Gen Z is often accused of being disengaged in the workplace. Yet, research by Gallup suggests that Gen Z and younger millennial employees (those born in 1989 or later) are not significantly less engaged than employees in other age groups – despite reporting higher levels of stress.

What does set Gen Z apart from older generational cohorts, however, is their rejection of outdated workplace models that don’t fit with the modern age. An EY study across 10 countries, “the first global generation,” highlights that people aged between 18 and 34 are reimagining what it means to be an adult, forcing businesses to reinvent their workplaces in the process.

The right priorities

Work 15 hour-days and miss out on precious family time? That’s not Gen Z’s idea of getting ahead. More than half (51%) of the young people globally who responded to the study cite mental and physical health as their primary measure of future success. Family relationships follow closely at 45%.

Money and careers still matter to Gen Z though, ranking third and fourth on their list of priorities, while 87% of respondents believe it is highly important to be financially independent. So, it’s not that younger generations don’t prioritize work. It’s just that they, quite sensibly, won’t compromise their personal wellbeing for the sake of their jobs.

Gen Z is also making different life choices compared with other generations – out of both necessity and desire. In response to social change, rising property prices and longer lifespans, young people are postponing or even skipping what have traditionally been the global milestones of adulthood: buying a house, getting married and having children – rites of passage that were prized by elder colleagues.

Instead, this pragmatic generation is prioritizing flexibility — being able to do what they want, when they want – and living a purposeful life. They are also driving change, often unconsciously, by asking essential questions about the world and their place in it. What isn’t working? Does what I do matter? How can I help make the world a better place?

It’s no wonder that 64% of respondents to the EY study believe it’s highly important to change things that are wrong in the world, or that more than two-thirds (69%) want to work for companies that share their values. Job hopping is now seen as a positive, with young people expecting to switch employers several times to pursue their career of choice.

Advancing in the age of AI

Another important factor that differentiates Gen Z from previous generations is that many will spend the early part of their careers in a job market that has been transformed by automation. Artificial intelligence (AI) is reshaping industries, replacing some jobs, redefining others, and creating completely new career pathways.

This AI-driven transformation of the workplace demands that Gen Z employees are competent users of AI tools, but a recent study suggests Gen Z are the least confident when it comes to identifying the critical shortfalls with AI.

This cohort will need to know how to apply the technologies, in addition to developing an awareness of the risks — including the risk of overreliance on AI and not sufficiently applying their own judgment.

The AI revolution is not just underlining the need for technological skills. It is also reinforcing the importance of interpersonal or ‘soft’ skills. As manual, repetitive tasks are increasingly automated, the human element that people bring to the workplace will become more important than ever. Accordingly, Gen Z’s workplace success will not just rest on their tech-savviness – important though that is. It will also be inextricably linked with their ability to lean into what machines can’t replicate: empathy, curiosity, creativity, critical thinking, and contextual insight.

For Gen Z, the world’s first truly global generation – today’s workplace is a universe of opportunity. Thanks to the internet and social media, they are the first generation to have grown up with real-time exposure to global culture, as well as the crises that have shaped our world. As a result, they are the most informed, interconnected generation in history, with the ability to offer unique insights into their organizations’ business strategies. They have the skills and knowledge to help develop products and services that appeal to both global and local tastes.

Takeaways for employers

Gen Z is shaping the workforce of both today and tomorrow. So, employers must reshape the workplace to accommodate their preferences if they want to benefit from their skills. This is how they can do it:

1. Adapt or fall behind. In a world being reshaped by Gen Z, a thriving workplace needs more than technological agility. To avoid losing talent to competitors, employers must meet the evolving expectations of a generation that is rewriting the rules of work and life. Engage with the Gen Z members of your workforce to find out what they want from work and how you can set them up to succeed.

2. Rethink traditional recruitment and retention strategies. Today’s talent strategies were often designed for linear career paths and employees who stayed with an organization for years. That doesn’t hold anymore. Gen Z talent wants flexibility – whether that’s the option to take time out, move sideways, do a secondment or launch a side-hustle.

3. Embed meaning into your employer value proposition. Younger generations see financial security as a foundation for a fulfilling life rather than the ultimate goal. While salary matters to them, just as it mattered to prior generations, young adults want to know that their work is serving a higher purpose. Employer value propositions should reflect the deeper meaning that people seek in life – they want to know that by working for your organization, they can be a force for good.

The workplace is evolving rapidly driven by social and economic change, along with technological advances. What’s more, it is now home to five distinct generations that each lean toward certain characteristics, expectations and values. Businesses should capitalize on this reality by acknowledging the shifts underway and harnessing the power of every generation, including the transformative power of Gen Z. That way, they can step into the future with confidence.

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