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How to hire, develop, and inspire Gen Z: A study report

More than half of Gen Zers worldwide (54%) – including 62% in the U.K. and 59% in the U.S. – say pay is the most important consideration when applying for their first full-time job

Job trend

Delhi, India, November 26, 2019 – The Workforce Institute at Kronos Incorporated announced the final segment of a global study examining the attitudes of Generation Z1 – teenagers and early 20-somethings – in the workplace to reveal how employers worldwide can most effectively attract, develop, motivate, and retain talent within the next next-generation workforce.

Completing a three-part series from The Workforce Institute at Kronos and Future Workplace, “How to Be an Employer of Choice for Gen Z” uncovers the motivations and aspirations of today’s youngest working generation, including those yet to officially enter the workforce. A survey of 3,400 Gen Zers across Australia, Belgium, Canada, China, France, Germany, India, Mexico, the Netherlands, New Zealand, the U.K., and the U.S. finds that money still talks; good managers matter more than ever; work needs to be interesting; and, while schedule stability is important, flexibility is non-negotiable.

How to recruit Gen Z: Prioritise pay, flexibility, and stability

Money talks: More than half of Gen Zers worldwide (54%) – including 62% in the U.K. and 59% in the U.S. – say pay is the most important consideration when applying for their first full-time job. Money becomes increasingly important the older the Gen Zer, with 57% of 22- to 25-year-olds agree that nothing outweighs pay, compared to 49% of the 21-and-under crowd.

Flexible-yet-stable schedules are a must: One in 5 Gen Zers say they want a consistent and predictable schedule (21%) yet also expect employers to offer flexibility (23%).

Not all benefits are equal: Employee perks like free snacks, happy hours, and gym reimbursements are enticing, but traditional benefits (e.g. healthcare coverage, retirement plan, life insurance) are preferred by a 2-1 ratio by Gen Z, regardless of age or stage of life.

Red flags for Gen Z prospects: A delayed response from a recruiter is a major turn-off for 44% of respondents, especially in Mexico (55%) and India (52%). Same goes for negative employee reviews online (41%), application portals that are not mobile-friendly (29%), and workplaces that have a “dated” feel (24%).

Customer success matters in recruiting: One in 4 Gen Zers say that having a negative customer experience with an organisation would deter them from even applying to work there.

 Help Gen Z advance: One in 5 say training and development is the top employee benefit

Bring out the best in Gen Z: To get their best work, Gen Zers say they need direct and constructive performance feedback (50%), hands-on training (44%), managers who listen and value their opinions (44%), and freedom to work independently (39%).

With the advancement on the mind, Gen Z is looking for leaders to help them chart a path to promotion: One in 4 expect managers to clearly define goals and expectations (26%) and say regular check-ins during their first month makes for an ideal onboarding experience (25%).

Empowering leaders to meet these baseline expectations is critically linked to retention: Nearly 1 in 3 Gen Zers worldwide (32%) would stay longer at a company if they have a supportive manager, while respondents in Australia/New Zealand (51%), Canada (49%), and the U.K. (45%) would “never” tolerate an unsupportive manager.

 Motivate with meaning: Money talks, but doing enjoyable work is just as important

When asked what would make them work harder and stay longer at a company, Gen Zers say doing work that they enjoy or care about is as important as a paycheque, which are the top two motivations cited by about half of respondents worldwide (both 51%).

Forming connections at work inspire Gen Z: Strong relationships with their teams will motivate nearly 2 in 5 Gen Zers (36%), especially part-time employees (40%).

A stressful work environment will do the opposite: Nearly half (48%) say stress at work would directly impact performance, and 1 in 3 (33%) would “never” tolerate a dysfunctional team.

Engage and reward: 1 in 3 Gen Zers say they perform best when working on projects they care about (37%) and when they are rewarded for a job well done (32%) – but make it a cash bonus, says 43% of Gen Zers.

Financial insecurity – i.e. the fear of being broke – motives Gen Z to enter the workforce, most prominently in the U.K. (63%), U.S. (57%), Australia/New Zealand (56%), France (55%), and Canada (52%).

Make sure your payroll system and processes are in check: 39% of Gen Zers would never tolerate paycheque errors, with those in the U.S. (46%) and Mexico (45%) being least tolerant.

Sumeet Doshi, Senior Director of Sales and Country Manager, India, Kronos Incorporated says, “The various surveys on Gen Z clearly indicate that these are a set of people who care about the work they do, the pay they get and how they balance their life’s aspirations around it.  One interesting point to note is that Generation Z wants flexibility in how and when they work and at the same time requires that organizations provide stability in their schedules. There is an inherent dichotomy in this expectation and to be able to resolve it, organizations need to increasingly account for employee availability and preferences in the way they plan and schedule their workforce and align their policies to take care of changing expectations in the workplace.”

Joyce Maroney, executive director, The Workforce Institute at Kronos says “No matter how successful an employer is in developing and motivating their workforce, working at the same company for your entire career is conceptually a thing of the past. Gen Z is just starting out professionally and feel they have much to gain from testing the waters at multiple companies and different industries. Yet, while few today will employ a single worker from hire to retire, organisations can certainly engage Gen Z from hire to re-hire. By creating a working culture where employees feel supported, inspired, and equally empowered to enjoy life in and outside of work, employers can encourage their best people to “boomerang” back or otherwise create brand ambassadors for the future.”

Dan Schawbel, best-selling author and research director, Future Workplace said, “If you want to be an employer of choice for Gen Z, compensate them fairly, ensure that they genuinely care about the job you’re hiring them for and provide them with the necessary training and flexibility so they can succeed without sacrificing their personal lives. Managers that are supportive of Gen Zers’ needs, mentor them, and allow them to bring their full selves into the workplace will hold onto their workers longer and inspire them to do their best work.”

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