Gen Z has clear perceptions about jobs and pay package

Generation Z will soon surpass millennials as the most populous generation on earth, with more than one-third of the world’s population counting themselves as Gen Zers. Younger workers may be changing what it means to work in an elite job – and even de-emphasising its importance entirely.

As Gen Zers ready to the world stage, the impact of their entry will be profound, its effects rippling through the workplace, retail consumption, technology, politics, and culture. Radically different than Millennials, this generation has an entirely unique perspective on careers and how to define success in life and at the workforce.

While salary is the most important factor in deciding on a job, Generation Z values salary less than every other generation: If given the choice of accepting a better-paying but boring job versus work that was more interesting but didn’t pay as well, Gen Z was fairly evenly split over the choice.

Gen Z is one of the main drivers of change in today’s workplace. Defined as the generation of individuals born between 1997 and 2012 (who in 2023 are between the ages of 10 and 25), Gen Z grew up with smartphones and social media, along with the associated conveniences and pitfalls. They are often the trendsetters, the trend-enders, the influenced, and the influential. They value empathy from their bosses and consider it a prerequisite to engagement at work, but bosses do not place as high of a value on demonstrating empathy.

According to our research, Gen Zers ranked empathy as the second most important trait in a boss, while bosses ranked it, on average, a distant fifth.The gap between a leader and their Gen Z employee may fall into one of three categories: knowledge, alignment or execution gap. A knowledge gap describes bosses who are not attuned to what the Gen Z wants. An alignment gap describes bosses as those who understand the wants but disagree with them. An execution gap describes both groups agreeing that a change is necessary but lack clarity on how to bring about that change.

As Gen Z joins the workforce, however, experts and younger workers say what’s considered a high-status job may be expanding – and even becoming less relevant overall. Some younger workers do still report making money is prestigious, especially as cost of living skyrockets; and working for certain firms or in specific industries can make a career. But many are also emphasising other elements, such as corporate values, flexibility, autonomy and freedom from the long-hours, high-octane grind.

Despite their turbulent transition to adulthood, Gen Z is already shaping and influencing society and the workplace in numerous ways. However, research shows that Gen Z may be struggling with engagement at work. According to a 2022 Gallup Poll, 54% of Gen Z employees, slightly higher than any other generation, are ambivalent or not engaged at work.As such, it is essential for managers to support their Gen Z employees and earn their full engagement. Here are seven strategies you can leverage to create a team dynamic of collaboration, commitment and sustained motivation.

Gen Z is the first fully digital native generation, having grown up with extensive access to information in real-time. The result is a working cohort that is experiencing a lack of control and uncertainty about the future and is “reporting higher rates of anxiety, depression, and distress than any other age-group.”

Thus, to build trust and a stronger connection with this generation, you must prioritize transparency and shift your managing and communication style from a “need-to-know” policy to an “open-access” one. This is true even if the news or information you are holding back is meant to “protect,” such as when business performance is not meeting targets, supply chain issues are on the rise or you may need to cut their budget. Access to information will alleviate Gen Z’s anxieties and allow them to process and feel in control.

Gen Z is pragmatic and concerned with job security and advancement. According to Pew Research Center, “half of the oldest Gen Zers (ages 18 to 23) reported that they or someone in their household had lost a job or taken a cut in pay because of the Covid-19 outbreak.”

Thus, understanding performance metrics, what good looks like, and how to over-deliver is the key.

Pay equity is also a priority for Gen Z. Conduct group discussions about salaries so this hyper-cognitive generation sees the organization’s commitment to it.