How Will Gen Z Change The Workforce?

Continuing with my Gen Z obsession…..As discussed in my previous blogs (click here) – in just a few years’ time Gen Z (age 7-22 years old) will be the largest group of consumers. “Move Over Millennials” (click here) Millennials—the “in” generation of the last fifteen years—are no longer the face of young emerging adults, trend-driving consumers, or the focal point of future workforce change.

Gen Z are entering the workforce, which got me thinking - how will this growing Gen Z impact the process of recruitment and what does it mean for all of us businesses in terms of structure, talent management and workforce planning?            

What does Gen Z want in the workplace? 

What are businesses going to have to change to hire and retain the best talent? 

How will Gen Z shape businesses of the future in terms of structure and workforce planning?

Gen Z have strong attitudes towards purpose, impact and getting things done.

Strong Social Initiatives are very important to Gen Z, this generation are more socially conscious than any other generation and they expect the company they work for to be socially involved. Gen Z will take part in social initiatives enthusiastically; I covered one of my blogs – “for the greater” good (click here) Purchasing with a purpose, and shopping knowing they are making a difference is important to Generation Z. Joining a business that aligns with their values is more important; we have more and more candidates now, that are not interested in joining a business unless it aligns with their values.

Gen Z value Empowerment. Generation Z expect to be able to share their ideas with everyone and have the freedom to do their own work. They want to be heard and feel valued and to provide value. This is very similar to the desires of millennials.

Generation Z are not afraid of hard work; the Center for Generation Kinetics (read more here.) found that 77% of Generation Z already earn their own money through “freelance work, a part time job or earned allowance” many are founders due to the ease of setting up businesses online.

The same study also found that the two things that would most excite Generation Z about a job is Fun Work Environment (47%) and a Flexible Work Schedule (43%). Once again these are very similar to the demands of millennials and therefore important when attracting high calibre Millennial and Gen Z talent.

Interestingly money matters more to Millennials. 47% of Millennials state money as the most important factor compared to 36% of Gen Z. Maybe this is because Millennials grew up in times of plenty, and as such, expect high salaries whereas Gen Z grew up in the global recession and as such have lower salary expectations?

Structure and Workforce Planning will change; Flatter Less Hierarchical Structures are key. An EY survey found that a full 77% of generation Z would prefer their manager to be a millennial rather than a Gen X or Baby Boomer! Flatter structures empower employees and allow business to become nimble; getting things done. However this creates a problem if Millennials don’t have the EQ to manage, with only 26% of millennials saying they believed they had the skills to manage. Millennials will need to be trained for management – and fast! Career advancement and development will be essential in holding on to Gen Z.

Frequent Feedback is important to Gen Z. Gen Z are younger than Google and only a little older than Facebook, they are used to having constant feedback about everything, which will not change when they join the workplace.

Technology is essential. Gen Z expect you to use the newest emerging technologies and media. A full 45% of Gen Z want to work in the technology sector (second place was education at only 17%) so companies will need to embrace this. Gen Z have grown up with the internet and social media (they were practically born with mobile phones in their hands) and have them fully integrated into their lives.

So, what will we need to change with regards to talent management and workforce planning as Gen Z move into the workforce?

Gen Z have strong attitudes towards purpose, impact and getting things done; all impacting the process of recruitment & retention, structure and workforce planning.             

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