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Generation Z (Gen Z) is making a palpable impact on the workplace and businesses must adapt if they wish to leverage their strengths.
Born between 1997 and 2012, Gen Z is the latest generation to join the workplace and is expected to represent 27% of employees by 2025. This cohort is reshaping workplace dynamics with their strong values, technological proficiency, and distinct working preferences.
This report draws on insights from Tiger Recruitment’s July 2024 roundtable, which saw HR leaders and senior managers across varying industries sharing their experiences. Supplemented by global market research, this guide delves into the key themes of managing Gen Z, their unique strengths and motivations, real-life solutions for attraction and retention, and our future predictions for Gen Z’s impact on the workplace.
Gen Z employees thrive in environments where autonomy is prioritised. They resist command-and-control management strategies, favouring an approach that offers all employees an equal opportunity to contribute. Managers should continue to move away from micromanagement styles and instead empower their teams by providing clear guidance and allowing space for innovation and independence. This involves trusting employees to take ownership of their tasks and recognising their ability to deliver results without constant supervision.
Feedback is the cornerstone of effective management for Gen Z. Unlike previous generations who may have been accustomed to annual performance reviews, Gen Z expects regular, real-time feedback. In fact, 73% say they will resign if they don’t get regular feedback from their managers, a survey from StaffCircle found.
This style of constant communication helps Gen Zers to feel valued and aligned with organisational goals, ultimately boosting morale in the workplace. Providing effective feedback means not only highlighting areas for improvement, but also recognising individual achievements and milestones.
“Gen Z is averse to command-and-control, micromanagement styles.”
According to the American Psychological Association (2022), Gen Z reports the highest levels of stress and mental health issues among all age groups. Managers need to be empathetic listeners and foster a supportive environment where employees feel comfortable sharing their mental health concerns.
Furthermore, it is crucial that managers are trained to recognise signs of mental health issues and can provide their teams with the tools to support. Managers should be equipped to handle sensitive conversations, offer appropriate assistance and signpost to further support. Promoting healthy work-life balance and ensuring that workloads are manageable will also help to reduce stress and prevent burnout.
“I like the fact that Gen Z is more willing to speak out about their mental health. They prioritise their wellbeing and will ask to step out for 10 minutes if they need to.”
Gen Z employees are digital natives, having grown up with smartphones, social media, and advanced technologies. Their comfort with technology enables them to identify and implement innovative solutions to create efficiencies. They are more likely to drive digital transformation initiatives within organisations, advocating for the adoption of cutting-edge tools and platforms.
Research suggests that 91% of Gen Z employees consider a company’s technological sophistication when deciding where to work. Gen Z expects to be able to integrate technology seamlessly into their daily tasks, and companies should look to embrace Gen Z’s technological proficiency to maintain a competitive edge in attracting and retaining this cohort of employees.
Gen Z is also interested in using advanced technologies such as artificial intelligence (AI), machine learning, and automation to enhance their work. Many have experience integrating emerging technologies into their school or university studies, and Gen Z has been labelled the ‘most AI-ready generation’. In the workplace, they view technology as an opportunity to reduce mundane tasks and focus on more strategic and creative aspects of their roles.
However, our roundtable guests noted that Gen Z employees entering the job market may have less in-depth knowledge of industry-specific platforms. Companies should evaluate new employees’ proficiency with various platforms during their onboarding and offer extensive training to incoming employees when introducing them to new technologies. Doing so can significantly enhance both job satisfaction and overall productivity.
A diverse and ethical workplace is crucial for attracting and retaining Gen Z employees. They seek workplaces that align with their values, particularly in terms of diversity, equity, and inclusion (DEI). This is no surprise, given that Gen Z is the most ethnically diverse generation in England and Wales (with the exception of Gen Alpha: born between 2010 and 2024) according to the most recent Census.
DEI matters for the majority of employees and jobseekers across age groups, but statistics indicate that strong DEI policies matter more for younger employees, women and people of colour. A survey commissioned by Glassdoor (2022) indicates that 76% of Gen Z candidates assess a company’s DEI efforts before accepting a job offer. Companies must ensure their culture is inclusive and supportive to appeal to this generation.
Gen Z places admirable importance on finding the ‘right fit’ when deciding on a new role and they are vocal about their expectations for a diverse and inclusive workplace. They want to work in environments where everyone feels valued and respected and are more likely to speak out against discriminatory practices and advocate for change. Therefore, organisations must be proactive in promoting DEI initiatives and creating a culture of belonging.
Transparency is key to building trust with Gen Z employees, who appreciate open communication and honesty from their employers. Providing regular updates on company performance, changes, and future plans can help foster a sense of security and engagement. A survey conducted by Symplicity found that 85% of Gen Z employees consider pay transparency and equity to be important in their job search.
