Jason Averbook, Senior Partner, Global Leader Digital HR Strategy, Mercer | Leapgen.
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Gen-Z employees have arrived in the workplace, and they're not thrilled about what they see. A recent study reveals that Gen-Zers are twice as unhappy at work as their Gen-X and Millennial counterparts and nearly three times as unhappy as Baby Boomers!
This issue with workplace satisfaction may not seem like an immediate problem to some organizations. After all, Gen-Z only accounts for about 12% of the workforce. However, its ranks are growing rapidly. If the Gen-Z work experience isn't improved soon, organizations will struggle to deal with many dissatisfied and disconnected employees who have one eye on the door.
Thankfully, this situation is avoidable. According to a recent report by Oliver Wyman Forum, employers must address three primary issues to satisfy Gen-Zers' needs: autonomy, transparency and professional development. By hitting the mark in these areas, organizations can have access to the much-needed skills and values that Gen-Z offers. The following suggestions show how digital transformation tools can be leveraged to improve the workplace experience for Gen-Z.
Make autonomy a part of company culture.
Being trusted to self-manage and work in their preferred way is vital for Gen-Z workers. One key area where they desire autonomy is in their work arrangement. While the remote and hybrid work models triggered by the Covid-19 pandemic were novelties for most older employees, they've always been the norm for Gen-Z. These workers are therefore much more attracted to companies that offer flexibility in where people work.
If companies want to be seen as a viable option for younger employees, they should consider adopting an omnichannel digital strategy that supports hybrid working options. Performing an organizational network analysis can help determine the way employees interact with each other. This will allow companies to implement digital solutions—such as communication software or generative AI content creation—to ensure the experience of collaboration is the same whether people are in office or at home. Then, they can also drive strategies that keep employees with similar interests, customer segments and roles connected.
Gen-Zers also appreciate autonomy when it comes to technology. Unlike the generations before, they aren't waiting for IT to help them with pressing digital challenges. They're finding their own solutions and quickly creating a shadow IT system of software, apps and other digital tools to support themselves in the workplace. However, shadow IT systems almost always guarantee data redundancies, which causes a lack of trust in data and enterprise systems. Having an "east-west" view of how data flows and a mandatory governance model for storing data is a necessity in a world where systems can be stood up in seconds, which is both valuable and dangerous at the same time.
Clearly, organizational policies that prevent workers from working where, when and how they prefer are unlikely to be embraced by Gen-Zers. Digital transformation strategies can help companies empower high autonomy and flexibility, which are appealing to this workforce demographic.
Take steps to increase transparency.
Transparency is a core value for Gen-Z. In the marketplace, this generation gravitates toward brands that value openness and honesty, and it expects the same in the workplace. According to the Oliver Wyman Forum report, 78% of Gen-Zers see lack of transparency as recruiting's most significant pain point—pay transparency in particular. Gen-Z job seekers will often skip job postings that don't provide a salary range.
Companies that want to attract this generation must be honest about what the recruiting process is from the start. They can incorporate digital tools to improve transparency in different areas, such as compensation calculators to help candidates understand the full implications of their paychecks.
Performance transparency is another important issue to Gen-Zers, as they're not motivated by "set-it-and-forget-it" styles or approaches to management. The ideal workplace environment for these employees is one that provides them with regular, actionable and personalized performance reviews.
Organizations should consider digital tools that deliver this type of ongoing feedback. The HR tech market is inundated with programs and platforms that enable managers to check in, issue awards and appreciations and provide detailed evaluations. The right tech solutions can also ensure managers have continuous conversations with their teams regarding the status of projects and overall performance goals.
Prioritize career development.
For the most part, Gen-Zers won't need tech training; they're digital natives who grew up rapidly adopting the latest and greatest technological tools and platforms. What they may require, however, is career training. Advancement and growth opportunities are among the top reasons Gen-Zers leave their jobs. Common complaints are a lack of clarity regarding advancement and growth, minimal learning and development opportunities, few opportunities for promotions and a lack of formal mentoring and coaching.
Digital channels can be used to deliver a wide range of career development opportunities. The latest training platforms allow programming to be personalized, trackable, curated for specific roles and delivered via mobile devices. Social learning platforms combine external skills development with internal peer support to help further boost employees' career growth. Finding and implementing the right development tools can help companies attract and retain Gen-Z talent.
Current stats on the Gen-Z workforce make it clear that organizations should have a sense of urgency toward establishing new workplace practices. If Gen-Zers feel like their needs are being ignored, they won't think twice about moving on. By incorporating digital-first strategies and implementing the right tools, organizations can create a better workplace experience that attracts and retains young talent.
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