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The arrival of Generation Z in the U.S. workforce is here, as the eldest among them reach 28 years old this year. This generation of workers – born between 1997 and 2012 – now outnumbers Baby Boomers and is beginning to leave their imprint on the professional landscape. By 2025, they will make up 27% of the global workforce, according to the World Economic Forum.
Is your organization prepared to meet the needs of this generation? Let's delve into the topic.
According to Paychex’s The Rise of Generation Z report, this generation is well-represented in the industries we serve including construction (15.5%), manufacturing (12.8%), and professional and business services (15.7%). Their hourly earnings with small-to-midsize firms in these industries exceed the national Gen Z average wage of $19.79, so if they are on your payroll, it pays to learn a little about what makes them different from their predecessors in terms of hiring, professional development, engagement, and performance.
These insightful findings from the Deloitte 2023 Gen Z and Millennial Survey contrast the two youngest working generations and provide context for the guidance to follow:
To attract and retain Generation Z workers, your business should prioritize two key strategies:
For attracting and retaining this generation of digital natives, advanced tools, digital communication channels, and flexible remote work options are essential. Your company should also emphasize continuous learning and development to help Gen Z employees enhance their digital skills and stay updated with industry trends. This is a priority for them as they choose employers.
Gen Z values meaningful work and making a positive impact. Clearly communicating your company's vision, mission and values, promoting diversity and inclusion, and providing opportunities for employees to engage in social responsibility initiatives can attract and retain these workers. Offering growth opportunities, wellness initiatives, and prioritizing work-life balance will contribute to higher job satisfaction and retention among these employees.
To inspire and motivate Generation Z workers, your management should focus on two key aspects:
Your youngest workers want to understand how their work directly impacts the organization and society. Showcasing the purpose and impact of their contributions can create a sense of meaning and fulfillment. Regularly acknowledge and celebrate their achievements, highlighting how their efforts contribute to the larger goals of the company. This can be done through team meetings, performance reviews, or public recognition platforms. Providing opportunities for Gen Z employees to contribute to projects aligned with their personal values or engage in social responsibility initiatives can also enhance their motivation.
This generation values independence and wants to feel empowered in their roles. Employers should delegate responsibilities and provide opportunities for them to take ownership of projects. Encouraging innovation and creative problem-solving, and soliciting their input and ideas, can demonstrate that their opinions matter. Allowing flexibility in how they approach tasks and offering a collaborative work environment where they can freely express their thoughts can further enhance their engagement and motivation.
To effectively communicate with your youngest workers, your executives and managers should adopt appropriate strategies including the following:
Gen Z employees prefer brief and straightforward messages that cut through the noise. Utilize technology-driven communication channels, such as instant messaging or collaborative platforms, to provide quick updates and facilitate real-time conversations. Use plain language, avoiding jargon or overly formal language that may hinder understanding.
These workers value authenticity and appreciate opportunities to voice their ideas. Encourage regular feedback sessions to create a space for open dialogue. Actively listen to their perspectives and take their input into consideration, as it demonstrates respect and fosters a sense of involvement. Incorporate collaborative decision-making processes and seek their input when making key decisions that may affect them. This inclusive approach to communication can enhance their engagement and trust in your company.
To effectively train and develop these employees, your HR and training leaders should consider these strategies:
Allow them to apply their skills in real-world scenarios. This can include project-based assignments, simulations, or cross-functional collaborations. By engaging in hands-on experiences, they can enhance their problem-solving, critical thinking, and collaboration skills. Consider incorporating mentorship programs where experienced employees can guide and provide feedback to Gen Z workers, helping them develop their soft skills through personalized guidance.
Gen Z values personal and professional growth, so providing access to training programs or online courses can be highly beneficial. Offer training modules that cover communication, teamwork, adaptability, and emotional intelligence. These skills will not only help them thrive in their current roles but also prepare them for future leadership positions. Encourage self-directed learning by providing resources that address soft skill development. By investing in their growth, you can empower these individuals to excel in their roles and contribute to your company’s success.
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