Dr. Karina Ochis | Gen Z Expert | Professor Of Leadership and Management | Executive Consultant | Speaker | Author.
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Gen-Z employees, born after 1996, will compose a third of the workforce by the end of the decade. Nevertheless, the 13% of Gen-Z employees who are already integrated into the workforce do not respond to traditional human resources management practices. Companies are weary about their ability to engage Gen-Z employees. Even though managers rate Gen-Z employee integration as a priority, they don’t know how to improve Gen-Z performance.
Learn how five traditional practices—onboarding, leadership, culture, motivation and benefits—can be altered in companies to improve Gen-Z productivity. These altered practices are applicable across industries and in organizations of all sizes.
Gen-Z Enters The Workforce
According to Pew Research Center, "Unlike the Millennials—who came of age during the Great Recession—this new generation was in line to inherit a strong economy with record-low unemployment. That has all changed now, as Covid-19 has reshaped the country’s social, political and economic landscape. Instead of looking ahead to a world of opportunities, Gen-Z now peers into an uncertain future."
Gen-Z are the least engaged generational group within their work and most prone to job switching, mental health struggles and burnout. They are the promoters of quiet quitting, referring to doing the bare minimum at work; "quit tok," referring to recording oneself while quitting a job and posting it on TikTok; and other behaviors that are viewed with suspicion by managers and more tenured employees.
Gen-Z Employee Life Cycle
In terms of their employee life cycle, they tend to be productive for the first three to six months after hiring while their enthusiasm levels are high. Those performance and enthusiasm levels gradually decrease within the first year, leading to resignation. Their Boomer managers are appalled by their short company life cycle and do not know how to work with them in such a short amount of time.
Nevertheless, this shorter employee life cycle provides the opportunity for companies to reshape long-established human resources practices. But first managers need to equip themselves with a few basic notions about their characteristics at work.
• Gen-Z expectations at work: Work to them is transactional. They dislike job rotation and perceive overtime as poor planning by management.
• Gen-Z leadership preferences: Gen-Z performs effectively when leaders are directive, collaborative and semi-formal.
• Gen-Z positive workplace behaviors: Gen-Z-ers are fast learners, technologically savvy and culturally sensitive.
• Gen-Z negative workplace behaviors: Gen-Z expect fast rewards yet eschew the sustained effort traditionally needed to earn those rewards—a formula for disappointment for them and irritation for their managers.
Five Steps For Managers
As a Gen-Z expert, leadership professor and executive consultant, I have arrived at a set of five best practices for managers to use with Gen-Z employees in order to increase their productivity and engagement. The five steps for managers were empirically developed. I first interviewed Gen-Z and managers across industries. Then I conducted a cohort longitudinal study of Gen-Z personnel where sets of interventions were tested to arrive at the five steps recommended for managers.
1. Replace Complex Onboarding Processes With More Rapid Integration
Onboarding is the first step to ensure Gen-Z employee performance. Give realistic job previews; explain salary, compensation and benefits from the get-go. Clarify expectations and KPIs. Gamify onboarding through information systems and educate through video-on-demand information.
2. Assign Directive Yet Supportive Leaders For Recruits
Leadership maintains the performance of Gen-Z employees. All generational groups want their leaders to be exemplary role models. However, while Millennials wanted their leaders to act like partners and friends, Gen-Z ask for their leaders to be directive when needed. Nevertheless, the overall relationship between Gen-Z and the leader has to be empowering and supportive.
3. Develop Multi-Generation Teams And Allocate Roles Based On Generational Capabilities
Company culture can make or break Gen-Z’s performance. And the culture that most motivates Gen-Z is one based on intergenerational knowledge sharing. Build teams based on company strengths and capabilities. Don’t treat Gen-Z like the bottom of the food chain.
4. Reduce Performance-Related Pay And Increase Generous Praise
Performance-based bonuses do not sit well with Gen-Z. They are usually much more interested in knowing exactly what needs to be accomplished within their work hours. Do not compensate overtime with non-wage benefits—pay for overtime. Equally important to pay is generous praise. Praise them early and often to maintain their motivation levels.
5. Include Tuition Reimbursement, Mental Health Days And Flexible Hours As Benefits
Eliminate mandatory social events, team building and perks imposed by the company. Any attempt of the company to influence their after hours should be kept to a minimum. Gen-Z wants to have autonomy over their free time. They often think older employees have more benefits, so include age-appropriate ones. For instance, the company could pay for development courses or offer tuition reimbursement. Because Gen-Z often struggles with their mental health, they desire the option of mental health days as paid time off.
Conclusion
Because companies require young recruits to ensure longevity, it is precisely companies that need to adapt to Gen-Z's needs. Sitting on the sidelines and hoping that Gen-Z will accept traditional practices is anything but safe. Gen-Z refuses to tolerate established corporate practices. Companies must redesign traditional onboarding, leadership, culture, motivation and benefits practices in order to improve the performance of Gen-Z employees.
Your company’s specific response to Gen-Z disruptors will depend on your managers’ capacity to execute quickly. The longer you wait, the more you risk alienating young recruits and endangering your company’s future.
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