The first generation to grow up with the internet and social media, Gen Z is the youngest and most diverse generation (source 1). Making up 30% of the global population today, they will represent 27% of the workforce by 2025 (source 2) and are bringing with them a new set of expectations that employers need to understand and respond to. In this blog post, we will explore what Gen Z wants from their employers and why a culture of ownership becomes a must-have for organizations who want to attract and retain talent.
YOLOing and FOMOing their way into the workforce
With the "You Only Live Once" (YOLO) and "Fear of Missing Out" (FOMO) mindset engrained in many, Gen Zers are not content to stick with one career or job for their entire working lives. In fact, are likely to work 18 jobs across six different careers and live in 15 different homes over their lifetime (source 3). This constant change is reflected in their work habits; according to another study, 25% of Gen Zers work multiple jobs, compared to just 16% of all workers, and 51% do independent work, compared to 36% of all workers (source 4). Gen Zers are known to be entrepreneurial, with many starting their own businesses or working as freelancers, seeking more independence and flexibility in their work lives.
With a willingness to “quick quit” if they are not satisfied and a job market that is still tilted in favor of the workforce, Gen Zers are re-setting the bar and passing the “bug” onto older generations, as quick quitting by VPs rises 13% (source 5).
Taking ownership of their career
COVID-19 pandemic and its aftermath had dire impact on younger workers, putting them further behind in accumulating savings or being able to pay out their student debts, so with a renewed sense of negotiating power, it is no surprise that Gen Zers report much higher compensation needs. With $171,633 in salary, Gen Zers expectations are much higher than Millennials ($133,758), Gen X ($112,222), and Boomers ($78,317) (source 6). But while a fair compensation is now table stakes, flexibility, authenticity and learning and growth are truly what matters the most to GenZers.
Flexibility: They want to work for companies that offer flexible schedules and remote work, as these options allow them to better balance their work and personal lives. This is especially true in the aftermath of the COVID-19 pandemic, which accelerated the trend towards remote work. According to a Yahoo survey, 61% of Gen Zers want their employers to offer more remote work options (source 8).
Authenticity: Gen Zers are looking for employers who share their values and are authentic in their communications. They want to work for companies that are transparent and honest about their business practices, including their social and environmental impact. According to LinkedIn's survey (source 8), the company's values reflecting their own mattered more to Gen Z than any signing bonus or compensation package. Patagonia, is a good example of a company that has successfully aligned its values with those of its employees. The company is committed to environmental sustainability, and its employees share this commitment. As a result, Patagonia has been able to attract and retain Gen Zers who are passionate about making a positive impact on the world.
AlwaysBeLearning&Growing culture
But more than anything, Gen Zers value learning and growth opportunities: they want careers, not jobs.
76% of Gen Z employees believe that learning is the key to a successful career They are hungry for knowledge and eager to develop new skills that will help them advance in their careers. Case in point, 40% of Gen Zers are willing to accept a pay cut of up to 5% of their salary for a role that offers better career growth — compared with 26% of overall workers (source 8). While 86% have engaged in some sort of online learning (Linkedin) and 84% expect their employer to provide formal training (source 3), mentoring and job rotation are the real differentiators.
40% of Gen Zers want to interact with their boss daily or several times each day (source 3). For Oliver Pour, a 2022 grad, “People want to grow; they want to grow quickly. The mentorship aspect is extremely important, being able to connect with the manager or director on a more personal level,” and adds that he would like to stay at his company as long as he continues to see that growth (source 7). Madison Vitug, an Engineering Recruiter at LinkedIn, also reflects on her experience as a job seeker and her decision to join Linkedin “As I was deciding whether to accept the job offer, I asked myself: 1. Does this role have opportunities to learn and grow, and meet great mentors? 2. Do the company’s values reflect my own? Those two things mattered more than any signing bonus or compensation package”.
Gen Zers are also creative and entrepreneurial, and they want to work for companies that offer them opportunities to be creative and explore new ideas. They want to be able to touch other aspects of the business and be involved in helping the business grow overall. “The aspect that differentiates us is the fact that we're trying to be creative outside of our roles,” says Pour. “I want to be able to touch other aspects of the business and be able to get more involved and be able to help the business grow overall”. Gen Zers are looking for positions where they will have the opportunity to learn multiple skills and aspects of not just their own job, but other jobs as well. According to Jenkins, “Seventy-five percent of Gen Z would be interested in a situation in which they could have multiple roles within one place of employment.”
Gen Z is entering the workforce with a new set of expectations that employers must understand and respond to. Developing a culture of ownership is a way to respond to these needs in an authentic way. Learn how OWN can help.
Sources:
1. Pew Research
3. Purdue
4. McCrindle
5. Linkedin
6. Harris Poll
7. Yahoo
8. Linkedin