Why Companies are Quickly Firing Gen Z Employees, Issues & Solutions

Companies are Quickly Firing Gen Z Employees

A recent survey reveals that many businesses are becoming increasingly hesitant to hire recent college graduates, with one in six companies expressing concerns over how prepared these young workers are for the job market, citing shortcomings in communication skills and professionalism. In fact, the situation has become so dire that a staggering 60% of employers have already let go of college graduates hired in 2024, with one in seven businesses stating they may refrain from hiring new graduates next year.

The survey, which polled nearly 1,000 business leaders in August, highlights the growing skepticism companies have toward Gen Z employees. This generation, many of whom are entering the workforce for the first time, often faces significant challenges in adjusting to the demands of professional life. The transition from the structured, academic environment to the often-unstructured, dynamic nature of the workplace can be overwhelming. While recent graduates may possess theoretical knowledge gained through education, they often lack the practical experience and soft skills—such as teamwork, communication, and independent problem-solving—needed to thrive in a real-world business setting.

One key factor exacerbating the problem is the perception that Gen Z is prone to laziness or uncooperative behavior in the workplace, which may lead employers to be more critical of their performance. As a result, companies are quick to find fault with this new generation of employees who are just beginning to adapt to full-time roles.

According to the survey, 75% of businesses reported that some or all of their recent hires from the graduating class were unsatisfactory. The most common reasons cited by employers include a lack of motivation (50%), poor communication skills (39%), and a lack of professionalism (46%). These deficiencies make it challenging for companies to work effectively with many Gen Z employees, further fueling doubts about their suitability for the workplace.

The root of the problem may lie in the current education system, which tends to prioritize theoretical knowledge over practical skills. While learning subjects like Greek mythology may be intellectually enriching, it does little to prepare students for real-world corporate tasks, such as navigating a business meeting or maintaining professional decorum. Without more focus on skills that are directly applicable to the workplace, recent graduates often find themselves underprepared for the expectations they face in their first jobs.

The growing disconnect between academic preparation and workplace demands signals a need for education systems to evolve, providing students with more hands-on experience and training in the critical skills required to succeed in today’s job market. Until then, both employers and new graduates will likely continue to face challenges in bridging the gap between theory and practice.

Missing Skills

The skills that many recent college graduates, particularly from Gen Z, are reportedly lacking in the workplace generally fall into two categories: soft skills and practical work skills. Here’s a breakdown of the most commonly cited missing skills:

1. Communication Skills

i.??????????? Verbal Communication: Many employers report that Gen Z employees struggle with effective in-person or phone communication. In the workplace, clear and concise communication is essential for meetings, presentations, and client interactions, yet some graduates find it difficult to express themselves professionally.

ii.??????????? Written Communication: Writing emails, reports, and other professional documents requires a level of formality and clarity that may not have been emphasized in academic settings. Graduates sometimes lack the ability to tailor their communication style to different audiences.

2. Professionalism

i.??????????? Workplace Etiquette: Basic professional behavior, such as punctuality, appropriate dress, and respect for workplace hierarchy, is often cited as lacking. Some recent grads may not fully understand what’s expected in a corporate environment.

ii.??????????? Accountability and Reliability: Employers often expect employees to take responsibility for their work and to be self-starters. However, some Gen Z workers may struggle with accountability, time management, and meeting deadlines consistently.

3. Critical Thinking and Problem-Solving

i.??????????? While theoretical knowledge is abundant, many graduates struggle with applying this knowledge to solve real-world problems. The ability to think critically, analyze situations, and come up with practical solutions is a key skill that many young employees lack.

ii.??????????? Gen Z workers are sometimes more accustomed to having detailed guidance and structure (as in academic settings), making it harder for them to handle ambiguous or complex problems that require independent thinking.

4. Emotional Intelligence (EQ)

i.??????????? Interpersonal Skills: Many employers report that graduates struggle with reading social cues, building professional relationships, and collaborating effectively with coworkers or clients.

ii.??????????? Empathy and Conflict Resolution: Dealing with conflict in a workplace environment or understanding a coworker’s perspective requires emotional intelligence, which some young workers may lack.

5. Autonomy and Initiative

i.??????????? Self-Directed Work: In professional settings, employees are often expected to work independently and take initiative without constant supervision. Many new graduates may be unprepared for this level of autonomy and struggle with self-management.

ii.??????????? Problem Ownership: Employers want workers who will take ownership of tasks and find ways to resolve issues without waiting for constant direction, something that new graduates may not always be comfortable with.

