Generation Z in the Workplace: A Changing Workforce

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By Rachel Pelta

The workplace is always changing. Whether it’s upended by technology, influenced by changing consumer tastes, or impacted by the economy, change is always on its way.

Since change is inevitable, companies need to prepare for a transforming workforce.

And because 2019 is the year Gen Z is predicted to outnumber millennials in the population, the growth of Gen Z in the workplace could begin to impact your team.

In fact, you may have already hired some Gen Z employees. As of 2015, the oldest Gen Z members entered the workforce. While they may seem like other young, new employees, research suggests that the Gen Z workforce has different expectations about their jobs and their employers than previous generations.

Who is Gen Z?

Gen Z is the population born between approximately 1996 and 2010. They are generally considered the most technologically savvy and tech-native generation the world has seen. The iPhone was introduced in 2007 when the oldest of them was 10, Facebook was in its early years, and Instagram would become the youngest member of Gen Z in 2010.

Many Gen Z’s also remember the 2008 recession. They watched their parents struggle financially and may have even lost their homes. Even though they are the most highly educated generation in our history, they’ve also watched the previous generation (millennials) struggle with soaring college debt.

What’s important to Gen Z?

While each generation has its own unique influences that impact what it wants and needs, Gen Z will likely reshape the workplace for years to come.

For example, Gen Z expects to work hard but also expects reward and praise. While they don’t mind speaking up, they’re more likely to do so via text than face-to-face.

They are debt-averse.

Not surprisingly, money is important to Gen Z. However, that doesn’t mean they necessarily want more money. Even though one study found that 84% of Gen Z want meaningful work they believe in, financial security is more important to them than almost anything else.

Most of Gen Z would prefer not to take on too much debt, whether that is consumer debt or student loan debt. However, they may not have a choice. For example, another study found that only 30% of Gen Z are confident that they’ll be able to pay back their student loans.

Career advancement is essential.

Along with financial security, career advancement ranks high on the Gen Z must-have list.

Nearly 75% feel that their first position should only last a year before a promotion. And 32% feel it should only be six months. Many Gen Zers want to be in their dream position within 10 years of entering the workforce.

And, Gen Z is willing to job hop multiple times in pursuit of career advancement. One study found that Gen Z is likely to change jobs 10 times between the ages of 18 and 34. Another study found that 83% of Gen Z would leave an employer if they didn’t see the right opportunities for career advancement.

Gen Z seeks work flexibility.

Gen Z may be the first generation that fits work into their life and not the other way around. Nearly 75% of Gen Zers say that workplace flexibility is the number one employee benefit they’re looking for.

But, flexibility doesn’t just mean flexible hours or working from home. Gen Z is not satisfied with a one-size-fits-all career path. They are interested in flexible career paths that allow them to jump from department to department, company to company, or even from career to career if it benefits them.

Managing Gen Z and what it means for companies.

While an employer may think that Gen Z has a lot to learn about the work world, failing to adapt to the desires of Gen Z employees may harm companies in the long run. Gen Z employees won’t hesitate to leave a company if they don’t see a future with them, leading to higher turnover rates. And, over time, it may be harder to attract new employees if companies can’t offer Gen Z applicants meaningful career opportunities.

But that doesn’t have to mean handing out trophies for everything and only communicating via text and emojis. “As we make room in the workplace for Gen Z, I prefer to see how we can adapt their work styles to strengthening our companies and cultures,” advises Carol Cochran, vice president of people & culture at FlexJobs.

Embrace technology.

While some companies may prefer paper and pencil over pivot tables and social media sharing, embrace and encourage the use of new technologies. You might be surprised how useful a project management tool or even a shared document can be.

That said, don’t let technology take the place of human interaction, making sure that technology doesn’t become a replacement for genuine collaboration. Don’t forget, Gen Z is the generation that mastered the art of “Internet shade,” and “subtweeting.”

Companies need to ensure that employees communicate effectively in any medium. Create clear and distinct policies that govern the use of online tools and ensure that all online communications follow said policies.

Help with soft skills.

Sometimes communication needs to happen in person. While that usually happens face-to-face, it can also include video chat or even an old fashioned phone call. And that means using soft skills.

Soft skills are those intangible skills that not everyone possesses. In the high-stakes world of grades, grades, and grades, Gen Z may never have had a chance to truly develop their soft skills. Fortunately, soft skills are something everyone can learn. But, that means companies have to be willing to teach it.

To assist companies with teaching soft skills, Cochran recommends a company like Parin. “We use it as part of our hiring process and for professional development,” she says. “This gives us a very objective way to present people’s superpowers and where they have opportunities for growth and some curriculum to help them improve.”

For example, Parin offers coaching courses to help people learn how to become better in conversations or identify barriers that might be holding them back from professional advancement.

Gen Z isn’t afraid to criticize management.

One thing that Gen Z has learned is how to speak up. While that “speaking up” may happen online, that doesn’t mean Gen Z won’t hesitate to question and critique their leadership. While they know all about likes and follows, they won’t like and follow blindly.

Gen Z is used to receiving near-constant communication about everything, thanks to push notifications on their phones and a 24/7 news cycle. And they expect the same level of communication from their employers.

Expect pushback on decisions that they may not agree with and be prepared to address their concerns. More importantly, make sure you’re communicating with them often about the company vision and goals, and explain how every employee can contribute to the company.

Give them reasons to stay.

Because Gen Z is willing to job hop—frequently—to find the opportunities they want, it’s important to keep Gen Z staff committed and engaged with their jobs. While that can involve incentives like bonuses and raises, there are other ways to encourage Gen Z to stay with your company.

tuition reimbursement.

A salary is great, and a high-paying salary is better. But, even then, Gen Z may still pay off student loans for decades. Consider adding a tuition reimbursement plan as an incentive for Gen Z to stick around.

Provide mentorship, feedback, and guidance.

Gen Z doesn’t want a once-a-year employee evaluation to find out how they’re doing. They’re used to continual feedback about their performance and expect their employers to follow suit.

That doesn’t mean you need to pat them on the back continually. Once a week meetings should do the trick to provide them with feedback on their performance and an opportunity for them to ask questions in a safe and supportive environment.

Give them a roadmap of how their career path could progress within the company. And provide them with goals to work toward to help them advance their careers. “The emphasis of culture and engagement is more important than ever to help bridge a lot of these concerns,” says Cochran.

Keep it flexible.

Flexible doesn’t necessarily mean wherever they want whenever they want. When Gen Z says “flexible,” what they mean is that they are flexible if the employer is flexible.

Gen Z won’t follow a pre-set career path with pre-set milestones. Instead, they prefer to create a custom career path that fits their goals and has the milestones they choose. More importantly, they want to use the skills and experience they already have on this path.

In the end, Gen Z will do what they have to for the right opportunity. If an employer is willing to let someone try something outside the box, Gen Z is willing to relocate for it. But, if they feel that their employer isn’t flexible enough, Gen Z won’t hesitate to move on.

This means employers need to rethink their training and promotions. Gen Z is willing to move laterally if they feel it will benefit them. So, let employees department hop while they work for you. The lateral move won’t just benefit them; it can also benefit employers because a department hopper may become a more well-rounded employee.

Generation Z is Changing the Workplace. Are you Ready?

Slowly but surely, Gen Z is joining the workforce. And while they will need to adjust to being employees, they will bring certain expectations about that role. As an employer, consider embracing Gen Z and all the changes they’ll bring. While change may concern you, adjusting your company to work with Gen Z may bring about some positive results you never saw coming.

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Generation Z in the Workplace: A Changing Workforce

Who is Gen Z?