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Gen Z workers are pushing for values-first workplace changes, with personalization and diversity top the list of must-haves, says new research.
Employers are facing a generational shift as Gen Z begins to replace Baby Boomers in the workforce. Born between 1995 and 2012, it's a generation that will reshape workplace culture with an increased emphasis on personalization, ethics and diversity. With more than one-third of the global population, Gen Z is already the most racially and ethnically diverse generation in US history.
According to a survey of more than 1,500 Gen Z respondents conducted by NEW and Deloitte, members of the cohort expect much more from employers than salary alone. They are entering the workforce at a time of shrinking labor participation and workforce shortages, bringing new expectations shaped by economic disruption, the rise of technology and a renewed focus on social impact.
Ethics, flexibility and meaning
While Gen Z does value salary, it places just as much weight on work-life balance, flexible schedules and purpose-driven companies. Many Gen Z respondents said they would stay loyal to companies that offer entrepreneurial opportunities within the safety of stable employment. When asked to choose between a better-paying but boring job and a less lucrative but engaging one, respondents were fairly evenly split.
One of the most decisive factors for Gen Z is alignment with company values. Some 77% of respondents said working for a company whose ethics and practices match their own is important. They are looking closely at how companies address challenges such as sustainability, climate change and social equity, and not just what they say, but what they actually do. It is redefining how companies build brands and employer reputations.
Gen Z’s expectations on inclusion and growth
Gen Z expects a more inclusive workplace that reflects the full spectrum of race, identity and orientation. Many feel underrepresented by current branding and hiring practices, which can affect talent pipelines. At the same time, they are heavily invested in education. Despite rising tuition costs and student debt, Gen Z places a strong value on traditional college degrees and expects companies to invest in ongoing learning and development.
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To compete for Gen Z talent, companies may need to fundamentally redesign how they approach roles, hiring and development. Tactics include building latticed career paths, launching internal apprenticeship programs, and creating internal marketplaces to match people with projects based on skills, not titles. Consulting-style hiring, where smart, adaptable candidates are brought in and matched to roles after hire, could help align with their flexible approach to work.
Employers are also being urged to partner with universities to identify and recruit top female tech talent early, especially given the gender gaps in STEM career interest. Organizational leaders should also reframe career development with a mix of digital, analytical, business and creative skills, catering to Gen Z’s preference for hybrid expertise, says the research.
Companies looking to build the future of their workforce will need to match the speed of external change. For Gen Z, personalization is an expectation, and businesses that fail to adapt may find themselves outpaced by those that do.
