The Gen Z Workforce: Understanding Them Might Ease Labor Shortage

THE GENERATION Z WORKFORCE

Understanding Them Might Ease the Labor Shortage and Make Companies Stronger

BY CAROLINE K. REFF

When my son graduated from college a few years ago, the keynote speaker at his graduation was Mark Stoever, former CEO of Monster.com. Stoever told the graduates that they would most likely have as many as 20 jobs in their lifetime. Twenty jobs! His point — to an admittedly tech-based group of graduates — was that there were so many opportunities out there at the click of a button that they would continually have opportunities to try something new. It was still a startling statistic to most of the Baby Boomer and Gen X parents in the crowd who had worked for two or maybe three companies in their careers. But, to the eager graduates, it was an exciting possibility.

While this was a few years before anyone could have imagined that a global pandemic would dramatically change the way people work – maybe forever – it does ring true, more so today than ever, as a labor shortage has given employees the ability to ask for and expect higher wages, greater perks and a greater sense of work-life balance because they know there are so many other options out there right now. If they don’t like one, they can quickly move on to the next. But this type of work environment has also caused frustration for companies across every industry, including dairy, as companies do all they can to not only attract but retain quality employees.

In talking to some of our own members in the dairy or related industries, the topic of labor shortages always seems to come up. We simply can’t find anyone to fill these jobs – even though we are paying higher than normal wages. We hire people, and then they just don’t show up. People simply don’t seem to want to work hard. The employees we do have are simply getting burned out.

While the labor shortage is a cross-generational, societal problem, it is apparent that the group just starting to enter the job market, born between 1997 and 2012 and labeled “Generation Z,” does have some new expectations when it comes to entering the job force. Does everyone agree with them? No. But, has it become necessary to make changes to a workplace environment in order to keep them? It certainly seems so.

According to Lynne Vincent, assistant professor of management at Syracuse University’s Whitman School of Management, organizations in every industry need to prepare for Generation Z.

Vincent asserts that members of Generation Z are entering the workforce with less work experience than previous generations because they were raised to focus on extracurricular activities while in school, rather than encouraged to take on part-time jobs at the local scoop shop or restaurant. Many have been raised by so-called “helicopter” parents, who brought them up in a “culture of safety” that revolved around protecting them. While intentions were good, this has left this generation “without a lot of practice being autonomous, independent individuals.” As a result, Vincent said, these new employees may need some help learning the skills necessary to hold down a job – whether it be in a dairy manufacturing plant or in an accounting firm. Many truly don’t have the knowledge of essential job responsibilities. (Note: While this is a research-based observation, it is not intended to portray everyone in this group but is instead a generalized overview.)

To overcome this deficit, Vincent suggests that employers take it upon themselves to give new employees an onboarding that includes a candid preview of job expectations – not only the positive aspects but also the challenges. Gen Zers needs to be told the essential job responsibilities, the expectations for hours worked, what tasks they are really going to be asked to do, that they are expected to show up every day, and even basic things like what to wear to work – whether it be the safety requirements of steel-toed boots or the concept that athletic wear is not appropriate for an office environment. Employers also need to let these new employees know that failure is, in fact, an option. Vincent suggests making checklists of what is expected of them the first week, the first month and the first year, so that they get a sense of what they need to learn. Employers who take the time to facilitate such a process will likely have a much better rate of retention.

Gen Zers tend to think that work will always be “interesting and meaningful,” according to Vincent. And, while that’s the

goal for any job, most experienced employees know that reality does not always meet that expectation every day.

Interestingly, “Generation Z has never known a time when they did not have a smartphone in their hands,” said Vincent. This may not sound like a great trait to everyone, but it can be. Gen Zers are digital natives. They grew up with computers, the internet, Google, Instagram and texting as a primary form of communication. But, what they lack in face-to-face communication skills, they make up for in tech savvy abilities that can really benefit an organization (and who of us Gen Xers or Baby Boomers don’t need a little IT help from time to time?). This group is excellent with managing information on digital platforms and can typically jump right in when it comes to technology. In fact, they might even have a few ideas that could move your business forward.

Generation Z does have an innate need for achievement and a bit of a healthy fear and anxiety about doing a good job in the workplace. They are drawn to risk and entrepreneurship (so don’t turn a deaf ear to their ideas because they might have some good ones), but they want their thoughts to be valued.

Despite the stereotype that younger workers are here today and gone tomorrow, Gen Zers are “not necessarily interested in hopping from job-to-job, but they do want growth,” according to Vincent. And, while many may be impatient, any way an employer can offer them opportunities to focus on their internal development or give them a chance to use their skills in different ways is a positive step to retaining them.

There’s no question that Gen Zers, more than ever, want a greater work-life balance and may choose that aspect even over salary. This can be a tough one for the nose-to-the-grindstone requirements of so many jobs in the dairy industry, but it is something to keep in mind.

Gen Zers want a reasonable amount of vacation days and sick days. They need health insurance and want wellness programs and gym memberships. And, they also have come to expect perks like gourmet coffee and bagels in the break room, tokens of recognition for a job well done, and the ability to work remotely at least a few days a week as the world starts to return to a post-pandemic normal. They also want to work for companies who care – not only about their employees, but about the environment, their animals, their processes, their communities, social justice, diversity, equity and inclusion and more. Gen Zers will, very likely, choose a company that showcases its values over one that doesn’t.

All this can be a lot for a company to take in, and many are reluctant to change the way they’ve operated for generations. After all, there’s work to be done! But, according to Vincent, organizations may have to change how they recruit, select and train this new workforce if they want to combat the labor shortage.

“It’s not necessarily a bad thing,” she explained. “This type of change can help growth for all workers – not just the younger ones. It might even encourage experienced workers to become more engaged and pass their knowledge along by collaborating with new hires.”

Vincent suggests tapping into the Millennials – who are now a bit older (between the ages of 26 and 42) and stepping into management positions. “They are a little more attuned to the needs of Gen Z and can be role models who provide a very clear social reference,” she said. “Gen Zers can look to them and see that skills and progress are obtainable on the job and think, ‘I can do that, too.’”

There’s no stopping the fact that Generation Z is the next wave of available workers. They need jobs, and companies need employees – now more than ever. A mutual understanding and respect between employer and employee can help Generation Z succeed in the workplace. And, while this doesn’t make them the workforce of days gone by, that doesn’t mean they can’t be loyal and valuable employees that can make an organization stronger.

Caroline K. Reff is the editor of Northeast Dairy magazine.