Managing Gen Z: Understanding The Gen Z Employee Journey
- Heather Italiano
- May 31, 2022
- 12 min read
Updated: Feb 3
Part 3/3: How to attract, engage and connect with Gen Zs at every step of the employee journey.
Welcome back!
In this three-part series we are doing a high level dive into Zconomy: How Gen Z Will Change the Future of Business and What to Do About It by Jason Dorsey and Denise Villa, PhD.
If you haven’t read parts one or two yet, go back and read them both. Part one is all about the making of Gen Z - the “new normal” they are driving, generation defining moments that influence their behaviors and preferences, and their mindset on money, spending and saving. Part two is all about their expectations and behaviors as consumers. It’s crucial to gain this foundational understanding before learning how to engage them as employees.
Let’s set the stage and remind ourselves of some key things about Gen Z:
The eldest is already 26 years old.
They are the fastest growing generation in the workforce.
79% feel that other generations don’t understand them well.
They are the first fully digitally connected generation. 55% are on their phone 5 or more hours a day.
They use social media as a resource for everything – news, entertainment, community, dating, job hunting, education, etc. And they use each social platform for different purposes.
They are frugal with spending, and conservative with saving.
They are largely a generation of activists and their voice and expectations carry beyond social media into their decisions of which brands to buy from and which companies to work for.
Gen Z was the number one generation to initially lose their jobs during the pandemic.
60% of Gen Z (13-25) worry about their own financial situation daily or multiple times a week.
68% of older Gen Z (19–25) experienced a delay in some aspect of their life that was caused by the pandemic. The greatest delay (27%) caused by the pandemic was associated with postponing a switch to a new job.
Attracting, Recruiting and Retaining Gen Z Employees
The demands and expectations Gen Zs have as consumers are very much aligned with their demands and expectations of the workplace.
They want to work for companies that stand for something. They rely on personal connections, word of mouth referrals and online ratings and reviews before selecting a company to apply for. They want an easy, intuitive and of course mobile application process. They want to leverage technology for learning and mentorship opportunities. They want managers who care about them as individuals and don’t judge them for their age or inexperience, but value and invest in their potential.
It's all about building connections and tailoring experiences throughout the entire employee journey - from attracting to recruiting to hiring and retaining.
How COVID-19 Has Influenced Gen Z Employment
Zconomy was published in 2020 in the midst of the COVID-19 pandemic so I have sprinkled in some facts and findings from The Center for Generational Kinetic's research study THE STATE OF GEN Z® 2021-2022: Gen Z as Employees and Workforce Trendsetters. Zconomy authors Jason Dorsey and Denise Villa, PhD are the President and CEO of The Center for Generational Kinetics so we are staying in the same research family so to speak. COVID-19, without a doubt, is this generation's most influential generational defining moment (to date) and has profoundly shifted and reshaped Gen Z priorities, especially when it comes to desired career paths and employer expectations. According to the 2021-2022 State of Gen Z Report, Gen Z is activparticipating in what is referred to as "The Great Realignment". Since this past year, massive amounts of people (not just Gen Z) are leaving their jobs to "pursue other jobs or priorities based upon a new awareness of what is possible for employment, rising pay rates, and the ability to seek better working conditions." This makes it even more important for companies to not just offer competitive salaries and hybrid working environments, but also to take public stances on social issues and connect job responsibilities and company missions to a greater purpose beyond just business. And companies need to adapt fast or they risk losing top, young talent. 43% of Gen Z plan to change their career or industry because of what they learned or experienced during the pandemic.
The 2 Most Important Things That Attract Gen Z to a Potential Employer
#1 - Salary, Salary, Salary Because so many of Gen Z experienced job and financial losses during and/or after the pandemic, salary is way more important than it ever was before COVID-19. According to the 2021-2022 State of Gen Z Report, 49% of Gen Z said salary was the most important thing that attracts them to potential job or employer (up from 37% in 2020). And the top motivators that get Gen Z to apply when reading a job posting are starting salary or salary range (34%), scheduling flexibility (32%) and future salary ranges or potential salary growth at the job (24%). To give companies an idea of what Gen Zs feel is a comfortable salary and a benchmark for offering competitive salaries, the report states that 46% of older Gen Z (19-25) believe earning $50,000 per year would make them feel "comfortable" financially. Companies also need to be aware of the rise in demand for daily payment options. 61% of Gen Z would like their employer to provide the option for daily payment of their wages!
