Insights for Managing the Gen Z Workforce

The future depends on a Gen Z workforce. It is the one-click, all-digital generation growing up in a borderless world. According to reports, in 2025, 27 percent of the workforce in OECD countries will be Gen Z.

Born between 1995 and 2009, Generation Z—or Gen Zs—have grown up entirely in the digital age. They have never known the world without the internet; instead, their lives revolve around the latest tech—from smartphones to virtual reality gaming headsets—which play out across a growing mosaic of social media channels. This tech savviness and dependency sets them apart from their predecessors: Millennials, Generation X, and Baby Boomers.

How does the Gen Z workforce define their performance?

Unlike previous generations, for Gen Zs, a good work-life balance is essential and prioritized over climbing the career ladder. For them, building friendships and fostering positive relationships with work colleagues is often more important than job titles.

Gen Zs are also motivated by having a meaningful career that allows them to create a positive impact. Most of them want to be employed by companies that are aligned with their values and where they are empowered to drive change. Likewise, they prefer working in healthy environments that encourage open communication and flexibility.

They have a strong desire to continually explore new ideas, try new things, and eagerly seek feedback. They embrace the opportunity to refine and enhance their knowledge through interactive learning. Unlike previous generations, they foster a growth mindset rather than adhering to a ‘one and done’ approach.

With vast amounts of information at their disposal, they are more pragmatic and analytical about their decisions than members of previous generations were. As per  McKinsey report, 65 percent of the Gen Zs in claim they particularly value knowing what is going on around them and being in control. This generation of self-learners is also more comfortable absorbing knowledge online than in traditional institution of learning.

Diversity, equity, and inclusion are non-negotiable for GenZs. They thrive in environments that reflect the diverse world they have grown up in, which is multidimensional and extends to gender, race, ethnicity, neurodiversity, people with disabilities, and a diversity of ideas, experiences, and backgrounds.

The environment is Gen Z’s No. 1 concern. Hence, they want the companies they work for to be environmentally friendly.In fact, 55 percent of Gen Zs research a company’s environmental impact and policies before accepting a job – with 17 percent having changed jobs or sectors due to climate concerns.

Strategies to manage the Gen Z workforce

While leaders may excel at collaborating with older generations, dealing with younger generations like Gen Z could present unique challenges. Failing to address Gen Z’s concerns not only puts an organization’s reputation at risk but also its future workforce.

The key to unlocking the immense potential of Gen Z lies in adapting leadership that aligns with their values and aspirations. Here are some of the best strategies to follow:

Develop a non-hierarchical structure

In non-hierarchical structures, all team members are encouraged to contribute their ideas and expertise regardless of age. This emphasises collaboration and equal participation from all rather than a strict top-down structure for decision-making.

Gen Z appreciates this approach as it fosters inclusivity and encourages diverse perspectives, allowing them to feel valued and empowered in the workplace.

Use the latest technology in the workplace

Gen Z is a generation of digital natives who are comfortable using technology for communication, collaboration, and learning. Hence, they expect their employers to provide them with the latest tools and platforms that enable them to work efficiently and effectively. 
As per a study by Dell, 80 percent of Gen Zers aspire to work with cutting-edge technology, and when it comes to choosing employment, and 91 percent say technology would influence their job choice among similar employment offers.

Introduce flexible work options

Gen Z workers value the flexibility of remote and hybrid work options, which became the new global norm during the pandemic.  Remote and hybrid work fosters productivity and fewer workplace distractions and minimizes many of the stress drivers that exacerbate Gen Z workers’ mental health concerns.

Focus on employee well-being

Gen Z is increasingly vocal about mental health and well-being. Hence, they appreciate leaders who prioritize this aspect in the workplace.

This is particularly important as Gen Z are more prone to anxiety and other mental health issues. Therefore, leaders need to create a more supportive and understanding work environment that resonates positively with Gen Z employees.

Learning and development opportunities

Gen Z values continuous learning and development. Studies show that 74 percent of Gen Z employees would even consider quitting their jobs if skills-building opportunities were unavailable. As such, leaders who provide opportunities for skill development, training, upskilling, and career growth appeal to Gen Z workers eager to expand their knowledge and advance their careers.

Set clear expectations and communication

Leaders should communicate the company’s vision, mission, and goals to Gen Z employees to show them how their work contributes to the bigger picture. Laying out clear expectations is imperative, as it fosters a sense of direction and purpose. Moreover, by engaging in ongoing dialogue with Gen Z employees, leaders can identify areas for growth and development – it helps in providing targeted feedback and guidance to support their professional evolution.

Cultivate a diverse environment

Leaders need to actively cultivate diversity throughout all levels of the organization to attract Gen Z. To do this, leaders need to assess the present employee ratio in the organization and set clear DEI goals, including a timeline and accountability plan. They can also invest in comprehensive diversity training programs for all staff to address topics such as unconscious bias, fair treatment, microaggressions, and inclusive leadership.

Be purposeful and socially conscious

To attract and retain Gen Z talent, leaders must demonstrate a genuine commitment to social and environmental causes. This can include implementing eco-friendly practices, supporting local communities, and taking a stand on important social issues.  

Connect them with the other generation

Once leaders hire/attract Gen Zs, they need to integrate them into a workforce made up of five generations. If this is done correctly, it will help less tech-savvy leaders embrace Gen Zs in their team instead of being intimidated by their digital skills. It will also encourage experienced employees to share their expertise with younger team members to help them grow professionally.

As an increasing number of Gen Z individuals integrate into the workforce, it becomes imperative for leaders to adapt to the evolving landscape of management preferences. While there is no one-set rule to handle this new workforce, continuous observation and learning can help leaders drive changes based on the unique perspectives they bring to the workplace.

In brief

Every day, a new batch of Gen Z talent is joining the workforce, each with unique preferences, unlike before. Having grown up in a tech-driven world, Gen Zs value flexible work setups and digital skills and care deeply about social and environmental causes, which differs from what older generations prioritize at work. To attract, engage, and retain this next-gen talent, leaders must delve deeper into understanding what motivates and drives this cohort.