Cracking the Gen-Z Code

By Alex Keimig

From Issue 5, 2024 of Breakbulk Magazine.

(6-minute read)

Two years ago, Breakbulk Americas main stage panelists weighed in on addressing the industry talent gap. The message was clear: connecting emerging talent to the right roles in breakbulk, logistics and project cargo is as much an exercise in cross-generational diplomacy as it is in hiring practices.

A recent report by Market Research Future (MRFR) expects the industry to grow at an estimated compounded annual growth rate of 4% through 2030, by which time Generation Z - the generation of people born between the late 1990s and early 2000s - will make up 30% of the overall workforce.

The U.S. Bureau of Labor Statistics reports that approximately one-quarter of the employees in the transportation and warehousing industry are currently 55 or older, so meeting personnel needs to support growth remains a serious consideration for many companies.

Next Gen: Meeting Their Demands

While the industry undergoes increasing new technologization through the implementation of AI tools and streamlined processes, a disconnect remains. The science and tools continue to evolve, but are some approaches stuck in the past?

All eyes are trained on Generation Z. As the youngest new professionals still entering the workforce – born sometime between 1997-2012 and aged somewhere between 12-27 years – Gen Z is better-educated and more willing to cut their losses than any generation before.

According to Pew Research, 66% of them have pursued some form of higher education, and these graduates are demanding more flexibility, increased job security and higher remuneration. In fact, in a recent report on diversity, equity, and inclusion in the workplace, McKinsey & Company reported that workers aged 18-34 are almost 60% more willing to quit in response to the loss of remote work options when compared to older colleagues.

This reinforces an inverse relationship between flexible working policies and talent shortages across industries: sectors with less flexibility and an unwillingness or inability to offer remote opportunities have faced – and continue to face – some of the largest skills gaps across jobs, including construction and manufacturing.

What does this relationship mean for an industry with both a deeply ingrained reliance on hands-on, boots-on-the-ground work that often can’t be completed remotely and a need for fresh, innovative talent?

It means it’s time to get creative.

The Key Three

Thomas Skellingsted, Breakbulk Americas 2024 main stage panelist and president of 4D Supply Chain Consulting Ltd. in Houston, Texas, is a proven professional with over 30 years of experience in logistics, heavy-lift and project cargo operations.

Margaret Kidd, Breakbulk Americas 2024 student poster competition chair and Education Day host, is an instructional associate professor and director of the Supply Chain and Logistics Technology program at the University of Houston. She keeps all ten fingers on the pulse of student opportunity and is no stranger to communicating across the generational aisle.

Suhaib Kaissi, master’s student and teaching assistant at the University of Houston, as well as a lifelong global learner, keeps one foot in business and the other in academia. After several years with an MBA and a career in oil and gas, he took a brief detour to complete a postgraduate program on Artificial Intelligence at the University of Texas and is now pursuing his M.S. in supply chain and logistics technology.

With input from these three key voices – each representing a unique corner of the intersections of business and higher education – plus a survey of emerging professionals (sent to past participants of Breakbulk Americas’ Education Day), we set out to answer the big questions about attracting the fresh talent leaders need: how are young people finding the right jobs, weighing commitments and successfully embedding with companies in the industry?

If you’re short on time, don’t leave without digesting this crucial bite: while our Key 3 and survey respondents agreed that young job seekers value high salaries and a strong work-life balance, they also reported the value they see in establishing trust, relationships and good communication between potential employers and prospective candidates. New professionals want their suitors to walk the modern walk – not just talk the talk.

1. AI-Powered Job Search

Our Key 3 agreed: recent graduates and young professionals are finding their breakbulk jobs through people – not pages. Kidd cited professors, peers, campus career centers and professional organizations as being the most common ways that young professionals connect with available roles.

Skellingsted agreed. “I believe the industry and young talent need to establish closer connections from an earlier stage,” he said. “This way, both parties can better understand each other’s expectations and align them sooner, rather than waiting until it may be too late to bridge the gap.”

Kaissi presented an interesting addition: “AI tools have made job searches more efficient by personalizing job recommendations, streamlining applications and providing instant feedback. AI has improved access to [hiring] opportunities.” In fact, logistics company DHL's new consolidated, AI-powered careers site does just that. Upon launch, it led to an initial 25% increase in jobseekers per job.

Kaissi did caution, however, about the potential for young jobseekers to cite “concerns about the depersonalization of the hiring process.” He added that short-form video content, including “employee testimonials, day-in-the-life videos and virtual office tours” as recruitment tools may be more likely to capture the interest of young job seekers, providing “a more authentic glimpse into company culture.”

These observations seem to align with those of young professionals: of those surveyed, the most common and successful methods of job searching were university career services offices, referrals from known individuals and company websites rather than social media or job boards.

