Gen Z is slowly taking over the labour market and expected to make up 30% of the workforce by 2025. Employers need to do a deep dive into their collective mindset to understand attitudes and attract top talent, says Ildiko Simsic.
Just like the generations before, Gen Z has a unique set of preferences when it comes to choosing employers, based on the values and priorities of this generation. There is no denying that Gen Z is built differently as they grew up in a digital age and are very adaptable when it comes to cool new tools and artificial intelligence.
But they don’t only care about gadgets and apps. On the contrary, Gen Z is well versed in social issues, sustainability and environmental topics. They understand different aspects of corporate responsibility and expect future employers to execute their business decisions in line with their portrayed values.
It is interesting to see how Gen Z uses technology as a learning tool and how they mastered the skill of obtaining and analysing information fast. It naturally translates into a higher degree of awareness around CSR, social impact and sustainability. The good news is that employers who nail their social impact are in a better position to attract Gen Z talent. Let’s see how!
Social impact in-house
A company’s social impact begins with the employment conditions they offer to comply with legislation and how much they go the extra mile. Gen Z is typically looking for workplaces where the ‘see and be seen’ culture is not present and there is a greater degree of flexibility to work from home or work non-standard hours. The pandemic years were eye-opening to measuring productivity through deliverables rather than the time spent working on an issue. Prioritising employee well-being and taking proactive steps to achieve more work-life balance has become more of a norm post-pandemic.
Training and professional development were the necessary evil to other generations, but Gen Z welcomes the opportunity to learn new things and they want to be challenged. The days when you obtained a skillset that served you throughout your career are over. The new generation knows this. Whether it is about new project management approaches, new technology or learning new skills, they expect a job to offer this.
Companies also need to review their corporate culture if they want to attract the best of Gen Z. This generation expects the culture of transparency and authenticity when it comes to making hiring, promotion and firing decisions.
Gen Z supports a collaborative culture with less hierarchy and more fluidity in roles. It might seem counterintuitive to let go of old practices that worked for decades but as your workforce changes, you need to adapt your culture as well.
Suppliers and communities
Gen Z knows that a company has external facing responsibilities too, on top of being a socially responsible employer. This includes ensuring that its supply chain is managed adequately, in a way that doesn’t result in human rights abuses, environmental degradation or unfair labour practices.
While most companies must comply with legislation (national and EU level), there are voluntary certifications on sustainable supply chains that further enhance a company’s credibility to implement international best practice.
Most companies engage with communities and have an ongoing corporate social responsibility program. Gen Z knows that some of these programs are more about positive publicity than about providing real support to communities.
The definition of communities has been a topic of debate for many years, because most companies generalise their support to people who are deemed vulnerable, while others target groups who are directly affected by the company’s operations. Whatever your situation is, be transparent about it, because Gen Z sees you!
Accountability on sustainability promises
Most companies commit publicly to social sustainability whether through in-house or external initiatives. While the companies have more and more requirements to produce sustainability reports, those reports follow standard reporting formats that might not allow for the interesting data to be shared in a meaningful way.
What I see with my clients who try to embark on the DEI journey is that often their talent pool is less diverse than they want it to be. Their annual reports talk about the policies and actions they introduced to address the issues, but the statistics seemingly show that not much has been achieved.
Be mindful of what you commit to and make sure that you report on your progress – even if it is a smaller win than what you anticipated. Remember Gen Z likes transparency in the workplace.
How you communicate your sustainability vision and demonstrate your commitment to making the change lets external stakeholders know about your integrity. And this is precious currency in the labour market today. Accountability is a somewhat related concept that often has more to do with the governance aspects of ESG.
What does a company do when one of its leaders violates the company’s code of ethics? Companies who follow through with prescribed procedure and remove the perpetrator, earn extra points for transparency, integrity and accountability.
Ildiko Almasi Simsic is a social development specialist, author of What is a Social Impact ? and Founder of E&S solutions, which has developed the world’s first E&S specific research assistant – myESRA™.
