Generation Z Workforce Needs

Understanding Generation Z’s Workforce Needs

Companies that want to remain competitive in today’s market must attract and retain top talent, which is especially important as Generation Z (Gen Z) begins to take on key roles. Gen Z's needs differ from those of current leadership, and research shows that this group is unlikely to stay in environments where they feel unhappy. Companies that adapt and align with the values of Gen Z will find greater success.

Fortunately, at our core humans have the same basic needs. When it comes to work we all want to feel safe, feel valued, and have autonomy. Throughout history, each new generation has been met with concerns about work ethic, culture, and values, leading to workplace inefficiencies. Gen Z'ers have been raised in a different world than previous generations which impacts their unique perspective on work.

This article explores two critical needs that define Generation Z's workforce expectations:

1. Individual growth

2. Organizational ethos

By understanding these needs, organizations can take action to better motivate and retain Gen Z talent.

Who Is Generation Z?

Generations are shaped by significant events and cultural shifts, influencing shared values and perspectives. Generation Z, born between roughly 1996 and 2013, has been referred to by many names but is most commonly known as Gen Z. Cell phones, fast internet, and social platforms are expected, along with instant gratification, affirmation, and education (think Google and "YouTube University"). Recognizing their norms is the first step to building connection.

As the first wave of this generation emerges from schools and enters the workforce, businesses are striving to understand their desires and preferences. Although nationality and gender influence workplace expectations, many common themes emerge across global studies. Research shows that Gen Z has two major priorities when it comes to their careers: the desire for individual growth and a commitment to working for companies with a strong organizational ethos.

The Importance of Individual Growth

Gen Z places a high value on individual growth and development. Research shows that learning new skills, such as problem-solving, public speaking, and critical thinking, are essential for this generation's workplace commitment. In fact, a significant portion of Gen Z employees believe that working is synonymous with learning and self-development.

The defining life event for Gen Z—the COVID-19 pandemic—has contributed to this need for growth. The pandemic disrupted employment opportunities, leaving many young people without jobs or internships during their formative years. As a result, Gen Z feels the pressure to catch up and is eager to develop the skills necessary for career advancement.

Universities have traditionally been a place where young people gain the knowledge they need for the labor market, but the pandemic has intensified the need for further skill development on the job. Gen Z workers are not only looking for opportunities to grow but also expect regular feedback to support their progress. Having grown up in the digital age, this generation is accustomed to receiving constant feedback, and they seek similar experiences in the workplace. Organizations that provide regular appreciation and recognition will better engage this young workforce.

Aligning with Organizational Ethos

Gen Z’s commitment to an organization's ethos—the core values and principles that guide a company—cannot be overstated. This generation is willing to leave jobs that don’t align with their values. A significant number of Gen Z employees have already turned down job offers due to misalignment with their personal values.

Three aspects of organizational ethos are particularly important to Gen Z:

1. A positive work environment where there is visible alignment with company values.

2. Studies have shown that Gen Z employees want a friendly, inclusive work environment that fosters collaboration and diversity.

3. Flexibility in work hours and location is also a top priority, as it provides the autonomy they crave.

Moreover, Gen Z feels strongly about corporate social responsibility (CSR) and the ethical conduct of the companies they work for. This generation places a higher value on social and environmental responsibility than on financial rewards such as bonuses or benefits. Companies that actively engage in CSR programs and demonstrate ethical business practices are more likely to retain their Gen Z employees.

Preparing for the Future Workforce

Businesses that want to stay ahead of the curve must pay close attention to the preferences of Gen Z, who make up almost 30% of the global population. With their strong desire for growth and alignment with company values, Gen Z will play a crucial role in shaping the future of work.

To attract and retain Gen Z talent, companies need to invest in employee development programs and create a work environment that encourages individual growth. Leaders should focus on providing regular feedback, recognizing achievements, and fostering a sense of belonging within the team. In addition, organizations must evaluate their ethos, ensuring that their values, work environment, and CSR initiatives resonate with the younger generation.

The future workforce is already here, and organizations that adapt to meet the needs of Gen Z will benefit from a highly motivated, committed, and engaged group of employees.