualifications for Gen Z will be different than what they are accustomed to seeing. Traditional education is giving way to boot camps and skills-based certification programs. Additionally, the increasing pace of technology change will require companies to provide re-skilling and up-skilling options for future generations to attract and keep top talent. The foundation for this is building an authentic employee-focused culture with solid company values.
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