Forget the stereotypes: Gen Z is the secret weapon for reshaping corporate culture
Despite conflicting narratives around Generation Z’s workplace readiness, new data reveals employers are making significant investments to attract and retain these digital natives.
The latest evidence comes from global HR and payroll company Deel’s annual “State of Global Hiring Report,” which found that Gen Z experienced the fastest salary growth (9%) and lowest involuntary termination rate (36%) of any generation measured. The survey last year spanned more than 35,000 customers across 150 countries.
The special treatment extends beyond compensation. Companies are increasingly tailoring their workplace policies, management approaches and career development programs to accommodate Gen Z preferences.
“Gen Z brings digital native skills, a focus on purpose over pay, and a demand for career personalization and development in the workplace,” said Alice Burks, director of people success at Deel. “These traits can translate well when it comes to distributed work, which often enables a high degree of personalization in when, where and how people work.”
The trend appears to be accelerating. According to a study by the HR support platform Top Employers Institute, one that encompassed 2,366 global employers and 1,700 Gen Z respondents across nine countries, this generation will comprise 27% of the workforce by 2025.
One key attribute that makes Gen Z particularly valuable is their tech fluency. A report by Adobe indicates that Gen Z workers are dominating in AI efficiency, saving 10 hours per week using these tools — 18% more time than millennials, 33% more than Gen X and 54% more than boomers. More than 1,000 workers in the U.S. participated in the study last year.
“My Gen Z employees not only bring adaptability, tech fluency and admirable values, but they also have such an appetite to keep learning — to keep bettering themselves and the company they work for,” said Fiona Wylie, founder and CEO of marketing consultancy Brand Champions. “I am often pleasantly taken aback by how unfazed they seem in the face of obstacles or rapid change and how quickly they turn to problem solving and progress.”
That technical aptitude extends beyond just using established tools. As Sam DeMase, career expert at ZipRecruiter, pointed out: “They pick up new software quickly, are comfortable troubleshooting technical issues, and are exceptional when it comes to utilizing technology to transform outdated, inefficient work processes.”
The Top Employers Institute study reveals that stability, sustainability and safety rank at the top of Gen Z’s work priorities. Other findings: 80% believe employers have a responsibility to continuously upskill their people; 62% would accept a lower salary for better work-life balance; 82% want flexibility in their schedule and ability to manage work hours; and 83% say employers have a responsibility to support psychological well-being.
“I think what may be perceived as poor work ethic is actually just them having really high standards and cultivated self-worth,” Wylie said. “They will not be a cog in any established machine simply for the sake of tradition and status quo. They want flexibility, a great working culture, mentorship and real opportunities.”
While Gen Z brings tremendous value, employers must adapt their approaches to help those employees thrive. Communication stands out as a critical area.
“In terms of what employers can do to address areas of growth for Gen Z, a majority of the time more communication is the common denominator,” said John Lane, co-founder at recruiting firm Landing Point. “Formal annual or semiannual reviews aren’t enough. We often hear how much employees value recurring check-ins with managers and, in particular, outside of an office or conference room setting.”
Joe Hart, president and CEO of corporate training firm Dale Carnegie, highlights another challenge: “There continues to be a generational confidence gap. Hampered by Covid-19 and extensive social media usage, Gen Z is entering the workforce lacking self-belief and burdened by the comparative trap.”
Experts advise HR professionals to consider these strategies for effectively engaging Gen Z:
Enhance communication: Implement regular, informal check-ins beyond traditional performance reviews.
Provide mental health support: Bolster benefits with robust mental wellness offerings.
Offer flexibility: Consider hybrid work models that balance in-office collaboration with remote flexibility.
Create clear career paths: Be transparent about advancement opportunities and skill development.
Promote purpose-driven work: Connect daily tasks to meaningful organizational and societal impact.
Tara Martell, chief customer officer at HR support platform BambooHR, recommends going beyond traditional workplace norms. “Employers should invest in what’s most important to this younger generation,” she said. “This includes practical training for professional communication, enhanced benefits that offer mental health support, and a balance between a regular cadence of team engagement and flexibility.”
Deanna Baumgardner, founder and president of HR consultancy Employers Advantage, offers an important perspective on the generational transition: “Every generation that comes into the workforce gets a bad rap and it’s so silly. I think the thing about Gen Z in particular is that they grew up and were influenced in a totally different way than all of the other generations so far.”
The idea that Gen Z is somehow uniquely difficult in the workplace is overblown, as Matt Kennedy, chief people officer at training marketplace Go1, sees it.
“Every generation has had its share of skepticism when they first enter the workforce,” he said. “The challenges often associated with Gen Z — such as higher expectations for career growth and workplace transparency — aren’t necessarily negatives. If anything, their openness about salaries and workplace expectations fosters a more transparent and equitable work environment for everyone.”