Who are Gen Z?
The Pew Foundation, an American NGO working to inform policy, says in an article titled Where Millennials End and Generation Z Begins, “[Generational definitions] can provide a way to understand how different formative experiences (such as world events and technological, economic, and social shifts) interact with the life cycle and ageing process to shape people’s views of the world.”
Gen Z, also known as Digital Natives, were born between 1997 and 2012 and have grown up immersed in technology. They have had access to global media content, engaged with people all over the world, and, as such, had their value systems tested at a young age. Through this exposure, they view a world with endless possibilities. Therefore, they have high expectations about what they want and, quite frankly, what they deserve.
Markos Stavrou, founder of Genlink, a consulting and insights firm that specialises in connecting with the next generation, explains that three major events shaped the way Gen Z behave compared to other generations. They grew up with the internet and smartphones; their parents faced the 2008 financial crisis and global economic uncertainty, and the Covid-19 pandemic occurred during their formative years. “As a result, they desire everything instantly and struggle with the concept of delayed gratification. They see online communication as a normal way of building relationships and interacting with the world.”
This means that recruiting and retaining this generation in an environment that may feel inflexible and too contained for them may not be as easy as it has been with previous generations, necessitating a shift in corporate culture and strategy.
What makes Gen Z tick?
Understanding the required shift requires a deeper dive into what makes Gen Z tick. One important observation is around their attitudes to work. “An alarming statistic is that Gen Z change jobs up to 10 times between the ages of 18 and 34,” Stavrou says. One reason for this, he notes, is that a job does not define Gen Z. The 2024 Gen Z and Millennial Survey: Living and Working with Purpose in a Transforming World, conducted by Deloitte, found that only 49% of Gen Zs said their job is central to their sense of identity. Above all else, they value friends and family.
“This explains why 42% of Gen Zs want work-life balance,” says Stavrou, “Remote working and flexibility are listed as top priorities when they look for a job.” However, this does not mean the generation is interested in part-time or freelance employment. While they may want a hybrid work environment – to feel part of a team but also have the flexibility to work from an external location – they also want to be employed formally, according to a McKinsey article titled ‘True Gen’: Generation Z and its Implications for Companies.
GIBS professional associate Quinton Pretorius and next-gen adviser Stuart Fisher break down the needs of Gen Z as a group:
- They are emotional, self-aware, and have a greater sense of empathy than their predecessors.
- They are more impressionable and susceptible to influence than previous generations, but McKinsey notes that they are more pragmatic than millennials.
- They are very confident and self-assured in who they are and the value that they bring to the workplace. Pretorius, however, warns employers that while Gen Zs typically have a good sense of self, those who grew up in the suburbs believe that employers will derive value from employing them, while Gen Zs born in the townships, those who are fighting to extricate themselves from a cycle of poverty, still believe that they need their employers more than their employers need them.
- They want the workplace to fulfil the role of the family. According to Pretorius, where older generations distinguish between home and family, Gen Zs don’t.
- They want to be seen and to be recognised. “Where Gen X works to be appreciated and asks, ‘What must I do to be loved?’, Gen Z asks a slightly different question, ‘What must I do to be seen?’,” says Fisher.
- They need regular short bursts of recognition. Pretorius says a quick WhatsApp message saying, “You did great today” can be extremely meaningful to them.
- They are also more prone to anxiety and depression than previous generations.
Stavrou says, “Gen Zs aren’t as emotionally prepared to face hardship, conflict, and change as previous generations, and they also have a deep fear of failure.” In fact, McKinsey found that they are so averse to conflict that they would rather resign from a job than raise an issue with a superior.
Accommodating a new generation
Gen Z also values authenticity and is civic and environmentally minded. They will look to work for companies that reflect these values. Stavrou explains that authenticity is important and that it can “make or break your relationship with them”. He says that they expect organisations to be sincere in their support of social and environmental issues.
This is also a generation that is radically inclusive and values diversity. They accept differences of opinion and don’t want to be pigeonholed; they believe that they must be appreciated for what they bring to the table as individuals. Ironically, articles like this one fly in the face of what they inherently believe about themselves – that each individual is unique.
Pretorius explains that while older generations are happy to work in hierarchies, Gen Zs don’t like this type of structure. “They don’t require long meetings, they want quick answers, but they feel they should be able to access anyone in the company, not only their direct line manager,” says Pretorius.
The new generation also demands flexibility. “Because of their ability to multitask and do many things at once, they want that incorporated into their work life. The days of timesheets, having to check in and track what you have done, are gone. They want to be trusted to do their work and be measured on their outcomes,” says Fisher.
Interestingly, Gen Z engages and forms bonds equally well online, in fact, better than they do in person. “So, a WhatsApp video call means as much to them as an in-person interaction,” says Pretorius.
Retaining your Gen Zs
Keeping the Gen Z characteristics in mind, the workplace must adapt accordingly. Pretorius says, “Workspaces must cater to [Gen Z’s] ability and desire to multitask. Workspaces that limit internet access will literally suck the life out of young people. They have to have multiple inputs to feel productive.”
Pretorius and Fisher also urge businesses to create spaces that allow Gen Z to work the way they want to. Pretorius says, “A good example of this is Google's headquarters, where people can play table tennis and then go back to work. It gives them flexibility and reinforces the notion that you trust them.”
Stavrou takes this a step further. He says that gamification of the workplace makes the workplace more fun and can increase employee retention. “Introducing rewards such as badges, acknowledgement, and/or a day off for completing tasks can improve employee happiness, reduce stress and increase productivity.”
But retaining Gen Zs is about more than just creating the right environment. They are a generation that needs purpose. This is more important to them than money, says Stavrou. “More than 50% of Gen Zs say they would choose work that is more interesting above a higher-paying but meaningless job,” he says. They want to improve the state of the world. Companies that help them achieve this goal will have happier employees and greatly increase their productivity.
This generation also wants to feel personally valued. Pretorius says, “They want to be seen, to be known by name, and to be personally engaged.” Stavrou elaborates by saying, “While wanting to be valued doesn’t make them unusual, what makes Gen Z different is they are openly asking for it without the previous generations’ self-consciousness or self-esteem triggers.”
Fisher sums this up saying, “Where previous generations made the effort to fit into the company culture, you need to make Gen Zs feel welcome, valued, and important.”
Leaders must still lead
This generation, however, still requires leadership. “We must be mindful that there are still things they need to be taught,” says Fisher. Leaders need to strike a balance between accommodating Gen Zs while still working to ensure that the business survives.
Fisher stresses that Gen Z managers will need to learn how to manage Gen Z workflow. “We know that Gen Zs can get distracted very quickly, so the skill is to balance monitoring that the work is moving forward while providing the support and flexibility that is needed.” He recommends using “encouragement coaches”, people who touch base with and affirm young staff throughout the day.
Stavrou agrees and says that Gen Zs still need to learn and understand the reality of the working world if they wish to succeed in their careers. But, he says, “Companies are going to have to adapt and make cultural and structural changes to accommodate this new generation.”
KEY TAKEAWAYS
- Gen Z is entering the workforce and bringing a new worldview with them.
- They are not defined by their job like previous generations were, so it is more difficult to retain their talent.
- Businesses must adapt how they manage and lead their staff complement to accommodate Gen Z.
- Gen Z is more empathetic, inclusive, and socially and environmentally minded. They want to work for companies that authentically embrace these values.
- Play is as important as work, so office spaces need to allow for their need to multitask.
- This generation requires leadership, so leaders still need to lead.
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