“They’re very curious about the environment and if it’s going to be fitting for them in the long term.”
Gen Zers place significant importance on ethical practices and corporate social responsibility (CSR). They are attracted to companies that demonstrate a commitment to environmental, social, and governance (ESG) issues. Businesses must integrate ethical principles into their core operations and communicate them effectively to attract Gen Z talent.
Sustainability is also a major concern for Gen Z. They are highly aware of environmental issues and expect their employers to take action. In fact, a 2022 survey found that at least half of 18 to 24-year-old workers would consider leaving a job because of the company’s net-zero policies, compared with about a third across all age groups.
Supporting social causes and engaging in community service can demonstrate a company’s commitment to positive change. Gen Z values honesty and transparency in business practices and are likely to avoid companies with questionable policies.
“Gen Z are very proactive if given the opportunity. I have seen them volunteering to run a session for staff on topics such as environmental sustainability or mental health.”
Mental health and wellbeing are critical concerns for Gen Z, and they expect employers to create an environment where mental illness is supported. According to Mind Share Partners, 75% of Gen Z employees have left a job due to mental health reasons. Organisations must implement comprehensive mental health programmes, including counselling services, wellness activities, and mental health days, to reduce stress and prevent burnout.
Gen Z prioritises work-life balance more than previous generations and they are less likely to accept roles that demand excessive hours or offer little flexibility. According to research by Deloitte, work-life balance has consistently topped Gen Z’s list of priorities when choosing an employer.
Companies must offer flexible working arrangements and promote a culture that respects personal time. Encouraging employees to take breaks, use their annual leave and avoid overworking can contribute to a healthier workforce. Companies that prioritise work-life balance are likely to see higher levels of employee engagement and retention.
Many Gen Zers had their experience of higher education completely shaped by COVID-19 and entered the workforce virtually post-pandemic. However, despite being accustomed to remote work, 65% of Gen Z workers support some form of return-to-office policy, and 80% state that they value in-person learning opportunities, contrary to stereotypes of the younger workforce.
“42% of Gen Z have received a mental health diagnosis. Employers must prioritise mental health programmes to prevent burnout.”
To retain the next generation of workers and maintain a competitive edge when hiring, companies must keep an eye on trends surrounding the attraction and retention of Gen Z and Gen Alpha. We have outlined four key areas to monitor:
The traditional workplace structure is evolving towards more flexible, remote, and project-based work models. Gen Z’s preference for flexibility is driving this change. Remote working tools have advanced significantly, making it easier for teams to collaborate and communicate effectively from different locations. Companies should continue to invest in these technologies to ensure seamless workflow and maintain productivity, even
in a remote or hybrid work environment.
Three-quarters of people are already using AI at work (slightly higher among Gen Z employees at 85%), with 46% of them starting to use AI in the first half of 2024. What’s more, Gen Alpha will have had exposure to a range of digital tools from an even earlier age, including AI and virtual reality. Going forwards, we can be certain that both Gen Z and Alpha will continue drive the integration of advanced technologies in the workplace, leveraging their digital fluency to push organisations to adopt technological solutions that enhance efficiency.
The emphasis on DEI and sustainable practices will only grow stronger over the coming years. Raised in an era of environmental consciousness and social activism, Gen Alpha will likely increase the demand for socially and environmentally responsible businesses. This would drive a shift for companies to adopt more ethical and sustainable business practices.
“Management needs to continue reviewing the data around the importance of diversity in leadership and move with the times. Otherwise, you’re not going to be able to find and retain the best talent.”
A Lloyds Bank survey has found that Gen Zers are 57% more likely to say that the current economic and job market conditions are pushing them to think about creating their own source of income. Gen Alpha is predicted to continue this trend and contribute to the growth of the gig economy, taking on freelance and contract-based work in place of traditional full-time employment.
Gen Z has already transformed the workplace, asserting their preference for diverse, inclusive and technologically advanced employers who provide a level of work flexibility. To unlock the potential of Gen Z employees, companies must adapt their leadership and management styles, and cultivate a strong, inclusive company culture.
Prioritising mental health and offering flexible work models are essential strategies for attracting and retaining this new generation of talent.
As we look to the future, staying on top of the latest technological advances, adapting to new flexible working models and maintaining a strong focus on DEI and ESG will be crucial for meeting the expectations of the younger workforce and ensuring organisational success.
At Tiger Recruitment, we are committed to helping companies navigate these changes and harness the strengths of Gen Z employees.
Get in touch to tap into our expertise when making your next hire.