How is Gen Z changing the workplace?

The workplace has undergone a remarkable transformation – from AI to Zoom. The rules of work were reshaped in the early 2020s by both the pandemic and the growth in digital technology. But there’s arguably a more influential change that is still to play out this decade: the rise of Generation Z.

Born between 1995 and 2009, Generation Z – or Gen Z – currently represents 27 percent of the workforce. This is projected to rise to 31 percent by 2035, making Gen Z the largest generation in the job market. This will bring a new set of expectations that is already redefining the work environment and changing how employers attract and retain talent.

“Gen Z has introduced a wave of new skills, innovative ideas, and fresh perspectives to our company,” says Mauricio Pordomingo, Group Head of Talent at Zurich Insurance Group. “Their creativity and tech-savviness are already making a powerful impact. To harness their full potential, we need to meet their expectations with meaningful experiences, growth opportunities, and clear career paths. Smart organizations know that embracing Gen Z isn’t just future proofing tomorrow, it’s about thriving in the present.”

How does Gen Z differ from older generations?

Gen Z is the first generation to have grown up entirely in the digital age. They have never known a world without the internet, and their lives revolve around the latest technology – from smartphones to virtual reality gaming – and a diverse array of social media channels. Nearly two thirds of American Gen Zs are using AI in work, studies, or in their everyday lives. This tech-savviness and dependency distinguish them from Millennials, Generation X, and Baby Boomers.

They have also been labeled the “first global generation.” Throughout their lives, they have been virtually connected to people across the planet, with access to global news, information, and content through social media and other digital channels.

“Having grown up in a highly digital, interconnected, and fast-paced globalized world, Gen Zs feel that there are few or no boundaries, whether in their real or virtual lives,” says Valerie Malcherek, a Gen Z employer branding specialist at Zurich Switzerland, whose role is to ensure that the business continues to attract and retain the brightest young talent.

“This world of endless possibilities means they have high expectations for their employers,” Malcherek adds. “And they believe businesses have a significant role to play in addressing social and environmental issues.”

What does Gen Z want from their careers?

Despite media attention on the phenomenon of “quiet quitting,” a Deloitte survey finds that nearly half of Gen Zs (49 percent) say their job is central to their sense of identity – though this is lower than for Millennials (62 percent). For Gen Zs, family and friends are more important, which likely explains why 42 percent of them value work-life balance, remote working, and flexible leave as their top priorities when job hunting.

Some traditional benefits remain important. Like previous generations, salary is the most critical factor in choosing a job, but Gen Zs place less emphasis on salary compared to older generations. The concept of a traditional career ladder is viewed as outdated by Gen Z, who prefer a more flexible and ad hoc approach.

Empowerment and flexibility are key themes in their career decisions. Gen Zs want the freedom to choose where and when they work and to determine their career path with the flexibility to change at any time to develop their skills and promote lifelong learning.

Flexibility also extends to switching employers. Gen Z employees might change jobs up to 10 times between the ages of 18 and 34, based on a survey of U.S. students.

“A good work-life balance holds significant importance and is prioritized over climbing the career ladder, unlike previous generations,” Malcherek says. “Building friendships and fostering positive relationships with work colleagues is often more important than job titles. Gen Zs are also motivated by having a meaningful career that allows them to positively impact society. Many want to work for companies that align with their values and where they are empowered to drive change.”

Valuing values

What values do Gen Zs seek in prospective employers? While Gen Z is not a homogenous group – culture and geography have a profound impact – certain trends are evident.

Gen Zs expect companies to show, not just tell, how they support people and the planet. This needs to be communicated in a way that resonates with them on channels they follow. Diversity, equity, and inclusion are very important, and Gen Zs want their employers to care about the planet. In fact, 55 percent of Gen Zs research a company’s environmental impact and policies before accepting a job, with 17 percent having changed jobs or sectors due to climate concerns.

Gen Zs expect opportunities to expand their skills and broaden their talents and experience. This means employers need to change how they attract, hire, develop and retain talent, which can benefit all generations. Gen Zs also want a voice in the business, which is why Zurich set up ‘Zurich Next’ in 2019 – a forum for younger employees to challenge the status quo and shape the future direction of the business.

“Gen Zs are entering a workplace that’s changing rapidly – and some of that pace of change is being driven by younger workers,” says Sally Henderson, Group Head HR Business Partnerships at Zurich. “Many Gen Zs want to develop at a fast pace, and they expect their employer to match that pace with the necessary, tools, technologies and opportunities.”  

Intergenerational integration

Attracting Gen Zs to your organization is just the beginning; integrating them into a workforce that spans five generations is crucial. Effective integration helps less tech-savvy leaders embrace Gen Z’s digital skills without feeling intimidated. It also encourages experienced employees to share their expertise with younger team members, fostering professional growth for all.

Creating intergenerational harmony is increasingly important as one-in-ten Gen Zs is already a people manager and may be managing someone from an older generation. Remember, some Gen Zs are in their late twenties and approaching 30.

Henderson emphasizes the need to treat all employees as individuals and avoid stereotyping by generation. “Everyone has their own unique style, needs, goals and traits. It’s important to create a sense of belonging where everyone feels valued and engaged,” she says. “This requires building an open and transparent environment where all employees can thrive, work together and learn from each other.”

Every generation changes the world of work, from the influx of women into the workforce during World War II to Millennials raising awareness of issues like mental health. Gen Zs are coming of age in the wake of a historic pandemic, geopolitical turmoil, and a climate emergency. What they seek in work – and what they reject – is likely to have a profound and lasting impact on the workplace.