Get Ready for Gen Z Workers
 
Generation Z consists of the 25 percent of the American population that was born beginning in the late 1990s to the middle of the following decade.  According to the U.S. Census Bureau, Gen Z is larger than the Millennial or the Baby Boom generation.

The oldest members of Gen Z are beginning to enter the workplace.  By early 2020s, they’ll account for one-fifth of the workforce.  They will be followed by younger members of their generation for the next ten years, until 60 million Gen Z workers will be working beside members of older generations.

Gen Z is unlike the Millennial generation that preceded them in important ways:1

- Members of Gen Z grew up with digital technology. They can’t remember a world without the Internet, social media, or smartphones.

 
- Gen Z expects to continue to rely on parents for career advice. A Robert Half survey found that 82 percent expect their parents to help them choose a career.2  According to Bruce Tulgan, founder of Rainmaker Thinking, “This is the generation that’s had more guidance, direction, support, and coaching from parents, teachers, and counselors than any generation in history.”

- Perhaps because of that strong support network, Gen Z also emphasizes the importance of human contact. While they are more comfortable learning how to do their jobs from online tutorials than previous generations, they prefer face-to-face mentoring from their bosses.  Research by Millennial Branding and Randstad US found that 53 percent of Gen Z workers would rather communicate in-person than through text messages or videoconferencing tools.3

- Almost two-thirds of Gen Z wants to collaborate with a small group of co-workers in an office environment, according to the Robert Half study. Counter to the larger U.S. trend toward employees working from home, only 4 percent of Gen Z workers prefer to work independently at an off-site location.

- More than half of Gen Z members say they want to start their own businesses, according to a study by Universum.4 That’s a higher proportion than Millennials.

- They also want the ability to move from one work zone to another, from a quiet area where they can concentrate while working solo to open spaces elsewhere in the building where they can collaborate with colleagues, and perhaps an area outside the building where they can socialize, all without losing their Internet connection.

- Gen Z isn’t interested in a long-term career at a single company. A study by Adecco Staffing USA found that that 83 percent plan to stay at their first job for three years or less, while 27 percent intend to stay no more than one year.  A Robert Half survey found that they expect to work for four companies during their careers.

- While half of Gen Z would prefer to retire before the age of sixty, more than half expect to need to work until they’re between the ages of sixty-one and seventy. More than three-quarters of Gen Z workers anticipate that they will have to work harder than members of previous generations.  Because they came of age during an era of economic uncertainty, financial security ranks as a high priority for them.

- Unlike Millennials, Gen Z is more interested in having managers pay attention to their suggestions and ideas.

- Almost 40 percent are afraid they won’t be able to get a job that allows them to express their personality in the workplace.

- More than three-quarters of Gen Z believe that their employers should focus on “doing good,” and 45 percent say that working for a company that helps make the world a better place is just as important as the salary it pays.

- Gen Z ranks the following factors as the most important in choosing a job: career opportunities (64 percent); generous salary (44 percent); making a positive impact on society (40 percent); and job security (38 percent).  Only 6 percent care about a short commute, while a mere 3 percent would be tempted by a prestigious job title.  While a generous salary ranks second, they only expect to earn an average of $46,799 in their first year after college, according to the Robert Half survey.  About 80 percent would prefer to work for either a large international corporation or a mid-sized company.

- When it comes to working with Gen Z, managers will need to be aware that this generation ranks honesty (38 percent), as the most important characteristic of a good boss, followed by mentoring ability (21 percent), and passion (18 percent).

- Gen Z isn’t worried about working with the generation that preceded them, known as the Millennials or Generation Y. More than half believe that it will be easy, and when those who expect it to be “somewhat easy” are included, the percentage rises to 79 percent.  However, only 27 percent think it will be easy to work with Boomers, and 45 percent worry that it will be “very difficult” or “somewhat difficult.”  The primary reason, according to the Robert Half survey, is that Gen Z fears that Boomers won’t take them or their ideas seriously because of their youth.

- According to a study reported in Forbes, only 56 percent of Gen Z expects to attain a better standard of living than their parents, compared to 71 percent of Millennials.5

Based on these findings, we offer the following forecasts:

First, employers must focus on retention in order to make their investment in hiring Gen Z workers pay off.

