Imagine being born just before 9/11 changed the world forever. Growing up in the shadow of the late 2000s financial collapse. Coming of age during the 2016 U.S. presidential election and navigating the social unrest that social unrest that followed. Confronting a global pandemic at the exact moment you’re about to enter the workforce. And experiencing all these major world events—along with the ups and downs of everyday life—through a digital lens while keeping up with the ever-changing advancements of the internet age.
Gen Z members of the workforce don’t have to strain their imaginations to envision this scenario. It’s their reality. And it shapes how they feel about their lives, their futures, and how work plays a role in both.
As an HR leader overseeing a multi-generational workforce, you know that talent’s attitudes about work differ depending on age. But with the eldest members of Gen Z just beginning to make their presence felt in the workforce, it might be hard to pinpoint exactly what motivates this generation—and how to give them what they need to stay happy, productive, and engaged at work.
Find out more about what makes Gen Z workers tick so you can better understand how to attract and retain them.
Early Career Talent Strategy: Three Things to Know About Gen Z
It’s impossible to characterize an entire generation of workers in a single blog post. But we can cover some basic data about Gen Z from their demographics to career trajectories. Here are three things for you to know about your company’s youngest professionals:
Gen Z Workforce Share Is on the Rise
While Gen Z workers may not make up a sizable percentage of your workforce right now, that’s about to change. Gen Z is currently the largest generation on the planet and will comprise 27% of the world’s workforce by 2025. By 2030, there will be over 38 million Gen Z employees in the United States, ranking them just behind Gen X for the second-largest share of workers in the country.
Gen Z Is More Diverse Than Previous Generations
A study from Deloitte anticipated that Gen Z would be the most diverse in history, and newer data suggests that that prediction is bearing true. Fifty-two percent of Gen Zers identify as white, down from 61% of millennials. Meanwhile, 25% of Gen Zers identify as Hispanic and 6% identify as Asian, up from 17% and 4% of millennials. The U.S. Census Bureau projects that the majority of Gen Z will be comprised of non-white individuals by 2026.
Gen Z Is Ready to Change Jobs
One of the more commonly circulated notions about Gen Z workers is that they’re exceptionally likely to job-hop. Data backs up that assertion. One study shows that Gen Z workers are likely to switch jobs up to 10 times before age 34. For context, consider that the average person changes jobs 12 times in their entire life.
Another study reveals that 70% of Gen Z workers are actively or passively looking for a new job despite saying they are “loyal” to their current employer.
Five Ways to Keep Gen Z Talent—and Keep Them Happy
Considering Gen Z’s willingness to give their two weeks’ notice in search of greener pastures, retaining your youngest talent can be a challenge. Fortunately, it’s easier to keep Gen Z employees when you know what they’re looking for. Here are five workplace offerings that Gen Z prioritizes—and steps you can take to meet their needst.
Workplace Flexibility
When Business Insider published an article asserting that Gen Z actually “hates” working from home, it went viral—for all the wrong reasons.
Gen Z employees on the internet ridiculed the article for being out of touch with reality, with one Twitter user claiming, “I can guarantee almost all of millennials and Gen Z much rather work from home." Others noted that the article directly contradicted a previous piece from the same outlet claiming that Gen Z talent were quitting their jobs due to return-to-office mandates.
There’s clearly some confusion about whether Gen Z prefers in-office or remote work. The answer? They want a little bit of both.
Gen Zers prioritize workplace flexibility—the ability to choose between working in an office or remotely without being locked into either option. In fact, 81% of Gen Z employees say it’s important they have flexibility in when and where they work. At the same time, 45% of Gen Z employees prefer a hybrid approach, compared to 29% who want fully remote work and 24% who prefer an office-based model.
Gen Z VCs Founder and CEO Meagan Loyst sums up her generation’s mindset when it comes to workplace flexibility. “The way our generation was brought into the workforce was very different from prior generations,” Loyst said. “Flexible, remote work is our norm. I can’t imagine going back to an office for five days every week.”
Your strategy: Offer your employees a mix of remote and in-office work. If you hire globally and don’t want to set up offices everywhere you build teams, give your people access to on-demand workspaces.
Work-Life Balance
Closely tied to workplace flexibility is another top priority for Gen Z talent: work-life balance.
According to a survey by The Hustle, a tech and business newsletter produced by Hubspot, 54% of respondents said that work-life balance is “extremely important” when it comes to career priorities, with only 2% of respondents saying it is not very important.
Considering these findings, it should come as no surprise that 82% of Gen Z employees say it’s crucial for their employer to offer mental health days, according to a survey by TalentLMS. Respondents also rank burnout and lack of work-life balance as the second most likely reason they’d quit their job.
The most likely reason? Unsatisfactory salary.
