Next-Generation Leadership - who is Gen Z & what will they bring to work?

In 2017 defended my master's thesis on Generation Z and what they expect from their employers. Back then, some of my professors tried to talk me out of this topic by saying that it is not even a “real thing”. Well, I thought otherwise and I still do.

I will be honest. I share the skepticism in the idea that only the year of being born does not make us who we are. There are so many other aspects that will step-by-step define who we are and who we might be in the future. However, I do believe that the environment we grow up in has a huge role in shaping our beliefs, values and thoughts. By environment I mean everything around us - economy, politics and social aspects. 

In 1991 Strauss and Howe wrote a book about how generations are defined and what are the aspects that shaped them to be the way they are(*). This theory is called Strauss–Howe generational theory and it was originally created based on USA experience and how people in the USA were affected by different historical events, but today we live in a global world with only few borders, meaning that same logic applies anywhere else in the world as well. The only difference being in the timing. Big historical events that affected the United States, UK and Western Europe affected us in Eastern Europe as well, they just got here with a little delay. Let’s go into more details - shall we?

Getting to know generations

Taken the year of birth, the oldest generation still with us is the Greatest Generation, born between 1901 and 1924. When we think about what happened during those years, we can only imagine what it was like to grow up during that time. They were growing up during World War I which was followed by the Great Depression in the 1930s. So they had a lot going on as children and young adults. Priorities were different, ways of working were different, ways to communicate were different. They were there when telephones and radios were born. 

The Greatest Generation was followed by Silent Generation, born between 1925 and 1945. Due to WWI and the Great Depression this generation was smaller. This period brings us memories of Soviet Union, Nazi Germany, WWII and first atomic bombings in the world. It is described as a period when people “worked within the system”, thus the name of being a silent generation. People married and had children young.

 After WWII came the generation of Baby Boomers, born between 1946 and 1964. These were the years after the big war and the well-being began to rise. There was still the Vietnam War happening, but overall it was getting better. The number of births increased exponentially, thus the name of baby boomers. Few keywords and events from this period include "beatlemania", Woodstock, Sputnik, Civil Rights Movement and John F. Kennedy. 

As during the 1960s both anti baby pills are introduced to the market and abortion laws get changed in many countries. This again leads to Generation X, born between 1965 and 1976, being a smaller generation than the one before them. The world got more liberal and the number of divorces increased. This generation is also the first one to be labeled as “latchkey” generation. Meaning that with parents divorced and both parents working, kids were more independent than ever. People born in this period are also called to be the last children of the Soviet Union. And hey, Generation X grew up in a world where people could walk on the moon and computers started to find their way to homes. 

Generation Y, born between 1977 and 1997, lived in a world where things changed - economy was down in the 1980s, the Berlin Wall fell in 1989 and MTV started to kick off. In addition to computers, the video game consoles were growing to be a thing. It is said that Generation Y brought us a change in the mindset - people started seeing working as something they do in order to enjoy life, not just to survive or to do the right thing that the system dictates.

Generation Z background

And this brings us to Generation Z, currently agreed to be those who were born between 1997 and 2010(*). I say “currently” because we do not know what big game changers are waiting around the corner - therefore we cannot know what year will be considered as the starting point for the next generation to come. Usually one generation is around 20 years. Looking at Gen Z years or birth, we see that most Gen Z representatives are not yet in the workforce. However, we see more and more news, articles and books about Gen Z. Some of them are already in the workforce. What is so different about Generation Z that we need to get ready for them to enter the workforce in the upcoming years?

Let’s again start with understanding the period Gen Z has been growing up in. Understanding and defining traits of Generation Z is key for employers and leaders to better attract and retain this generation(*). Gen Z has lived their whole life with the internet being a normal thing to have. They are used to being close to information and getting it with just a few clicks - 24/7. They have seen the world get faster and faster each year. Having smart phones, online shopping opportunities and being used to fast door-to-door delivery - this generation is smart, well informed and ambitious. 

They live in a world where you can achieve big things regardless of your sex, race, color, national origin, sexual orientation, religion, disability etc. Example of this is Barack Obama, the first African-American who was elected as President of the United States. On top of that, they have access to so many success stories about start-ups and unicorns, that this is becoming new normal and new goals. Music, movies and celebrities are more global than ever. Due to social media platforms such as Facebook, Instagram and TikTok, Gen Z is influenced by a network that is larger both numerically and geographically(*). 

