Leading the Next Generation: 6 Best Practices for Managing Gen Z

As we navigate the evolving landscape of the modern workplace, understanding how to manage Gen Z becomes critical. Afterall, Generation Z is the future of work. From now through the next 10 years, boomers will retire, Gen Y and millennials will enter most senior management roles and Gen Z will make up 1/3 of the workforce. 

Gen Z, whose first graduating class entered the labor pool in 2019, generally encompasses people born between 1996 and 2012. At the moment, that means they are between the ages of 12 and 28. 

Have you mastered hiring and managing Gen Z? Understanding them and their potential differences will give your company a head start. 

Companies face big challenges around Gen Z recruitment and retention. Whether it’s a disconnect in culture, communication or motivation levels, 74% of hiring managers say Gen Z is the hardest generation to work with. 

However, because business longevity depends on Gen Z being successful, it is vital to learn how to work in harmony with Gen Z in the workplace. Yes, there are challenges, but Gen Z also will contribute digital competence, fresh perspectives and resilience to your place of business. 

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Understanding Gen Z Workers 

When it comes to managing Gen Z, learning what they need should be a priority, because it will set your small business up to build more innovative teams that can tackle the challenges of today (and tomorrow). With the right mindset and approach, managers can adapt and thrive in this new reality and get the best out of their Gen Z employees. 

It’s important to know Gen Z values the following: 

• Individualism

  Prefer their own workspace rather than sharing it with others. 

• Realism

  Are realistic, due to growing up during a recession and watching how COVID-19 reshaped social, political and economic perspectives. 

• Connectivity

  Are accustomed to 24/7 connectivity.

• Alternative education

  Value education, but prefer education alternatives like on-demand learning, YouTube tutorials and on-the-job-development. 

• Mobility

  Don’t mind changing jobs and may willingly leave one job without another if it means gaining a better work-life balance. 

• Flexibility

  Want flexibility in how they work. 

How to Manage Gen Z: 6 Strategies 

Studies consistently show that business owners and supervisors will have to manage this group differently than they have managed previous generations.

Here are five keys for successfully managing Gen Z: 

• Team Collaboration and Communication 

Gen Z values social interaction – so much so that 84% prefer speaking to friends, family and coworkers face-to-face rather than by text or email, one study showed. (But note: They consider video calls to be face-to-face.) 

To encourage Gen Z workers to stay put, managers should foster team spirit and provide them with plenty of ways to collaborate and communicate, both in person and digitally. 

• Flexibility 

This group wants as much control as possible over schedules. They’re willing to work hard, but they want to be able to choose when and where they put in their time. The more flexibility your company can provide them, the more likely you are to retain them. 

• Financial Stability and Job Perks 

Growing up in the aftermath of the 2008 recession, this generation has clear memories of parents losing jobs and siblings struggling to pay back student loans. Thus, Gen Z values financial security. And while perks like free food are nice, they won’t keep them around. 

Here’s what will: 

• • A mix of benefits

    Use a mix of benefits like student loan repayment assistance, medical and wellness benefits, mental health options, compensation perks and attractive maternity/paternity policies. 

• • Salary equivalent to their worth

    Get ready to negotiate. Gen Z won’t accept a salary if it doesn’t match what they believe they’re worth. Competitive pay is important because it contributes to the financial security they crave. 

RELATED: Is Your Employee Compensation Plan Competitive? >>

• Quick Career Advancement 

When it comes to managing Gen Z effectively, it's crucial to provide ample career advancement opportunities. This generation prioritizes swift upward mobility and gravitates towards organizations that endorse "promote from within" philosophies.

For Gen Z, the pace of professional growth is key, with a notable (54%) of 2023 graduates expecting to achieve their first promotion within their inaugural year of employment. This expectation underscores the importance of designing strategies for managing Gen Z that include clear pathways for rapid career progression to retain and motivate this ambitious cohort.

• Independence and Ownership 

Gen Z’s self-sufficiency could both excite and confound managers. This generation has an entrepreneurial mindset, with 50% aspiring to start their own businesses. While this may cause them to question standard processes and ways of working, the upside is that companies can harness this independent thinking to gain fresh approaches to business challenges. 

Ways to create advantages for both the company and Gen Z employees include: 

• • Ownership

    Give Gen Z employees ownership of a project they can implement from start to finish. 

• • Collaboration

    Explain a business challenge and invite Gen Z workers to share ideas for solutions, or include Gen Z on a multi-generational team to tackle a challenge. 

• • Openness

    Be open, providing space for Gen Z workers to share their ideas and use their creativity to benefit your company. 

• • Flexibility

    Don’t rely on conventional job roles and tasks. Opt for rotational programs and job shadowing where Gen Z can develop their workplace skillsets and get exposure to multiple thought processes. 

• • Development

    Provide tools for independent research and learning opportunities and encourage personal and professional development. 

• Listen to Your Gen Z Employees 

One of Gen Z’s biggest worries in the workplace is ageism. Managing Gen Z for success means giving them a voice. You can help Gen Z employees feel heard and valued by: 

• • Inviting them to strategy meetings. 
    
    
  • Asking them to evaluate and identify potential improvements for a business process. 
    
    
  • Expressing and demonstrating that you value their insights.
     
  • Treating them with the same respect as someone more senior. 

Connecting the Generations  

Gen Z is entering a workforce that comprises five generations. If you can successfully integrate these generations in your place of business, older and less-tech-savvy employees will embrace the Gen Z workers on their teams, and Gen Z will be open to listening to and learning from the expertise of their more experienced colleagues.   

As human beings, we need intergenerational relationships at work. And companies benefit when every generation in a workplace is bringing its greatest strengths to the table while being open to learning from colleagues of all ages. 

If you would like help managing Gen Z team members in your workplace, or if you’d like to be sure you’re prepared for an influx of Gen Z candidates in the decade ahead, contact Axcet HR Solutions. We can help you with strategies for successfully managing Generation Z in your workplace or with HR services needs your company has. Schedule a consultation today.