Attracting, managing and retaining a multigenerational workforce is essential for a business’s success in today's global economy. Each generation brings a wide range of ideas, knowledge, and experiences to the workplace - giving companies with a generationally diverse workforce a clear competitive advantage and a way to thrive in the modern workplace.
Each generation has been influenced by distinct experiences which affect the way they think about work and while they may differ in their values, goals and mindsets it’s important for employers and employees to be understanding of these unique preferences and accommodating to the varying work styles. Embracing generational diversity not only fosters an inclusive and mutually respectful workplace but it also helps create an innovative environment.
Understanding the newest generation in the workforce
Born between 1997 and 2012, Gen Z is the newest generation on the block of the modern workplace and they are already making their mark in the world of work. Known for being opinionated and purpose driven- this generation knows what they want and they are unlikely to accept anything less. With Gen Z expected to make up 27% of the workforce by 2025, recruiting and retaining these newcomers is fundamental to employer’s growth strategies.
Gen Z are unique to their Millennial and Gen X predecessors in that their perspectives and opinions on careers, employers, and workplaces differ greatly and they aren’t afraid to say it.
Getting to know Gen Z: Who are they and what do they want in their careers?
They’re digital natives
Generation Z is the first generation to be complete digital natives. Unlike millennials, many of whom still remember dial-up connection, this generation was born into a world of already advanced technology. Never having witnessed the non-internet era, Gen Z is able to not only navigate the current digital world effortlessly but they are also able to adapt more easily to new technology.
They take interest in the ‘non-traditional’
Gen Zers are exploring non-traditional careers like freelancing, social media, and tech-based innovation more than ever before. They have a unique entrepreneurial spirit that has seemingly steered them away from traditional career paths- whether that’s due to their ambition and initiative or simply a result of watching those before them struggle for decent work-life balance while climbing corporate ladders, either way, they know it’s not the future they want.
They’re fiercely committed to diversity, inclusion, and sustainability.
Gen Z is more racially and ethnically diverse than previous generations, according to the Pew Research Center. So it comes at no surprise that this generation highly values and is extremely vocal about the importance of diversity and inclusion within organisations. Having a sense of belonging, not just for themselves but for everyone around them, is essential for them when evaluating potential employment opportunities and they are more likely to apply to organisations where D&I is clearly emphasised. Additionally, Gen Z wants to see companies ‘walk the walk’ and not just ‘talk the talk’, they want a clear example of what employers are doing to become more sustainable. According to the latest Randstad Workmonitor report, which gathered the opinions of 35,000 employees across 34 markets, almost half of Gen Zers said they would not accept a job with an employer that is not actively working to become more sustainable.
They are purpose driven
Gen Z has made it clear that they want to stand behind brands and products that stand for something and make a difference in our world today. If they’re willing to abstain from purchasing products from brands they feel lack a genuine purpose, they’re unlikely to want to work for them either. This generation wants more than a purely transactional relationship with their employer; they want to be led by inspiring individuals who share their purpose-driven values. Driven by their desire to make an impact and be a part of something bigger than themselves, the members of Gen Z don't want to be just another name on a company’s roster and they are willing to walk away from a role or opportunity that doesn’t meet their standards.
37% of Gen Z have quit a job that didn’t fit in with their personal life.
They want flexibility and balance
Many Gen Zers entered the workforce during unprecedented times and circumstances: some essentially started university virtually, some graduated virtually, and some started their careers virtually- all missing out on a ‘normal’ experience. Due to the pandemic and its aftermath effect on the traditional workplace, it’s likely that most of this generation has never stepped foot into a ‘typical’ office environment, been office-based full-time, or possibly even experienced the now, semi-outdated, 9-5 workday. Starting their careers during this shift to more remote and hybrid working has clearly shown Gen Z what they want in regards to work-life balance and flexibility, and they aren’t afraid to say it. Like Gen X and Millennials, Gen Z is willing to work hard but they are even more protective over their personal time and lives. The 2023 Randstad Workmonitor Report showed that four out of ten Gen Zers said they wouldn’t accept a job if it didn’t provide flexibility around where they work, while 46% said they also wanted to maintain flexibility over working hours. Gen Z wants to be able to succeed in the workplace while still being able to enjoy their lives, and they are actively choosing employers who are committed to providing their employees with that kind of balance.
They have salary at the top of their check-lists
Factors such as salary and financial security are still extremely important to Gen Z; they’ve seen the struggle their Millennial counterparts have endured over the years and want no part of it. As Gen Z entered the workforce, the UK saw a cost-of-living crisis emerge- with the prices of food, energy, gas, and rent sky-rocketing around the world, making day-to-day life difficult for many.
Recent data from the Office for National Statistics showed that for the first time in 2 years the average wage growth in the UK, in the three months leading to August 2023, rose just above inflation. Average weekly earnings for total pay excluding bonuses grew by 7.8% compared to the same period in 2022 while the inflation rate for the Consumer Price Index was 6.7%, indicating that wages are currently rising quicker than prices. In contrast, rental prices are still growing at record high rates, rising to 5.7% in the year to September 2023. The Royal Institution of Chartered Surveyors stated that due to the rising demand of tenants and the dwindling supply of available rental properties, rental prices are expected to increase by an extra 5% on average across the UK over the next year- making the increased growth of average wage over inflation basically insignificant to anyone that is currently renting.
Interestingly, Randstad’s workmonitor report reveals that 42% of Gen Zers say they wouldn’t mind earning less money if they felt their job contributed towards society. However, the tumultuous economy that most Gen Zers, and in all fairness, Millennials, have experienced thus far in their lives gives a clear indication as to why the remaining 58% still feel that having a sense of financial security is absolutely crucial.
They’re eager to grow their skills and climb the career ladder
The world of work has experienced a huge amount of change over the last 40 years and it’s not slowing down anytime soon. The skills necessary for a role 5 years ago are not the same ones needed today, which is why Gen Zers place such a large emphasis on finding an organisation that offers ample opportunities for career growth and skill development. They want to learn everything they can and if they feel that a role won’t allow them to develop new skills or grow their careers, it will be an automatic deal-breaker. And while they’re always eager to learn more, the newcomers from Gen Z also want to feel that their current skills will be put to good use from the moment they step through the office door.
What's next?
For some employers, the thought of recruiting Gen Z may feel like sailing into uncharted waters, but it’s an integral step that can't be missed if they want to build a strong and skillfully diverse team. Not only are the younger generations bringing new perspectives, ideas, and talents to the workplace but they are also the ones turning the dial when it comes to expectations at work- and if employers don't commit to keeping up with these societal changes, they'll have a very low chance of attracting, recruiting, and retaining Gen Z and a very high chance of getting left behind as the workplace continues to change.