How Gen-Z is changing the job market

Work-life balance, fair pay and equal values are what Generation Z wants and is willing to leave the company if they don't get it.

It's probably no news that Gen-Z, the generation born between 1997 and 2012, is the most popular generation at this stage, making up a third (30%) of the world's population. And this means that the share of their capital in the labor market is large and in the coming years this figure will increase even more (by 2025, their number in the labor market will be 27%). But what do they want in terms of career and what values are important for Gen-Z when choosing an employer, and have employers thought about this?

Technological changes and the establishment of new norms in the work process lead to transformations, both at the organizational and individual levels. Technological developments are changing the rules of work in and of themselves, but perhaps a more important change is the arrival of a new generation on the scene who plans to act on their own rules and leave a new mark on the employer-employee relationship.

Leading companies have already begun to take care of how to attract the talents of future generations. “Generation Z is an important part of the ACT workforce. They are the future of our company and country, and we are well aware of how to meet their expectations, which are somewhat different from the expectations of other generations. Their demands naturally flow from their core values: freedom, equality, an inclusive and sustainable environment. They do not want to work in companies that do not recognize equal, fair approaches and attitudes towards any employee in all aspects: communication, labor relations, development, career growth, salary, etc. It is also important for them to create a diverse and inclusive environment, which implies such an involvement of the employee in the organizational context, when he gets the feeling that he is accepted, respected and understood, taking into account his unique personality, abilities and experience. ", - Tea Shamatava, Head of Human Resources and Organizational Development, ACT.

How is Gen-Z different from previous generations and what do they want?

While everyone wants to do interesting work with decent pay and conditions, to have the opportunity for career growth and development, there are still several characteristics that distinguish Gen-Z from their predecessors: millennials, generation -X and baby boomers. This is the first digital generation that grew up with little or no memory of a world without technology and the Internet. This generation has been called the first "Global Generation", a member of a society where access to global content and information is more free, and e-commerce activities from anywhere in the world are considered the norm. Therefore, for them, remote work, freelancing and finding the right career opportunities for them is a familiar process. You might think this is a generation motivated by more pragmatic comforts and guaranteed wages, but that's not always the case.

Generation Z talent emerged when flexibility is not only possible but inevitable, digital connectivity is ubiquitous, and employees have more power to demand what they want from companies. According to a recent RippleMatch report, Generation Z can change jobs 10 times between the ages of 18 and 34. The old concept of a career ladder that starts at the lowest rung and ends at the executive rung can be replaced with something more flexible. According to the 2022 TalentLMs survey, 82% of working Gen Zers prioritize work-life balance and mental health, while 74% choose hybrid or full-time remote work. Seeing that other generations in the workplace are constantly running out of time, burn out at work and lack adequate economic security, Gen Z is demanding more free time, the ability to work remotely, and greater social responsibility from organizations. After poor pay, burnout and a lack of work-life balance were the top reasons they quit. Many of these values were millennial preferences, but for Generation Z, this is a need, this is what they expect from their employer, and if their demands are not met, they will leave the company. Often referred to as the anti-capitalist generation, Generation Z wants everything at once, but at the same time is ready to spend as much as possible in the workplace for the right employer.

According to popular belief, this is simply a generation that responds to contemporary social movements and makes good use of the lessons learned by the previous generation in the career planning process.

In the GOBankingRates survey, 19.6% of Gen-Z's other priorities are career passion, while 16.5% are salary. Although in some cases other benefits were mentioned before the financial interest, salary still matters a lot among the young people interviewed. They want to work in jobs that interest them and earn a fair salary, and they also want to feel connected to their organization. For businesses, this means they need to be transparent about building their employer brand, talking loudly about the benefits they offer to employees, and how they create a positive work culture. This means that employers will have to change their strategy for attracting, hiring and developing talent, which will lead to changes in the labor market as a whole and will benefit not only this particular generation, but any generation.

Where is the disparity between Gen-Z and employers?

In a 2023 Deloitte Digital study, Gen-Z employees and their executives were surveyed to see if they understand each other's priorities. As a result of the study, three main problems were identified:

• Conflicting views on the meaning of empathy

Gen-Z values their leaders' empathy and sees it as a necessary condition for engagement, but managers surveyed did not find empathy as valuable. It is important for this generation to be seen as a personality in the workplace and not just a KPI force.

• Different views have emerged on the impact of work on mental health.

Representatives of Gen-Z believe that their mental health is not properly maintained. Their ideas about how work affects mental health differ from those of their leaders. Less than half of respondents say that their supervisors help them maintain a normal workload, and 28% believe that they have mental problems because of the boss. It is vital for them not to think about work after hours and not feel overwhelmed.

• Different ideas about the importance of work in defining personality.

Gen Z views work less as part of their identity, while for most of their managers, this connection is strong, and for 86% of them, work is part of their identity.

The reasons for this gap of different views can be:

• Management doesn't understand what Gen-Z wants

• Managers are aware of the desires of generation Z, but do not agree with them

• Both groups agree that changes are needed, but there is no clear vision of how these changes should occur.

To fill each of these gaps, leaders must take different actions, and these actions necessarily involve change. Generations and their values change, which naturally leads to corporate and organizational transformations. In this process, it is vital for modern companies to communicate more with employees, ensure their involvement in the decision-making process and create platforms where they can express their opinion on a particular issue in the organization.

A catalyst for change?

Each generation has its own unique style, needs, goals and characteristics. That's why it's so important to create an environment where all employees feel engaged, inspired, energized and able to express themselves, collaborate and learn from each other. This is why it is important for companies to offer first work experience programs such as internships and various project opportunities. Instead, Generation Z brings new skills, innovative ideas, and diverse perspectives.

Every generation changes the workplace, from the arrival of women in the workplace during World War II, to millennials who have raised awareness of fundamental issues such as mental health, equality and inclusion, decent working conditions, and more. But Gen-Z as a workforce is emerging after the historic Covid-19 pandemic and at a time when fundamental changes are taking place in terms of technological development, values are changing and people are no longer dependent on one employer, so what Gen-Z is looking for and what they prioritize today is likely to largely determine the labor market and lead to long-term change. Preparing for change starts today.