Gen Z - the upcoming workforce 

Soon enough the Generation Z will take over millennials as the most populous generation in the world and will step on the world stage to be a major part of the changing market. In order for businesses to secure the best gen-Z talent, they need to understand the generation’s specific needs from the workplace and cater to them. The effects of the entry of gen-Z into the market will be felt across - politics, governance, use of technology, retail consumption, media, and very importantly - the workplace. 

While salary has been one of the most important factors in making decisions about accepting a job, the gen-z value salary less than every other generation. Their core values in the workplace involve - uniqueness, authenticity, creativity, and shareability, whereas their work ethic revolves around flexibility, self-reliance, and personal freedom. 

So, where does Gen Z stand?

Gen-Z’s core values are reflected in their prioritisation of diversity in the workplace - which goes beyond race and gender and includes identity and orientations, transparency with the leadership, and social activism. As the recruitment market becomes increasingly candidate-driven and competitive for businesses - in order for companies to retain the best talent of this generation - they must align themselves according to the values of the gen-z. 

Younger generations want their workplace to align more with Environmental, Social and Governance (ESG) factors. While these measurements for socially responsible organisations have been in place for a really long time, they are increasingly becoming part and parcel of the day-to-day workplace. These ESG criteria are increasingly becoming the yardstick for measuring a company’s core values. 

Gen-Z have also grown up in the background of economic recessions, financial uncertainty and record student debt. Hence, financial security and clearing off debt are their priorities. They have also seen their millennial counterparts struggle on the career ladder - which is why they are more independent, hard-working and eager to achieve individual career success - most of the gen-z want to be entrepreneurs at some point in their lives. 

Climate change is also a big motivator for the gen-z, they are likely to assess a company based on their green credentials before committing to having a long term career with them. The same goes for diversity and inclusion practices as well as corporate social responsibility. 

What should businesses do to adapt?

Companies need to develop their credentials as socially responsible and environmentally conscious. The gen-z have the world’s best research at their fingertips and the world is becoming increasingly transparent, so companies need to really implement their promises of green initiatives and social endeavours because the gen-z will see right through it. 

Independence is very important to the gen-z, so flexible and remote working options are a must. Companies will be able to retain top talent by offering these options. 

The gen-z are also primed to respond to perks and benefits aimed at reducing debt and providing learning and education at reduced prices. 

Figure : PWC report, millennials at work.

This generation also poses different challenges to their managers as compared to the millennials - while the millennials usually take a passive approach - expecting managers to solve their problems, the gen-z usually take an active approach - they actively try to solve problems, even if they are beyond their capabilities and skill set. Leadership will benefit from taking a “coaching” rather than a “managing” approach with the gen-z to show them that they are in fact being trusted with responsibilities. 

Over the past 30 years, college students have been reported to have declining mental health and the young generation is increasingly aware of mental health issues and its importance. This has pushed universities and higher education institutes to provide mental health support to all students. This means that the young generation will continue to have needs for mental health support when they enter the workforce and will also prioritise it. 

Thus, Employee Assistance Programs (EAPs), mental health support and benefits will be very attractive to gen-z employees as it will enable them to be successful in a reliable supportive work environment. Companies should expect to have generous personal and sick leave policies and should include mental health in their diversity, inclusion and well being discussions. Since the gen z are multitaskers who develop anxiety after letting go of projects - the leadership needs to develop their coaching to help this generation prioritise and deal with hurdles without demoralising themselves.  

Based on Deloitte’s article on the future of work, the gen-z workforce will be one of many talents, interests and areas of knowledge. Businesses will need to have a fusion of these key work skills for an efficient workforce - digital tools and technology skills, comfort with analytics and data, business management skills, and design and creative skills. 
The next generation of talent is unique and businesses need to adapt if they want to retain this talent and overcome challenges. Savant’s expertise and market research is forward-looking and we can assist you in developing your workplace based on the changing requirements. We are constantly evolving in our practises and methodology based on robust market predictions and trends. To discuss how we can support you with changing recruitment needs and developing a technologically equipped team, reach out to us at - technology@savantrecruitment.com