Millennials continue to be a popular topic of discussion, often facing criticism for being perceived as overly sensitive, while companies attempt to cater to their progressive values. However, with the Pew Research Center identifying Millennials as those born between 1981 and 1996, the oldest members of this group are now nearing 40 years old. Regardless of whether you have positive or negative opinions about Millennials, it’s clear that they are no longer the newest generation in the workforce.

While companies have spent considerable time studying and categorizing Millennials, their successors, Generation Z (Gen Z), have quietly entered the workforce. Gen Z, which generally includes individuals born between 1997 and 2015, is here, and it’s time for organizations to pay attention.

One of the most notable differences between Gen Z and previous generations is that they are the first true digital natives. While many Millennials experienced significant technological advancements during their youth, older Millennials can still remember a time before the internet. Gen Z is also highly entrepreneurial, competitive, and open to change. If hiring managers want to attract these talented young people, they must recognize that Gen Z has different priorities compared to older employees.

Entrepreneurial Spirit

One of the most remarkable aspects of Gen Z is their strong entrepreneurial drive. According to research by Online Schools Center, 41 percent of Gen Z plans to start their own business, and 45 percent believe they will invent something that changes the world. These trends are shaped by the environment in which young people today have grown up.

“Growing up during tough times, like a global recession, often leads to more entrepreneurial spirit, which explains the drive and ambition seen in many Gen Z individuals,” said Ben Gamble, Head of Agency at Shout About, a London-based creative events agency. “Additionally, Gen Z witnessed a lot of burnout, seeing older generations work long hours with little personal time, which has increased their desire for a better work-life balance. Many view starting their own business as a way to create a work rhythm that suits their needs and promotes a healthier life.”

The slow economic growth and government-imposed austerity in some countries following the 2008 global financial crisis coincided with the formative years of many Gen Z members. During this time, they saw Millennials struggle to achieve the financial stability that previous generations had, despite their abilities and hard work. They also observed older generations taking on “side hustles” – essentially second jobs – just to make ends meet.

Given this background, it’s easy to understand why Gen Z is eager to forge their own paths. Additionally, the digital economy has made it easier than ever to start a business, lowering barriers to entry in various industries. While building a successful career remains challenging, Gen Z has opportunities to start businesses with less initial investment, whether becoming a YouTube star or an online business mentor.

Engaging Generation Z in the Workplace

Even though many in Gen Z aspire to be their own bosses, a significant number will still enter traditional employee-employer relationships. For businesses and recruitment agencies, the challenge remains the same: attracting the most talented individuals.

For those in Gen Z who do not start their own business, career advancement is a top priority. According to research by workplace coaching firm InsideOut Development, 75 percent of Gen Z believe they should receive a promotion after just one year in their first job, and 32 percent think advancement should happen after six months. They are also eager to receive mentorship on their way up, with more than 75 percent considering a manager’s coaching ability to be an important quality.

“Employers can attract Gen Z talent by keeping the work engaging,” Gamble said. “It’s crucial to offer roles with clear opportunities for growth and training programs that allow talent to continue developing. Additionally, offering unique rewards and benefits, such as flexible working hours and regular team-building activities, can be very effective.”

Employers should also be aware that ethics are a significant consideration for Gen Z. Many in this generation strongly support social activism and progressive values in the workplace. “Social purpose is a key value for Gen Z,” said Dr. Naeema Pasha, Director of Henley Careers. “We see young people taking a stand on issues like climate change and diversity and inclusion. These values will eventually become more widespread and influence all age groups. Our research found that more than half (53 percent) of Gen Z feel they need to express their values through their careers, and nearly a third (29 percent) find it frustrating when employers do not share those values.”

As Pasha explained, “wokeness,” or being aware of social justice issues, is increasingly important to Gen Z (and younger Millennials) entering the workforce. Flexibility is also highly valued, with this generation wanting a high level of autonomy in their work.

Embracing the Differences

In every workplace, the relationship between employer and employee should be mutual. As Gen Z becomes a larger part of the workforce, they will be eager to grow and learn from their more experienced colleagues, but senior staff members should also be open to learning from their new recruits.

“Gen Zers are enthusiastic, willing to take risks, and open to new ideas,” said Danny Brooks, CEO and co-founder of VHR, a global technical recruitment organization. “They value diverse experiences and encourage inclusion, which is highly beneficial to teamwork, especially across different generations. Their technology skills are valuable not only in themselves but also in their ability to learn new ways of working and quickly adapt to change.”

As Brooks mentioned, Gen Z has much to offer in terms of skills, particularly in digital solutions. According to the 2018 report “Reality Bytes: the Digital Experience is the Human Experience” by WP Engine and the Centre for Generational Kinetics, 61 percent of Gen Z cannot go more than five hours without internet access, and 32 percent can’t last more than an hour. For Gen Z, connectivity is not just a part of life; it’s a necessity. This has made them naturally adept at using digital tools and keeping pace with technological changes. Managers should tap into and learn from these abilities.

Additionally, more senior staff members may find that no amount of surveys can tell them everything they need to know about their new Gen Z colleagues. Each employee is an individual, and businesses should avoid expecting entire age groups to behave the same way. This is true for Gen Z, just as it was for Millennials, Baby Boomers, and all previous generations. Identifying general trends among potential employees is useful; generalizing is not.