In a world where terrorism, school shootings, melting icebergs, polluted oceans and internet security issues are a new normal - it is understandable that Gen Z wishes to make a change. 

Gen Z entering the workforce

Gen Z finds importance in work-life balance, team focus, empowerment, support, flexibility, involvement, creativity, innovation and a global working atmosphere(*). They are also characterized by multiple jobs, lifelong learning, multiple careers and entrepreneurship(*). Gen Z wants to relate with the company on a deeper level. Culture, purpose and impact are important for them(*). Make sure you build your recruitment process accordingly. 

Forget about tracking just time worked at a certain employer. Gen Z comes from different background and they are expected to have at least 18 different employers in total(*). Some even forecast them having up to 32 different employers(*). The number 32 comes from the pattern that the number of employers doubles for every next generation. During those 32 employers they are expected to have up to 6 different careers. So these numbers are not in favor of the employers, who already struggle to retain good employees and move the mountains to find new talented people to replace the ones that have left. What can companies do in order to be the employer of choice for the next generation?

Attracting and hiring Gen Z

It is a competitive marketplace and therefore employer branding is essential. With the new generation entering labor market, companies should revise what they stand for and how they show this to their target groups(*). They will do a social media check for the company prior to accepting any job offers. Meaning that social media account management is no longer just a marketing department’s issue. HR teams need to team up with marketing in order to have a strategic plan for marketing the company as an employer. This includes making sure that Gen Z finds needed information from the channels that they are going to look for it - from social media accounts. 

Gen Z wishes to be part of the greater cause. Community and CSR activities are important for Gen Z. And let’s be clear - the kind of activities that are actually done for the good cause, not only for marketing purposes and to look good. Instead of writing long paragraphs about your company as an employer and what kind of good CSR activities you do, translate this information into form that fits Gen Z the most - video content. They would rather watch a quick video about it than read a long career page or other content. In an era of information overload, those who make themselves stand out visually, will receive attention.

Focus on the how aspect of the recruitment process. When trying to attract digital natives, then the recruitment process should be fit to their language and preferences. How is recruitment done in your company today? Are you using apps, video content, video interviews, mobile friendly ATS systems etc? If not, then this is something to start thinking about. Gen Z feel comfortable with digital language, they get attracted by visuals and meaningful cause. Make your processes ready for the next generation. How can you use AI in your recruitment? All recruiters today know that finding the right talent gets harder every day. Recruiters need to do more and need to sell the jobs. Simply doing more does not always help - switch to doing it in a thought-out way.

Retaining Gen Z

Once Gen Zers are hired a new issue arises. How to retain them? As they expect variety, challenge and change then the key here is promotion and giving them different challenging projects to work with. Give them the opportunity to grow, develop and succeed. Three in five Gen Z workers see “relationship with peers” as one of the top three reasons for keeping their job. They see collaborative work environment as a very important part of their current or potential workplace.(*)

For more than half of Gen Z workers (53%) inspiring and accessible leadership is extremely or very important to them in their place of work. The findings are clear: unless their direct supervisors and the leadership hierarchy manage in an inclusive, participative way, and demonstrate people skills and not just technical skills, retention declines.(*)

More than half of Gen Z workers (52%) see career development through additional Professional Development training as extremely or very important. Training is more than a tool for productivity. It is a tool for retention. Gen Zs are motivated to stay longer when their employer invests in them.(*)

Training and development for Gen Z

When talking about training, almost two in five Gen Z workers (38%) prefer training in the area of people skills, making it the most popular area of training(*).

Preferred methods of training for Gen Z are on the job coaching and mentoring as well as in-house or outsourced training courses. This is due in part to their learning styles (kinesthetic and visual rather than literate and procedural) as well as their motivation for learning being social, collaborative, interactive, and fun.(*)

According to Fortune, 32 percent of surveyed Gen Z respondents have a goal of working their dream job within 10 years of beginning their careers. They aren’t so na?ve as to think that finding a job will be easy and they realize the job market is competitive. With their overall goal of a dream job, they will tend to be more focused on growth opportunities than salary with their early jobs. They want managers who take an interest in helping them achieve both their personal and professional goals.(*)

The most suitable methods of learning for this generation is coaching and mentoring(*). However, due to the fact that this generation grew up with technology, not just had to get used to it, they are a valuable resource for companies when it comes to technology related matters. So why not use this benefit to grow your company? Reverse mentoring can help today’s leaders to keep up with the best practices by listening to the younger generation.  

