The Gen Z-friendly firm

Generation Z, born in the late 1990s or at the turn of the century, are moving up the ranks in the workplace and emerging as founders, directors and managers. This simple demographic reality throws open a host of questions for firms on how to groom this post-millennial generation of talent and help them shine in positions of leadership.

The idea that ‘post-millennials are reorganising the workplace’ went viral recently on the Chinese social media app Little Red Book, underscoring the perception that the working habits and attitudes of this generation are different. Gen Z workers are more independent and dare to say no to unnecessary overtime and bureaucracy, something that previous generations – in China at least – would never question.

According to Welcome to Generation Z, a Deloitte report on Gen Z in the workplace, post-millennials are very keen on working in industries they interact with in their personal lives, and for companies whose values align with their own.

At the same time, says Johnson Kong, managing director of non-assurance at BDO Hong Kong, Gen Z job seekers are attracted to purpose-led organisations with a strong employer brand and culture.

The multihustlers

If Gen Z job seekers find it hard to get jobs that appeal to them strongly, being a ‘slashie’ is another way to seek meaning. A slashie is someone who has more than one occupation. For example, a finance professional could also be a vlogger in their spare time and trade antiques too.

A 2019 survey by Tsingyan Research Intelligence Center suggested there are more than 80 million slashies in China, who are either working part time in a variety of jobs or are entrepreneurs who are also working day jobs. Most are highly educated.

The driver for becoming a slashie may be an effort to find an interest outside of work or to earn some extra income in an unstable market.

Value your Zs

One strategy to address the risk of disengagement from work is to make Gen Z staff feel they belong and are valued. The core principle here – and one that is not limited to Gen Z but applicable to everyone – is to value employees and their opinions.

‘Gen Z individuals like open communication and work better with continuous feedback. Regular performance appraisals are essential to motivate and encourage them to improve,’ says Kong.

He adds that Gen Z have grown up in an era of information explosion, with the internet, social media and advanced technology all developing at an exponential pace. The resulting exposure to information has empowered Gen Z and allowed it to become more involved in the discussion of public issues.

‘They also like to be recognised. Listening to them and adopting their recommendations or suggestions is a good way to make them feel important,’ says Kong. That means giving them access to senior management, who must be prepared to listen to them.

Encouraging words and promotions along with financial and non-financial rewards could all be useful for recognising their worth. Other practical ways to retain Gen Z staff include clear communication of career advancement paths, setting achievable key performance indicators, closely monitoring job performance, and conducting regular and structured performance evaluations.

Out of office

The Covid-19 pandemic led to a lot of very fast changes in how work is done. Remote or hybrid work has become the preferred choice for many employees.

Cultural attitudes often impact how employers adapt to and adopt these changes. A report from Hong Kong-based youth-oriented thinktank MWYO points to the differences in how some firms adopt these changes in different locations. For example, a North American office may encourage employees with long commute times to work from home while an office in Asia may not actively promote this arrangement for security reasons.

BDO’s Kong says that when flexible or remote working is adopted, it is important to set up a system to monitor and measure performance and output. ‘Giving clear and proper instructions, consistent communications and close monitoring are also essential to manage them,’ he says.

Z heads

For Gen Z in leadership positions, Kong says exposure to a variety of work can give useful practical experience. Training is also necessary in career and leadership development, people management abilities and other soft skills such as marketing, presentation and public speaking.

Creating a strong talent pipeline and ensuring effective succession planning is vital for the long-term success of any firm. One suggestion from Kong is to establish a caring employer brand through policies that prioritise employee wellbeing and development.

Firms can also participate in competitions and encourage teams to strive for awards and recognition for their efforts, while building inter-generational connections and fostering collective ambition.

Above all, identifying and grooming the succession echelon is crucial. Looking beyond what firms can offer can be helpful in expanding a talent pool. By partnering with professional organisations and government bodies, as well as non-governmental organisations, firms can add value to their professional development programmes and introduce a level experience and exposure that broadens the skillset of young and ambitious staff.