Managing Millennials and Gen Z: The Contemporary Model Perspective of Human Resource Management at the Workplace"

As the workforce demographic changes, Human Resource Management (HRM) practices need to adapt to the needs and preferences of younger generations such as Millennials and Gen Z. HR professionals must understand the unique characteristics and expectations of these generations to effectively manage and retain them in the workplace. This article will explore the contemporary HRM model perspective for managing Millennials and Gen Z in the workplace.

Contemporary HRM is critical to managing the workforce of the new generation, including Millennials and Gen Z. This approach to HRM recognizes the importance of employee engagement, career development, flexibility, diversity and inclusion, and technology in attracting, retaining, and motivating employees. Organizations that adopt a contemporary HRM approach are more likely to create a positive and engaging workplace culture that attracts and retains top talent and achieves better business results.

Overview of Millennials and Gen Z in the Workplace

Millennials, born between 1980 and 1994, and Gen Z, born between 1995 and 2010, have grown up in a world of technological advancements, globalization, and economic instability.?

According to a report by Deloitte, the global workforce demographics of 2023 are expected to consist of Millennials and Gen Z as the largest segments. And the report states that in terms of workforce generations by 2025 global demographics of workforce will look like this;

Before discussing about the contemporary HR tools to manage millennials and Gen Z we need to understand their workplace traits that will directly impact the productivity and growth of an individuals and organization. Millennials and Gen Z are two distinct generations with different traits and values in the workplace. Here are some of the identified traits of Millennials and Gen Z in the workplace;

Traits of Millennials

1. Desire for Meaningful Work: Millennials value meaningful work and are more likely to stay with an organization that provides them with a sense of purpose. According to a Deloitte survey, 6 in 10 Millennials say that "a sense of purpose" is part of the reason they chose to work for their current employers.
2. Embrace Technology: Millennials are digital natives and are comfortable with using technology in the workplace. According to a Pew Research Center survey, 92% of Millennials own smartphones, and 85% use social media. They expect their employers to provide them with the latest technology to work efficiently.
3. Desire for Work-Life Balance: Work-life balance is important for Millennials. According to a PwC survey, 95% of Millennials say that work-life balance is important to them, and 54% say that it is very important. They desire flexible work arrangements that allow them to balance their personal and professional lives.
4. Need for Feedback: Millennials want feedback and recognition for their work. According to a Gallup survey, 44% of Millennials say that they receive feedback from their managers once a week, compared to 19% of Baby Boomers.

Traits of Gen Z

1. Entrepreneurial: Gen Z has an entrepreneurial mindset and values creativity and innovation in the workplace. According to a report by the Center for Generational Kinetics, 72% of Gen Z wants to start their own business someday.
2. Digital Natives: Like Millennials, Gen Z is also comfortable with technology and expects their employers to provide them with the latest technology to work efficiently. According to a survey by Universum, 60% of Gen Z said that technology was one of the top factors they considered when choosing an employer.
3. Need for Authenticity: Gen Z values authenticity and transparency in the workplace. According to a report by The Workforce Institute at Kronos, 50% of Gen Z said that they would leave a company that doesn't align with their values.
4. Multitasking: Gen Z is good at multitasking and can juggle multiple tasks at once. According to a report by Accenture, 74% of Gen Z can work on multiple tasks at once.

Millennials and Gen Z grew up in a world where feedback and recognition were readily available, thanks to social media and other online platforms. They expect the same level of feedback and recognition from their employers. This can be a challenge for the professionals who are used to providing feedback on an annual or bi-annual basis. Employers need to find ways to provide regular feedback and recognition to keep these generations engaged and motivated.?

Also managing Millennials and Gen Z can be challenging due to their entrepreneurial mindset. These generations are not content with following traditional career paths and may aspire to start their own businesses. This can lead to a lack of loyalty and commitment to their current employer, as they may see their job as a stepping stone to achieving their entrepreneurial goals.