Employment vs partnership

Gen Z pushes the boundaries of traditional work-models. It is the era of the gig economy, contingent work, freelancing and entrepreneurship where every third 18-29 year old has a “side hustle”(*). While this poses some challenges, it also provides an excellent opportunity. Organizations can now employ young people who understand business and have an empowered, broader perspective(*).

Those workplaces that can handle Gen Z side hustles will find increased retention and loyalty amongst Gen Z(*). In fact, 75 percent of Gen Z would be interested in a situation where they could have multiple roles within one place of employment. Ideally, managers can figure out a way to offer multiple career paths, but if they can't, creating environments where Gen Z can be exposed to as many roles as possible will be critical(*). Gen Z is more competitive than the generation before them.

Communication and feedback

Since Gen Z has never known a world without immediate access to the information they want, they have an expectation of ongoing, consistent communication and feedback. Gen Z employees wish to be heard. Create ways for them to share their ideas beyond just a survey(*). Forget annual reviews. Connect with this generation by letting them know when and how you’ll be available and take the time to offer both praise and suggestions for improvement(*). Leaders must consistently demonstrate why their employees have made the right decision in choosing to work for them(*).

Digital language is almost their first language(*). Despite being digital natives, 53% of Gen Z employees prefer face-to-face communication(*). Keep this in mind for internal communication and performance reviews. Gen Z communicates in a post-literate community where visuals and videos get the most cut-through(*). This is something to consider in employer marketing - put your employee value proposition and main employer branding content into short catchy videos and share it in social media. 

Gen Z is used with social media and constantly sharing information about their lives. Embrace the trend. It is time for companies to think about their social media policy — what and how is appropriate to share. Don’t forget about the trends of social media - introduce your company hashtags, create content that employees can share about etc. Some companies have even started to redesign their offices to make them more “instagrammable”(*). 

Gen Z grew up with the internet taking the world and communication moving to chats. Therefore this generation is considered to lack important soft skills. Employers need to help their Gen Z employees to improve their communication skills and self-expression skills. Gen Z wants to grow and develop themselves. And they want it fast - they are used to a rapid world, thus the expectation. It’s time to get creative with the career paths you offer, and make it clear that the contributions of your newer team members are valued from the start(*).

Work-Life balance

The workplace of today is a combination of work, social and health-related priorities(*). Three in five Gen Z representatives see flexible working hours as very important(*). Offering flexible schedules and remote working capabilities gives employees a sense of control, particularly around the work-life balance(*). Gen Z understands different things when they talk about work-life balance. For them it is not only the question about the hours. It is also a question about the location. The fact that different generations at the workplace understand work-life balance differently can cause misunderstanding and fraction between you employees and managers. Managers tend to see work-life balance from their point of view - a question about the hours that employees are willing to work. Gen Z on the other hand is not complaining simply about the hours they need to work, but asking for more flexibility in choosing the location to work from. Thanks to technology many roles can actually be more flexible than our leaders are ready to take into practice. 

Giving Gen Z more flexibility in selecting their working hours and location will boost engagement and can help resolve talent shortages(*). A career that allows them the opportunity to continue other aspects of their life stage whether they be educational, social, spiritual, or entrepreneurial is highly attractive(*).

Diversity and Inclusion

Generation Z is the most diverse workforce ever. Gen Zs have known nothing but diversity growing up and respond well to diversity in the workplace(*). They think of diversity at work differently than prior generations. It is not only about age, religion, gender, race, physical ability for them, it’s about how different point of views are accepted and valued. Younger workers are more likely to define diversity as a mix of experiences, identities, ideas and opinions, rather than more traditional definition of diversity.(*) Review your employer branding, recruitment process and internal HR processes to match the new expectation about diversity and inclusion. Think about ways how your company could promote experiences, ideas and opinions regardless of the seniority of the individual. 

Call to action

New normality and new expectations come with each generation. The generation that we are welcoming to the workforce today is different from the prior ones in many ways. Analyze your company in all possible levels and find out how ready you are for the next generation? Do you have what it takes to attract, hire, retain and develop the next generation or should your company start making changes to stay competitive? Don’t hide behind the excuse that your company does not have that many Gen Z representatives just yet. Success comes to those who think ahead and try to stay one step ahead - be proactive, not reactive. 

I am also happy to help. Let’s talk. Helen P?rli | +372 55617100 | [email protected]