Your strategy: Offer time-off policies that promote the work-life balance your Gen Z talent expects. How much time off is the right amount? Consider the fact that many European countries offer five weeks of paid vacation. Additional measures you can take include offering mental health days, giving employees more control over their day-to-day schedules, and encouraging managers to regularly check in with talent about their workloads.
High Pay
Pay is the only career consideration that Gen Z values more than work-life balance (though, of course, the answer may differ depending on which employee you speak to).
While 29% of Gen Z employees say work-life balance is their highest priority according to The Hustle’s survey, 30% say that high pay is most important. Respondents to another survey also said higher pay was their top priority. That trend held true for college seniors about to enter the workforce—77% said pay and benefits would be their number one consideration when deciding between jobs.
Gen Z’s emphasis on salary makes perfect sense considering the economy they’re navigating as they enter the workforce. While wage growth averages about 5-6% annually, inflation is running at an even higher rate of 6-8%. Gen Z workers need to be paid well to keep up with rising costs of living—and the relatively diminishing power of their paychecks.
Gen Z talent is also entering the workforce when unemployment is low and companies are seeking every edge to stand out in a tight labor market. Knowing they have their pick of employers to choose from, Gen Z job seekers have the leverage to ask for higher salaries.
Furthermore, Gen Z workers are just starting their careers. They can be less risk-averse than older job seekers with responsibilities like providing for a family or saving for retirement. As a result, they are often more willing to roll the dice and walk away from jobs that don’t pay well, convinced they’ll find a more lucrative opportunity elsewhere.
Your strategy: Take the time to ensure your salaries compete with those offered by other employers in your industry. This goes for not only the salaries you are offering to new hires, but for current employees, too.
Transparency, Equity, and Accountability
Gen Z employees aren’t only motivated by their salaries. They’re passionate about ensuring equal pay for all. That’s why they want pay ranges listed on job postings.
In a recent survey of 3,700 U.S. college students, respondents said pay transparency and equity was the most essential diversity, equity, and inclusion (DEI) initiative a company could take. Fifty-three percent of the survey respondents said they’d be discouraged from applying for a position if the employer did not list a specific salary range.
Gen Z talent’s emphasis on pay transparency is part of their larger prioritization of accountability, equity, and fairness. London-based psychologist and workplace engagement consultant Elizabeth Michelle said Gen Z employees are very tuned into whether companies are following through on their mission statements and corporate values such as DEI. If companies are not “practicing what they’re preaching, Gen Z will hold them accountable,” she states.
Your Strategy: Receive more applications from Gen Z candidates by listing the pay range on your job postings. Then, ensure they stick around by making sure your company follows through on its promises—in everything from corporate values to the DEI initiatives you commit to.
Mentors, Not Just Managers
While Gen Z workers are committed to altruistic ideals for society as a whole, they’re still also focused on their own growth. That’s why Gen Z employees aren’t just looking for managers. They’re looking for mentors who will help guide their careers while also taking an interest in them as humans.
The Hustle survey revealed that mentorship, or the ability to teach something, is the quality that Gen Z talent prioritizes most in their manager. In the eyes of Gen Z employees, though, mentorship goes beyond simply passing along skills.
“Having a manager that really understands me and wants to develop me as a whole person versus who I am from 9 to 5 is really important,” said Loyst. “A lot of young people are building personal brands and putting themselves out there in a very different way than what was possible 10 years ago.”
Research backs up Loyst’s perspective. A recent study found that 82% of Gen Z talent wants to work under a boss who cares about them and can relate to them on issues outside of work, while 73% feel more motivated when their supervisor cares about them.
While it’s not quite realistic to think you can retain Gen Z employees (or any, for that matter) throughout their entire careers, you can keep them with your company longer by ensuring they receive the mentorship they want.
Your Strategy: Encourage team leaders to take a holistic approach to supervising their employees. By treating employees as humans, and offering them mentorship accordingly, your team leaders will give talent the comprehensive care and guidance they seek.
Further Reading: Here are five additional steps to keep talent engaged and happy over the long haul—whether they’re Gen Z, Boomers, or anyone in between.
Boost Your Employee Care With a Global Partner
Giving talent the individual care they need requires you to be in many places at once—especially when you oversee a workforce across borders. Working with an expert partner makes your job significantly easier.
Velocity Global has helped more than 1,000 companies hire, manage, and support talent in over 185 countries since 2014. With our combination of easy-to-use workforce management technology backed by local support from HR experts, you can be right there for every employee without stretching yourself thin. You also get the full-service partner you need to stay on the cutting edge of work—whether you’re keeping up with the needs of Gen Z employees, staying ahead of changes to local labor laws, or anything in between.
Get in touch to find out how Velocity Global can help you do more for your people without taking on more for yourself.
