Gen Z in the workplace: who are they and how should they be managed?

As the years pass, each generation brings a fresh, new perspective to the workplace. Up until recently, the talk about a multi-generational workforce focused on baby boomers (born between 1946 and 1964), Generation X (born between 1965 and 1980), and millennials, known as Generation Y (born between 1981 and 1996). But most baby boomers are retired and Gen X are going the same way.

Millennials shaped the modern workplace… until now. There’s a new kid in town, with a new wave of professionals entering the workplace – Generation Z, more commonly known as Gen Z.

Their influence and different ways of approaching things are reshaping our working culture. Ignoring their presence could leave companies scrambling to adapt, which is just what happened when millennials first entered the workplace.

According to a Business Insights Report from 2023, Gen Zers are “currently significantly smaller as a population cohort than their elder peers.” But that’s set to change further down the line. By 2033, the working population will consist of similar percentages of Gen X at 28%, millennials at 37% and Gen Z at 35%, with baby boomers totally out of the picture.

In this article, we’ll take a look at Gen Z in the workplace, what members of Gen Z expect from work, and how managers can work to retain top talent, while capitalising on the fresh approaches that this new generation brings.

With Gen Zers being born between 1997 and 2012, they are known as the first true “digital natives,” growing up with social media, smart phones, and the internet as part of their everyday life.

Defining a generation is fraught with problems, because the concept of a “generation” is fluid. Generations tend to be grouped due to shared experiences, from growing up in the same era to facing the same world events, but all of these experiences don’t affect everybody in the same way.

Additionally, the lines between generations can be blurred. For example, someone born on the cusp of millennials and Gen Z will most likely feel a connection to both groups. So, while Gen Z has a particular vibe – like being socially conscious and tech-savvy – it’s important to remember that no label fully captures such a diverse range of people. 

The world is such a totally different place than it was 50… 40… even 30 years ago. Technology has pushed us forward into realms that weren’t even conceived three generations ago. Gen Zers have grown up in this hyper-connected world, so focused on the internet that they’ve developed the facility to be self-reliant and collaborative, using the powerful digital tools available to them. As of 2021, there were 12.7 million in the UK, and they are the first generation to be “always on.”

This exposure has shaped their appreciation for authenticity and diversity, along with flexible, non-hierarchical systems. They also take a realistic approach, balanced with optimism, to resolve problems and tackle global issues such as climate change.

Gen Zers have had to adapt to an ever-changing world. In the world of work, this can be illustrated by Gen Zers earning their keep through online means and creative outputs, instead of what was seen as more traditional jobs on the factory floor or in an office.

Let’s look at how these specific characteristics affect Gen Z in the workplace. Below are 6 key findings, extracted from the UK’s most recent and relevant research on the topic. These are followed by tips and insights that HR professionals and leaders can use to manage these needs and traits efficiently, in order to avoid layoffs down the line.

There might be 4.3 million Gen Z in the workplace in 2022, but over two thirds of them (77%) are likely to leave their employer. When asked if Gen Zers had been through any major events over the past year, it was the loss of jobs that came out on top as affecting this group, with over 60% having experienced this.

Without jobs for life as popular or, realistically, available as they were previously, there is more of a fluidity to the workplace and those in Gen Z in have to deal with this.

In order to retain talent, consider how you manage progression within your company. Gen Z in the workplace strive for more than a pay packet at the end of each month – they want a sense of purpose. Offering development opportunities, whether that’s a promotion or a change of department, will help when it comes to keeping hold of valuable members of staff.

As the first digital natives, Gen Zers have a great grasp of technology, making them more likely to adopt and incorporate new concepts into their work. However, that comes with a cautious approach – especially with regards to AI. A 2024 study by Deloitte reveals that UK Gen Z workers, who frequently use AI, are more trusting (31%) and excited (30%) by those tools than the rest of respondents. On the other hand, 78% of these frequent users say that AI will steer them towards looking for job opportunities that aren’t going to be taken over by automation. So, the more hands-on experience a Gen Zer has with AI, the more positive are their perceptions – although they also have valid workplace concerns.

To address this, here are a few actions that HR professionals and managers can take:

• Offer training in AI: Around half of Gen Zers stipulate that employees aren’t trained enough on AI, so ensure your employees are thoroughly educated on the uses and benefits of this technology.
• Emphasise growth opportunities: Highlight how using AI to its full effect can achieve efficiencies and open up career paths to more creative and strategic tasks.
• Encourage transparent communication: Create spaces where employees can express any concerns about AI and discuss all of its implications, ensuring they are heard and supported throughout. 

