Gen Z Values and How Companies Can Prepare for the Workplace of the Future

What is Generation Z?

Generation Z, or Gen Z, is the name for anyone born between 1997 and 2012. They fit right between Millennials (1981-1996) and Gen Alpha (2012-2027). Also known as “Zoomers,” Gen Zers range from 12-26 years old, totaling about 25% of the population, according to a study by Johns Hopkins, and are our most diverse generation to date. They’re also the youngest adult workers in our labor force.

This year, more than 4.1 million Americans are turning 65 and preparing to retire from the workforce. Called the “silver tsunami,” this massive wave of retirees could help set the stage for incoming Gen Zers to the job market.

The Johns Hopkins study also predicts that Gen Z will take over the workforce in less than 10 years, making up over 30% of the labor market by 2030. For the first time, employers will have to sit up and take notice of the TikTok generation, who have their own unique expectations when it comes to the workplace.

Gen Z is the first generation to have only known smartphones, the internet, and social media growing up. In fact, more than 95% own a smartphone, and 83% own a laptop. They’ve also faced economic uncertainty, housing crises, a global pandemic, and a looming recession. All this and more has shaped how Gen Zers work and what they value in the workplace.

Why should you hire and train Gen Z

1. Digital natives: This younger generation has what it takes to competently manage your social media, learn next-gen AI tools, and lead your company into the next phase of digital transformation.
2. Adaptability and problem-solving: Living through societal and worldwide issues has made Gen Z resilient, and a 2021 survey found that they’re excellent problem solvers, both valuable workforce skills.
3. Diversity: Our most diverse generation, Zoomers are known for their strong social and cultural values. With their unprecedented range of unique perspectives, they can build a more inclusive, equitable workforce.

Keep your best talent engaged and motivated with these Top 4 Employee Retention Strategies.

What do Gen Z employees value in the workplace?

Even though they’ve only been out of college a few years, Gen Zers have already become trendsetters in the workplace. In 2022, “quiet quitting” became popular, a trend in which workers did the minimum at jobs they didn’t feel engaged in or satisfied with—no more overtime or taking on extra projects.

Make no mistake, though: Gen Zers know what they want at work and are willing to switch jobs to get it. According to Randstad’s 2022 Workmonitor report, 70% of Gen Z workers are open to new job opportunities that come along, and nearly one-third of them are actively looking for a different job.

More recently—attributing to the worsening job market—quiet quitting has evolved into “resenteeism” (resentment meets absenteeism), where Gen Zers stay in jobs they don’t like because they can’t find anything better.

Companies stand to benefit from considering Gen Z values and identifying ways to adapt to their needs so they don’t alienate younger workers or neglect other generations in the workforce.

Consider these seven values as a starting point to better retain and attract Gen Z workers:

1. Meaningful work

Climate change, extreme wealth inequality, mass shootings, threats from AI, and more have left their mark on Gen Z and will continue to influence how they think and act in and outside of the workplace. So, it’s probably no surprise that making a difference is important to Gen Z workers.

The Randstad research also found that 42% of Gen Z workers would even take a pay cut if it meant working a job that has an impact, and 49% would not accept a job at a company that does not align with their values.

The data is in: Gen Zers don’t like to feel disengaged or disconnected in the workplace and are willing to work for less if it means pursuing something they believe in.

HR action items

Community outreach: Get involved in community service initiatives and make social responsibility part of the culture. There are plenty of business benefits to investing in community outreach but being more socially conscious signals to potential Gen Z employees that their role could actually serve a greater purpose.

Live out company values: Showcase your company culture and values at each recruiting touchpoint to show job candidates that you walk the talk about what your company values the most. This could mean using employee testimonials, releasing short videos on social media, or publicizing employee net promoter (eNP) survey results to show accountability.

Unlock proven strategies on how to create a motivated and high-performing team. Read: How to Engage Employees in the Workplace.

2. Inclusive company culture

Gen Z has been shaped by conversations surrounding gender inclusivity, racial justice, gay marriage, and other social issues. They’re the most ethnically diverse generation, with 51% identifying as non-white, according to PRRI. They’re also more liberal, religiously diverse, and identify more strongly with the LGBTQ+ community than any other generation, including Millennials.

