Gen Z Joins the Workforce

Labor & Employment

Gen Z Joins the Workforce

By Megan E. Walker and Megan C. Winter

A fresh crop of entry-level workers is about to join the workforce. However, these new workers — aged 24 and younger — do not belong to the overly analyzed and frequently maligned millennial generation. Rather, they represent the dawn of Generation Z’s coming of age. And with this new generation (which has never known a world without search engines), employers may need to readjust much of what they think they know about the youngest adult workers.

To start with the basics, “Generation Z” is currently the term most accepted to define those born in the late 1990s and after, with the oldest born around 1995. There are approximately 60 million members of Gen Z, and while most are still minors at this point, they are expected to account for one fifth of the workforce this year. It is only a matter of time before nearly all employers have an employee from this latest generation.

Generation Z is defined by its commitment to diversity and inclusion. They are the most racially diverse generation in U.S. history, and, according to a 2018 study by YPulse, they list racism as the biggest problem facing their generation. Over half believe racism is getting worse. They also have greater diversity in gender. In a survey of teens in California by the Williams Institute at UCLA, 27 percent identified as gender non-conforming, a term that includes those who identify as non-binary as well as those who otherwise do not identify with certain characteristics associated with their sex assigned at birth.

As with each generation, the outlook of Gen Z is framed by major events that occurred in their childhood. The early 2000s brought the dot-com bust, 9/11 and the sub-prime mortgage crisis that led to 2008 recession. Moreover, these events occurred as online media surged. Given those events and the greater access to reports on the same, it is perhaps not surprising that research shows Gen Zers tend to be pessimistic, anxious and skeptical. And stressed. In an analysis of four studies covering seven million people in the United States, Jean Twenge, professor of psychology at San Diego State University, noted that they report a higher likelihood of seeking professional treatment for mental health, higher rates of trouble sleeping and a greater struggle to remember things, compared with previous generations.

Technology is one of the primary factors that has defined this latest generation. Facebook came on the scene when the oldest were still in elementary school, and approximately 90 percent of Gen Zers have a digital footprint. However, although one might assume that Generation Z prefers communicating through digital means, a recent survey by talent acquisition platform Yello found that 51 percent prefer face-to-face interactions and only 25 percent prefer digital communication. This contradicts managers’ expectations, 41 percent of whom reported in a national survey by APPrise Mobile that they believe smartphones and tablets will be the most effective means of communication.

The challenges in communicating with Gen Z may not arise from the method, but rather the content. Gen Z is known to be less focused, but better at multitasking. The key to communicating with them is to get to the point. They can spot an Instagram Valencia filter in the blink of an eye, and they want their managers to give it to them straight so that they can be better set up for success.

Specifically, in a study published by Robert Half, 38 percent of Gen Z workers list honesty and integrity as the most valued characteristics in a boss, followed by mentoring ability (21 percent). Similarly, 75 percent of Gen Z workers surveyed by InsideOut Development say they want a boss who can coach them. Overall, Gen Zers value frequent feedback and manager consistency.

Employers should consider Gen Z’s preferences if they wish to stay competitive and attract the newest workers. Generation Z workers want real connections, even with their recruiters. In fact, in the Yello survey, they rank the recruiters they worked with as the number one factor that influenced whether they accepted a job — five times higher than technology and nearly four times higher than a speedy interview process.

The newest generation to join the workforce is accustomed to being sold a bill of goods.

That said, outdated technology can their current employer within three years, be a turnoff to potential Gen Z appli cants. Over half of Gen Zers will not even complete a job application if the recruiting methods are outdated, and 26 percent say that lack of technology throughout the hiring process would deter them from accepting a job offer. To appeal to Gen Z applicants, employers should consider mobile-friendly job application sites and applications. It may even be worthwhile to consider using text messaging as part of the interview process to appeal to their desire for expediency and efficiency.

After successfully hiring Gen Z employers candidates, employers should consider how best to retain them. Like millennials, members of Generation Z are global citizens interested in opportunities and companies that follow sustainable business practices, give back to their communities and know how their work is making an impact. And although they agree with millennials in that they rank salary and work-life balance as the top two considerations when deciding on whether to accept a job offer, their third highest priority is meaningful work. The respondents to the Yello survey reported that they care more about their duties and projects and the impact thereof than they care about growth opportunity.

In the same vein, Gen Z also places high value on company culture. But that doesn’t necessarily mean employers need to break out the cornhole sets and electronic scooters around the office. Rather, they want to work for companies that provide opportunities for growth. Given Gen Zers’ high stress levels and greater propensity to seek out treatment for their mental health, however, it may be worthwhile for employers to revisit benefits plans to make sure their mental health coverage is sufficient.

Over half of Gen Zers plan to leave their current employer within three years, but they may stick around if they have an opportunity to grow withinthe company. Over half aspire to hold management positions. Financial security is also a priority, particularly since only 30 percent told InsideOut Development they are confident they will be able to repay their student loans.

If some of these themes sound familiar, they are. When Gen X came of age in the early 1990s, they expressed a desire to influence social values, address global issues and promote racial understanding. Just a few years ago, a study by Cone Communications showed that a majority of millennials would take a pay cut to work for a responsible company. But employers would be remiss to proceed as if Gen Z workers are similar to millennials because there are key distinctions. Gen Zers are more independent and competitive, whereas the prior generation values collaboration. But mostly they’re just extra —that is, they are extra diverse, extra accepting, extra stressed and extra ambitious.

The newest generation to join the workforce is accustomed to being sold a bill of goods. From Snapchat filters to #fakenews, they are hyperaware that nearly everything they consume has already been “spun” at best, and they are inherently skeptical. And perhaps because of that, they say they place a high value on honesty and transparency.

TIPS FOR WORKING WITH GEN Z EMPLOYEES

Because 79 percent of managers told APPrise Mobile that they do not plan to change their management style to meet the next generation of workers, there is opportunity for those willing to attract and maintain the newest generation of ambitious, critically thinking workers. Here are the top 10 tips you need to know for hiring and working with Gen Zers:

1. Use recruiters who can connect with candidates.

2. Ensure you have up-to-date hiring technology.

3. Provide face-to-face, personalized communication.

4. Be a straight shooter and deliver your message efficiently.

5. Provide frequent feedback and mentoring.

6. Offer meaningful work.

7. Promote a positive work culture with opportunities to grow.

8. Provide mental health coverage.

9. Give independence and autonomy once earned.

10. Be honest and transparent.

None of these suggestions mean employers need to radically change their way of doing business, nor will adopting them require valuing the younger generation over other workers. Rather, these simple adjustments will help create a more flexible work environment suited for the 21st century.

Megan E. Walker is an associate with labor and employment law firm Fisher Phillips in San Diego, CA. She represents employers in litigation matters, including wage and hour litigation, harassment and discrimination, and regulatory compliance. mewalker@fisherphillips.com

Megan C. Winter is a partner with Fisher Phillips in San Diego. She defends employers in many industries and assists in developing workplace policies and procedures. mwinter@fisherphillips.com