Photo: RetailWire
How should retail employers prepare for Gen Z workers?
With members of Gen Z seen as more pragmatic, money-conscious and digitally-savvy than Millennials, the generation is set to reshape America’s workforce as the oldest of them have started graduating from college.
Most demographers define this group as those born in the mid-1990s to mid-2000s, making them roughly ages 13 to 23. Currently, they make up 25 percent of the population, bigger than both Boomers and Millennials.
Gen Z grew up amid geopolitical and economic turmoil, living through the post-9/11 trauma, the 2008 global economic recession and the rise of school shootings.
A recent Wall Street Journal article described Gen Z as “a scarred generation, cautious and hardened by economic and social turbulence,” and likened the group to the Silent Generation, those born between 1928 and 1945 who bore the economic scars of the Great Depression and World War II into adulthood and eventually reaped the rewards of a booming postwar economy.
The Journal wrote, “Early signs suggest Gen Z workers are more competitive and pragmatic, but also more anxious and reserved, than millennials.”
Job security is seen as more critical than the “beer and ping-pong table” culture that defined many Millennial work aspirations. A survey from Barna found attributes identified among Millennials — high priority on career achievement; low priority on personal and relational growth — even more amplified in Gen Z.
Mentorship opportunities, daily feedback and flexible scheduling rank high in Gen Z surveys. A Doors of Clubs survey found salary and raises are far less important to Gen Z than a work culture with a high degree of autonomy.
“They want to work,” Heather Watson, behavioral designer at The Center for Generational Kinetics, told CNBC. “They want to do a very good job at that position. They’re not looking at climbing the ranks quickly. They’re looking at getting value quickly.”
Gen Z will also be the first true digital natives. The oldest Gen Zers were age 10 when the iPhone launched in 2007. They also grew up under the constant surveillance of social media. Used to texting, Gen Z are seen having weak social skills.
- Gen Z Is Coming to Your Office. Get Ready to Adapt. – The Wall Street Journal
- Gen Z Jobs: What Jobs Are Winning the Interest of the Next Generation to Enter the Workforce? – Indeed
- New Nationwide Consumer Survey Finds Gen Zers Will Redesign Expectations in Today’s Retail Workforce – The Associated Press
- 61 million Gen Zers are about to enter the US workforce and radically change it forever – CNBC
- Is Gen Z the Most Success-Oriented Generation? – Barna
- What 5,000 Gen Z’ers Tell Us About the Future of Work – Door Of Clubs
Discussion Questions
DISCUSSION QUESTIONS: How will Gen Z workers be different from Millennials as they reach retail selling floors and corporate offices? What adjustments may management have to make to connect with and motivate this generation as employees?
Poll
BrainTrust
Mohamed Amer, PhD
Independent Board Member, Investor and Startup Advisor
Lee Peterson
EVP Thought Leadership, Marketing, WD Partners
The most critical factor will be their social skills, especially if placed on the floor to sell. That position is already one where even the most seasoned salespeople sometimes feel awkward. Imagine someone of the Gen Z generation trying to make approaching a shopper feel natural. If Gen Z is going to start to feel comfortable on the sales floor or in most other positions the social side of life, not the virtual one will become a high hurdle that must be overcome. It will not be easy, but most Gen Zers are smart and will likely rise to the challenge if indeed they are, as the article states, eager and willing to get value out of the situation, even if at first they will feel completely outside their comfort zone.
I think all people, regardless of age, just want to be treated with dignity, respect and to feel engaged with their employer. They also want to feel like they are making a difference and contributing. Achieving this comes down to company culture. That may be more important for Gen Z, but I think it is now becoming an increasingly significant factor for everyone in the world of work.
I think most employers are going to be pleased with Gen Z employees because they seem to have a better attitude and work ethic than many Millennials when they were their age. Too many parents of Millennials made their children’s lives too easy and did not do an adequate job teaching responsibility and the need to work for things. Gen Z seems to be the opposite. Moreover, they are not obsessed with money as many of the Baby Boomers were. They want to earn a good income but want to maintain a healthy life experience, one that provides for work along with the freedom to enjoy their lives. So no doubt employers will be making modifications in their work schedules, but overall I think they’ll find Gen Z a fresh breed of employees that they will enjoy employing.
