A significant generational change in the workforce is underway as we witness a profound number of Gen Z and Millennials take centre stage.
Generation Z, born from 1997 to 2012, and Millennials, from 1981 to 1996, are often berated as tech-obsessed, whiny, demanding, and unengaged. But setting aside whether this is your view or not, the ethics and values of the younger generations are profoundly influencing the trajectory of organisational culture, and if companies want to remain competitive, they are expected to become attuned to the values of the Millenials and Gen Z in the workforce.
Studies consistently indicate that Millennials expect their 40-hour workweek to be more than just a time to work and generate profit, but focused on making an impact on society.
This has led to a shift in the corporate vernacular but, so far, with seemingly superficial results. Numerous companies employ terms like “impact” and “purpose” without seriously addressing specific social and environmental concerns, such as education, sustainability, and climate change. Millennial candidates want to work for an organisation that recognises its social responsibility, has clear mission and vision statements, and is open about how it uses its technology, talent, and resources.
Take Google, for example. They brand themselves as not just a search engine but a company that aims to “organise the world’s information and make it universally accessible and useful.” This shift in corporate brand positioning is the result of a wider cultural shift entrenched in the values of the younger generations.
According to a recent study conducted by PwC, 95% of Millennials consider work-life balance to be important. A survey from Deloitte also revealed that 16.8% of workers prioritise work-life balance when assessing career opportunities, while 11% value flexibility in terms of work hours and remote work. For this generation, success is no longer synonymous with an “always-on” culture or working for extended periods, but with control over their work location, schedule, and method, as well as enriching life experiences.
Although remuneration remains a crucial factor in job decisions, Generation Z places less emphasis on salary compared to previous generations. Instead, they prioritise achieving a more balanced work-life experience, with 38% focusing on this aspect when selecting an employer.
Millennials identify themselves as politically independent and religiously unaffiliated, showing interest in a diverse range of nations, cultures, ideas, and beliefs. Therefore, Millennials are drawn to companies with stronger diversity and inclusion programs and those that provide opportunities for employees to explore the world.
Studies show that Millennial employees exhibit higher productivity levels in diverse workplaces, benefiting from the opportunity to have a sense of community, and learn from and support each other. Meanwhile, a 2023 study has revealed that 83% of Gen Z applicants view an organisation’s dedication to diversity and inclusion as a crucial consideration when selecting an employer. They prioritise companies that seriously commit to inclusivity, foster a sense of belonging, and offer equal opportunities for individuals from different backgrounds.
Gone are the days when all feedback was delivered through annual reviews. While periodic reviews remain important, providing real-time feedback—both constructive criticism and praise—enables good mentorship and increases employee engagement among Millennials and Gen Z.
Gen Z places a considerable emphasis on mental health and well-being. Having observed the negative impacts of burnout and stress on older generations, they are committed to prioritising their mental health from the outset of their careers. A substantial 75% of Gen Z employees anticipate employers offering mental health support, such as an Employee Assistance Programme (EAP).
According to a recent report by the Konos Work Institute, Gen Z individuals may look forward to more frequent promotions, along with the establishment of clear goals and ongoing feedback to aid in their advancement. One in four Gen Z employees looks to their managers to establish clear goals from the outset, while one in five expects a well-defined path towards career progression.
Millennials and Gen Z make up a significant portion of the workforce. By catering to their needs and preferences, businesses can guarantee positive employee retention rates, improved employee satisfaction and productivity, and a future-proof workforce.
