Gen Z, known for its unique approach to work and corporate culture, is reshaping the dynamics of the workplace. This generation, born between 1997 and 2012, is not just entering the workforce; they're transforming it, prompting businesses to rethink traditional practices and adopt new technologies.
The CEO of Deputy, Silvija Martincevic, highlights the overlooked potential of artificial intelligence (AI) to benefit hourly workers. "AI has the potential to help the often-overlooked majority of the U.S. workforce: hourly employees," she stated. This perspective is particularly relevant as Gen Z, having grown up with technology, demands more from their work environments.
According to McKinsey & Company, by 2030, nearly 30% of hours currently worked could be performed by machines. While many fear this might eliminate jobs, Martincevic explains how AI will mainly affect knowledge work, leaving hourly positions—such as those within hospitality and healthcare—across which Gen Z is increasingly populative untouched. The digitization of operational processes, she argues, will streamline scheduling, hiring, and onboarding for these workers.
Jumping aboard the AI trend, 58% of Gen Z Australians reportedly embrace tools like ChatGPT to boost productivity at work. Despite cautionary tales about AI's limitations, such as the risk of "hallucinations"—faulty responses from chatbots—this generation remains optimistic. "Creating a culture of healthy skepticism and accountability ensures employees feel empowered to use the tools," said Dr. Arwen Griffioen from Hatch, which conducted the study.
Gen Z's expectations extend beyond efficiency. They prioritize mental health and personal growth, sparking another significant shift. Many members of this generation favor careers over traditional college paths, demonstrating their preference for tangible skills and job satisfaction. They are known as the "toolbelt generation," focusing more on engaging work rather than unrelated academic achievements.
William Stewart, a Licensed Excellerate Electrician at Faith Technologies Incorporated, echoed similar sentiments during the 'Gen Z in Manufacturing' podcast. He discussed the importance of retention strategies to keep young talent engaged. "Promoting mental health, work-life balance, and growth is key," he stressed.
Beyond preferences, their attitudes also challenge conventional corporate practices. Recently, conversations have arisen about the waning popularity of year-end office parties. With many Gen Z individuals citing mental health as their reason for skipping, traditional corporate social events are being reevaluated. A survey indicated 79% of workers would prefer bonuses over parties, prompting businesses to find innovative ways to strengthen connections without forcing unwanted gatherings.
This desire for balance between work and personal life is causing companies to adopt more flexible and less stressful practices. Notable responses have included replacing drab office parties with engaging activities, such as escape rooms, to accommodate young adults seeking meaningful experiences.
Reflecting on these generational shifts, experts and workers alike agree: with Gen Z at the helm, workplaces must adapt or risk being left behind. "It's not just the younger generation questioning the ROI of corporate events; companies are reassessing their value, too," remarked Catherine Guerniou, director of a manufacturing firm, when discussing employee preferences.
The influence of Gen Z extends beyond work culture to the integration of technology. For example, law students like Monique Buksh utilize AI tools daily for drafting and reviewing documents, viewing them as indispensable for their careers. Yet, she acknowledges the necessity for guidelines and awareness surrounding AI's potential risks, echoing sentiments expressed by other young professionals.
Demands for transparency and ethical practices are high. While AI is viewed as advantageous, there are concerns about data privacy and biases. "If trained on poor data, the AI solution could introduce dangerous bias or incorrect results," cautioned Martincevic.
It's clear Gen Z is not only comfortable but excited about the technologies shaping their workplaces. Industry leaders need to adopt this perspective and create environments conducive to this new age of work. According to Adam Jacobs, CEO of Hatch, "Employers are at the start of significant transformations driven by AI, and the next generation is eager to help steer this transition."
With their unique attitudes, coupled with expectations for empathy, transparency, and mental wellness, Gen Z is shaping corporate culture. The key for today's businesses is to recognize and adapt to these changes, fostering environments where human dignity thrives alongside technological advancement.