The lines and significant differences between the generations are blurring. While companies may take drastic steps to differentiate what makes the Millenials different from Gen Z, Gex X and so on, the digital revolution, the significance of social responsibility, environmental consciousness and desire for building solid professional and social relationships is a common trait across the generations.
For any generation coming up in the corporate ranks, there is a long road of hard work, dedication and sometimes frustration ahead of them. However Gen Z, just like all the generations before want to succeed, to be empowered, and to contribute to something meaningful. Companies have to be so much more conscious of the cultures they are building, as the “migrant” workforce, especially in the digital, creative and technology space will not stick around in toxic environments.
Understanding and addressing the many technological and social changes in their customer base will effectively prepare retailers for when Gen Z workers start hitting corporate offices.
Just with any prior or subsequent generation, Gen Z represents how technology and society are intertwined to form expectations of what constitutes value, how corporations should behave, and what is the “good life.” So the necessary step today is not to ignore the sea changes in consumer expectations of retailers and brands and realize that the target is constantly moving and reluctance to pursue change will only widen the gap.
It’s fair to say that for the first generation of digitally native workers we need to change how we work. Technology will play a much bigger role in terms of communication and connection. And if we don’t fully engage Gen Z, they will surely tune us out (maybe on their phones?).
Having already employed a few students who are Gen Z, I have to agree with Neil. As workers they are no different from anyone else in terms of a desire for meaningful work, a bit of respect, and a sense of dignity provided to them. They want to have fun, as each generation before them did at that age. Treat them well. Be engaging. Offer some mentoring advice when possible (if appropriate). Be straight up with them … if it is boring work — tell them. But then make sure there is a some more fulfilling and interesting work available as well. To really engage them, find the parts of the work and worklife that is fun… or can be made fun. It just takes a bit of creativity.
Job security, professional growth, feedback – if all of these things are identifiers of Gen Z — to me they don’t sound any different than how we described other generations like Gen X or Boomers. Yes, digitally native is a big difference and the way they communicate may change to include digital, but if employers can go about treating their people with strong practices that apply to any generation, they’ll fare well.
I still get nervous when we do our best to lump an age group into one demographic as if they all shop alike, or that the majority shop unlike other age groups. This is simply not true. And the more you try to define your shopper persona around a blanket age group, the less accurate your shopper marketing will be. Real-time personalization is here, and you’re missing the boat if you’re not using it.
I think with Gen Z workers retail stores will have to rethink how they use technology on the sales floor. Specifically, considering mobile devices as a tool rather than a distraction.
First, an obvious note about the dangers of wholesale generalizations based on what age cohort you happen to be born into. Life is much different for the Gen Zer born in suburban L.A. or New Canaan, CT than it is for one born on a Lakota reservation in North Dakota or a poverty stricken rural district in Mississippi or West Virginia. So, let’s disabuse ourselves of the notion that all Gen Zers are created alike. As to cohort behavior — did Boomers enter the workforce wearing love beads, tripping on acid and demanding organic goat’s milk be stocked in the vending machines and that Grateful Dead music be piped into their cubes or they were going to run of to Nepal? Of course not, because the very act of going to work changes behavior — especially if the generational economic uncertainty speculation around Gen Z is correct. That said, these new hires are likely going to be better at certain technologically-enabled functions then those who manage them and that digital fluency needs to be addressed before it results in a complete breakdown of civility in the workplace. And Gen Zers — if you believe in the stereotyping they labor under — are an entitled generation, requiring lots of emotional management. Now, nobody seems to look at the essential paradox the stereotyping creates. If indeed Gen Z is economically paranoid, obsessed with security, etc., then they should be easier to manage than Millennials, since they will be more loyal to employers and less anxious to leave on a whim or because there’s no organic Icelandic yogurt made by refugee reindeer herders in the cafeteria. On the other hand, if they don’t care about money, things, etc. they should be less concerned about towing the corporate line. When all those folks who spend their days creating these generational stereotypes settle on an analysis that has a through-line in it … call me and ask me this question again.