As noted earlier, 83 percent of Gen Z workers plan to stay at their first job for three years or less, while 27 percent intend to stay no more than one year.  Researchers have found that it costs as much as $20,000 to replace a Millennial worker, so the faster turnover of a Gen Z workforce would increase the costs of recruiting and training a constant stream of new employees.

Second, managers from older generations will need to customize their leadership style in order to increase the retention of Gen Z workers.

Based on what the members of the new generation entering the workforce have told researchers, the Robert Half report recommends five guidelines for connecting with Gen Z:

1. Demonstrate that you respect them despite their youth and that you value their suggestions and opinions.

2. Keep current on the newest digital technologies.

3. Make sure that you communicate with them in person, rather than through email.

4. Provide continuous feedback and support.

5. Speak honestly and act with integrity.

Third, to maximize the productivity of Gen Z workers, employers will have to provide training to help them overcome the weaknesses in their skill sets.

One area that needs remediation is writing.  Because they’ve grown up using abbreviations and emoticons to send text messages, many young workers haven’t mastered the skills they will need to communicate effectively in a professional setting.  Unlike Boomers, who are generally adept at writing and slow to learn new technologies, Gen Z is quick to grasp new digital tools but still far behind in learning basic communication skills.  Companies will need to bring in professors to teach writing skills, while using MOOCs for additional lessons.  Also, Gen Z will enter the workforce without five key “soft skills,” according to Bruce Tulgan, author of Bridging the Soft Skills Gap.6  Employers will need to teach Gen Z employees how to:

- Evaluate their own performance.

- Take ownership of their actions.

- Maintain a positive attitude.

- Eliminate distractions in their personal lives that can affect their work.

- Increase their effectiveness and efficiency by learning how to organize their schedules and work at peak productivity.

Fourth, companies will need to give Gen Z workers the type of workplace experience they would gain if they pursued their dream of starting their own businesses.

The Adecco Staffing study found that Gen Z considers flexible work schedules one of the key benefits they seek in a job.  They also want opportunities to contribute their ideas, use the latest digital technologies, and collaborate with colleagues.

Fifth, employers must provide an environment that supports Gen Z workers’ efforts to maintain a healthy lifestyle.

Research by Nielsen found that 40 percent of Gen Z wants their employers’ cafeteria menus to offer food that is nutritious as well as derived from a sustainable source.  An even larger percentage of Gen Z is willing to pay more money for food that meets those requirements.  Studies by Millennial Branding and Randstad show that 40 percent of Gen Z workers want their employers to sponsor wellness programs.  For a small investment toward improving the quality of the food and the heath of the workers, businesses can earn a high ROI through reduced turnover and greater productivity.

References
1. For information about the uniqueness that is Generation Z, visit the BMC Software website at:

http://dsm.bmc.com/the-digital-natives-how-to-get-ready-for-gen-z-workers/

2. To access the Robert Half survey “Get Ready for Generation Z”, visit his website at:

https://www.roberthalf.com/accountemps/blog/are-you-ready-to-manage-generation-z

3. Gen Y and Gen Z Global Workplace Expectations Study, September 2, 2014, “Millennial Branding and Randstad U.S. Release First Worldwide Study Comparing Gen Y and Gen Z Workplace Expectations,” by Dan Schawbel. ⓒ 2014 Millennial Branding.  All rights reserved.

http://millennialbranding.com/2014/geny-genz-global-workplace-expectations-study/

4. To learn more about the Generation Z’s entrepreneurial attitudes, visit the Universum website at:

http://universumglobal.com/articles/2015/10/gen-zs-attitudes-future-careers/

5. Forbes, November 6, 2015, “7 Things Employers Should Know about the Gen Z Workforce,” by Kathryn Dill. ⓒ 2015 Forbes Media LLC.  All rights reserved. 

http://www.forbes.com/sites/kathryndill/2015/11/06/7-things-employers-should-know-about-the-gen-z-workforce/-53d0c1f22188

6. Bridging the Soft Skills Gap: How to Teach the Missing Basics to Today’s Young Talent by Bruce Tulgan is published by John Wiley & Sons, Inc. ⓒ Bruce Tulgan.  All rights reserved.