Generation Z, born between the late 90s and early 2010s, is redefining the workforce. How? They bring unique skills and creativity, shaped by a digital upbringing and global connectivity in the workplace. Gen Z values flexibility, diversity, and technological integration in the workplace. Their adeptness with technology and social media fosters innovative thinking and collaboration. 

Employers must, therefore, adapt to these traits to attract and retain Gen Z workers. Embracing their distinct qualities can lead to a more dynamic and competitive business environment. Understanding Gen Z's professional expectations is crucial for businesses aiming to thrive in the modern economy.

Let's look into some characteristics and priorities that define Gen Z.

Characteristics of Gen Z workers 

Gen Z, as identified by the Institute for Emerging Issues (IEI), is the most ethnically diverse and technologically advanced generation. They communicate informally, individually, and directly, with social networking playing a crucial role in their lives. This generation is known for its Do-It-Yourself attitude and tends to be entrepreneurial, trustworthy, and tolerant, prioritising values over financial gain compared to Gen Y.

Gen Z workers are realistic about work expectations and optimistic about the future, yet impatient and technology-dependent, with a short attention span. 

Gen Z workers are highly individualistic, demanding, and materialistic but show strong environmental consciousness and a sense of responsibility toward natural resources. Despite their tech-savvy, they often lack problem-solving skills and decision-making abilities, and they participate less in voting and community engagement than previous generations.

Priorities of Gen Z Employees

According to Deloitte’s 2024 Gen Z and Millennial Survey connected with over 22,800 respondents from 44 countries to explore their attitudes about work and the world, Gen Z talents prioritise the following: 

Work/life balance and flexibility: Work/life balance is the top priority for Gen Z employees when choosing an employer. Last year, there was a shift towards more on-site work. The majority of Gen Z workers believe their employers have implemented a return-to-office mandate, either fully on-site or as a hybrid model. These mandates have had mixed results. Some report benefits like improved engagement, connection, collaboration, routine, and structure. Others experience increased stress and decreased productivity. Gen Z workers value flexibility in their work location and schedule. This desire for flexibility is increasing the popularity of part-time roles, job-sharing, and side gigs.

Workplace factors contribute significantly to stress levels, making workplace mental health a crucial focus for employers. Only about half of Gen Z talents (51 per cent) rate their mental health as good or extremely good. Although stress levels have slightly improved since last year, they remain high, with 40 per cent of Gen Z workforce feeling stressed most of the time. Major stressors include financial concerns, family welfare, long working hours, and lack of recognition. While employers are taking mental health seriously, there is still room for improvement in fostering open conversations about mental health at work.

Economy, social, and financial priority: Nearly one-third of Gen Z talents (32 per cent) believe their country's economy will improve within the next year. This optimism has grown since last year and is at its highest since 2020, before the pandemic. Additionally, 48 per cent of Gen Z talents expect their financial situations to improve. However, financial insecurity remains a concern, with 30 per cent of Gen Z talents feeling financially insecure, and more than half living paycheck-to-paycheck. Despite feeling limited in influencing their country's direction, Gen Z talent believe they can drive change on issues like climate change, mental health, and education.

Purpose drives workplace satisfaction: Most Gen Z workers (86 per cent) believe that having a sense of purpose is crucial for their job satisfaction and well-being. They increasingly reject assignments or employers that do not align with their values. When employers respond positively to this feedback, employee loyalty increases significantly. For many, purpose means working for an organisation that aims for more than just profit and has a positive societal impact. Seventy-five per cent of Gen Z workforce consider an organisation's community engagement and societal impact when evaluating potential employers. 

Environmental sustainability: Environmental sustainability remains a top priority for Gen Z employees. This focus persists despite a global pandemic, geopolitical instability, historic inflation, and major technological changes impacting their work. Many in this generation feel a personal concern about climate change. Recently, 62 per cent of Gen Z talents reported feeling worried or anxious about it, showing a slight increase from last year. 

In response, most Gen Z (73 per cent) take steps to reduce their environmental impact. 77 per cent of Gen Z believe governments should push businesses harder to address climate change. Gen Z workers see protecting the environment as the biggest area where businesses can drive change. They influence businesses through their career and consumer choices. 

Generative AI at work: Among Gen Z employees, there is a positive increase in perception of generative AI with hands-on experience, but workplace concerns have risen too. In recent years, generative AI has transformed workspace, organisations, and talent skills. It can unlock business value, improve efficiency and productivity, and create new products, services, and business models.  However, Gen Z workers report uncertainty as their top emotion regarding generative AI, excitement and fascination follow closely. This uncertainty may stem from the limited use of GenAI at work.

Education's role in the evolving workforce: Gen Z workers are reshaping career expectations influenced by environmental concerns, emerging technologies, and a perceived breakdown in the employer-employee relationship. "Quiet quitting" in 2022 showed their refusal to exceed expectations for unappreciative employers. However, recent findings show optimism: 61 per cent of Gen Z feel empowered to drive workplace change, particularly in workload management, client services, DEI, wellness, and environmental efforts. Many are shifting industries due to environmental issues and automation fears, with 60 per cent considering reskilling to future-proof their careers.

Gen Z, shaped by digital fluency and global connections, brings innovation and diversity to the workforce. Employers must adapt to their preferences for flexibility, tech integration, and purpose-driven work to foster a dynamic business environment. Understanding and embracing these traits are key to attracting and retaining Gen Z workers in today's competitive economy.