The industry should first recognize that Gen Z is looking for simplified workflows and solutions (“life hacks”) so providing mechanisms for using employee feedback for the betterment of the company will go a long way. Gen Z are good-natured and want to make a difference and appreciate positive feedback. Obviously, technology will play a role in learning (training) so using intuitive learning management systems that are “quick” lessons will go a long way with this generation. Lastly, most Gen Z are not looking for jobs or work but are wanting to find ways to contribute their passion into an industry that resonates with them translating into more engaged workers!
On the one hand, employers will need to ensure that rewards are directly tied to specific behaviors. Gen Z workers will not only want to do a good job but also to be rewarded and gain value from doing that good job. In addition, interpersonal skills training may need to be increased for those who are in consumer-facing positions. And flexible scheduling will be important for retention.
This generation can bring about changes both politically and economically. They have a fierce independence, and know more than any previous generation entering the working world. They have seen how previous generations have dealt with the pressures of life and are determined not to have those same struggles. They are watching as politicians on both sides deal around the truth and are not happy. They intend to be the difference makers. I have two grandsons in this generation. They have the knowledge and social skills we did not have leaving the cocoon of the educational structure to enter life as young adults.
The selling skills will be limited and could be problematic until they learn how to deal with and respect older more seasoned generations. They have to learn what they do not know. More importantly, they should not try to teach older more experienced people what they know before learning what they need to know to start on the road to success.
Forget about the generational difference and be more concerned that in the next 10 years we are going to have 75,000,000 leave the workforce and only 40,000,000 to fill the jobs.
It will go back to a question of how you compete in a climate of scarcity of labor.
Gen Z has been exposed to a much more difficult economy (not to mention the dark side of social media) during their crucial formative years (as young children) and so are less sheltered than their Millennial brethren. Hate to generalize, but the environment we are raised in does have profound effects on our approach to life as adults. The economic and social challenges our Gen Z children have experienced will make them more empathetic and less “entitled” and more open-minded in their lifestyle choices and their demeanor in the workplace. Their managers may be pleased to see a renewed work ethic as well.
One of my Gen Z daughters, who interned at my company, said to me on the way here one day, “let me get this straight … you get up and come here EVERY DAY?” She raised a good point. Did I need to? Or was I just doing it out of a lifelong habit of “going into the office every day”?
Point is, get ready to be approached with naive (to us) observations that may change the way you think about things you’ve probably been doing way too long. Look for them for some great insights into today’s thinking, and then execute.
PS: I only go into the office now 3 maybe 4 days a week (when i’m in town). They really didn’t need to see my face much more than that, and if they did, we could facetime. It’s a new dawn, and they’re the ones that’ll bring us to it. Tally ho!
Each individual and every generation brings positive qualities as well as challenges. Given the whole population has become more digital, I think Gen Z will be an asset to retailers and brands.
In general, I don’t expect Gen Z workers (and I have two as children) to be any different from any other generation of workers. It’s always difficult to transition from childhood to adulthood. Made more difficult because we now know that adolescence lasts into the last 20s.
If there is a change, though, I hope it’s that they have less patience with the bureaucratic insanity that infects even the best retailers. Front line workers deserve respect. But many at regional and corporate headquarters have to prove their value (as do all employees). And they do that by instituting programs like ISO 9000 customer satisfaction processes that are quite parental to front line employees of all ages.
It’s time to honor the savvy and dedication of good front-line employees by keeping these programs out of their way so they can do good things for your customer. I’ve posted quite a bit about this topic — it’s not hard to understand. Simply, it’s important to listen to reality on the front line.
I agree with my colleagues who believe that the core of how we best welcome anyone into the retail workplace is the same: leading with care and empathy, respecting them while holding them accountable to well-articulated values, treating them as individuals vs. stereotypes of their generation.
Their true digital nativity will be their greatest asset for us to learn from, as well as their great challenge as their face-to-face socialization/communication skills may be challenged when dealing with older customers and co-workers.