6. Adaptability and Resilience

i.??????????? Handling Uncertainty: The professional world often requires quick adaptations and handling unexpected challenges. Some employers feel Gen Z workers may have difficulty coping with stress or adapting to fast-paced or constantly changing environments.

ii.??????????? Resilience to Criticism: Many young workers may struggle with receiving constructive feedback or criticism and may be perceived as lacking the resilience necessary to grow and learn from these experiences.

7. Teamwork and Collaboration

i.??????????? Collaborative Work: Some recent graduates may not be well-versed in the dynamics of teamwork, including delegation, sharing credit, or contributing in a collaborative setting. While academic group projects exist, the nature of professional collaboration can be quite different.

ii.??????????? Cross-Generational Collaboration: Many younger workers may have trouble integrating into teams with older, more experienced colleagues, sometimes due to different communication styles or expectations about work culture.

8. Work Ethic and Motivation

i.??????????? Consistency and Effort: A lack of strong work ethic is frequently cited, with complaints that Gen Z hires are less motivated or driven than prior generations. They may not be as willing to put in extra effort or hours when needed, which can be interpreted as a lack of dedication.

ii.??????????? Long-Term Career Focus: Many Gen Z workers are seen as prioritizing work-life balance to the point of being unwilling to go beyond their job descriptions, which some employers see as a lack of passion or commitment to long-term career growth.

9. Leadership and Decision-Making

i.??????????? Leadership Skills: Even at entry-level positions, companies look for future leaders who can show initiative, decision-making, and leadership potential. However, Gen Z workers are sometimes perceived as less confident in taking on leadership roles or making decisions without significant guidance.

ii.??????????? Risk-Taking: Young workers may be more hesitant to take risks or make bold decisions, partly because they are not used to making impactful decisions or dealing with the consequences of their choices.

10. Technical Skills: While Gen Z is generally proficient with technology, many employers find that technical know-how specific to certain industries is lacking. New graduates may not have practical knowledge of business software, data analytics, or specific tools used in their fields.

These missing skills highlight disconnect between the academic preparation many students receive and the practical, real-world demands of the modern workplace. It underscores the need for education systems and employers alike to focus more on equipping students with applicable skills like communication, critical thinking, and professionalism to better prepare them for the workforce

What skills should schools teach?

To better prepare students for the workforce, schools should focus on teaching a balanced mix of technical skills, soft skills, and practical real-world applications. Here are the key skills that schools should prioritize:

1. Communication Skills

i.??????????? Effective Writing and Public Speaking: Schools should teach students how to write clear, concise, and professional emails, reports, and presentations. Emphasizing public speaking and presentation skills will help students communicate their ideas confidently.

ii.??????????? Active Listening and Feedback: Students should be taught how to listen actively, ask the right questions, and give and receive constructive feedback effectively in collaborative settings.

2. Critical Thinking and Problem-Solving

i.??????????? Practical Problem-Solving: Schools should encourage students to apply theoretical knowledge to solve real-world problems. This could involve project-based learning, case studies, or simulations where students have to analyze, brainstorm, and implement solutions.

ii.??????????? Analytical Thinking: Incorporating more tasks that require data analysis, decision-making, and critical evaluation of information will help students develop analytical skills that employer’s value.

3. Professionalism and Workplace Etiquette

i.??????????? Workplace Expectations: Schools should offer workshops or courses on workplace behavior, including professionalism, time management, punctuality, and the importance of meeting deadlines.

ii.??????????? Ethics and Responsibility: Teaching students about ethical behavior in various industries and fostering a sense of accountability will help them understand the expectations of a professional work environment.

4. Emotional Intelligence (EQ)

i.??????????? Self-Awareness and Self-Management: Schools should help students develop emotional intelligence by teaching them how to manage stress, handle criticism, and stay motivated during challenges.

ii.??????????? Interpersonal Skills and Teamwork: Collaboration exercises should emphasize empathy, communication, and conflict resolution in group settings. Role-playing activities or team projects could help build these skills.

5. Adaptability and Resilience

i.??????????? Handling Change: Schools should focus on preparing students for uncertain and rapidly changing environments by introducing scenarios where flexibility and adaptability are key.

ii.??????????? Resilience and Growth Mindset: Teaching resilience—how to bounce back from failure, learn from mistakes, and stay persistent—will help students thrive in a competitive and evolving job market.

6. Leadership and Initiative

i.??????????? Leadership Opportunities: Schools should offer more opportunities for students to lead projects, teams, or events, helping them develop decision-making and organizational skills.

ii.??????????? Taking Initiative: Encouraging students to take initiative in their learning, propose ideas, or start independent projects can foster an entrepreneurial mindset.