#2 - Flexibility After salary, offering a flexible work environment is the second most important thing that attracts Gen Z to a job. According to the 2021-2022 State of Gen Z report, many older Gen Z (19-25) are in the middle of balancing multiple "life stage responsibilities and various priorities such as pursuing their education, possibly working in the gig economy, helping their family, and balancing their social life as more of the country opens up." Also, Gen Z has learned to thrive in a hybrid or remote working environment. 65% of Gen Z who worked remotely last year actually felt more connected to their coworkers, 62% reported being more productive, 58% felt more open and honest with their team, and 53% said they trusted their team more. In fact, working remote has become a non-negotiable for many Gen Z. 40% said they would quit a job that required them to go from working remotely to working in-person at a physical office or location 5 days per week.
Interestingly enough though, Gen Z still understands the value and necessity of a traditional office environment. 61% believes that the fastest way to get promoted is to work in a physical office 3-5 days per week.
Recruiting Gen Z Employees
The Initial Search
While Millennials look to online recruiting platforms first when job hunting (e.g., Indeed, LinkedIn), Gen Z looks first to personal connections, word of mouth referrals and….wait for it…Youtube.
Youtube? Yep, Youtube. Just like shopping, they look to friends and family first and then they go to Youtube to investigate the company’s culture. 40% of Gen Z say they would use YouTube to determine if they want to work for a company, 37% would use Instagram and 36% would use Snapchat. I know I am a Millennial, but even for me this is totally out there!
According to the 2021-2022 State of Gen Z Report, 60% of Gen Z said that a company’s reputation as an employer influences their decision to buy (or not buy) a product or service. If they will vet your company before they buy a product, you better believe they will do thorough research before choosing where to work. It is super important for companies to manage their online presence and reputation, and make sure their story and culture is out there for the world to see…and to see it on Youtube.
Referral Program Before your HR and marketing teams spend gobs of resources and time creating compelling recruiting campaigns online and on social media – first look at leveraging your most powerful and untapped resource you already have – your current employees! McDonald's uses “Snaplications” to recruit Gen Z. They ask existing employees to make short videos describing why they love their job and post it to SnapChat using a hashtag. Then viewers are prompted to swipe and are led to McDonald’s career page where they can begin the application process. Kind of brilliant, right?! Although it's strongly encouraged, you certainly don’t have leverage technology or social apps to engage your current workforce. You can utilize more traditional referral programs that offer rewards throughout the new employee's first year. Keep timing in mind and get creative. Offer smaller payouts more frequently or offer creative perks such as concert or sports tickets, donations to charity, etc.
Job Applications To get Gen Z to even start an application - let alone finish it - job applications must be short, easy, entirely online or mobile friendly, and applicants must be able to save their work along the way. 60% of Gen Z said that 15 minutes is the maximum amount of time they would invest in completing a job application, however, 30% said 10 minutes was their maximum. Remember that this generation, from a very young age, is used to everything being personalized, intuitive, entertaining and tailored to their demands. In addition to capturing the necessary information needed, your job application process from start to finish should be modern, engaging, visually appealing and even entertaining. Sprinkle in some short videos about company culture or employee testimonies or tips for nailing an interview. And don't forget to highlight starting salary, salary potential and flexibility. Interviewing This generation is young, has little interview experience and many times have no relevant work experience. Take extra steps in preparing Gen Z candidates prior to the actual interview to give them the best opportunity to show what they can do if hired. Here are some examples:
Email or text ahead of time with clear instructions like where to park, what to wear, what to bring, what time to arrive, where to go when they arrive, who to ask for.
Provide tips on how to prepare for and deliver a great interview experience.
Ask questions that allow them to show their skills, determination and how they would solve certain problems or challenges.
Ask them about any hesitations they may have about any aspect of the job and then provide some on-the-spot training, role playing or demonstrations to reassure them that with proper training and mentoring they will not only thrive in the position but they will also be in good hands.
Quickly follow up after the interview with any next steps such as additional interviews or offering them the job.
Job Offer Give them a high-level snap shot (ideally on 1 page) of expectations of the job, professionalism, how they get paid, benefits, what training will be like, etc. Be detailed yet succinct and simple. This is likely the first job offer they have ever received so you don’t want to intimidate them and risk them declining the offer if they are a great fit. Build Excitement Once the offer is received, get the welcome wagon ready! Go the extra mile to make them feel welcomed, appreciated and a valued member of the team. Have team members make a personalized welcome video, send them some company swag with a welcome letter, find out what their favorite snacks are and have a welcome basket waiting for them on their first day. If you are thinking to yourself, this seems a bit extreme - it's not! This is becoming the new normal. So instead of dismissing this idea because you maybe didn't have this experience as a new hire, have fun with it - get creative and personalize it as much as you can!