Combine a diverse group of workers with strong values, and you’ve got a generation strongly in favor of diversity, equity, and inclusion (DEI) in the workplace. Over half (56%) of Gen Z workers won’t accept a job without diverse leadership, and 68% say their employers aren’t doing enough to create a more diverse workplace. A study by Handshake found that half of Gen Zers would consider quitting if they saw a lack of equity or social justice at their workplace.

HR action items

Hold yourself accountable to DE&I KPIs: You not only need to make diversity and inclusion part of your company culture and practices but also stay accountable through metrics and goals. Measuring your progress shows that you’re committed to becoming a more inclusive workplace. The times you inevitably miss the mark, your company can prove that you take diversity and inclusion seriously through continuous improvement and establishing an appropriate action plan.

3. Growth opportunities

Finding a job that aligns with their personal values is important to members of Gen Z, says Ciara Van De Velde, client engagement manager at Employment BOOST in Troy, Michigan. However, these young people also want companies to invest in them.

“[Gen Zers] want to be in a position where they feel like they are challenged and continuously developing new skills while utilizing their current ones,” Ciara says. They added that Gen Z employees want to develop to their fullest potential.

This is also obvious in how Gen Z is already shaping the workforce. When they aren’t setting expectations for how they approach work, they’re driving new ideas forward, such as prioritizing mental health in the workplace and pay equity. According to Upwork, 9 out of 10 Gen Z workers also say they want to work around remote infrastructure, and 65% plan to hire more freelancers in the next five years.

HR action items

Establish a mentoring program: Companies should set up a mentoring program to maximize Gen Z employee growth. Mentoring software, such as Together Mentoring Software and mentorcliQ, matches up employees based on work experience and professional goals. Additionally, reverse mentoring is a great way to show Gen Z employees that their contributions are valued in the workplace and generate ideas for the future of work.

Invest in learning and development: Give Gen Zers the opportunity to expand their skill set by shadowing another employee, offering courses through the company’s learning management system (LMS), or reimbursing for Coursera or EdX courses.

4. Stability and balance

Gen Zers value stability in their work, which makes sense, considering they grew up at the height of the Great Recession in 2008 and the COVID-19 pandemic. But they also don’t let it get in the way of living their lives. According to a study by TalentLMS, 42% of Gen Z workers would quit their jobs due to burnout or lack of work-life balance.

Chris Chancey is the founder of Amplio Recruiting in Atlanta, Georgia who spends a lot of time working with Gen Z workers. He says this generation is not afraid to negotiate a good compensation package, including benefits to achieve stability.

“They are looking for perks that will make their lives stable,” Chris says, “so they value things like healthcare benefits and, more importantly, opportunities for professional development with the aim of landing their dream job in the shortest time possible.”

Alongside job stability, Zoomers also prize jobs that provide work-life balance and quality of life. Randstad’s report revealed that over 80% want work hours that fit their lifestyle, and 71% flexible work hours and locations are important. Deloitte’s 2024 survey named “good work-life balance” the number one reason Gen Zers chose to work at a company.

HR action items

Stay competitive with salary and benefits packages: Offering flexible work options, pet insurance, tuition reimbursement, or student loan payment assistance are just a few options to get Gen Z’s attention in the competitive labor market. And remember, a majority of Gen Zers are big fans of remote work.

Expand your talent pool and gain top-quality hires. Read: What Are Passive Candidates & How Can You Recruit Them?

Prevent employee burnout: You can proactively address burnout via performance management software and employee engagement tools. Offering days off for mental health and reimbursements for meditation apps and gym subscriptions also go a long way to relieving employee stress.

5. Collaboration and autonomy

Gen Zers value collaboration as a way to learn from others and work with people from different backgrounds and life experiences. They see experience as an asset and are willing to learn in a project setting. To them, traditional work hierarchies are fluid, and they don’t care who leads as long as they have the right expertise.

At the same time, Gen Z workers also value their independence and like having the freedom to figure out what work styles maximize their productivity. The trick as an employer is finding ways to appreciate your Gen Z employees’ contributions while giving them space to grow as individuals. 

HR action items

Adopt the right tools: Employee engagement and collaboration tools help keep all employees connected and engaged, especially in distributed workforces.

Focus on outcomes and leave the process to the employee: Offer employees the choice of working remotely, on a hybrid schedule, or in the office and track their performance with performance management software in case any course correction is necessary.

