Understanding potential of Generation Z: How next wave of employees will transform workforce

By Roshan Fernando

As the post-millennial generation, Gen Z is projected to soon surpass Millennials as the most populous generation globally, with over one-third of the world’s population identifying as Gen Zers. A study by PwC found that Gen Zers are ethnically and racially more diverse than any previous generation, with nearly half identifying as something other than white. By 2023, Gen Z will make up 36% of the global workforce, according to research by KPMG. The emergence of Gen Z onto the global stage will have a significant and far-reaching impact, affecting various aspects such as the workplace, consumer market, technology, politics, and culture.

Gen Zers are generally considered individuals born between the mid-to-late 90s and early 2010s. This means that people born between 1997 and 2012 fall under the age range of Gen Zers. However, the birth years that define Generation Z may vary depending on the source. Gen Zers today have already begun entering the workforce in large numbers. This demographic is characterised by its digital savvy and diverse backgrounds. As Gen Zers begin to take on more prominent roles in the workforce, employers must adapt their engagement strategies to meet this demographic’s unique needs and expectations.

One of the most significant ways that Gen Z will impact the global workforce is their familiarity and comfort with technology. This generation has grown up with smartphones, social media, and the internet, and they expect to be able to use these tools in their work. Employers will need to invest in technology that allows Gen Zers to communicate, collaborate, and access information in ways familiar to them. This may include using instant messaging and video conferencing and implementing social collaboration tools. Another way that Gen Z will impact the workforce is through their desire for flexibility.

This generation values work-life balance and is less likely to work long hours or sacrifice their personal lives for their careers. Employers must consider offering flexible work arrangements such as remote work options and flexible schedules to attract and retain Gen Z talent. Gen Zers, where their backgrounds are concerned, would bring a positive aspect into play since more diversity and inclusivity would mean opening up the door for more unique perspectives and ideas. Employers should therefore focus on creating inclusive cultures that value diversity and encourage open dialogue.

This includes providing training and resources to help managers understand and appreciate their Gen Z employees’ backgrounds, cultures, and experiences. Diversity is important to Generation Z across multiple dimensions, including race, gender, identity, and orientation. Companies that can effectively showcase the diversity within their branding and marketing efforts will have a greater chance of attracting diverse talent. In summary, Generation Z will bring new energy and ideas to the global workforce. Still, employers must adapt their integration strategies to meet this demographics’ unique needs and expectations. This will involve investing in technology, offering flexibility, and fostering inclusive cultures that value diversity.

As we understand the preferences and behaviours of Generation Z entering the workforce, it’s crucial to consider how the concept of “work” is evolving. The new realities of these changing forces present us with complex questions, including the ethics of human-machine collaboration, how to plan for careers spanning 50-60 years, and how to tap into a wide range of talent sources to drive organisational growth. The future of work will demand a return of the Renaissance figure: an individual with a diverse range of talents, interests, and areas of knowledge. This will require integrating four essential skills; digital tools and technology proficiency, an understanding of data analysis and decision-making, and problem-solving skills through creativity and leadership skills, to name a few.

Integrating Gen Zers to the Workforce

There are several things that employees can do to help integrate Gen Zers into the workforce:

Being more open-minded about their stance in life : Gen Zers are a new generation entering the workforce, and they may feel unsure of themselves and their place in the company. Employees should be open and welcoming to new Gen Z hires and try to relate with them on some level and make them feel comfortable.

Share your knowledge and experience : Gen Zers have grown up with technology and may be more familiar with specific tools and platforms than older employees. However, they may have different levels of experience and knowledge in other areas. Employees should be willing to share their knowledge and expertise with Gen Zers and help them learn and grow.

Encourage collaboration : Gen Zers are a collaborative generation who thrive in team environments. Employees should encourage cooperation and teamwork among Gen Zers and other employees to help them build relationships and work together effectively.

Provide mentorship and coaching : Gen Zers are eager to learn and grow in their careers. Employees can provide mentorship and coaching to help Gen Zers develop their skills and advance in their careers.

Promote diversity and inclusion : Gen Zers are a diverse generation who value inclusivity in the workplace. Employees should promote diversity and inclusion and try to understand and appreciate the different backgrounds, cultures, and experiences of Gen Zers.

Encourage employee-driven learning opportunities : Gen Zers are a highly educated generation interested in learning and development. Employees should encourage employee-driven learning opportunities and resources to help Gen Zers pursue their passions and interests.

Be transparent and communicate effectively : Gen Zers value transparency and open communication. Employees should be exemplary and communicate effectively with Gen Zers to help them feel informed and connected to the company.

Be open to feedback and ideas : Gen Zers are innovative and want to be part of something bigger than themselves. Employees should be available for input and ideas from Gen Zers and actively seek out their contributions.

Job-hopping? Not a Gen Z Concern

According to a study conducted by the Oliver Wyman Forum on how Gen Zers perceive working, they have reported that Gen Zers do not view job-hopping as a negative trait, unlike previous generations. Gen Zers in the West, especially in the United States and the United Kingdom, who identify as “loyal” to their employers, actively or passively seek new employment opportunities. Furthermore, Gen Zers are likelier to leave unfulfilling jobs without securing a new position beforehand. This sentiment has been reflected on social media platforms such as TikTok, where hashtags related to leaving jobs without a plan, such as #quietquitting and #greatresignation, have amassed more than 570 million views in total. It is clear that job-hopping is of great importance to Gen Zers.

Older generations, like boomers and Gen Xers, worked hard to advance in their careers, but Gen Zers want to play by different rules. They want to change how companies work, and the pandemic has made them want to change even more. In 2021, many young people aged 18 to 29 in the United States quit their jobs. 37% quit, compared to 17% of people aged 30 to 49, 9% aged 50 to 64, and 5% aged 65 and up. This is according to a study by the Pew Research Centre, as recorded by the Gen Z Report that the Oliver Wyman Forum put together.

Being Socially Conscious – What it means for Gen Zers

Being socially conscious means that Gen Zers are aware of and concerned about social and environmental issues and want to impact the world positively. This can take form in a variety of ways. If we narrow down the concept of Environmentalism, Gen Zers are more environmentally conscious than previous generations and are more likely to support sustainable practices and products. They are also more aware of the impacts of climate change and want to take action to reduce their carbon footprint.

In terms of Social Justice, Gen Zers are more socially aware and want to promote equality and inclusivity. They are more likely to support causes related to race, gender, and LGBTQ+ rights and are more likely to advocate for marginalised communities. If we take the topic of Ethical Consumption, Gen Zers are more conscious of the impact of their consumption on society and the environment. They are more likely to align with companies that believe in making a positive social and environmental impact. They are more likely to research the supply chain and working conditions of the products they buy.

Gen Zers are also passionate about volunteering, are more likely to get involved in social service work, and are eager to help make a difference in their immediate communities, the country, and the world itself. Another very significant area happens to be Political Activism. Gen Zers are politically active and engaged and want to change the world through political means. Being socially conscious is an essential aspect of Gen Zers’ identity. They want to impact the world positively and are more likely to support causes and companies that align with their values. This can affect how they consume, spend their time, and choose to work. Employers should consider these areas when creating a culture and engaging with Gen Z employees.