What Do They Really Want? 5 Key Factors To Consider When Recruiting Gen Z

Nearly a quarter century after the beginning of their generation in 1997, Gen Z are gradually coming of age. They are starting to wield more influence as consumers, and more importantly for businesses, as the next generation of talent.

Nowhere is this phenomena more acutely manifesting as in India, a country where more than half the population are under the age of 25, according to The Guardian. Out of that 600 million, the Indian Express narrows it down to 472 million as Gen Z proper (ages 10 to 24).

As they enter the workforce in larger numbers with each passing year, recruiters have a cause for concern – Deloitte’s 2021 'Millennial And Gen Z Survey' cautions that over 53 per cent of Gen Z are likely to leave their employers within two years, compared to just 36 per cent of Millennials.

From a recruitment perspective, understanding the unique needs, aspirations and values of this generation is vital. So, what does Gen Z want? 

Gen Z’s Top 5 Aspirations – Defined By Their Place In History

Unlike their predecessors, Generation Z is heavily defined by the internet. They grew up along with it and have never known a world without it. Shaped by the hyper-connectivity of the internet, they are more diverse and progressive than any other generations and have excellent collaborative skills.

Gen Z are also keen pragmatists, having inherited critical issues like climate change from their predecessors. Recent research by Stanford University further classifies them as a generation that values flexibility, authenticity, and non-hierarchical leadership systems.

All these qualities and quirks are reflected in their expectations regarding the nature of work and workplaces:

1. Fulfilling work is a priority

Monetary benefit is no longer the singular priority for young people. In general, Gen Z tend to be entrepreneurial and creative by nature. There is a greater passion for values and ideals. For them to value a job, they need to feel there’s a strong personal purpose behind the projects they're assigned.

A 2022 study on the ‘Future of Indian Workforce’ by NASSCOM and Indeed surveyed Gen Z and millennials in India. The results indicate that over 70 percent of young Indians want to work in the tech sector because they find it ‘aspirational.’ Further, they are willing to stay for more than 2 years in the same job only if their employers can provide the ‘right value proposition’.

For Gen Z, that means job satisfaction and good working environment, along with financial benefits and career growth. They seem to prioritize non-financial benefits like learning and development over financial perks like bonuses or other variables.

The implications are quite stark, particularly in the Indian context – under rigid and authoritarian workplace arrangements that focus more on conformity and burnout culture, Gen Z are more likely to feel disengaged and prone to the phenomena of ‘quiet quitting’.

2. A preference for flexibility and stability

The pros of the gig economy haven’t gone unnoticed by Gen Z. According to a 2021 report by Winolo on the ‘State of the Gig Economy by Generation’, workers aged 18-25 had seen the sharpest increase in average hourly earnings on the platform between 2019 and 2021 – 11 percent. The total number of Gen-Z workers also witnessed a jump of 14 percent.

In India, around 1.5 crore people are engaged in the gig workforce, out of which 48 percent are Millennials and Gen-Z. This represents an 8-fold increase since 2019, according to reports released by Taskmo. 

It seems that while Gen Z wants and respects an office job, they also equally value working at a self-directed pace without micro-management. At workplaces that fail to fulfil their demands, Gen Z are likely to turn to moonlighting or even something bizarre like ‘rage applying’.

3. Gen Z values ethics and company culture

Gen Z places an inordinate amount of importance on company culture and ethics compared to their predecessors, according to a recent report by NASSCOM and Indeed. In contrast, Millennials are more driven by financial benefits. 

A particularly thought-provoking article in the New York Times explores how bold Gen-Z employees are reshaping the culture in their companies. They want flexible hours, better work-life balance, and inclusion. And they are not afraid to speak their minds on these things, even if that means ruffling the feathers of the senior management, which includes Millennials. 

How do you create a great company culture to accommodate such a defiant generation? For the Forbes Business Council, it involves getting to know your employees on a personal level, prioritising communication and transparency, and investing in employees' personal growth.

Other vital attributes of the perfect workplace culture for Gen Z can include diversity, equity, and inclusion (DEI). An overwhelming 83 per cent of Gen Z employees are willing to quit organisations that lack a proper DEI policy, according to a 2022 ADP global workforce survey.

Showcasing your organisation's culture and ethics through web pages, social media presence and job descriptions may attract more Gen Z candidates to your company.

4. A promise of better work-life balance

After the pandemic, mental health and well-being seems to have become non-negotiable for Millennials and Gen Z in the workplace. Data collected by Deloitte Global from 46 countries including India between 2020-2022 indicates that low pay, burnout, and mental health issues related to the workplace were the top reasons why Gen Z and Millenials quit their jobs. 

Gen Z, in particular, rank jobs that offer a good work-life balance (32 per cent), along with learning and development opportunities (29 per cent) higher than those with a bigger salary and other financial benefits (24 per cent).

PwC's 2022 report estimates that in India, Gen Z are 33 per cent more likely to ask for a reduction in working hours when compared to Millennials. The implications for employee retention are crystal clear – employers and managers need to set workplace boundaries that protect the work-life balance of Gen Z employees.

5. Expectations regarding transparent communications 

Burson Cohn & Wolfe’s (BCW) global 'Expectations At Work 2022' report points out that Gen Z has higher expectations from their leaders than any other demographic. For instance, while the others ranked open and honest communication from leaders as their fifth priority, it was reported as the second-highest priority for Gen Z among workplace expectations.

'Though they are characterised as technology savvy, both these generations look out for more face-to-face conversations and regular feedback on their performance', Achal Khanna, Chief Executive Officer of the Society for Human Resource Management (SHRM) in India, an alliance of HR managers from more than 165 countries, told the Mint.

There is somewhat of a generation divide visible between older demographics like the Baby Boomers, Gen X and the younger cohorts like the Gen Z when it comes to workplace communications. Since the ‘old guard’ are often the leaders who Gen Z look up to, you may have to make concerted efforts to improve the leadership culture at your organisation.

Striking The Right Balance Between Gen Z And Millennials

Unfortunately, since Gen Z are only starting to enter the workforce en-masse, there is a tendency to group them together with the other ‘young demographic’ – the Millennials. While they share some common values and aspirations, particularly with regard to sustainability and DEI, there are stark differences in other areas of workplace expectations and values.

To successfully hire Gen Z, your managers need to understand the nuanced differences in mindset and career attitudes between these two younger generations. Further, you should also pay close attention to Millennials.

In the next decade or so, Millennials will be holding the majority of managerial positions over the Gen Z newcomers. Companies that focus on training Millennials on how to be great managers for Gen Z will be well positioned to reap the benefits of greater Gen Z engagement and retention in the long run.