7. Collaboration and Teamwork

i.??????????? Group Projects with Real-World Relevance: Schools should design group projects that simulate professional environments where students must collaborate, delegate, and navigate group dynamics to meet a shared goal.

ii.??????????? Cross-Disciplinary Teamwork: Encouraging students to work on projects across different fields or with students from various backgrounds helps prepare them for diverse and collaborative work environments.

8. Time Management and Self-Discipline

i.??????????? Project Management Skills: Teaching students how to manage time effectively, set goals, prioritize tasks, and meet deadlines is crucial for success in the workplace. Tools like Gantt charts or project management software could be introduced.

ii.??????????? Autonomous Work: Schools should offer assignments that encourage students to work independently, develop self-discipline, and stay focused without constant supervision.

9. Technical and Digital Literacy

i.??????????? Industry-Specific Tools and Software: Schools should expose students to software and tools that are commonly used in their fields, such as data analysis platforms, project management software, or business applications.

ii.??????????? Basic Coding and Digital Skills: In today’s tech-driven world, basic coding skills, digital marketing, and understanding emerging technologies (like AI) are increasingly important for many jobs, regardless of the industry.

10. Cultural Competence and Global Awareness

i.??????????? Diversity and Inclusion Training: With an increasingly globalized workforce, students should learn how to navigate different cultures, understand global issues, and collaborate with diverse teams.

ii.??????????? Cross-Cultural Communication: Schools should teach how to communicate effectively with people from different backgrounds and respect cultural differences in a professional setting.

11. Financial Literacy and Business Acumen

i.??????????? Personal Finance: Schools should teach students how to manage personal finances, including budgeting, taxes, saving, and investing, as these skills translate into better decision-making in business contexts.

ii.??????????? Business Basics: Understanding the fundamentals of how businesses operate—such as marketing, operations, finance, and customer service—can better equip students to understand their roles in a broader organizational context.

12. Career Readiness and Networking

i.??????????? Job Search and Interview Skills: Schools should provide training in resume writing, job search strategies, and interview preparation to help students transition smoothly into the workforce.

ii.??????????? Networking and Relationship Building: Schools should teach students the value of networking and how to build professional relationships, including the use of platforms like LinkedIn and other professional networking strategies.

13. Practical, Hands-On Experience

i.??????????? Internships and Co-op Programs: Offering more opportunities for students to gain hands-on experience through internships or cooperative education programs will help them develop practical skills and make the transition to full-time work smoother.

ii.??????????? Service Learning and Real-World Projects: Students should be encouraged to participate in service learning or real-world projects where they can apply their academic knowledge in practical settings, giving them a taste of the complexities of the professional world.

By integrating these skills into curricula, schools can better prepare students for the evolving demands of the workforce. Combining theoretical knowledge with real-world applications will help bridge the gap between education and employment, making graduates more competitive and effective in their careers.

How can Gen Z improve?

Gen Z can take several proactive steps to improve their readiness for the workplace and address the gaps that employers have identified. By focusing on personal development and acquiring relevant skills, they can better position themselves for success. Here’s how Gen Z can improve:

1. Develop Strong Communication Skills

i.??????????? Practice Professional Communication: Work on writing clear and concise emails, reports, and professional documents. Joining clubs like debate, public speaking groups, or taking communication-focused courses can enhance verbal and written communication skills.

ii.??????????? Seek Feedback: Actively ask for feedback from peers, teachers, and colleagues on how to improve communication and presentation skills.

2. Cultivate Professionalism

i.??????????? Understand Workplace Etiquette: Research workplace expectations, including dressing appropriately, punctuality, and proper behavior in meetings. Mentorship from professionals or online courses on business etiquette can be helpful.

ii.??????????? Manage Your Reputation: Be mindful of your online presence, including social media, as employers often review candidates’ digital footprints. Ensure your digital identity reflects professionalism.

3. Improve Emotional Intelligence (EQ)

i.??????????? Practice Self-Awareness and Regulation: Reflect on your emotional responses to stressful situations and work on regulating them. Mindfulness practices or emotional intelligence training can help improve self-management.

ii.??????????? Build Interpersonal Skills: Engage in activities that require collaboration, empathy, and negotiation. Volunteering, teamwork projects, or leadership roles in clubs can help build these skills.

