How Gen Z is transforming the future of work: Implications for businesses

Generation Z is the future of the global workforce and of the world’s economy. According to the World Economic Forum, by 2025, Gen Z will account for one-third of the workforce. 

As Gen Z members enter the workforce in ever-increasing numbers, they bring a tech-first mentality that will drive businesses further into digital transformation and disrupt the workplace more than any generation.   

Gen Zers are often called “Digital Natives”, who were born with the internet and raised with mobile technology. This generation has never known a world without the internet and social networks, and in many ways, they’re at the leading edge of shaping its future.

Their distinct priorities, skills, and characteristics will pose a challenge to companies, as attracting, managing, and retaining these younger workers will require companies to take a different approach.

Digital Natives in the workplace

Gen Zers have a different approach and perspective on careers, success, and corporate culture than other working generations. They are changing old social and cultural norms between employers and employees.

Business leaders who want to attract this generation’s unique perspectives and talents must understand what they want from their work environment. What differentiates them from their peers? What do they look for in their careers? 

According to a report from Snap and Oxford Economics, Generation Z considers themselves to be:

• Autonomous
• Agile—with an enhanced ability to absorb information and react to new challenges;
• Creative—particularly with digital; and
• Curious—making them particularly open to engaging in various forms of learning.
• Ultra connected
• Value- and ethics-led—particularly with their commitment to sustainability, diversity, and inclusion

These characteristics and unique skills put them in a strong position to make the most of the opportunities associated with the post-pandemic recovery and the digital economy.

To keep, attract, and retain Gen Z, businesses have to take creative approaches to work/life balance, salaries, to ownership. So they feel like part of the company and engage with its culture.

GenZ and the pursuit of entrepreneurship

Gen Z is the most entrepreneurial generation ever, being the most enthusiastic with regards to starting a business. According to the freelance platform Upwork, the growth of the freelance workforce is accelerating, and by 2027, America is set to become a freelance-majority workforce.

A recent study of Gen Zers concluded that 72% wanted to start their own company, seeing entrepreneurship as a way to have control over their lives, and turn their hobbies and life passions into businesses. 

This is undoubtedly tied to Gen Zers high level of digital literacy and their embrace of technology, which removed many entry barriers.

Another key driver of Gen Zers interest in entrepreneurship is a growing skepticism over the traditional pathway to career success—namely, higher education and climbing the corporate ladder. The high cost of education, the recent pandemic, and other disruptions has caused many to doubt that higher education leads to stable, long-term employment. 

On the contrary, Gen Zers are putting more trust in themselves; they would rather trust in their own skill and hard work, and the internet gives them the opportunity to earn a living this way.  They rely heavily on the web as a primary source of education, with Youtube and Tiktok how-to videos being a massive category of interest.

Implications for businesses

Gen Z and younger generations require a different approach to doing business, one that prioritizes purpose, technology and employee well-being. To appeal to younger generations, companies should be clear about their purpose and values,  and refine their approach to working with Gen Z. 

1. Embracing technology

Gen Z has proficiency in using various digital tools and platforms. The first thing Gen Zers expect to find in an office is the kind of tech they’re used to at home. A survey by Dell found that 80% want to work with ‘cutting edge’ technology in the office, while 91% said the technology offered by an employer would be a factor in choosing among job offers. 

Takeaway: Businesses must recognize and leverage this technological fluency to drive innovation, enhance productivity, and remain competitive.

2. Flexibility and work-life balance

Gen Z places a high value on work-life balance, and flexibility is the fastest-rising priority. In a survey by LinkedIn, participants were asked which EVP attribute is more important than salary in a post-Covid world, and half of responders said work-life balance is more important than salary.

Another analysis of the LinkedIn Economy Graph shows us that Gen Z’ers are 17% more likely than other generations to apply for remote positions. 

Takeaway: More than ever, the workspace needs to be flexible. Businesses must adapt to this shift by offering remote work options and creating a culture that supports work-life integration. Embracing flexible work can help attract and retain top Gen Z talent while fostering a more productive and satisfied workforce.

3. Continuous learning and skill development

According to the latest research, Gen Z workers are looking for personal growth – opportunities to acquire new knowledge, learning new skills and getting better at their jobs. 

This is one of the things that make them unique when very young people talking about personal growth. This same mindset seems to carry over to learning new skills and getting better at their jobs. A 2021 study by LinkedIn found that on average Gen Z’ers spent 12% more time developing hard skills with LinkedIn Learning than any other generation. 

Takeaway: Businesses should invest in providing ongoing learning opportunities, mentorship programs, and career development initiatives to attract and retain Gen Z talent. 

4. Collaboration and diversity

Gen Z is a generation that’s keen to collaborate and thrives in diverse and inclusive environments. They have grown up in a globally connected world and appreciate diverse perspectives. That means workplaces need to be intentionally designed for collaboration, open communication, and mentorship.

Takeaway: Businesses should foster a culture of inclusivity, provide opportunities for collaboration, and encourage open communication across teams and departments. By embracing diverse voices and ideas, businesses can tap into Gen Z's creativity and problem-solving skills, resulting in a more dynamic and successful work environment.

5. Purpose and Social Impact

One of the most significant differences between Gen Z is a preference for jobs that align with their values and passions. They are looking for jobs that allow them to make a difference in the world, such as working for companies that prioritize sustainability or social responsibility. They are passionate about social and environmental issues and expect their employers to share these values. 

Takeaway: Businesses that align their goals with social responsibility and sustainability initiatives will attract Gen Z employees motivated by a sense of purpose. Adopting ethical practices and integrating social impact into business strategies will resonate with Gen Z and enhance brand reputation and employee loyalty.

Conclusion

Businesses can embrace the changing landscape of work by analyzing insights on the values, expectations, and motivations of Generation Z entering the workforce. Companies that listen to their ideas and encourage them to engage in their work through flexibility and transparency will be better positioned to attract, engage, and retain Gen Z talent. 

By better understanding Generation Z, companies will also get valuable insights into what the future holds for business. 

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