The employee benefits industry has invested a lot of time and money in trying to understand millennials: how they interact with other generations, what they want and how best to reach them. But now there’s a new kid on the block: say hello to Gen Z.
There’s no firm consensus on the age band, but Gen Z usually refers to those born in the mid ’90s to around 2012. That means the oldest Gen Zers could be entering the workforce. It’s too soon to tell what impact this group is going to have, but initial studies offer some clues.
In certain ways, Gen Y and Gen Z are similar. A recent Randstad survey found both Gen Y and Gen Z want a workplace that focuses on giving back to the community (87% of Gen Z and 79% of Gen Y), and both value workplace diversity. And while Gen Y workers are the original digital natives, Gen Z is even more tech-savvy, coming of age in an environment where smartphones, social media and multiple screens are the norm.
But there are also important differences. Research suggests growing up in a world scarred by 9/11 and the worst financial crisis in decades has made Gen Z more concerned about global affairs. From an employer’s perspective, these formative influences may make Gen Z employees more realistic and hard-working. And, given their comfort level with switching between different media across a range of platforms, they’ll probably be excellent multi-taskers.
This generation is also less motivated by money. In a 2014 survey conducted by Randstad and Millennial Branding, only about a quarter (28%) of Gen Z respondents said money would motivate them to work harder and stay with their employer longer, compared with 42% of Gen Y.
So far, it all sounds pretty good, right? So why am I worried about Gen Z?
Partly for selfish reasons: my kids belong to it. I think it’s great my kids could use an iPad by the age of two, but what are the health implications of staring at screens all day instead of exercising outside? And will Gen Z’s talent for multi-tasking come at the expense of the ability to focus and think strategically?
I’m also concerned about their finances. My kids think money is a plastic card—one you can use 24-7, in person or online, to buy whatever you want. In an increasingly cashless society, where it’s easier to get more credit than earn more, will Gen Z truly understand the value of money and how much effort it takes to save for the future?
These aren’t just my concerns; as an employer, you’ll need to think about these things, too. Because Gen Z isn’t on its way…it’s here.
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