Understanding Gen Z: Employers Seek Strategies to Manage Younger Workers

As organisations strive to adapt to the evolving workforce, a major challenge has emerged: managing Gen Z employees.

This generation, encompassing individuals aged roughly 14 to 26, brings distinct expectations and values that differ significantly from previous cohorts.

The Rise of Gen Z Whisperers

Jackie Cooper, Chief Brand Officer at Edelman, was taken aback when a panel of top marketing executives unanimously identified "Gen Z" as their biggest challenge. This revelation led to the creation of Edelman’s "Gen Z Lab," designed to provide insights and strategies to businesses seeking to understand and engage this demographic. According to a 2022 survey by Edelman involving over 20,400 respondents across 14 countries, Gen Z prioritises issues such as health, finances, and social and political causes, and believes companies have a greater role than governments in solving societal problems.

Navigating New Workplace Dynamics

Gen Z's integration into the workforce has been transformative. They have grown up in a digital age, experienced the global financial crisis, and come of age during the COVID-19 pandemic, which has profoundly influenced their worldview. This generation values flexibility, work-life balance, and meaningful work over traditional corporate hierarchies and long-term employment stability. They are more comfortable discussing private, social, and political issues at work, which can sometimes create tension with older colleagues.

Flexibility and Multiple Income Streams

Michael Franklin, a 24-year-old speechwriter and business adviser, exemplifies the Gen Z mindset. He emphasises the importance of flexibility and having multiple streams of income, viewing them as sources of freedom and empowerment. "I don’t want one stream of income," Franklin explains. "The way I see all these lay-offs happening, the instability of workforces and management changes at major corporations, I don’t want to be stuck with one organization." This approach reflects a broader trend among Gen Z workers who prefer portfolio careers and project-based work over traditional, single-employer career paths.

Bridging the Generational Divide

Advisers and consultants, including social media influencers and large consulting firms, have emerged to guide businesses in adapting to Gen Z's expectations. These "Gen Z whisperers" offer strategies for improving communication, promoting transparency, and addressing issues like sustainability and work-life balance. Alison Taylor, a clinical associate professor at NYU Stern School of Business, notes that this generation has elevated expectations across various domains, from mental health to climate change.

Impact on Corporate Practices

Gen Z's advocacy for social and political causes is influencing corporate behaviour, compelling companies to take public stances on issues they might have previously avoided. Maxime Lakat, co-head of the non-profit Re-generation, highlights that companies are increasingly concerned about recruiting and retaining young talent. "Companies are very worried about their ability to recruit or retain talent among the younger workforce," he says. This concern is driving companies to seek external help to stay relevant and competitive.

Communication and Accountability

Effective communication with Gen Z requires understanding their preferences and expectations. For instance, Jonah Stillman, a consultant specializing in generational differences, found that while Gen Z prefers face-to-face communication, they often define video calls as such. This shift in communication norms is crucial for employers to grasp to maintain a positive work environment.

Additionally, phenomena like "Quit-Tok," where younger workers document their job exits on social media, reflect Gen Z's desire for accountability and transparency. These actions, while potentially reputationally damaging, are viewed by Gen Z as constructive ways to address workplace grievances.

The Future of Work with Gen Z

Employers must navigate the complexities of a multigenerational workforce where nearly half of full-time workers in the US are now Gen Z or millennials. To attract and retain Gen Z employees, companies must offer flexibility, opportunities for meaningful work, and a supportive work-life balance. As Franklin puts it, "If you want me to do extra work, then we need to negotiate that. And I care about deliverables rather than the amount of time spent in a particular place or office."

The challenge for employers is to create an environment where Gen Z employees can thrive without compromising the needs and expectations of older generations. By embracing flexibility, fostering open communication, and aligning corporate values with those of their younger workforce, companies can harness the potential of Gen Z and ensure their long-term success.