Here are some of the challenges of managing Millennials and Gen Z at the workplace with facts

1. Short Attention Span: One of the challenges of managing Millennials and Gen Z is their short attention span. According to a study by Microsoft, the average attention span of Millennials is only 8 seconds, while Gen Z's attention span is even shorter, at 6 seconds. This means that managers must find creative ways to keep these generations engaged and interested in their work.
2. High Turnover: Another challenge of managing Millennials and Gen Z is high turnover rates. According to a report by the Work Institute, 27% of Millennials plan to leave their current jobs within the next two years, while 35% of Gen Z plan to leave their jobs within the next year. This high turnover rate can be attributed to their desire for career growth and opportunities for personal development.
3. Need for Flexibility: Millennials and Gen Z value work-life balance and demand flexibility in their work arrangements. According to a survey by Deloitte, 75% of Millennials say that they would like to have more flexible work arrangements, such as flexible hours or remote work. This can be challenging for managers who are used to more traditional work arrangements.
4. Desire for Feedback: Millennials and Gen Z crave feedback and recognition for their work. According to a survey by Gallup, 59% of Millennials say that they receive feedback from their managers on a regular basis. This means that managers must be proactive in providing regular feedback and recognition to keep these generations engaged and motivated.
5. Resistance to Hierarchy: Millennials and Gen Z are less likely to accept hierarchical structures in the workplace. According to a study by Deloitte, 74% of Millennials believe that the workplace should be more collaborative, while 88% of Gen Z say that they prefer to work in a flat hierarchy. This means that managers must be open to new ideas and be willing to collaborate with their younger employees.
6. Communication Style: Millennials and Gen Z prefer to communicate through technology, such as email, instant messaging, and social media, rather than face-to-face communication. According to a survey by Adobe, 53% of Millennials prefer to communicate through email, while 33% prefer instant messaging. This means that managers must adapt to new communication methods to effectively communicate with these generations'

Sources of facts used;
Microsoft, "Attention Spans," 2015,Work Institute, "2019 Retention Report," 2019
Deloitte, "The 2019 Deloitte Millennial Survey," 2019,Gallup, "How Millennials Want to Work and Live," 2016
Deloitte, "The 2018 Deloitte Millennial Survey," 2018,Adobe, "State of Work: Generational Differences," 2019.        

Thoughts on the Contemporary HR management tools that can be used to address the challenges of managing Millennials and Gen Z:

1. Short Attention Span: To keep Millennials and Gen Z engaged, managers can use gamification techniques and microlearning modules that provide short, interactive bursts of information. For instance, organizations can use e-learning platforms that incorporate gamification elements like leaderboards, badges, and rewards to make learning more engaging and fun. Moreover, managers can leverage augmented and virtual reality tools to deliver training programs that simulate real-life scenarios and offer an immersive learning experience.
2. High Turnover: To address high turnover rates, managers can implement career development programs that provide clear paths for career progression and encourage continuous learning. Additionally, organizations can offer mentorship programs that pair Millennials and Gen Z with experienced mentors who can guide them on their career journey. Such programs can help create a sense of purpose and belonging, which can reduce the likelihood of employees leaving the organization.
3. Need for Flexibility: To meet the demand for flexibility, managers can leverage technology tools that enable remote work and flexible work arrangements. This includes implementing cloud-based collaboration tools that allow employees to work from anywhere, using video conferencing tools for remote meetings, and implementing project management tools that enable real-time collaboration and communication. Such tools can help create a flexible and productive work environment that meets the expectations of Millennials and Gen Z.
4. Desire for Feedback: To meet the desire for feedback, managers can implement regular performance evaluations that provide constructive feedback and recognition for good performance. This includes setting up performance goals, providing ongoing feedback, and recognizing employees for their achievements. Moreover, organizations can use employee engagement surveys that provide regular feedback on employee satisfaction levels, which can help managers identify areas for improvement and implement changes accordingly.
5. Resistance to Hierarchy: To address resistance to hierarchy, managers can implement a flat organizational structure that encourages collaboration and open communication. This includes creating cross-functional teams that promote collaboration, empowering employees to make decisions, and creating an open-door policy that encourages employees to voice their opinions and ideas. Such a structure can help create a sense of ownership and belonging, which can enhance employee engagement and motivation.
6. Communication Style: To communicate effectively with Millennials and Gen Z, managers can leverage communication tools that align with their communication preferences. This includes implementing instant messaging tools like Slack or Microsoft Teams, using video conferencing tools like Zoom or Google Meet, and providing regular updates through social media platforms like Twitter or LinkedIn. Moreover, managers can use chatbots to provide quick responses to employee queries, freeing up their time for more critical tasks.

In conclusion, contemporary HR management tools are vital in managing Millennials and Gen Z at the workplace. By understanding their unique traits, challenges, and expectations, managers can implement strategies and tools that meet their needs and create a productive work environment. By doing so, organizations can attract and retain top talent, enhance employee engagement, and achieve business success.