- 15 March 2023
- Michael McGrath
Gen Z: How will they change your business?
In just a couple of years, Generation Z will make up around a quarter of the workforce. This will have a significant impact on our working lives, and business owners will need to enter their world to understand what they want and how they communicate.
By 2025, Generation Z will make up 25% of the workforce, according to Australian social research firm, McCrindle. This fact, while not exactly surprising, is one many of us might not have realised.
Generation Z is now the largest generation ever, comprising around 20% of Australia’s population and almost 30% of the world’s population. Gen Z already are, or will soon be, our customers, our suppliers, and our service providers.
While all these are important considerations for businesses, one of the first areas we need to address is Gen Z as our employees, as they’re going to change our workplace significantly, from career paths to communication styles. In an age where recruitment is competitive and staff retention is an ongoing challenge, none of us can afford to ignore their needs and behaviours.
What Gen Z want from a job
The oldest members of this generation were born in 1995, so, of course, many have already been working for some time, and may even be moving towards management positions. They’re also well educated – one in two Gen Zs are predicted to have a university degree, according to McCrindle.
Recently, Oliver Wyman and the News Movement carried out a comprehensive survey of 10,000 Gen Z, talking to them about their needs and wants in various areas of their lives, presenting the report at the World Economic Forum.
When it comes to work, Gen Z have a whole different set of priorities – even compared to Millennials. They’re not even sure they want to climb the corporate ladder in the same way as their predecessors, and they have a pragmatic view – they work to live, rather than live to work.
Gen Z like to work for companies that are fun and flexible while also providing autonomy and work-life balance. If their needs aren’t met, then they’ll leave – 62% are actively or passively seeking new jobs, and even 70% of those who say they are loyal to their employer are keeping an eye on the job market. Alternatively, they will ‘quiet quit’ – the phenomenon where they stay at a job but do the minimum required to fulfil their role.
So, for a business owner, it’s worthwhile keeping this in mind as Gen Z takes on greater responsibilities within your company.
The end of email and communicating with FOMO generation
For business owners, the thought of how to tackle this challenge might send our heads into a giant spin – understandable, the game is changing!
One place to start dipping your toe into their world is communication. Gen Z is known for using words like FOMO (Fear Of Missing Out) and YOLO (You Only Live Once), but it goes far deeper than this.
Many of us have probably seen the evolution of email from the early days to its ubiquitousness in our working lives, which became even more prominent once smart phones arrived. Now, according to Gen Z, time is up for email. Thierry Delaporte, CEO of tech company Wipro, made headlines recently by saying he uses Instagram to contact employees because they rarely check their emails. At the same time, Anjali Sud, chief executive of video platform Vimeo, said emails were outdated ‘instruction manuals’ and called it a wake-up call for employers. In fact, according to the A-Gen-Z report, their default platform is TikTok, because of its feeling of authenticity.
For us, as I’m sure is the case with many businesses, reducing email might not be a bad thing, no matter what age you are. In fact, we may already be a little fatigued communicating through screens after the pandemic. If you’re not confident assigning tasks via TikTok, we can certainly relate. Try another platform or method like text message – or even more outrageously, try talking to someone!
Whatever the eventual impact of the changing of the guard, we maintain that humans always find a way to adapt and overcome – we look forward, albeit with mild concern, to what Gen Z are going to contribute!
Stay safe and good luck.
References
- Gen Z and Gen Alpha Infographic Update. McCrindle https://mccrindle.com.au/article/topic/generation-z/gen-z-and-gen-alpha-infographic-update/
- What Business owners need to know about the generation changing everything. Oliver Wyman Forum, News Movement, 2023 https://www.oliverwymanforum.com/content/dam/oliver-wyman/ow-forum/template-scripts/a-gen-z/pdf/A-Gen-Z-Report.pdf
- ‘Quiet quitters’ make up half of the US workforce. AFR, Jo Constantz, Sept 7, 2022 https://www.afr.com/work-and-careers/careers/quiet-quitters-make-uphalf-of-the-us-workforce-20220907-p5bg24
Bosses use Instagram to contact staff as Gen Z ditches email. AFR, Szu Ping Chan, Jan 18, 2023 https://www.afr.com/work-and-careers/careers/bosses-using-instagram-to-contact-staff-as-gen-z-ditch-email-20230118-p5cdcf