Want to win the next war for talent?
Fund scholarships, offer paid internships and help pay down the student loans of the freshly minted grads who’ll be replacing your retiring Baby Boomers.
Those moves will warm the hearts and win the loyalty of Generation Z. Born between 1996 and 2012, they’re financially prudent, debt averse and big savers. They watched their Gen X and Millennial parents get hammered by the Great Recession and buried in mortgage and student loan payments, credit card debt and home equity loans.
“The generation read the headlines of people losing jobs and houses, and certainly had a front-row seat to seeing many parents and adults lose their confidence,” say Jason Dorsey and Denise Villa, generational experts and authors of Zconomy. Their book is based on more than 65 generational studies.
Expect Gen Z to be even more frugal once we get through the pandemic. Twenty-somethings have been among the first to get their hours cut, laid off or let go. The World Bank estimates the pandemic could cost 15-24-year-olds $10 trillion in lost income over their lifetimes.
Nearly 90 per cent of Gen Zers plan to go to college or university. Yet half of them aren’t willing to run up more than $10,000 in student loan debt. Nearly 30 per cent say they won’t want to take on any debt.
More than half say they’ll finance their education with scholarships and nearly 40 per cent say they’ll juggle work and school.
If helping to finance their postsecondary dreams is a recruitment tool, standing for something bigger than your products or services is one way to retain your Generation Z employees. “They want to know that their work is contributing to something bigger than the task at hand,” say Dorsey and Villa.
Equity, diversity and inclusion is table stakes for Gen Z. Declarations and noble intentions won’t impress them. They expect to join a diverse and inclusive workplace.
If you’re the boss, drop the stiff and formal pontificating and go with candid, authentic and personal communications. Get comfortable talking on camera because 20-somethings would rather watch you on their smartphones then sit and suffer through an all-staff town hall. But know that they want your recognition for a job well done delivered in person.
Genuinely care about your Gen Z employees, mentor them, offer retirement matching (they’re already saving for their golden years) and invest in their professional development from day one. Do this and Gen Z will be your best recruiters. They’ll go on social media and tell the world that you’re a great place to work. But they’ll also let everyone know if you treat people badly and you’re a lousy employer. Positive online reviews are essential because Generation Z looks for jobs the same way they shop.
Here’s the key takeaway for employers. Gen Z really wants to work and they’ll take whatever job you have if you just give them a chance. “They want to work hard,” say Dorsey and Villa. “Gen Z can make great employees. They want to work for a stable company (it’s true: they’re not all ditching traditional work for the gig economy). They don’t all want to be YouTube stars – many want actual jobs, and they want to grow within their company.”
Employers got caught off guard when Millennials joined the workforce. Dorsey and Villa have the research to help organizations get it right with Generation Z. “This generation is bringing a new worldview, talent and energy that can bring out the best in each of us. Yes, they are different. But in that difference is tremendous possibility if we take the time to understand them.”
Jay Robb serves as communications manager with McMaster University’s Faculty of Science, lives in Hamilton, has reviewed business books for the Hamilton Spectator since 1999 and is the proud dad to two amazing Gen Zers.