Generation Z in the workforce: Challenges, expectations, and strategies for success

As Generation Z (Gen Z) takes its place in the global workforce, making up an estimated 27% by 2025, employers face new challenges and expectations. Born between 1995 and 2009, they represent roughly two billion people worldwide. Their entry into the labor market is already shifting workplace dynamics, and businesses are eager to understand what this generation values in their careers — and how to adapt to attract and retain their talents.

Yet, a recent report published on Euro News reveals that many companies express dissatisfaction with their Gen Z hires, with some reconsidering future hiring of recent graduates altogether. With employers citing concerns over Gen Z’s preparedness, work ethic, and adaptability, it’s clear that traditional onboarding practices may need to evolve. So, let’s see why many employers don’t understand Gen Z employees. Is there a misunderstanding between generations, or is there a need to change to a new work environment?

Gen Z has been called individualistic, socially aware, creative, stressed, diverse, and authentic. Gen Z is making its mark in a constantly changing workplace filled with multiple generations. According to research from Deloitte, these workers prioritize social activism and stability. They value training and leadership programs, human connection, and an authentic company culture and want to invest in a job that invests in them.

Connected through mobile devices, Wi-Fi, and social media from a young age, Gen Z expects instant access and seamless technology at work. A slow or outdated system is more than an inconvenience for this generation — it’s a dealbreaker. With 60% of Gen Z users abandoning platforms that fail to load quickly, employers should make sure that employees have seamless, immediate access to platforms like Slack, Teams, Workday, Gusto, or any mix of communication tools, HR systems, and company resources they rely on.

Gen Z brings a distinct vision and values to the workplace, setting them apart from previous generations. While older generations often prioritize job security, loyalty, and career advancement, Gen Z prioritizes balance, purpose, and personal fulfillment. Deloitte research reveals that Gen Z workers are drawn to organizations that support social causes, offer authentic cultures, and provide growth opportunities. They seek employers willing to invest in their development, not just in technical skills but also in leadership and human connection.

The role of DEI

For Gen Z, diversity, equity, and inclusion are essential pillars of their desired workplace culture. According to recent studies, this generation actively seeks employers who value a diverse workforce and are committed to equity and inclusion. DEI aligns deeply with Gen Z’s sense of purpose, as they want to feel part of an organization that genuinely cares about creating a fair and inclusive environment for all.

HR tech approach can significantly advance DEI initiatives, from helping to identify and mitigate hiring bias to creating equitable career development opportunities.

Let’s consider at what stage and on what issues gaps exist between employers and workers of Generation Z.

So, the report on Euro News shared that some companies feel challenged by their new Gen Z hires, which may lead them to hesitate to hire recent graduates. An alarming six out of ten companies reported letting go of a recent graduate this year. In a survey of nearly 1,000 hiring managers, some common perceptions of Gen Z employees included:

• High expectations for purpose and alignment with personal values,
• A need for structure in managing workload, punctuality, and adjusting to workplace norms,
• Communication challenges with clients, customers, and co-workers
• Difficulties with handling feedback, and
• Adjusting to the practical demands of the workplace.

Let’s look at these reasons from another perspective.

Sociologist Klaus Hurrelmann notes that Generation Z was raised with values of participation and independence, shaping their expectations at home and in the workplace. They seek equal treatment, positive reinforcement, and a sense of security. This generation values involvement in decision-making and rejects environments lacking appreciation or marked by a harsh tone. Key strategies for engaging Generation Z effectively include:

• Respecting their work-life boundaries
• Providing regular, constructive, and appreciative feedback
• Supporting independence through trust in their abilities
• Setting realistic expectations without overpromising
• Actively involving them in decision-making processes
• Fostering direct communication and treating them as equals.

Growing up in structured educational environments, many new graduates may initially struggle with the regulations and rules expected in the workplace. Huy Nguyen, Intelligent’s chief education and career development advisor, highlights that while new hires may have valuable theoretical knowledge, they may still build practical, real-world experience. According to the Burning Glass Institute, 45% of college graduates are underemployed, working in roles that don’t require a college degree, even a decade after graduation.

According to surveys of Gen Z employees, they prioritize meaningful work that aligns with their values. They are increasingly likely to decline roles or employers that don’t resonate with their beliefs.

Gen Z workers often express dissatisfaction with traditional management approaches, seeking more empathetic and supportive leadership. A study by McKinsey highlighted that Gen Z values development, inclusivity, and environments, indicating a preference for managers who foster these qualities.

We said it once, and we’ll say it again: diversity, equity, and inclusion are essential in the workplace!

We’d also like to emphasize that starting a career with making mistakes, sometimes high expectations from the job, and a lack of understanding of their role is typical for college graduates. Whether they’ve been planning their career at university or are just beginning to explore, giving them some time is critical. We all started the same way — it’s just that the world didn’t change as fast back then as in the last 7-8 years. Remember that only about five years ago, entry-level roles for new hires rarely required 3-4 years of experience already.

In addition, the rate of change in skills to occupations increased from 19% compound annual growth rate (CAGR) between 2016 and 2018 to 22% between 2019 and 2021. We can expect a 25% acceleration by 2025. This suggests that 5 of the top 20 skills may be new or significantly different from previous years, highlighting the need for ongoing skill adaptation. Such rates indicate the need for educational institutions to reconsider their principles of student education.

Amidst the hype surrounding the “quiet quitting,” nearly half of Gen Z (49%) see their work as a central part of their identity — though that’s less than the 62% of millennials who say the same. For Gen Z, family and friends are a higher priority, which likely contributes to why 42% of Gen Zs rank work-life balance, remote work, and flexible leave as their top priorities when choosing a job.

While traditional benefits like salary still matter, salary holds less weight for Gen Z than older generations. The classic “career ladder” concept — starting in entry-level roles and moving up to the executive level — is outdated by Gen Z, who favor a more flexible, adaptable approach to career growth.

Empowerment and flexibility are central to Gen Z’s career choices. Rather than just accepting hybrid work environments, they want the autonomy to decide where and when they work. According to Malcherek, Gen Z seeks to actively shape their career paths with “the flexibility to adjust and develop skills continually and engage in lifelong learning.”

This flexibility also includes changing employers. Studies of U.S. students indicate that Gen Z workers may switch jobs up to 10 times between 18 and 34. But there’s one nuance.

McKinsey surveyed 1,763 respondents in the Gen Z age range of 18 to 24. The results showed that working Gen Z respondents are more likely to be self-employed or have multiple jobs than older workers. Unlike other generations, they are less likely to expect this period of financial insecurity to end and have high levels of doubt about their ultimate ability to buy a home or retire. The pay they receive for their work doesn’t provide an adequate quality of life (26% compared to 20% of other respondents), and they are less likely than others to report feeling sufficiently recognized and rewarded for their work (56% vs. 58% of other respondents).

So, how can both sides reach a consensus?