As digital natives, Gen Z workers have the potential to bring unique skills and valuable perspectives to the organizations where they work. Having experienced significant challenges at a young age, including the COVID-19 pandemic and entering the workforce during a period of considerable uncertainty, Gen Zs possess a distinctive combination of resilience and empathy that can greatly benefit the modern workplace.
If organizations want to effectively engage Gen Z employees, they need to understand what motivates them on a deeper level. In order to maximize Gen Z’s potential, it’s also essential for organizations to encourage managers to apply this understanding by adopting motivational strategies that are better suited to Gen Z’s underlying motivational drivers. By understanding the seven keys to engaging Gen Z and by investing in and nurturing this population of employees, companies can help shape their next generation of leaders.
The 7 Factors Important to Gen Z:
1. Adequate Financial Compensation and Pay Transparency
Offering fair and equal pay is crucial for attracting and retaining talent across all generations, but it’s especially true for Gen Zs, who are highly attuned to the importance of wage transparency thanks to sites like Glassdoor and Reddit. Not only do they openly share salary information with each other, but they also expect their employers to demonstrate pay equity. The significance of wage transparency is further underscored by legislation, with several states and cities passing laws in this regard. In fact, according to Adobe’s Future Workforce Study, a majority of Gen Zs are likely to lose interest in a job if the company fails to disclose the salary range in the job posting. However, for Gen Z knowledge workers, fair compensation goes beyond a mere compensation number. It also entails feeling respected by their employers and having realistic expectations set by managers, especially because they may end up working well beyond a standard 40-hour workweek, thereby affecting their effective hourly pay.
2. Transparent and Open Communication
To establish a stronger relationship and gain Gen Z’s trust, it’s essential to practice open and transparent communication. Rather than limiting information transfer to a “need-to-know-only” basis, adopting a more “open-access” policy better satisfies Gen Z’s desire for more information. Communicating more frequently and with greater transparency empowers Gen Z workers to make informed decisions and feel more connected to the organization. This recommendation even pertains to information that might be difficult to hear or ultimately disadvantageous, such as budget cuts, supply chain issues, or unsatisfactory business performance. Being upfront about information provides them with a sense of control, thus enabling them to process situations more effectively and reducing anxiety.
3. Greater Control Over Their Work Lives
Gen Zs place a high value on their personal lives and strive for work/life balance when considering job opportunities. Due to pandemic lockdowns, many Gen Z knowledge workers began their careers working virtually and are adept at leveraging technology to collaborate and be productive. They view hybrid work as an efficient and effective option and are often unwilling to spend time and money commuting to an office every day. Additionally, some Gen Zs desire remote work so they have the flexibility to live and work from anywhere. For hourly Gen Z workers, greater control over their schedules is essential.
4. Feeling Supported Socially at Work
Despite their preference for remote work and an increased comfort level using technology for social exchanges, Gen Zs still desire in-person interactions and the social support that supervisors and coworkers provide. Creating adaptable work settings that present chances for occasional in-person team gatherings, teambuilding exercises, and networking opportunities is therefore crucial. In one study by Mintel, 69% of Gen Z workers said a work culture that feels like family is key to staying in a current job. The research strongly suggests they crave having bonds with peers and need to feel supported at work.
5. Prioritizing Workplace Well-Being and Mental Health
Gen Z employees report their mental health as fair or poor compared with all other generations. Gen Z workers experience the highest rates of depression, followed by anxiety. When considering an employer, this generation prioritizes safety and wellness. Many Gen Zs indicate they won’t remain in a job they don’t feel physically and psychologically safe in, and they want reassurance that their employer values their well-being. In fact, LinkedIn found that 66% of Gen Zs want a company culture that rests on a solid foundation of mental health and wellness. However, they can be skeptical of certain workplace well-being perks, as they may view them as Band-Aid solutions to larger problems. These individuals may be hesitant to accept such offerings, as they perceive them as a superficial attempt to camouflage a corporate culture that places undue emphasis on overworking and prioritizing one’s career at the expense of one’s personal life.
6. Opportunities for Growth and Continuous Feedback
Retaining Gen Z employees requires more than just providing fair compensation and enjoyable work. While these factors are important, organizations must also prioritize professional growth and development opportunities to keep Gen Zs engaged and motivated. They want to see a future for themselves at the company and are constantly evaluating whether there are enough opportunities for career advancement. They seek organizations that provide mentorship programs, robust training, cross-functional projects, and clear career progression plans that outline the skills and experience required for advancement. Without clear growth prospects, they’ll become restless and start looking for other opportunities.
Gen Z also demands regular performance feedback. Having been raised in the era of social media, with its propensity for instant feedback in the form of shares and likes, Gen Z employees crave frequent and specific feedback from their managers. In fact, according to a survey on the State of Gen Z, 40% of Gen Zs want daily affirmations from their managers, and if they don’t engage with their managers with this level of intensity, they believe they’ve done something wrong.
7. A Sense of Purpose and Personal Mission
Gen Z employees value a strong sense of purpose in their work and are motivated by workplace mission and values. They are socially conscious and want to work for organizations that deliver a tangible impact, especially related to social change issues such as racism and gender inequality. According to The Conference Board, 99% of employees believe companies should respond to these issues. To attract and retain top Gen Z talent, organizations must create an environment that allows them to find purpose and thrive. It’s essential for Gen Zs to understand how their role fits into the bigger picture and why their contributions matter. They value transparency and authenticity and are skeptical of organizational statements of value and purpose that lack concrete action. Gen Zs place a high value on seeing real-world outcomes and the impact created by the companies they work for. Therefore, organizations that demonstrate a genuine commitment to their stated societal purpose are more likely to engage with and retain Gen Z employees.
The Bottom Line
Although the emergence of millennials caught many organizations by surprise, it’s not too late to prepare for Gen Z’s arrival by understanding this generation’s underlying motivators. This is the most achievement-oriented of all generations in the workforce. That spells opportunity for organizations that tailor their policies, approaches, and strategies accordingly. They’ll win the talent war for Gen Z and cultivate the full potential of this capable, committed generation.
Heide Abelli is the cofounder of SageX Inc., an artificial intelligence (AI)-enabled e-Coaching and performance support application for the modern workforce. She’s an accomplished executive who has held senior leadership positions at leading educational technology and training providers such as Skillsoft and Harvard Business Publishing, where she developed award-winning, groundbreaking corporate training solutions. She’s also a seasoned veteran of product development, innovation, and product management in the fields of corporate training and ed tech and is also an adjunct professor of management at Boston College.
Abelli is also a globally recognized subject matter expert in the areas of leadership, management, general business skills, the unique skills required for success in the digital economy, employee learning and development, and effective corporate training practices.