With Gen Z, born from the late 1990s to the early 2010s, poised to overtake Baby Boomers in the full-time workforce by the end of 2024, employers stand at a significant crossroads. As Gen Z surpasses Baby Boomers in representation, their vocal and values-driven nature is set to transform workplace norms.
While Gen Zers bring a lot of unique characteristics to the table, there’s also notable apprehension regarding their workplace conduct. For instance, 60% of hiring managers say Gen Zers exhibit entitlement and 26% find them difficult to manage. 30% of hiring managers have even said they’ve had to fire a Gen Zer within a month of their start date.
So, how do employers create an environment where Gen Zers can produce their best work? Is it worth rewriting some rules? And where should the line be drawn to prevent anarchy from creeping in?
While Gen Z’s work style has attracted considerable interest, it’s essential for employers to address this shift without falling into the trap of relying on generational stereotypes. While it might be tempting to resort to cliches to understand the desires of new employees, many HR initiatives fail when employers attempt to implement a one-size-fits-all solution.
In fact, there are now five different generations in the workplace, so it’s important for the implemented approaches to be sustainable and balanced. For instance, policies to appease Gen Z shouldn’t demotivate older generations, nor should they be impractical in the long term. A one-size-fits-all strategy misses the point of DEI’s first letter, which stands for diversity. After all, diversity isn’t just a buzzword; it represents the variety of backgrounds, perspectives, and experiences that employees bring to the table. By valuing and leveraging this diversity, organizations can approach problems from multiple angles, drive innovation, and better understand and serve a broad customer base.
Interestingly, research by McKinsey suggests that while there may be differences in work styles and preferences across generations, the fundamental desires and motivations of employees are often more similar than they are different. This challenges the notion that each generation requires vastly different approaches to work and underscores the importance of recognizing individual differences and preferences within diverse workplace environments.
Consequently, companies should adopt a more “humanized” approach to DEI, placing greater emphasis on their employees when developing processes. Not only would this shift improve employee satisfaction and retention, but it would also foster a culture of inclusivity and belonging where everyone can thrive.
While some might label Gen Zers as challenging to work with, it’s worth flipping the narrative and considering the unique contributions they offer to the workplace. One notable aspect is how the digital landscape has profoundly shaped their identity formation. Unlike previous generations, Gen Z has grown up in an era where social media and online communities are integral parts of daily life. As a result, they have an innate familiarity with technology and digital platforms.
Employers can capitalize on this tech-savviness by introducing digital tools and platforms that streamline workflows and boost efficiency within the workplace. Reverse mentoring, for instance, is one useful tactic where junior employees coach senior leaders in subjects like digital media, technology, and emerging trends. This helps close knowledge gaps and bridge generational divides in the workplace.
As a purpose-driven generation, Gen Z is also inclined to question the status quo and seek meaning in their work. Rather than viewing this as a challenge, employers can treat it as an opportunity to engage with younger employees and improve existing processes or practices.
Gen Z’s inclination for questioning can uncover overlooked inefficiencies or areas for improvement within the organization. Consequently, by fostering an environment that encourages open dialogue and feedback, employers can harness the insights of Gen Z employees to drive positive change.
As the generational composition of the workforce continues to evolve, so should leadership styles. Gen Z gravitates towards models such as “rotating leadership” and “collaborative leadership,” which prioritize skill-based contributions and inclusive decision-making processes.
In the case of “rotating leadership”, leadership roles shift between team members based on their relevant expertise for specific tasks or contexts. An approach like this, which allows different individuals to take the lead depending on their strengths, aligns with Gen Z’s preference for dynamic, expertise-driven leadership rather than traditional hierarchical structures.
Similarly, “collaborative leadership,” in which people from across the organization participate in decision-making and problem-solving, resonates with Gen Z’s desire for transparency, open communication, and shared ownership of outcomes.
But before adopting a given leadership style, it is critical for businesses to have a clear understanding of their goals and the kind of environment they want to create. Building on this base, they can create a culture that complements the mission of the organization and the evolving preferences of the modern workforce.
In today’s changing workplace, for example, it is critical to develop a culture that strikes the correct balance between asynchronous work and collaborative efforts. Asynchronous work lets employees finish tasks on their own timetables, which can boost output and suits various working styles across generations. Conversely, through real-time communication and idea sharing, collaborative work promotes team cohesion and creativity.
Implementing flexibility in work arrangements, such as remote work options and flexible schedules, can help achieve this balance, ensuring that employees remain engaged and productive while maintaining a healthy work-life balance. Ultimately, it’s about enabling people to work in the ways that suit them best.
Building a culture of trust is also fundamental to nurturing employee loyalty. This involves transparent communication, consistent recognition, and genuine investment in employees’ futures. Organizations can demonstrate this commitment by offering robust learning and development programs, training opportunities, and clear career progression pathways. Rethinking traditional career advancement methods can go hand in hand with this, as they are often seen as outdated, characterized by rigid hierarchies and infrequent title changes.
Instead, organizations should focus on creating opportunities for employees to gain new experiences and skills rapidly. For example, involving employees in important initiatives or allowing them to move laterally into new types of roles can accelerate their development more effectively than the traditional approach of infrequent title changes. This hands-on experience not only broadens their skill set but also keeps them motivated by providing continuous learning and growth opportunities.
An important turning point for employers is coming as Gen Z begins to outnumber Baby Boomers in the full-time workforce. With this demographic shift comes both challenges and opportunities, urging a reevaluation of outdated leadership and work practices to foster successful collaboration and ensure long-term success. While it’s essential not to neglect other generations in the workplace, adapting to the needs of Gen Z is no longer an option, but a must in today’s digital workforce.
Sagar Khatri is co-founder and CEO of Multiplier, a global employment solution empowering businesses to seamlessly hire, onboard, and compensate talent across 150+ countries. Motivated by his firsthand encounters with the complexities of international expansion in prior ventures, Sagar, alongside his co-founders, established Multiplier to redefine the employment landscape. Their mission is to simplify global workforce management, ensuring it’s as effortless as managing local teams while handling intricacies such as employment contracts, payroll, taxes, and benefits in compliance with local regulations. With a proven track record in regional P&L management, international expansion, fundraising, and M&A, Sagar brings a wealth of experience to Multiplier.
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