A couple of years back, Jackie Cooper, the prominent brand officer at the PR company Edelman, was surprised by the responses of a selection of elite marketing managers to her question about their largest obstacle. Each one of the six reflected that understanding ‘Gen Z’, was their primary concern. This reaction prompted Cooper to institute the “Gen Z lab” at Edelman, a service providing research and guidance to corporate heads attempting to grasp the motivations and beliefs of the youngest consumer segment and employee cohort, presently aged between roughly 14 and 26.
In the preceding year, Edelman conducted a survey involving over 20,400 respondents across fourteen nations, to discern the distinguishing attributes of Gen Z from older cohorts. The youngest participants expressed disproportionate concern about matters such as personal health and finance, were actively engaged in societal and political movements, had a conviction that corporations could contribute more significantly towards societal issues than governmental bodies, and had consumer habits that reflected their values.
Cooper observes that following the data presentation, firms queried about how best to utilise this information for the benefit of their marketing ventures and how to improve their workplaces. This desire for further understanding brought about the emergence of Gen Z “whisperers”. This clutch of consultants ranges from youthful social media celebrities and employees, to established consulting enterprises who are helping international corporation boards to brainstorm effective strategies for recruitment, worker management, and the approach to procuring new clients.
These advisers are fostering innovative methods for executives, including engaging more actively with the younger segment of the workforce and taking their opinions into consideration on subjects like openness, environmental sustainability, and the optimal balance between work and private life. Concern pertaining to the younger demographic in professional spaces is a common phenomenon with variances across geographic location, educational background, and societal group. Nonetheless, factors such as their inherent familiarity with technology, their formative years coinciding with the pandemic, and a flexible approach to discussing personal, societal, and political matters in a professional setting, has broadened the gap between them and the older generation.
According to the research group Gallup, Gen Z and millennials, the generation who came before them, currently constitute about half (46%) of the United States’ full-time workforce. This demographic shift is pushing businesses to make unprecedented strategic adaptations. As Edelman’s figures indicate, Gen Z is shaping how we consume news, purchase goods, work, and manage our money.
Corporate clients, says Cooper, are unaccustomed to the extensive queries Gen Z has about their work including the work-life balance, control over their input, and mode of execution, on top of the expected needs for decent remuneration, financial stability, and job satisfaction.
Alison Taylor, Clinical Associate Professor at the NYU Stern School of Business and advisor on ethical business practices, points out that it takes more to satisfy this generation. She observes that they have high standards on matters ranging from mental health to climate change. Moreover, they are savvy social media users and have never experienced a time when businesses did not take a stand on prominent issues.
Support from Gen Z towards social and political matters is fostering a surge of activism within offices, compelling management to openly address issues they might have previously ignored. Taylor adds that this could potentially be disruptive as these individuals are now actively involved in business decision-making processes.
Maxime Lakat, aged 25 and co-leader of the Canadian non-profit Re-generation, an organisation striving to encourage young people towards a greener economy, comments that businesses are increasingly worried about their ability to retain or recruit young talent. He states that the younger workforce’s views on work and life have been influenced by the failures of authority figures. This has been seen in the outcome of the global financial crisis, the impacts of climate change, political turmoil and constant updates regarding global conflicts. This generation is eager to make a difference within their workplaces.
According to Lakat, more young individuals are becoming disappointed with their jobs due to their inability to reach certain life goals such as buying a home. They are also increasingly suspicious of those in power, impatient for salary increases and career advancements, and provide less loyalty to their employers.
The reputational challenge facing corporate executives, predominantly those belonging to the C-suite, due to employee advocacy is becoming increasingly significant. In several cases, it can even overshadow the influence held by a CEO. Anxiety over being negatively portrayed by Generation Z consumers or their own employees is a big reason why companies are looking for external assistance.
Prominent organisations such as LinkedIn, PepsiCo, and Snapchat are collaborating with self-touting Gen Z experts like Jonah Stillman, Connor Blakley, and Tiffany Zhong. These consultants supply guidance on the desired working flexibility and other expectations of Gen Z, aiding businesses in sustaining their pertinence and competitiveness.
Jonah Stillman, who conducts generational difference studies along with his father, presented a case of this divide at a previous event. A survey was administered asking employees their communication preferences – email, text, phone or in-person interactions. He revealed that, overwhelmingly, in-person communication was chosen, with nearly 85% of Gen Z preferring it. Interestingly, for younger workers, more than half construed video calls, for instance on Zoom, as equivalent to face-to-face communication.
The hurdles posed by Gen Z, a generation known to have lesser respect for corporate hierarchy and less patience for apparent injustices, present a new set of communication tests for employers. An example of emerging reputational threats is the “Quit-Tok” trend, where younger employees surreptitiously film video calls of them being dismissed or quitting their jobs. Other grumbles often find their way onto social media or in the hands of journalists. Many corporates advisors argue that younger generations believe in holding companies accountable and taking measured action. One advisor, Taylor, stated, “this generation perceives lack of personal agency as a dire issue. Exposing unsavoury secrets and publicising them on social media … they consider this to be an effective move forward.”
Historically, global enterprises have been perceived as providers of stable and consistent revenue, along with gradual professional development. This could be changing, according to Michael Franklin, a 24-year-old speech writer and business consultant, who exemplifies the difficulties companies face when trying to attract and maintain young professionals in their workforce. Franklin states, “I’ve no desire for a single income flow. Observing redundancy waves, job instability, and managerial shifts in top-level companies, I certainly don’t want to limit myself to only one corporation. Diversification of income presents an opportunity for liberty and empowerment. If an approach isn’t effective, I can simply eliminate that work. It’s much less hazardous.”
Young professionals like Franklin desire flexibility and have a reduced tendency to show loyalty to a single employer, preferring instead to have diverse employment, often embarking on project-based work from an early stage in their careers. “We have additional interests and professions. As an illustration, if there is extra work to negotiate, then we must discuss it. My concern leans more towards end results, rather than time spent at a certain location or office,” he adds. He highlights that previous generations have experienced substantial occupational stress, leading to a work-dominated existence, quite unlike the current generation which prioritises living over work.
Copyright The Financial Times Limited 2024