Gen Z in the workplace: building loyalty with tomorrow’s leaders

The multigenerational workforce is expanding

Navigating the complexities of a multigenerational workforce with shifting values can be challenging. With the workforce now made up of four generations, organisations must be prepared for the shift in work styles and expectations.

Understanding Gen Z in the workplace: A generational shift in values

Gen Z will account for 27% of the global workforce by 2025, driving a shift in values that challenges and reshapes traditional work norms established by previous generations. This is causing much debate, as these young professionals are often misunderstood. Their focus on meaningful work, flexibility, and mental well-being is sometimes perceived as a lack of commitment. However, their refusal to embrace traditional management roles and their push for ‘conscious unbossing’ reflect a deeper shift in how they view leadership and workplace culture.

What does Gen Z want from their careers?

Based on our survey across all four generations, we found that 73% of Gen Z would opt for a big pay cut or a step down to switch to a more fulfilling career path. In contrast, only 32% of Baby Boomers would do the same. 

These results highlight how Gen Z's outlook on ‘climbing the career ladder’ and prioritising salaries sets them apart from previous generations.  . Therefore, organisations must adapt to these expectations to ensure they remain competitive as an employer of choice.

Gen Z needs to see that their employer will invest in their development and future careers. If your organisation can adapt to this new way of working, you will attract top talent with innovative ideas and diverse perspectives.

“Technological advancements, social and cultural shifts, and a rapidly changing economy have empowered generations like Gen Z to take a more dynamic approach to their careers. Unlike older generations, they prioritise growth, adaptability, and meaningful experiences, making strategic job moves that align with their values and aspirations.” 

Serena Pook 

Global Head of Sourcing 

What does this mean for employers?

As a result of their growing dominance in the global workforce, Gen Z will have the ability to demand greater flexibility in how they progress through their careers. Organisations will be required to adjust to this new mindset. To attract top Gen Z talent, employers must evaluate their HR policies and adapt to keep pace with the rapidly changing external environment. To meet the expectations of Gen Z, employers should focus on developing three key areas: training, ESG practices, and leadership programmes.  

Steps to build a strong employer brand for Gen Z talent

Step 1: Skills-based hiring

By adopting a skills-based hiring approach, organisations can recruit individuals who may not tick every box on a traditional job description but possess the core skills essential for success in the role. Candidates are assessed based on their skills, abilities and competencies, rather than relying solely on education, qualifications or experience. This approach enables employers to fill talent gaps by hiring individuals who can be shaped and developed through training and leadership programmes to fit the job description.

Adopting this strategy will help in both hiring and retaining a Gen Z workforce, especially as university fees and interest rates are deterring young people from pursuing the traditional higher education route. Therefore, adopting a skills-first approach where a traditional degree is not a requirement, levels the playing field for Gen Z. This approach also enhances the likelihood of long-term commitment from Gen Z talent.

Step 2: Integrating reskilling, upskilling programmes and internal mobility initiatives

Upskilling and reskilling programmes allow organisations  to retain talent they may have lost due to a change of career or lack of development.  

- Reskilling is the process of acquiring new skills or completely retraining employees to take on entirely new roles within your organisation. 

- Upskilling involves enhancing the existing skills and capabilities of employees to help them perform better in their current roles and prepare them for promotion opportunities.

Gen Z can find themselves feeling stuck if they do not see opportunities for growth or skills development whilst in a role. This strategy is crucial due to the ongoing technological advancements, shifting job requirements, and industry changes that continually occur, enabling your employees and organisation to remain competitive.

Step 3: Consider the importance of ESG values

Gen Z want their employer to be serious about sustainability and their overall commitment to ESG initiatives. According to Deloitte 55% of Gen Zs will research an organisation's environmental impact before accepting a job offer. A lack of corporate responsibility will lead Gen Z to ‘climate’ or ‘conscious’ quit. Climate quitting is a trend in which individuals are willing to leave their jobs due to a perceived lack of ESG practices by their employers.

To address this, employers must actively showcase their ESG investments and the tangible impact of these initiatives. Clear communication of these efforts can strengthen an organisation’s appeal to Gen Z talent. 

By embracing skills-based hiring, prioritising training programmes, and committing to ESG values, organisations can attract and retain top Gen Z talent while fostering a competitive edge in the evolving workplace. 

Download our full e-guide here.