Generation Z will account for 27 percent of the workforce by 2025. But what will they want from their careers – and what won’t they accept? Find out what motivates this generation.
An incredible transformation is unravelling in the way that we work – from AI to Zoom. The growth of digital technology coincided with a pandemic that is shifting the rules of work.
But there’s arguably a more influential change: the rise of a new generation that plans to make its mark on the workplace.
Born between 1997 and 2012, Generation Z – or Gen Z – currently make up 30 percent of the world’s population and are expected to account for 27 percent of the workforce by 2025. This could compound the changes to work as we know it, as employers seek to attract and retain the next generation of talent.
How does Gen Z differ from previous generations?
While everyone wants fulfiling work and decent pay and conditions, there are nonetheless some key characteristics that set Gen Z apart from their predecessors – Millennials, Generation X and Baby Boomers.
They are the first digital generation to grow up with no recollection of a world without the internet. They have never used analog camera film, a CD player, a paper map or a floppy disk.
Gen Z have been named the “first global generation,” growing up in a society where global content and information are generally more freely available, and where one-click shopping for goods from anywhere in the world is taken for granted. This may set them on the path to pioneer nomadic careers and develop new ways to make money online.
Given their experience growing up in the aftermath of the recession caused by the global financial crisis in 2008 – and the economic fallout from the COVID-19 pandemic and Russia’s war on Ukraine – you might think Gen Z has emerged as a pragmatic, risk-averse, non-entrepreneurial group motivated by salary and job security. This is not necessarily true.
While salary is the most important factor in deciding on a job, Gen Z values salary less than every other generation. Given a choice of accepting a better-paying, dull job versus work that was more interesting but didn’t pay as well, Gen Z was evenly split over the choice.
Gen Z could change jobs up to 10 times between the ages of 18 and 34, based on a survey of U.S. students. The old concept of a career ladder running from the mailroom to the executive suite could be replaced by something much more ad hoc and flexible. Some 42 percent of Gen Z workers value work-life balance, remote working and flexible leave as their top priorities when looking for a job, according to a recent U.S. survey.
What’s more, this generation prioritize jobs where they can expand their skills and broaden their talents and experience. This means that employers will need to change how they attract, hire, develop and retain talent, fostering personal development. And that could have knock-on benefits for any generation.
In fact, their experience of facing two major global crises in a decade has perhaps created a more resilient generation that will be better equipped to tackle bigger challenges ahead, like climate change.
The Generations
| Born | Age today | |
|---|---|---|
| Generation Z | 1997 – 2010 | 12 – 25 |
| Millennials | 1981 – 1996 | 26 – 41 |
| Generation X | 1965 – 1980 | 42 – 57 |
| Baby Boomers II | 1955 – 1964 | 58 – 67 |
| Baby Boomers I | 1946 – 1954 | 68 – 76 |
| Silent Generation | 1928 – 1945 | 77 – 94 |
Source: Beresford Research
What do Gen Z want from their careers?
Diversity and inclusion matter a lot to Gen Z. They also want their employer to care about the environment, and have high standards when it comes to ethics and transparency. They do not want greenwashing, but real commitment to fighting climate change and safeguarding the environment. They seek truly sustainable companies, both to work for and buy from. This could drive a shift in companies’ mindsets and strategies.
“Each generation has its own unique style, needs, goals and traits. So it’s vital you create an environment in which all employees feel engaged, inspired and energized and can thrive, work together and learn from each other,” says Zurich’s Henderson. “It’s why we offer first work experience programs such as apprenticeships and graduate opportunities. In return, the Gen Zs bring new skills, innovative ideas and diverse perspectives.”
Every generation changes the world of work, from the influx of women into the workforce during World War II to the way Millennials raised awareness of issues like mental health. But Gen Zs are coming of age in the wake of a historic pandemic and at a time when the climate emergency poses an unprecedented threat to humanity. What they look for at work – and what they will not accept – is likely to have enduring repercussions.