Understanding The Expectations And Motivations Of Gen Z As They Begin Infiltrating The Workforce

Strategies for optimizing Gen Z workforce management and retention

With 10,000 Baby Boomers hitting the retirement age each day, significant demographic shifts are underway in the workforce. Although millennials, or Gen Y, currently represent the largest demographic in the US workforce, it is projected that almost every entry-level position in the country will be occupied by a Gen Z worker by 2030. This generation, also referred to as “Digital Natives” and iGen, represents the future frontline of the American workforce.
 

Born between 1997 and 2010, Gen Z workers have very different expectations and motivations compared to previous generations. Organizations that can successfully tap into their unique motivations will be better positioned to attract and retain Gen Z talent. Conversely, those that fail to do so will be at a disadvantage in the competition for skilled workers. Understanding Gen Zers and how to manage them effectively is, therefore, mission-critical to business success and sustaining a company’s competitive advantage.

Retaining and unleashing Gen Z talent largely hinges on the effectiveness of managers. However, most managers have not received any education or training in how to optimally manage Gen Zers. Without a proper grasp of how to effectively manage and maximize the potential of Gen Z employees, at best managers run the risk of underutilizing their skills and hindering their growth and at worst demotivating and alienating them.

Core to understanding this generation is recognizing that Gen Z has grown up entirely in the digital age, an age of hyper-technological advancement, with no recollection of a time before technology, social media, and online connections. Additionally, the Covid-19 pandemic came at a critical moment for this generation, instilling a deep sense of uncertainty about their future. Their experiences with completing education and starting careers amidst a pandemic, economic uncertainty, and social unrest have shaped their values and beliefs. Collectively these factors have contributed to this generation's disillusionment with the establishment and capitalism, and as a result, they are often seen as skeptical of the status quo and they are actively involved in social movements and systemic societal issues.

By understanding and internalizing what matters most to Gen Z, managers can create a more engaging and productive work environment that is better suited to the needs and expectations of this generation, ultimately leading to greater engagement and retention. Managers can provide adequate support to Gen Z workers if they understand this generation’s desire for the following characteristics in a work environment.

Transparent and Open Communication

To establish a stronger relationship and gain the trust of Gen Z, it is essential to prioritize transparency. Rather than limiting information transfer to a "need-to-know" basis, adopting a more "open-access" policy better satisfies Gen Z’s desire for information. Communicating more frequently, openly, and with greater transparency empowers Gen Z workers to make informed decisions and feel more connected to the organization. This recommendation applies even to information that may be difficult to hear or ultimately disadvantageous, such as news about budget cuts, supply chain challenges, or unsatisfactory business performance. Such transparency helps alleviate Gen Z's anxieties, provides them with a sense of control, and enables them to process a situation more effectively.

Opportunities for Growth and Continuous Feedback

Providing adequate compensation and ensuring they enjoy their work is insufficient to retain Gen Z employees. Organizations must also offer ongoing professional growth and development opportunities. Gen Zers ask themselves whether they can envision a future at the company and whether there are sufficient opportunities for uninterrupted career advancement.

Generation Z also demands regular feedback. Having been raised in an environment of instant feedback, where social media rewards and likes are promptly granted, Gen Z individuals crave more feedback from managers compared to earlier generations. In fact, according to a survey on the State of Gen Z, 40% of Gen Z want daily interactions with their managers and if they do not engage with their managers with this level of frequency, they may believe they have done something wrong.

A Sense of Purpose and Personal Mission

While all employees need to understand their roles and responsibilities, it is particularly important for Gen Z to comprehend how and why their role fits into the bigger picture. For Gen Z employees, a strong sense of purpose in their day-to-day work can be a powerful motivator. Establishing a strong sense of workplace mission and values is crucial in earning the respect and loyalty of Gen Z employees, who prioritize social consciousness and desire to see that their employers have a tangible societal impact. According to The Conference Board, 99% of employees believe that organizations should respond to social change issues, especially those around racism and gender inequality, but Gen Zers are also skeptical of vague organizational statements of value and purpose that lack concrete action. They seek transparency and authenticity, and are more likely to engage with organizations that demonstrate a genuine commitment to their stated societal purpose. Organizations that create space for Gen Zers to find a sense of purpose and demonstrate that they matter will attract and retain them.

As Generation Z infiltrates the labor market at scale, the need to better understand this generation’s characteristics has become more acute. In order to retain Gen Z talent, it is crucial to provide managers with a clear understanding of what drives and motivates Gen Zers. This includes educating managers on the unique characteristics and expectations of Gen Z workers and how to adjust managerial approaches accordingly. In doing so, organizations can optimize their management practices of Gen Z and create a more engaged and productive workforce.

Author Bio

Heide Abelli is the Co-founder of SageX Inc., an AI-enabled e-Coaching and performance support application for the modern workforce. She is an accomplished executive who prior to SageX has held senior leadership positions at leading educational technology and training providers such as Skillsoft and Harvard Business Publishing where she developed award-winning, ground-breaking corporate training solutions. She is a seasoned veteran of product development, innovation and product management in the fields of corporate training and ed tech. She is also an Adjunct Professor of Management at Boston College. Connect Heide Abelli