Gen Z don't want your money

Hey there,

Congratulations; you have Trust Issues. ;-)

We mean, you’re already subscribed to it. The new newsletter from IDfy that sheds light on trust issues at workplaces that nobody wants to talk about.?

Buckle up for the first edition as we unpack the trust chasm between millennial managers and their Gen Z teams. (Warning: It’s a wide chasm and a long newsletter!)

Gen Z in da house

Yes. Gen Z is no longer a blip on the workforce radar. They have now overtaken the Baby Boomer generation and comprise nearly 20% of the workforce.

Those born between 1997 and 2004 (aka Gen Z) are taking up every entry-level position. Some of them are becoming first-time managers. They are driving the emerging work culture and reshaping the rules of engagement.?

It’s in this backdrop that many of us are facing a situation that we probably aren’t properly equipped to handle. Their performance appraisals.?

Never the easiest of conversations, performance reviews become even trickier when faced with a generation that is supposedly opinionated, argumentative, entitled, and a touch sensitive.?

Ngl, some of ‘em have rizz.?

But there’s a Generation Gap playing out for sure.?

A recent article in The Economist drew up a comparison. It says that millennials grew up thinking a job was a privilege, and acted accordingly. That we were deferential to our bosses and eager to please.

Gen Z’ers or Zoomers, by contrast, have grown up believing that a job is basically a right. They have a completely different attitude to work.??

Is this what makes performance reviews with Gen Z’ers a potential minefield?

To find out, we surveyed a bunch of Gen Z’ers and their managers about their performance appraisals. Here’s what we discovered.?

(Spoiler alert: the results will surprise you).?

Millennial managers vs Gen Z: The money myth

Let’s start with the non-surprising part.?

From millennial managers, we got somewhat expected soundbytes (raw survey data here).?

When we spoke with Gen Z’ers, though, we realized that there’s more to it than meets the eye (raw survey data here).

In fact, 70% of the Zoomers ranked “learning & growth” as a priority over money or increments, whereas only 17% of the managers thought Zoomers wanted to learn and grow. A dangerous time to be out-of-sync with your own team, eh, managers??

Gen Z’ers showed a keenness to know if their manager’s rating would match their own. They seem as curious about it as they are in knowing their increment.

On the face of it, this might look like good news. But there’s a catch. What if the ratings do not match? Are we trained to deliver bad news in a way that will be accepted by this generation??

In his bestseller book High Output Management, legendary Intel CEO, Andy Grove, talks about performance appraisals as being extremely difficult and complex. Appraisal season grumbles include:?

• Review comments were too general
• Mixed messages
• Negatives avoided
• Only recent performance considered
• Surprises

And this was in 1983. Some things haven’t changed even in 2024.?

From report card to roadmap

The Zoomers we spoke with would prefer if their performance appraisals also focused on their learning and development, rather than being just about salary increments.?

Moreover, in an interesting contradiction, over 70% of the managers rated Rewards and Recognition apart from increments as a top priority for their Gen Z teams, and not a single Zoomer agreed with this judgment.?

Not exactly conforming to the money-minded, instant-gratification stereotype. They seem to care about investing in their future.??

Is it time to make performance appraisals more forward-looking rather than an annual report card?

Performance, not perception

From what they say, it appears there’s a fear amongst Gen Z’ers that the perception people carry of them might overpower their actual performance.

Are we guilty of judging Gen Z’ers too harshly? Are they simply misunderstood??

Here’s another contradiction we noticed in the way Zoomers and their managers perceive each other:

Managers, if you’re reading this, it might be time to touch base with your team. The following piece might help:??

In High Output Management, Andy Grove talks about the 3 Ls of performance appraisals: Level, Listen, and Leave Yourself Out.?

The third L, he emphasizes, is a critical one. The ability to leave out our prejudices, insecurities and fears when we sit down to review someone’s performance.?

How do we develop the ability to leave ourselves out when reviewing a Gen Z’er? How do we bridge this inter-generational trust gap??

Maybe all we need is a bit of faith.?

As Hemingway said,

The only way to know if you can trust somebody is to trust them.