As Generation Z joins the workforce in droves, this wave of young people and their different values and expectations are shaking up workplaces. Employers who understand what motivates Gen Z can do better at attracting, engaging, and retaining them as talent.

Companies that focus on six key areas—diversity, compensation, technology, well-being and mental health, work-life balance, and meaning—will build a strong workplace for all employees, especially the next generation of workers.  

Attracting Gen Z Talent Starts With Awareness

What is Gen Z? Sometimes known as Zoomers, this peer group encompasses people born between 1997 and 2012. According to Steelcase's most recent "Global Report: Changing Expectations and the Future of Work," India has the world's largest Generation Z population, with around 472 million people born between 1997 and 2012. This group is not just large (representing 34.5 percent of the country's 1.3 billion people), but it is also the most technologically skilled. 

Sandwiched between Generation Y (or millennials) and Generation Alpha, this educated generation is tech-savvy, as they grew up in an interconnected digital world. 

According to a recent Nasscom survey, the Indian IT industry hired over 380,000 freshers in FY22, and more than 70% of Gen Z students are interested in working in technology in the near future.

According to the findings, increased fresher recruiting in the tech industry over the last several years has pushed Gen Z to 18-20% and millennials to 68-70% of overall employee base in FY22.

As per a research study findings by NASSCOM and Indeed -

  • More than 79% of Gen Zers are willing to work at their first job for more than two years if their employers can present them with a compelling value proposition.
  • In FY22, the IT sector hired about 3.8 lakh freshmen, which contributed to the generation Z population's percentage of the total workforce rising to 18–20%.
  • The research also noted that over 85% of Gen Z respondents said they favoured a hybrid model or to work entirely from home.

Significant global events have shaped Gen Z’s formative years: The 2008 recession and its aftermath, as well as the COVID-19 pandemic. Experiencing such social and economic disruption, and in some cases, being let go just as they began their careers, has led Gen Z to have a different relationship with work than previous generations. According to Steelcase research, which was conducted with approximately 5000 employees worldwide, 42% of younger generations and 31% of older generations think that advancement is a major perk of working in an office. Infact, millennials and Gen Z workers are 65% more likely than Boomers and Gen X to leave their company over the following six months. Understanding what younger generations are looking for may help us improve the work experience for everyone. They are demanding more from employers, especially in the following six areas:

Diversity

Gen Z is more socially conscious and more exposed to ethnocultural, religious, and gender diversity. This generation cares deeply about diversity and inclusion—and expects the same from employers. A diverse workforce is also good for business and companies with more diverse workforces financially outperform those that are less diverse. 

In an interview with Economic Times India, Neelesh Gupta, Director, Deloitte India said "Generation X and Baby Boomers made up roughly 60% of the workforce about three decades ago." Millennials and Generation Z now account for more than 60% of the population. The thinking and strategy differ, as do the advantages preferences. "What they want is gender-neutral childcare benefits, flexible work, an inclusive and varied culture, and an enterprise that rewards and recognises their achievement."

Capgemini India’s Chief HR Officer Aarti Srivastava, “Parental leave, surrogacy leave, adoption leave, and gender affirmation surgery leave are all available at the firm. It prioritises employee wellness by providing coverage for neurodiversity treatments, gender transition surgery, hormone replacement therapy, and mental wellness treatments, as well as assisting employees in obtaining assistance in caring for their elderly relatives.”

The importance of relationship elements, such as feeling appreciated by one's manager and employer and a sense of belonging, is far higher on the priority list of employees. Employers, on the other hand, tended to place more emphasis on transactional variables like pay and work-life balance. According to a survey of 257 firms from six different industries—IT/ITeS, manufacturing, financial services, life sciences, consumer products, and services—this results in investment on non-priority groups of benefits and low utilisation.

Gen Z and millennials place a high value on diversity, equity, and inclusion. According to a recent research, 82% of young workers in India between the ages of 18 and 24 feel that a gender wage gap exists and is unjust, and 85% of them believe that there aren't enough policies promoting diversity and inclusion.

In addition, 83% of young employees say they would think about looking for another employment if they discovered an unfair gender pay gap or a lack of a diversity and inclusion (D&I) policy. Employees frequently lose interest in their jobs if they believe their organisation is not making the necessary efforts to create an inclusive system, which eventually results in a loss for the organisation.

To build successful DEI initiatives at your company: 

Compensation

Compensation is key for jobseekers, including Gen Z. Recent research suggests that the multi-generational workforce and found Zoomers—alongside millennials and Gen X—say a competitive salary is the most important influence on their job satisfaction and desire to stay with an employer.   

