Preparing for the next generation of employees: Generation Z
The next generation of workers has arrived. Companies that want to stay ahead of the curve need to make sure their hiring and management strategies are aligned with the expectations of Generation Z.
Nicole Crampton, 15 May 2017
Are you prepared for the next generation of employees? Generation Z, born between 1994 and 2010, is already entering the workforce, and you’ll need to make sure you understand what they’re looking for in an employer. Like every generation before, they have their priorities and perspectives, and a good manager will take the time to understand what those are.
As the Millennial generation grows into senior roles, and the last of the Baby Boomers retire, your managers and human resources teams will need to develop new engagement models to allow for the differences in generational motivation.
70% of next-gen workers surveyed in a recent study say that money is their top motivator, compared to 63% of employees from previous generations. You’ll need to plan to factor this generation of employees into your hiring and retention strategy.
But money is not the only factor; people of this generation are passionate about their work. 42% of Generation Z said the ability to pursue their passion is a top motivating factor, compared to 32% of Baby Boomers, Gen Xers and Millennials. Your company needs to be making an impact that will entice Generation Z employees to take up your cause and remain loyal to your business.
Find out all you need to know about the next generation of the workforce from this comprehensive guide:
Who are your next generation of employees?
In the next decade, you will find increasing numbers of Generation Z employees walking through your door. Here is what you need to know about them:
Who is Generation Z?
The oldest members of Generation Z have already passed their mid-20s. Whether you realised it or not, that means that they already make up most entry-level workers across all industries. If it’s been a while since you last reviewed your recruitment models, then now might be a good time to find out exactly what motivates Generation Z, compared to the older demographics in your organisation.
"We're seeing drastic differences between what drives employees in Generation Z compared to previous generations like Millennials," says Seth Matheson, director of Talent Fusion. "At this stage in the recruiting game, employers looking to attract future talent need to expand their focus beyond Millennials to understand the next generation's unique, practical job must-haves, and proactively develop a working environment that will keep them happy and motivated."
Generation Zs are more than willing to put in the extra effort to achieve goals. 60% of those surveyed said they would work nights and weekends for higher pay, compared to the 45% of Millennials, 40% of Gen Xers and 33% of Baby Boomers.
Members of this new workforce are also prepared to relocate for the job they want. 70% said they would move for a good job opportunity, with the other generations averaging at 52%. This means that if you’re not considering a younger candidate because they live too far away, you might be missing a golden opportunity.
What characteristics can you expect from your next-gen employees?
As with all your new hires, you want to know what you can expect, where they excel and where they need support. Otherwise, you could be playing to their weaknesses instead of their strengths, which will frustrate everybody.
“Businesses are still finessing how to accommodate multiple generations in the workplace, and the addition of Generation Z adds yet another layer for consideration,” says Jim Link, chief human resources officer of Randstad North America. “However, companies really can impact their recruiting and retention success by paying attention to what makes each generation tick and speaking directly to each group’s motivators.”
You’ll need to understand what they need to keep them engaged in your business, or you could be looking at high staff turnover and high costs associated with training new employees. Whatever the long-term aims and ambitions of your company might be, you need to retain staff to achieve them.
What you can expect from Generation Z
Generation Z employees appear to be more entrepreneurial, loyal, open-minded and less motivated by money than Millennials, according to a study conducted by Millennial Branding, a research and consulting firm, and Randstad, the third-largest HR services and staffing company in the United States. Here are three key characteristics of Generation Z, which will help you retain and engage your new workforce:
- Appeal to their entrepreneurial side Create a culture that enables them to focus on new projects directly tied to business success.
- Less influenced by money 34% say that they are most motivated by opportunities for advancement. This generation realised that they need to get a job and advance by learning as much as possible, and they know that learning sometimes doesn’t come with a bigger salary.
- They prefer to communicate traditionally Most Generation Z respondents say they prefer in-person communications with managers (51%) compared to emailing (16%) or instant messaging (11%).
What Generation Z expect from the workplace
When it comes to what Generation Zs are looking for in a job, they have a lot in common with Baby Boomers and Gen Xers, but they have different expectations when compared to Millennials. Health insurance, a competitive salary and a boss they can respect are the top three priorities for a Generation Z employee.
“As I talk to many employers, the focus is still on Millennials. There are many questions about perks like nap pods and free lunches,” says Matheson, previously mentioned. “However, a common theme we saw in the report is Generation Z's emphasis on some of the more 'traditional' benefits like health insurance and a quality, two-way relationship with their potential manager.”
To keep your Generation Z workers interested, you’ll need to keep your technology up to date. This generation grew up immersed in technology, and most of them believe that having access to the latest technology will make them productive and mobile.
Additionally, you’ll need to create a solid brand to appeal to the Generation Z workforce. “The key to successfully attracting and engaging Generation Z throughout their candidate journey will be a strong employer brand that is consistent across technologies,” Matheson said. “Organisational brands will need to be transparent, adaptable, personable and memorable, targeting the brand's ideal Generation Z employees through tools like social recruiting.”
How do you attract and retain the next generation of employees?
If you want to retain the next generation of employees, you’ll need to incorporate what they’re looking for into your current strategy. It’s easy to attract new hires, but they won’t stay for long if you don’t align with their expectations.
How to attract and retain Generation Z
Here are four elements that you’ll need to thread into your business to both entice and retain Generation Z workers:
1. They want offices, but with flexibility
41% of Generation Z respondents said that a corporate office is at the top of their preference, compared to only 28% in 2014, according to Future Workplace’s survey. On the other hand, "I have always been motivated by those working around me which influences and encourages me to push myself," says David James, a venture capital equity sales rep at Manhattan Venture Partners and Generation Z individual.
While the COVID-19 epidemic has driven most people away from the office, most Generation Z still wants to collaborate and learn from their peers. You’ll need to take this into account when designing your physical and virtual workspaces. "Flexibility, especially having the comfort to take time off in an emergency, is very important to me," says Robert McCormick, a Generation Z paralegal at McGivney & Kluger. If you wish to retain your Generation Z talent, you’ll need to come up with a flexible programme that works for both your business and your new workers.
2. They want face-to-face communications, but also for you to embrace social media
Generation Z workers prefer face-to-face communications, catch-up sessions and performance reviews over instant messaging or emails. "In-person communication is always ideal for me," says Peter Hulburt, at Club Monaco.
McCormick agrees, adding, “I prefer to communicate with my co-workers in person because it is important for developing an effective co-worker relationship.” With the evolution of technology, people will continue to seek connections with others instead of remaining detached and isolated.
43% of Generation Zs want their employers to incorporate social media into the workplace. "I do use LinkedIn quite often at work to network and connect with potential business and personal relationships," says James. Attract young talent and enable collaboration by embracing new technology and modernising your workplace.
3. They’re world travellers
Until the global pandemic at the beginning of 2020, Generation Zs travelled more each year than any previous generation. In a study by Expedia, it was found that under 30s travelled 4.7 times per year on business compared to 3.6 times for 30-to-45-year-olds.
60% of Generation Zs want to work in more than one country in their careers too. "Living and working in another country would be great for my resume and would be a chance to develop a broader worldview," says McCormick. While larger companies can offer global rotation programmes, smaller companies will either need to band together or find another option to entice Generation Z employees.