As each generation of workers hits the workforce, it brings challenges, opportunities and values for organisations and management teams that often cause a change in the workforce environment.
Generation Z (also known as Gen Z, Zoomers, iGeneration, or centennials) is the youngest and latest generation to join the workforce. Gen Zers include the 72 million people born between 1997-2012 (in 2023 they range between 10-25 years old) and follow the millennial generation.
Before we look into how they are affecting changes in the workforce, it is important to understand what shaped them, their values, political views and priorities in society. Generation Z has been raised in the digital age with advanced and accessible internet, social media, and technology at their fingertips and as a part of their everyday lives.
Their generation may not have fully understood what the 2008 recession was; however, they witnessed it through the lens of a child and how it affected their parents' financial stability and stresses. Then, to top it all off, they experienced the COVID lockdowns and restrictions as children and teenagers in what most would call the most influential time for socialising and going through moments that society considers a 'right of passage', such as year 12 formal and graduation, teenage parties and getting your first minimum paying job at sixteen.
Generation Z is also not afraid to use their voices and is often filled with a huge sense of justice in the world, with a passionate emphasis on mental health, environmental sustainability, and climate change (…Yes, Greta Thunberg is a Gen Zer), along with driving more diversity, inclusivity, and equality with their political views.
Financially, Gen Zers are generally good at understanding the value of a dollar and are a generation that understands how to save and invest their money in an attempt to find and create financial stability and freedom. This can be attributed to the hardships they saw their parents go through during their childhoods, and many already understand that the great Australian dream of owning a house is quickly slipping away.
Generation Z's Work Ethic
Now, usually, when we talk about the youngest generation coming through life, we often hear, 'Back in my day, we would never have done that' or 'Young people these days' usually accompanied by an eye-roll, but the truth is that every generation has good and bad traits.
When it comes to Generation Z, they often get mislabeled as lazy or unwilling to work when, in fact, this generation is just taking a different approach to work compared to the previous generations. Instead of living to work, they are challenging the status quo when it comes to traditional 9 to 5 working environments. Instead, they want to ensure they create a sustainable work-life balance… so gone are the days of unpaid overtime or working without the recognition of a fair wage; they are the generation that works when they are on the clock and leave once the working day is over, which isn't being lazy it's simply setting boundaries and ensuring they are financially rewarded for the time they put into work.
They also seek a high sense of fulfilment and want to be extremely passionate about the work they do behind their paychecks. One way many of them are achieving their passion is by starting their own businesses and side hustles. This leads us to a generation filled with entrepreneurs who aren't afraid to back themselves and take a risk. Gen Z is more entrepreneurial than any other generation, with a keen eye for identifying new business opportunities and the technical savvy abilities to get started.
A Generation of Entrepreneurs
Almost 50% of Gen Zers use their savings as start-up costs for their businesses.
72% of Gen Z respondents reported having a side hustle, with the majority earning between $500 and $1000 monthly in their businesses.
Gen Z entrepreneurs aren't just sole proprietors, with 39% going beyond being their own boss and having 5 employees or more.
46% of Gen Zers said they are willing to take risks
These statistics should excite older generations as they prove that Gen Zers are prepared to work hard in life and will become our next wave of business owners. This is a positive prospect for businesses as they can plan for successful succession plans in the future!
How to retain Gen Z's?
In case you haven't worked out by now, Generation Zers are extremely tech-savvy and, therefore, efficient, so one of the biggest issues businesses will need to address is keeping them engaged at work. By all means, this doesn't mean overloading them so much they burn out; however, it does mean making sure they have enough work where they are stimulated and involved in the business and team. In general, engaged employees typically have less stress than those who are disengaged and are also less likely to watch and seek opportunities in other organisations and, therefore, offer more loyalty to your business.
On the same wavelength of keeping these young people engaged is assisting them to upskill and grow through learning opportunities for their own professional experiences. Promoting and progressing them in your business will also increase the likelihood of them staying in the business for longer.
As mentioned earlier, Gen Zer's priorities stem from wanting to create a better and more sustainable environment for the future and an emphasis on mental health. This means that your business should genuinely care and be active in maintaining good corporate responsibility in the workplace and have initiatives that look after employees physically, financially, and mentally.
Now, this last piece of advice isn't specific to just Generation Z; however, it is still an effective way to retain your staff at any age. One of the biggest things managers (both direct and executive) can do to retain staff is to ask questions and listen to their employees to understand what motivates and drives them. Remember, when asking them questions, get down to the nitty-gritty, e.g., if your employees are looking for more flexibility, get them to define what flexibility means to them. Then, as a business, you can determine whether it can be accommodated and how. Ultimately, by listening to them, you can develop a working environment and culture in which your employees can thrive and encourage them to stay engaged and continue to positively contribute to your business.
Key Take Away
The important thing to remember is that every generation has a few bad apples in the bunch; however, there's no reason to disregard the rest of the generation. Generation Z are prepared to work and drive businesses forward to succeed, particularly when they work for organisations that highly resonate with political and moral views.
If you need assistance staffing your business, contact us today for specific and tailored recruitment and hiring services.
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