Pay transparency—when companies provide information about how they compensate their roles—is a priority for Gen Z in the workplace, lack of transparency is a deal-breaker in a job search. Indeed's recent article on salary transparency in India spells out why it is time to embrace the trend. 

Gen Z also expects benefits and perks to be part of a compensation package. Benefits such as mental health support, paid time off, and activities that create a sense of community are popular with younger workers. 

Technology

The elder Zoomers graduated from university and college during the pandemic, were onboarded virtually, and met new colleagues through screens. Gen Z is extremely connected to technology, social media, and the internet. However, they still highly value human interaction at work regarding their role and interactions with coworkers. An Indeed research found that the key drivers of workplace wellbeing involved the social dynamics around work. 

Gen Z workers are also more concerned about AI affecting their job than millennials, Gen Xers, and baby boomers, but they are willing to reskill to pursue new roles within their companies. Consider offering your employees opportunities to learn new skills to stay up to date with technology.

Well-being and mental health

Workplace wellbeing has quickly become an important issue for talent management and is a top priority for Gen Zs in the workforce. This generation is more open to discussing mental health and seeks a workplace culture prioritising mental health and wellbeing. 

According to a recent survey, roughly 65% of Gen Z employees say they prefer organisations that encourage "non-judgmental expression of self". In contrast to 58% of Millennials and 48% of Baby Boomers, 67% of Gen Zers are interested in using wearables to check their health, according to a PwC survey.

Additionally, Gen Z is more likely to prioritise their mental health and get help when they need it. Consequently, their access to healthcare must cover mental health services like therapy and counselling. According to Deloitte's Gen Z and Millennial study 2022, mental health was one of the top 5 important worries and priorities for Gen Zs in India and around the world, with more than 21% of them citing it as their top concern. Millennials, however, cited unemployment, climate change, and the slowing economy as their top concerns.

Employers can create a culture that supports mental health through mindfulness training, health benefits, and mental health training for managers. Another step to support mental health and well-being is listening to employees. India Today-RPG Group “Happiness at Workplace Summit” and Awards identifies the leading well-being indicators as a sense of belonging/inclusive, having a goal, and feeling useful and motivated. You can measure work wellbeing with questions like: 

  • Do employees have a sense of purpose? 
  • Are they satisfied? 
  • Are they stress-free? 
  • Do they have opportunities for additional learning? 
  • Are they being recognised for achievements? 
  • Do they have flexibility?
  • Do they experience a sense of trust in their organisation? 

Work-life balance

Numerous surveys show that work-life balance is significant to Zoomers, with more than half (56%) of Gen Z saying they would leave their job if it interfered with their personal lives according to a global study.  

According to a study by RPG Group, 64% of Gen Z employees in India seek flexible work schedules therefore companies can prioritise a healthy work-life balance for employees in numerous ways, such as the right to disconnect from work, four-day work weeks, unpaid time off, and sabbaticals. Surveys also show employees prefer hybrid work models that offer flexibility for both in-office and remote work, as they feel it improves their work-life balance. Offering a flexible work schedule that differs from the standard 37.5-hour 9-5 schedule is also attractive to Gen Z employees.

Menstrual leave rules (42%), effective harassment policies (44%), a focus on mental health (49%), individualised workspace (47%), no dress code (49%), priority for mental health (49%), and office transportation (51%), among others, are also vital for Gen Z. Companies that promote mental health (61%), treat everyone fairly (59%), and allow people to follow their passions are among those that Gen Z considers to be great workplaces.

Meaning and purpose

Gen Z employees have a strong desire for a meaningful workplace—for both their career and the company’s impact on the world. 

They are also passionate about addressing climate change and racial inequality and expect a company’s views on social and environmental issues to align with their own. Deloittes research shows that almost half of Zoomers said they would not work with an employer that is not actively working to become more sustainable. 

Recruiters can highlight a sense of purpose and impact in roles to reach Gen Z hires, while managers can explain to them how their contributions matter and how broader organisational goals will have a positive impact on the world. Companies can also communicate their environmental and social goals through their employee brand and introduce policies such as paid time off for volunteering.   

Help Gen Z Thrive In The Workplace

Just as prior generations brought new expectations and attitudes to the workplace, Gen Z are doing the same. Employers who understand this generation and act on the issues that matter most to them are better positioned to attract, engage, and retain the next generation of workers.