Commit to better intergenerational collaboration: Having a diverse range of generations in your workforce can come with challenges. However, each generation has its own unique perspective and strengths.

• Baby Boomers: The oldest generation in the workforce today, Boomers are focused, driven, and prioritize job stability. With decades of experience, they can be valuable mentors but can also gain technical expertise from younger generations.
• Generation X: Gen Xers are known as entrepreneurial, hardworking problem-solvers who value clear communication. Known as the bridge generation, they can effectively help others adapt to new points of view and effectively lead multiple generations.
• Millennials: The closest in age to Gen Zers, we were the first to champion work-life balance, are quick learners, career-focused, and like constructive feedback. Millennials can bring innovative thinking to any team and support digital transformation efforts.

You can overcome intergenerational challenges by offering mentorships, promoting open communication, inclusivity, and respect for all, and getting employees involved in team projects. Gamification in the workplace can also help foster healthy team competition.

6. Cutting-edge tech

Both Millennials and Zoomers grew up with the internet and cell phones. However, while most Millennials remember desktop computers and flip phones, Gen Zers have mostly known smartphones, laptops, and tablets.

This means members of Gen Z grew up in an “always on” environment and have high expectations for technology. Deloitte’s survey also found that 26% of Gen Zers already use Generative AI at work all or most of the time, and 42% sometimes. Around 80% of those who use Gen AI frequently at work believe it will free up time, improve work-life balance, and improve the way they work.

This means that one good way to attract younger talent is to invest in cutting-edge tech. Dusty Doddridge, director of the Career Development Center at Middle Tennessee State University, oversees a lot of student workers from Gen Z, and he witnessed firsthand how investing in technology made a difference for his staff.

“Our office invested in more laptops this year, and our staff have responded well to that,” Dusty says. “Not only has this created more collaboration within the office, but it makes it easier to work from home when that might be the best or only option.”

HR action items

Invest in user-friendly, cloud-based technology: Laptops are a great place to start. However, depending on your company and the Gen Z worker’s role, your app and device ecosystem should be able to accommodate a range of devices.

Many Gen Z workers cite software such as Google Drive, Slack, Skype, Salesforce, and Trello as invaluable tools for collaboration. Hardware such as tablets for easily reserving and checking into conference rooms and TV-mounted video conferencing equipment are worthwhile investments as well.

Cloud-based, user-friendly software with mobile access will not only make tech-loving Gen Zers happy but also give everyone else the ability to perform work tasks whenever and wherever it’s most convenient for them.

7. Short application process

Gen Zers don’t like to wait around for jobs. They don’t want to deal with an application portal that requires them to fill in dozens of fields and upload their resumes, only to have them manually enter the information from their file into the portal.

In fact, 68% will quit the hiring process if it’s too long or complicated and 52% will quit if they’re asked to do a free test task, Jobera found.

If you have a long job application process or ask a lot of your candidates, chances are you aren’t going to appeal very much to Gen Z workers.

HR action items

Make it easy for top talent to apply: Market-leading applicant tracking systems such as Greenhouse, SmartRecruiters, and Jobvite offer easy and fast applicant portals that allow companies to keep applicants engaged throughout the screening and hiring process. This ensures that your applicants don’t move on to the next opportunity before submitting their application.

Plus, most applicant tracking systems let companies syndicate job postings across several job board websites like Indeed, Glassdoor, and LinkedIn. This helps cover all bases so that companies don’t miss the perfect candidate by forgetting to post on one or two job boards.

Stay ahead in talent acquisition. Read: Recruitment Strategies for 2024: How to Prepare for the Future.

Is your organization ready for the next generation of workers?

In the current job market, it’s worth exploring what this next generation of employees expects in a workplace. If you don’t, you risk losing out on a huge and growing pool of competitive talent.

Nearly half of Gen Z employees (43%) plan to stay at their jobs for at least two years, according to a report by ResumeLab, and and additional 35% plan on committing for up to five years. So if your company gets it right, your youngest employees will show up, contribute, and most importantly, stay.

Take some time to assess your current company culture and values from the perspective of Gen Z and determine what changes you need to make to recruit and retain them successfully.

The values we’ve shared above are a good start, but you’ll need some help. Tools that enable you and your employees to work at your best, such as employee engagement software and mentoring software, will increase your chances of recruiting and retention success.