Ahva Sadeghi, Co-founder and CEO of Symba.
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Ready or not, the next generation is making its mark in the workplace. Gen-Z, a dynamic group born between 1997 and 2012, is stepping into professional life. This is an exciting shift in the global labor force, as the number of Gen-Z workers is projected to grow to 51 million by 2030.
As digital natives who grew up in the era of rapid technology development, Gen-Zers possess a unique set of skills and perspectives that can be game-changers for industries worldwide. However, these incoming professionals aren't just defined by their technological adeptness. This is the most diverse generation of our time, and Gen-Z's strong sense of social awareness is guiding their requirements for the ideal workplace.
The DEI Values Of Gen-Z
Gen-Z views diversity, equity and inclusion not as mere corporate buzzwords but as non-negotiable pillars that define the essence of an organization. Their concept of diversity includes gender, race, ethnicity, neurodiversity, people with disabilities and a diversity of ideas, experiences and backgrounds.
Equity for this generation means more than just a fair paycheck. It extends to transparent career progression paths, equal opportunities for all employees and unbiased performance assessments. According to a study by Handshake, around half of Gen-Z workers would consider leaving a job if they perceived a lack of equity.
Lastly, inclusivity to Gen-Z means a workplace that respects individuality, values every voice and creates a sense of belonging for everyone. Its importance, along with diversity, is detailed by a McKinsey report that revealed Gen-Z believes workforce diversity is essential for innovation and growth.
3 Tips For Building The Workplace Culture That Gen-Z Wants
Employers must recognize these aren’t just passing fancies. They're must-haves if businesses want to attract and retain this new wave of talent. In fact, a study by RippleMatch found that 75% of Gen-Z consider a company's commitment to diversity and inclusion when deciding to apply.
To create a culture that will make you more competitive in a tight labor market, consider these three strategies.
1. Cultivate A Diverse Environment
Organizations need to actively cultivate diversity throughout all levels of the organization to attract Gen-Z. It’s important for young talent to see the potential for themselves to grow as leaders, and that requires seeing someone who they identify with managing, directing and running the company.
To do this, assess your organization and set clear DEI goals, including a timeline and accountability plan. (Consider Korn Ferry's DE&I maturity model as a guide.) Make this commitment part of your strategic initiatives. For example, professional services company Accenture has implemented various diversity programs like its "Truly Human" initiative, which was designed to create an environment where employees feel comfortable expressing their individuality.
Remember, the process of cultivating a diverse environment is hard work and takes resources, alignment and time. That's why it’s important to be intentional when making this effort if you want it to be sustainable.
2. Advocate For Pay Equity And Gender Parity
Gen-Z considers pay transparency as a top criterion when considering a job. Salesforce provides a compelling example of compensation equity in action. After discovering a significant gender pay gap, it spent $3 million to equalize salaries across the company. Furthermore, the company now regularly checks its payrolls to ensure ongoing equity.
To proactively support pay transparency, employers can start by clearly indicating salary ranges in job descriptions and spending time monitoring the current wages they offer to locate and solve any inconsistencies. It can also be helpful to find out whether the business operates in a state with pay transparency mandates.
Having gender parity is also crucial, and that involves effort beyond equalizing salaries. For example, Dollar General, which has reached 65.9% representation of women in its workforce, has initiatives that focus on advancing underrepresented groups and an employee resource group (ERG) to support its women employees.
In an episode of Symba's #OpenUpTheWorkforce podcast, we spoke to Lorraine Hariton, president and CEO of Catalyst, a global nonprofit creating workplaces that work for women. She advised that companies must support women in moving through the leadership pipeline. This may include introducing or updating policies and practices that recognize that women potentially need more flexibility, training women to negotiate better and be assertive and building a culture that allows everyone to thrive, regardless of gender identity.
3. Foster An Inclusive Culture
Inclusivity is also paramount to Gen-Z. They want to feel a sense of belonging and value environments where their unique insights are acknowledged and appreciated. Take an employer like Google, for example, which is leading the charge in fostering inclusivity with its extensive ERGs that cater to various communities within the company. Outside of ERGs, companies can establish inclusive environments through efforts like unconscious bias training, recognizing key holidays across multiple cultures or even encouraging employees to immerse themselves in other cultures so they can increase their appreciation and respect for different ways of living.
Aligning with Gen-Z's expectations around diversity, equity and inclusion is crucial for employers. Investing in cultivating a diverse environment, advocating for equity and fostering an inclusive culture will yield dividends in the form of engaged and productive Gen-Z employees who stay for the long haul.
The time for action is now. Assess your company's approach to diversity, equity and inclusion. Re-evaluate your policies, practices and culture. Remember, attracting Gen-Z talent goes hand in hand with creating an environment where everyone can thrive. With commitment and strategic action, it's possible to create a workplace that meets Gen-Z's values and drives future success.
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