Engaging and Retaining Gen Z Employees
Similar to how connecting and tailoring to Gen Z throughout the customer journey secures brand loyalty, you have to look at the entire employee journey when thinking about how to engage and retain Gen Z as loyal employees. The first year is certainly critical, but companies and managers need to make sure their engagement strategies extend beyond orientation and the first year of employment to make sure they aren’t losing top talent 2-3 years down the road. Forbes.com cited a 2021 report from the Bridge Group which found tenure today to be as low as only 1.8 years. Personal Connections Before skills training, Gen Z ranked meeting their team and team leader as the most important thing to a new hire, with learning about ongoing training and development programs ranked second. Upon hire, make sure you plan for proper introductions, lunch with their peers, and small gestures to show them how exited you are for them to join the team and that you care about them. Offer an onboarding mentor the new hire can learn from and go-to with questions. Mentors provide a friendly and safe environment for learning, and give new hires the chance to ask questions without always having to go to their boss. In their national study, CGK found “that having a first week mentor was more important to a new hire than detailed pre-first day job information, having the equipment needed to start on a first day, be taken on a tour of the company facilities, or even being given a welcome gift.” Fast Communication When Millennials entered the workforce, everyone was disrupted by the amount and frequency of feedback and communication they required to stay motivated. Gen Z takes it to a whole new level. Gen Z operates on short feedback loops – it’s all they have ever known. They also are super eager to learn and hungry for growth and progress. Those two things make frequent and rapid communication a critical aspect of the workforce. The 2018 State of Gen Z study found that two-thirds of Gen Z say they need feedback from their supervisor at least every few weeks in order to stay at their job. Going further into data: one in five members of Gen Z need feedback daily or several times each day in order to stay with an employer. The 2018 report also stated that 55% of Gen Z said they want positive encouragement or reinforcement at least once a week from their boss in order to be happy at work, and 30% of Gen Z said they wanted some sort of positive encouragement at least daily to be happy at work. Celebrate the small wins, let them know when they have done a good job, recognize when they learn a new skill, etc. If you are thinking to yourself...daily feedback...really?!? Don't panic. These interactions do not have to be formal or time consuming. On-the-spot recognition or feedback goes a long way and saves both parties a ton of time. Plus, more frequent feedback means more opportunity to course correct and provide additional training to develop their talent faster. This saves managers time and frustration by helping them do their job better, faster and more consistently.
Motivation According to CGK’s research, the two key motivators for Gen Z in the workplace are alignment and ongoing progress. Alignment: They care about what the company stands for and how it makes an impact on the world. Gen Z wants to be a part of that movement, so the connection between their job and the societal or global impact drives incredible motivation for this generation. Explain and remind Gen Z how their specific position & responsibilities also impacts every other role in the company and the companies larger mission. It's all about the reach of impact! A common mistake leaders make is having these conversations only during the orientation process. Try and incorporate these discussions regularly into 1x1s or team meetings to keep alignment and purpose a priority and focus. Ongoing Progress - Gen Z are young and eager learners who are hungry to attain new skills and opportunities that will put them on the path for advancement. Give them a step-by-step plan for how to advance their role with in the company, what it will take to get a future promotion, and continue to give them feedback on how they are doing and if they need any course correction. Don’t lose a valuable Gen Z employee just because they feel in the dark on their progress. In addition to an individual growth plan, companies should have talent development programs and offer training throughout each year of employment. Offer subjects like communication, problem-solving, handling customer complaints and public speaking as core offerings. If your company doesn’t have the budget for a massive program or learning management system, consider offering reimbursements for certifications or classes taken outside of the company. Skills Training Deliver initial training only for the key things they will need to know and do to be successful within the first few months. Get them excited about the future responsibilities they will take on and skills they will develop down the road, but don’t dump everything they need to know in the first year on them within in the first couple of weeks. Gen Z actually prefers in-person training with a mentor or someone who can answer questions along the way, but if need be they are of course fine with short, Youtube style training videos. Emphasis on short. After all, 85% of Gen Z go online to watch a video to learn something new every week. Don’t forget about the basics! Gen Z does not have a lot of work experience so include training on basics such as how to use email or other company communication systems, workplace etiquette, how to navigate payroll and benefits platforms, how to request vacation or time off, and of course any technical systems required for the job.
Leadership is about serving others and putting other people's success before your own. Right now, we have a great opportunity to do both by investing in this dynamic, diverse, eager and hardworking generation on the rise. That investment starts first with a genuine desire to listen to and understand them. Understanding leads to knowledge which leads to action which leads to advocacy.
Outside of simply championing for the next generation, leaders need to understand (and quickly) that Gen Z is going to change the entire future of business and companies cannot rely on what worked with Millennials. How and when leaders decide to adapt to the "new normal" Gen Z is rapidly driving could make or break businesses.
BONUS VIDEO: A Secret Tip for All Gen Zs Who Wants to be Invaluable at Work. A Must Watch for All Gen Z’s!
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