A recent report from the Institute of Student Employers found that the retention rate of graduates has significantly dropped from 77 percent in 2019 to 71 percent in 2023. These numbers align with numerous reports that highlight the distinct differences between Generation Z and other generations in terms of their expectations from employers and the workplace. Many Gen Z workers are entering the workforce after spending part or most of their recent educational training through online learning. As a result, hybrid workplaces are ideal for Gen Z employees who want a balance between office interactions and maintaining their morning routines, such as engaging with social media, instead of leaving early to endure a morning commute. While baby boomers are retiring with a ‘live to work’ mindset, Gen Z is entering the workforce with a ‘make it work’ mentality.
With this in mind, it is important to recognize that relationships, flexibility, and emotional well-being are essential for Gen Z, and managers need to consider these factors to secure a strong talent pool and sustain a healthy multigenerational workplace culture. Therefore, businesses must evolve to help the next generation of workers succeed by addressing their unique needs. Here are three questions to consider when managing Gen Z:
1. What do they know or need to know to feel comfortable building collaborative relationships?
Transparency is crucial for Gen Z and is essential for forming genuine relationships with them. Sometimes, we might assume they understand key processes, and when they show unproductive behaviors, these behaviors may be misattributed. However, Gen Z wants leaders who openly share information, which will foster a culture of respect and trust, allowing them to express when they have gaps in knowledge. This question prompts managers to slow down and assess whether disengagement or unproductive behaviors stem from a lack of knowledge and, if so, determine the best way to facilitate the necessary learning.
2. What is their preferred style of collaboration, and are they using it, or are they just coping?
Flexible work environments are a top priority for Gen Z. This flexibility extends beyond the physical workspace to include how they collaborate to complete tasks. For instance, Kirton’s Adaption-Innovation Theory offers insights into managing individual collaboration preferences. It suggests that everyone has an innate preference for collaboration. Some individuals have an adaptive style, preferring more structure and incremental changes while focusing on improving organizational processes. In contrast, others have an innovative style, preferring less structure and focusing on completely changing processes.
These two styles perceive the work that needs to be done through different, often conflicting, perspectives. When the work environment requires a collaboration style that differs from an individual’s preferred style, they may need to cope, which can cause varying levels of stress that must be managed. Understanding someone’s cognitive style provides insight into their motivations, serving as a starting point for creating a work environment that encourages productive behavior. Appropriate psychometric tools can help managers design flexible work environments for Gen Z, enabling them to make strategic decisions to mitigate the stress caused by style preference differences.
3. What are their emotional needs, and how are these needs met in creating a positive work environment?
Gen Z does not separate different aspects of their lives; they bring an emotional component to work that requires managers to have emotional intelligence. They reflect on how the workplace aligns with their values, beliefs, and aspirations. If they sense a loss, they will resist and are more likely than other generations to express their dissatisfaction. Since collaborative style directly impacts behavior, it is the most observable and easily judged part of the collaborative process. If someone works with others who have a similar style, they are more likely to enjoy collaborating.
On the other hand, working with different styles can lead to conflict, creating distrust and potentially disrespect. Managers must consider group dynamics, especially regarding cognitive differences between individuals. Understanding how cognitive preferences shape a positive work environment and implementing strategies that acknowledge the uniqueness of Gen Z will foster a sense of belonging and motivate them to contribute to the team’s cohesiveness and productivity.
Generation Z is pushing organizations to rethink their approach to attracting employees, shaping workplace culture, and even running the business. They tend to value empathy, authentic relationships, employers who care about their well-being, and greater flexibility. They are more likely to leave than other generations if they lack confidence in the business and its values. Therefore, creativity and resilience will be key to effectively managing Generation Z in a multigenerational workplace.
