PEOPLE & CULTURE

By FedEx | September 27, 2024

By 2025, Gen Z will represent one-third of the global workforce. Discover four key elements to help employers and companies understand what Gen Z want from their job.

• Gen Z are typically transparent and vocal about what they want from the workplace, and what attracts them to a company or brand.
• From career development and mentorship to environmental sustainability, Gen Z employees are seeking personal, professional and social wellbeing.
• To attract and retain Gen Z talent, companies should prioritize creating a supportive and inclusive work environment that gives young talent the chance to shine.

By 2025, Gen Z will represent one-third of the global workforce. To attract this emergent generation of potential employees, employers need to understand their motivations and what they expect from the workplace.

A survey by one of Taiwan's leading online social platforms reveals that brand reputation is no longer a significant factor for Gen Z job seekers. Instead, they prioritize company culture, including transparency, opportunities for personal growth, meaningful work, and inclusivity. This article explores four workplace traits that Gen Z value most.

Best practices for open workplace communication

While compensation remains a top priority for Gen Z, organizational atmosphere closely follows, with 59.2% of respondents emphasizing this factor. Open communication is fundamental to fostering a positive workplace environment. A recent survey revealed that 72% of Gen Z employees prefer face-to-face interactions and frequent communication with their supervisors.

Additionally, research by Workplace Intelligence underscores their preference for transparent decision-making processes and environments where they feel included and valued. For companies aiming to attract and retain Gen Z talent, establishing transparent communication channels is essential. To create a more inclusive workplace for Gen Z, employers can:

• Leverage digital communication tools. Gen Z gravitates towards digital platforms like Microsoft Teams and instant messaging apps, which facilitate quick, informal interactions and real-time collaboration.
• Offer regular feedback instead of an annual review. This generation values continuous, actionable feedback through systems like 360-degree evaluations and frequent pulse surveys.
• Promote transparent and open leadership. Gen Z appreciates leaders who foster transparency, hold regular town halls, and maintain open office hours for direct communication.
• Implement recognition and rewards. Public recognition and gamified reward systems are powerful motivators, as Gen Z thrives on visible acknowledgment of their contributions.
• Provide mentorship opportunities. Programs that include both mentors and mentees are valued. Gen Z enjoys learning from peers as well as from more experienced colleagues.

Enhancing job satisfaction through learning and career advancement

The Cheers survey highlighted that Gen Z is more anxious about the rapid advancement of AI and its potential to replace jobs compared to millennials. A defining characteristic of Gen Z in the workplace is their desire for continuous improvement. The survey found that nearly half of Gen Z values robust promotion and training systems.

LinkedIn's 2023 Workplace Learning Report shows that 62% of Gen Z employees expect their employers to provide ample learning opportunities.

Beyond offering training programs and certification support, employers can create a more challenging work environment, setting stretch goals to foster career growth. The PwC Future of Work Report (2023) highlights that Gen Z workers value stretch assignments and being pulled into cross-functional projects to enhance their skill sets.

As well as boosting employees' sense of achievement, employers can help the company maintain a competitive edge in a rapidly evolving marketplace.

The importance of purpose, CSR, and inclusivity in enhancing employee retention

For Gen Z, work is not just about earning a paycheck, it’s about finding purpose and meaning. This generation places a high value on participating in corporate social responsibility (CSR) activities.

According to a report by the United Way of San Diego County, Gen Z is three times more likely than previous generations to support companies actively engaged in CSR initiatives. Additionally, a Deloitte study found that companies focused on CSR are more likely to retain Gen Z and Millennial employees for over five years.

More specifically, according to Deloitte Gen Z and Millennial Survey, Gen Z prefers organizations that prioritize environmental sustainability, ethical governance, and inclusivity. Key activities that resonate with them include:

• Environmental Initiatives: Reducing carbon footprints, adopting sustainable practices, and engaging in CSR projects.
• Diversity and Inclusion Programs: Active measures to promote diverse hiring, inclusive workplace policies, and support for marginalized communities.

These activities enable employees to contribute to important causes, fostering a deeper understanding and alignment with the organization’s values, and enhancing their sense of belonging and fulfilment at work.

The role of DEI initiatives in cultivating a respectful and loyal workforce

Gen Z is a generation defined by its diversity, with nearly 20% reporting that they have no standard role models. This diversity extends to workplace expectations, where they demand respect for diverse values. PwC’s 2024 Global Workforce Hopes and Fears Survey found that 82% of Gen Z consider diversity, equity, and inclusion (DEI) critical when choosing an employer.

Employers can champion inclusivity by celebrating events like International Men’s and Women’s Day and supporting LGBTQIA+ initiatives, ensuring all employees feel valued. When employees feel respected for their unique perspectives, they are more likely to develop loyalty, enhancing performance and creating a more positive work environment.

The fresh perspectives of Gen Z offer opportunities for organizational growth. Leveraging their positive characteristics and attracting Gen Z talent will be key to maintaining competitiveness in a rapidly changing business landscape.