It’s all to do with flexibility. Gen Z in the workplace don’t want to be tied down to the office, day in, day out. Covid put paid to that. Another Deloitte UK study discovered that “more than three-quarters of UK Gen Zs (77%) would consider looking for a new job if their employer asked them to go into their workplace full-time.”

At the same time, UK respondents felt less inclined to ask for more flexibility at work if the economy doesn’t improve – 46% of Gen Zers in the UK versus 72% of Gen Zers globally.

Mental health issues in this generation have been well-documented over the past few years. The Deloitte study states that, “over half of UK Gen Zers (51%) say they feel stressed all or most of the time, higher than the global average.” This reflects an increased awareness of mental health and a societal environment that might exacerbate them, including financial insecurity and disruptions caused by the pandemic.

Building a healthier and more resilient workforce comes about by proactively addressing mental health issues. Gen Z in the workplace can be supported by:

• Being given robust mental health benefits: This includes access to counselling, therapy, and mental health apps.
• Creating a culture of openness: Normalising conversations about mental health reduces the stigma, while encouraging employees to seek the help they need in order to avoid burnout.
• Upskilling managers: Leaders should be equipped with tools to recognise mental health struggles straightaway and provide support.

Being pessimistic about the economic outlook is prevalent among Gen Z. The study from Deloitte found that “65% of UK Gen Zers think the economy will worsen or stay the same in their country over the next year.” The study also found that economic concerns impacted their ability to plan for a future on a personal level. Over 65% of UK Gen Zers say “it will become harder or impossible to buy a home,” with 56% realising the hardship of starting a family. Overall, 36% of Gen Zs expect their personal finances to worsen over the next 12 months.

To address these pain points, employers can alleviate concerns and foster trust among Gen Z employees by:

• Offering financial wellness programmes: Providing resources and education on saving, budgeting, and investing.
• Promoting job stability: Highlighting internal mobility opportunities and demonstrating the company’s commitment to long-term career growth.
• Enhancing benefits packages: These can include assistance with home ownership, retirement plans, and other incentives that address Gen Z’s concerns.

A lot of Gen Z entered the workplace during the pandemic and, because of this, they don’t have the same views on rigid work patterns that older generations took for granted as the only way. A study entitled “Shaping the Future of UK Workplaces” found that “nearly 45% would like to work from home 2-3 days per week,” creating a balance between office and home life. It’s a push back from their Gen X parents who worked long hours and had a poor work-life balance.

By prioritising balance and wellness, businesses can improve productivity and employee satisfaction. This can be done with:

• Flexible working arrangements: Including offering options for hybrid / remote work or more flexible hours.
• Wellness programmes: Incorporating initiatives that address physical and mental health, such as mindfulness workshops, gym memberships, and mental health days.
• Boundary-setting policies: Encouraging Gen Z to disconnect after work and promote a culture that respects personal time.

This dynamic generation’s prominence grows by the day, presenting opportunities and challenges in equal measure. Organisations can create environments that attract, engage, and retain Gen Z in the workplace by understanding their specific priorities – from a work-life balance and mental health concerns to economic issues and meaningful work.

Aligning workplace practices with Gen Z’s values is not only a great strategy for now, it’s an investment in the future of your company.If your organisation is considering outplacement services, contact us at the earliest opportunity to find out more.

Elizabeth Openshaw

Elizabeth is a diligent, articulate, and versatile Blogger and CV Consultant with over 13 years of experience in the job search sector, including extensive expertise in outplacement services and CV reviews, supporting job seekers and all of those involved in the recruitment process. With a personable and self-assured outlook, Elizabeth consistently produces work to a high standard and hits deadlines 100% of the time. Showcases excellent organisational and time management skills, proven by 17 years as a Journalist on numerous national publications including as Features Editor on a monthly glossy magazine and as a regular contributor to Men’s Health, Slimming World and Candis. As Director of her own company, OpenDoor CV Expertise Ltd, Elizabeth displays a high level of professionalism, demonstrated by the positive recommendations and testimonials from many previous clients. Additionally, she is an active member of both the British Association of CV Writers (BACVW) and the Institute of Employability Professionals (IEP), supporting people to gain work, progress in work, and retain work.