4. Strengthen Critical Thinking and Problem-Solving

i.??????????? Engage in Critical Analysis: Practice critical thinking by analyzing case studies or real-world scenarios. Take part in problem-solving exercises, whether through academic courses, coding challenges, or online platforms like Coursera.

ii.??????????? Ask Questions: Get into the habit of questioning assumptions and exploring multiple solutions to problems, as this will build your ability to think creatively and critically in the workplace.

5. Be Open to Feedback and Adaptability

i.??????????? Learn from Criticism: Instead of taking criticism personally, see it as a chance to grow. Focus on using feedback to improve and adapt. Regular self-reflection and journaling can help process feedback constructively.

ii.??????????? Embrace Change: Work on becoming more adaptable by taking on challenges outside of your comfort zone, such as learning new technologies or working in unfamiliar environments.

6. Take Initiative and Demonstrate Leadership

i.??????????? Volunteer for Projects: Proactively seek out opportunities to lead or contribute to team projects. Taking initiative shows that you’re willing to step up and lead even in small ways, which builds leadership skills.

ii.??????????? Start Personal Projects: Develop leadership and initiative by working on personal projects, such as starting a blog, learning a new skill, or managing a small event.

7. Enhance Time Management and Work Ethic

i.??????????? Create a Schedule: Use time-management tools like planners, apps (e.g., Trello or Notion), or calendars to structure your day and manage deadlines efficiently. Prioritizing tasks will help you avoid last-minute rushes.

ii.??????????? Build Discipline: Set small, daily goals and hold yourself accountable. Building discipline over time—whether through fitness routines, academic deadlines, or personal commitments—will carry over into your professional life.

8. Boost Resilience and Adaptability

i.??????????? Challenge Yourself: Get comfortable with failure and learn from it. Take risks in areas like learning new skills or taking on challenging tasks. Resilience grows when you push yourself beyond your comfort zone.

ii.??????????? Stay Positive Under Pressure: Practice maintaining a positive attitude in difficult situations. Meditation, stress management techniques, and regular physical activity can help you handle pressure better.

9. Learn Practical Skills

i.??????????? Develop Technical Skills: Take online courses in tools and software relevant to your industry, whether it’s data analytics, project management software, or basic coding. Platforms like Udemy, LinkedIn Learning, and Coursera can help you gain practical, industry-specific skills.

ii.??????????? Get Internships or Part-Time Jobs: Practical experience is invaluable. Look for internships, freelance work, or even part-time jobs in your field to gain hands-on experience and understand how real-world businesses operate.

10. Enhance Collaboration and Teamwork Skills

i.??????????? Work on Group Projects: Actively participate in team-based projects, whether in school, clubs, or part-time work. Focus on understanding group dynamics, listening to others, and contributing positively.

ii.??????????? Respect Cross-Generational Workforces: Be open to learning from older colleagues and engage in cross-generational collaboration. Understanding different perspectives is key to effective teamwork.

11. Set Career Goals and Stay Motivated

i.??????????? Focus on Long-Term Growth: Rather than just thinking about short-term gains, set clear long-term career goals. Break these down into actionable steps, and seek mentors who can guide you in achieving them.

ii.??????????? Stay Curious and Keep Learning: Always be open to learning new things. Continuous education—through online courses, workshops, or industry events—will help you stay relevant and motivated in your field.

12. Improve Financial Literacy and Business Acumen

i.??????????? Learn Personal Finance: Take time to understand budgeting, taxes, savings, and investments. This knowledge will help you make better financial decisions in your personal and professional life.

ii.??????????? Understand Basic Business Operations: Take online courses or read books about how businesses work, including finance, marketing, and project management. This will help you contribute more effectively in your job.

13. Network and Build Relationships

i.??????????? Expand Your Professional Network: Start building your professional network early. Attend events, workshops, and conferences, and use LinkedIn to connect with industry professionals. Building relationships is key to finding mentors and career opportunities.

ii.??????????? Practice Networking Skills: Learn how to approach new people, ask questions, and maintain professional relationships. Building rapport with colleagues can open up new opportunities.

14. Showcase Your Achievements

i.??????????? Build a Strong Personal Brand: Use LinkedIn or other platforms to showcase your skills, internships, projects, and certifications. Regularly update your profile and portfolio to reflect your professional growth.

ii.??????????? Document Your Learning: Share what you're learning or working on publicly, whether through blog posts, social media, or project portfolios. This demonstrates initiative and a commitment to professional development.

By focusing on these areas, Gen Z can bridge the gap between academic preparation and the real-world demands of the workplace, making them more competitive and better equipped for long-term career success.

CA Harshad Shah, Mumbai, [email protected]