Why Business and Gen Z are struggling to get along and what we need to do about it.

Gen Z (those born between 1997 and 2010), now entering the workplace in large numbers, has distinct preferences, expectations, and behaviors that often clash with traditional work environments. As a result, many organizations are experiencing high rates of voluntary and involuntary turnover among Gen Z employees, creating a plethora of short and long-term challenges including uncertainty in workforce planning and organizational cohesion.

This generational disconnect has been highlighted in recent reports and news articles, which show that traditional corporate structures struggle to engage with Gen Z workers in ways that foster long-term relationships. According to a 2023 Deloitte survey,

Gen Z employees have the highest rates of turnover among all generations, with nearly 30% of them leaving their jobs within the first year.

This challenge can be solved

Before continuing, I want to assure you that this challenge is entirely solvable. After spending 11 years working in higher education alongside this generation, I saw firsthand how this disconnect was inevitable. This is one of the reasons why I created WellWise—to help bridge the gap and enable businesses and Gen Z to thrive together, but sadly, many companies are missing this opportunity. To work more effectively with Gen Z, it’s crucial to first understand their experience within your organization. I’d love to help your organization get ahead by building stronger, mutually-beneficial partnerships with the youngest members of today’s workforce. If this is of interest, you can find more details at the end of the article.

Why is Generation Z struggling in traditional workplaces?

The challenges Generation Z faces in traditional work environments stem from a few key factors:

Values misalignment: Gen Z prioritizes work-life balance, mental health, and social responsibility over traditional markers of job success like long-term tenure and hierarchical promotions. In organizations that emphasize loyalty, long hours, and rigid career progression, this disconnect leads to frustration.

Technology expectations: Raised in a digital world, Gen Z is adept at using technology and expects workplaces to adopt the same efficiency. When companies lag behind with outdated systems, younger employees become frustrated with slow processes and lack of innovation.

Job-hopping culture: Gen Z often embraces a gig-economy mindset, where frequent job changes are seen as a way to gain diverse experiences. Traditional workplaces, which value long-term commitment, struggle to adapt to this approach.

Communication gaps: Gen Z prefers direct, transparent communication, seeking frequent feedback and immediate responses. Traditional workplaces with slower, more formal review processes can seem disengaged to this generation.

Why are companies dissatisfied with Gen Z employees?

A recent study by Intelligent.com highlighted several reasons businesses feel Gen Z isn’t meeting performance expectations. Among these, managers frequently cite a "lack of motivation or initiative." However, this perception may stem from businesses failing to tap into what truly motivates Gen Z, rather than a lack of motivation overall. Organizations are often quick to fire rather than collaborate, missing the chance to engage these workers in fruitful partnerships.

The report invited Hiring Managers to explain what they are seeking when hiring university graduates, and reveals some further divide.

One notable disconnect is asking Gen Z to avoid politics in the workplace, which ignores their passion for social issues. This generation, dubbed "Generation Woke," is deeply concerned about challenges like climate change and inequality, which they feel were exacerbated by big business. Asking them to "avoid politics" can be percieved as an attempt to stifle their values, creating even more friction and further disengaging them from our businesses.

Are parents to blame for raising an 'unemployable' generation?

Many of today’s senior leaders—aged 54 to 58, according to Korn Ferry—are the parents of Generation Z. So, why do they seem to be struggling so hard to integrate them into business? One wonders, did these parents raise an unemployable generation? Not quite. Rather, they nurtured a group that is distinctly different. Gen Z has grown up with technology, social media, and heightened awareness of global issues, shaping a generation that values flexibility, autonomy, and purpose over traditional work structures.

The disconnect here lies in the fact that businesses have not adapted to societal shifts reflected in family life. What is discussed at the family dinner table—values like sustainability and social justice—hasn’t translated effectively to the business meeting, especially for those in more junior roles who may not be invited to strategic discussions. This signals a broader issue: businesses failing to evolve in line with societal and generational changes.

How can Gen Z and businesses find common ground?

For Gen Z to thrive, both sides need to bridge the gap between traditional work practices and the evolving expectations of younger employees.

Tips for Gen Z:

1. Develop patience: While job-hopping offers quick rewards, staying longer in roles helps build deeper skills and networks. Long-term growth often requires patience.
2. Adapt to corporate culture: Navigating corporate structures while staying true to personal values is crucial. Gen Z can drive change, but they must also respect existing systems.
3. Seek mentorship: Actively pursuing mentors and learning from older generations can help Gen Z bridge communication gaps and build valuable institutional knowledge.

Tips for Employers:

1. Offer flexibility: Gen Z thrives in flexible work environments—remote options, adaptable schedules, and non-traditional career paths can improve retention.
2. Prioritize feedback: Regular check-ins and open feedback loops will help Gen Z feel valued and engaged.
3. Focus on purpose: Highlighting how the business contributes to societal good resonates with Gen Z’s desire for purpose-driven work.

Long-term risks of leaving this unresolved

The ongoing disconnect between Gen Z and traditional workplaces poses serious risks to both businesses and the broader economy. High turnover results in costly recruitment and training efforts, while organizations that fail to integrate this generation may fall behind in technological advancement and shifting consumer values.

Looking ahead, these challenges may intensify as Generation Alpha, born into even more advanced technology and social awareness, enters the workforce. Without adaptation, businesses risk alienating an even larger portion of the workforce, who are often also their target consumers.

Generation Z already accounts for 25% of the global population, and in some countries, such as South Africa, they represent nearly 50%. Ignoring them isn’t an option. Companies that resist change will face diminished spending power among younger consumers and a weakened workforce in the future. In 15 years, businesses will look very different—whether we like it or not. The key for leaders today is to turn Gen Z into allies, not adversaries, by embracing their values and harnessing their potential for the future of business.

Understanding Gen Z in your workplace is crucial—here's how.

The WellWise Workplace Culture and Wellbeing Diagnostics System gathers data on employee experiences, identifying hidden risks and opportunities across your organization. By analyzing insights based on demographics like age, seniority, and gender, we can pinpoint where younger employees are thriving, struggling, or disengaging—and why. The analytics also identify managers and teams that excel at cross-generational integration, offering a clearer path to improvement using approaches that are already working. By combining these with our expertise and strategic recommendations Gen Z can excel in your business. Reach out for an initial discussion.