▶ Set to Become the Largest Workforce Group This Year
▶ Hired in Large Numbers After COVID-19
The proportion of Gen Z (born after 1997) in the U.S. workforce is steadily increasing, particularly among those who began their careers through remote work during the COVID-19 pandemic.
The Wall Street Journal (WSJ) reported on September 2nd in an article titled "Young Workers Are Taking Over, and Bosses Are Facing Challenges" that the Gen Z workforce is expected to surpass the Baby Boomer generation (born 1946–1964) this year.
This shift is causing many companies across the U.S. to feel uncertain and scramble to adapt.
The WSJ highlighted that various recent surveys reveal a common theme: many companies find it most challenging to work with their youngest employees. The article suggests this may be because many Gen Z workers completed internships remotely during the pandemic and joined companies without having the opportunity to develop essential "workplace skills" in person, such as adapting to company culture, socializing with colleagues, and communicating effectively offline. Moreover, from the perspective of new employees, the normalization of hybrid work—where they split time between remote work and the office—has often led to a lack of "genuine relationships" with their colleagues, according to the report.
Another key difference is what Gen Z workers seek from their jobs compared to previous generations.
Christine Heckart, CEO of Xapa, who spoke at a related meeting attended by executives from publicly traded companies in Palo Alto, California, in June, noted, "The younger generation wants meaning, mentorship, and a sense of purpose."
When one corporate executive questioned why these needs should be the company's responsibility, Heckart explained that meeting these demands can make Gen Z employees better workers, which ultimately benefits the company as well. She added, "They tend to leave quickly if they feel their voices aren't heard, they lack growth opportunities, or they aren't recognized."
Some companies are already making new efforts to increase their engagement with Gen Z employees.
Mentorship programs that connect Gen Z workers with senior colleagues are becoming standard, and some companies, like Synchrony Financial in Connecticut, are even offering free psychological counseling within the workplace.
Synchrony Financial’s Chief Human Resources Officer, DJ Castro, admitted he was surprised when he asked new Gen Z employees what benefits and workplace culture they wanted and received the response that they wanted psychological counseling available at work.
Semiconductor company SiTime has replaced its annual performance reviews with quarterly one-on-one feedback sessions, where employees are given the opportunity to share feedback, and the top 20-30% of employees are offered additional mentorship opportunities.
SiTime CEO Rajesh Vashist commented, "What they want is this kind of meaningful work," adding, "We pay them well, but that's not enough. Young people thrive on feedback."
However, some argue that the differences between Gen Z and previous generations may simply be a matter of being more outspoken about what they want.
Maria Amato, a client partner at the consulting firm Korn Ferry, pointed out that companies have had similar concerns whenever a new generation enters the workforce. "We started having this conversation 25 years ago, and now we’re worried about Gen Z," she said. [Yonhap News]