Give Gen Z Stability
Just who are the next generation of workers?
Welcome to Evolver, a newsletter on the evolution of work and how things get done. Today’s edition is by Jon.
Last week, we made some (perhaps bold) predictions for work in 2021. We’re still hoping we didn’t get things totally wrong.
Given the insurrection at the U.S. Capitol this week, we also understand if you haven’t read our predictions. As both of us grew up in the greater Washington, DC area, we found it hard to focus on much of anything outside of the news this week, and we know that might’ve been the case for you too. We hope this week’s Evolver is a nice change of pace.
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Now, time to talk about the next generation.
For companies to be successful in moving forward, they need best practices that are mindful of the wants and needs of Gen Z.
Gen Z, the group of people born between 1995 and 2010, grew up in a very different context from Millennials (even though we often seem to blend the two groups together). This generation is bringing those varying perspectives to the way they approach work.
These are individuals who, unlike Millennials and Gen Xers, have little memory of the strong economy and relatively stable political world of the 90s. At this point, most of them heading to college were born after 9/11 (if that’s blowing your mind, check out the annual Marist Mindset List).
What are the key events of Gen Z’s coming of age? The Great Recession. War in the Middle East. Global Instability. And now? A global pandemic.
Because of these events, Gen Z appears to view success and the need for stability differently from other generations. As we’ll explore, I believe what unites this generation is their craving for stability; early on, a desire for economic independence that grows into prioritizing stability as they enter the workforce.
For context, I read about 800+ college applications each year in my role; one of the benefits of that process is getting to know a subsection of Gen Z pretty well. As I read students’ stories, I am astonished by their entrepreneurship; it feels as if almost every student I review has started some sort of business.
Sometimes, it’s an Etsy shop. Others sell kicks on Instagram. Maybe they have a photography side-hustle. Many have online stores putting self-designed graphics on various clothes. The scope of creativity and intellectual curiosity is impressive. Despite the ubiquity of creative tools and technology, Gen-Z has a drive for entrepreneurship that surpasses other generations.
But, my big question is this: What is driving this entrepreneurialism in these high school students?
At first, one might assume Gen Zers are starting businesses in high school because, naturally, they want to show off their talents and creativity. That’s probably part of it. But I think there is more to it than looking good to a university admission office. Rather, I see a sort of entrepreneurialism in Gen Z that didn’t exist in such a prevalent way with Millennials. Gen Z grew up with relatively more instability than Millenials. I hypothesize that it is that instability that has made them more apt to value economic independence and self-sufficiency.
In short, they know how tough the world can be because they’ve seen it at its worst.
Early on, entrepreneurship offers Gen-Z self-sufficiency. In high school, it’s a solid way to have some financial independence. Now consider that according to a 2019 survey by McKinsey, 42% of Gen Zers between 17-23 are gainfully employed through part-time, full-time, or freelance work. That’s a relatively high percentage for that age group. Research shows that because they’ve seen the worst of economic struggles, they value a stable role. However, as an adult, entrepreneurship is risky. So, as they get older, they opt to choose stable pathways. This means less entrepreneurship and more stable career choices and aspirations. For example, note this list of the top-companies that Gen Z wants to work for today. They are “stable giants.”
The stability that Gen Z values isn’t just economic, however. It’s also on the day-to-day interpersonal level. Gen Z won’t just accept the status quo or what their leaders say as the ultimate truth. They want to understand the “why” behind decision making and the greater strategy. Leadership that’s frenetic and lacking authenticity (that was perhaps more amenable to Millenials) will cause Gen Z concern and even drive them away. On the flip side, authentic leadership that maintains stability might just gain committed and empowered Gen Z team members for the long-term.
So, what are the takeaways? For companies, it means rethinking how we recruit and retain Gen Z talent.
Offering a romantic environment of “changing the world,” isn’t enough. Having a great mission isn’t enough. If you’re not one of the “stable giant” companies and you want to attract and support Gen Z, you’ll have to offer a promise of economic stability and job security. We’ll also need to engage their high levels of intellectual curiosity and creativity. Companies will need to show clear and stable pathways for Gen Zers to progress in their roles. They’ll need to be able to articulate their long-term vision for sustainable growth. And they’ll need leaders who can authentically communicate their plan for the future.
The entrepreneurial thinking that Gen Zers demonstrate in high school shows their capacity for self-reliance and creative leadership. As they head into the workforce, it will be on us to meet their desire for economic stability. If we do so, we’ll help this generation meet their fullest potential.
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We’ll see you next week.