(Why It Matters)

Companies can’t expect that the right young talent will come knocking down their doors with a few listings on the usual job boards. Establishing a presence that directly represents their culture and opportunities – especially with face-to-face engagements like mentorship and networking events or developing a good relationship with local higher education programs – helps build transparency, trust and connection with the talent pool, and allows companies to have a hand in intentionally cultivating the talent they wish to recruit.

2. Weighing Up Their Opportunities

According to our Key Three, young professionals are most heavily basing their employment decisions on these factors: salary, flexibility and the experience that can be gained.

“Young professionals and recent graduates entering the job market often prioritize high salaries and a strong work-life balance,” said Skellingsted. “They tend to seek opportunities that allow them to work less while earning more, which often includes preferences for remote work and flexibility over being tied to a traditional office environment.”

He also emphasized “well-defined training and education plans for new hires, including interns” – another example of young talent valuing transparency as well as opportunities for advancement.

Kaissi agreed that “opportunities for professional development, networking and gaining valuable industry experience” are high on Gen Z’s wish list, but also cited a potential negative: the hiring process itself. The time it takes decision-makers to review applications or make hiring choices can lead to precisely the wrong attrition: that of in-demand, highly sought candidates.

“The efficiency of the hiring process is becoming more crucial with the rise of AI,” he added. Emerging professionals may expect companies to make the same use of AI as they do, allowing for sleeker, condensed timelines due to the potential for automation.

Young respondents unanimously agreed that competitive salary is an important factor in evaluating a job offer, but they also agreed that it wasn’t the only factor. Secondary considerations varied widely, however: some valued flexible work hours or remote work options highly, while others focused on a clear path for advancement and good health care plan benefits.

(Why It Matters)

Companies are selling their “brands” just as strongly as applicants are selling theirs as employees. All the advice given to young professionals in the process of building a resume – listing and exemplifying unique, valuable skills and experiences – applies to companies looking to attract top talent as well.

In an industry where flexible working options are highly sought but not always practical, companies need to get creative in looking for unique, alternative benefits to offer emerging talent. Offering a competitive, balanced package is essential to tipping the scales in your favor.

3. Increasing Longevity

When it comes to retention, “companies that actively engage with students early on and offer mentorship programs during their education tend to have greater success in securing the right interns and promoting long-term retention,” said Skellingsted. That well-defined training that he listed as a selling point also “plays a crucial role in fostering long-term employee commitment.”

“Young talent always wants to grow. The moment you hire them and put them in a corner to do only “their tasks” is the moment you sign their exit papers,” agreed Kaissi, emphasizing the importance of opportunities for advancement.

Structured opportunities for continuous learning and professional development, such as mentorship programs, certification courses and workshops, are key attractions. These offerings not only enhance young employees’ skills, but also demonstrate that the company is invested in their long-term growth.

According to student job platform Handshake, nearly 50% of this year’s graduates say they’re more likely to apply to a company that provides employer-sponsored upskilling resources.

“The global capital projects sector needs to do a better job in implementing strategies to retain talent,” said Kidd. “Gen Z [workers] want to know what the career trajectory is, as well as the training and formal mentorship opportunities available.”

Respondents reported that factors that could potentially cause them to leave a job within the first year of employment vary in nature but usually boil down to compensation and advancement. If young talent can find better opportunities for growth, salary increases or greater flexibility from another organization, they may be tempted to switch.

(Why It Matters)

It’s no longer enough for companies to start new talent at a competitive compensation level relative to industry peers; they must keep delivering on those benefits past the first year of employment. Remember that earlier statistic about Gen Z’s greater willingness to leave a job that isn’t suiting them? The days of the easy-to-recruit lifelong professional ended along with guaranteed pensions and the relative economic stability that preceded the mass layoff cycles of the late 20th century. Now, with the rise of the job-hopper economy, those two birds in the bush really can be worth more than the one in the hand.

Debrief: Where Do We Go From Here?

Ultimately, the factors that weigh most heavily in young professionals’ decision making when it comes to industry jobs can be boiled down to security, surety and stability.

Solidifying your brand’s value through networking with local colleges and universities, as well as professional organizations that enroll student members, can be an invaluable piece of the puzzle when it comes to closing the talent gap.

Mentorship and educational opportunities are low-risk strategies to help establish a positive presence. Then, deliver on that reputation when it comes time to hire by offering not just competitive pay, but verifiable work-life balance and flexibility with a clear path for growth.

Once you’ve found your talent, don’t rest on your laurels: ensure that you’re providing ample opportunities for professional development and a path for advancement, and keep your tangible compensation offerings, like salary, competitive.

In closing, Kidd said: “There is a rich world of knowledge transfer that is occurring, and we must accelerate to bridge the talent gap and prepare today’s workforce to be tomorrow’s leaders.”

Read more: Margaret Kidd – Champion for Breakbulk's Nextgen