What Gen Z Wants from Employers in 2021

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“They’ve never known a life without Google”- at least that’s how they were described in a research published by Bank of America on Thematic Investing (OK Zoomer: Gen Z Primer).1

Some optimistic claims that they are set to take over the economy in the next decade or so. In the Philippines, the expectations about this generation of workforce just keep building, as it will soon welcome to its workforce the first batch of K-12 students who pursued higher education. Some might even have entered the workforce when they graduated in 2018, with their agility and character put to the test, as they grappled with the unprecedented events of the global pandemic.

According to an article by manilarecruitment.com, the Gen Zers value diversity, push for inclusion, and look for a positive company culture that acknowledges social issues and promotes equality and belonging2 – we couldn’t agree more.

With all the significant, monumental and historical events, they have gone through, they are an extremely sought after generation of Filipinos. The question we should ask now is this: Are your workplaces ready to welcome them into your organization?

This article will share what our research revealed, as what this generation wants from their employers, from this year and beyond.

Gen Z is coming to your workplace.

The generation born between 1997 and 2012 may be just entering the workforce, but smart employers are already thinking about how their company culture can attract and retain Gen Z.

According to the Bureau of Labor Statistics, 16 to 24-year-olds made up 11.6% of the workforce in 2020, primarily in the industries of retail, hospitality, and senior living — all of which were hardest hit by the pandemic and lockdowns. Given the data, this generation has a unique perspective as new workers under extraordinary circumstances.

In our research of workplaces around the country, we’ve collected over 32,000 Gen Z employee responses from over 350 companies. Here’s what Gen Z says they want from employers in 2021 and beyond.

What Gen Z wants from employers

1. Diverse and inclusive workplace

Gen Z is tracking to be the most diverse workforce yet, with our data showing 47% of Gen Z employees identifying as BIPOC. By comparison, 39% of Millennial workers we surveyed identified as PoC, versus 34% of Gen X and only 25% of Boomers.

Pew Research Center points to changing immigration patterns —immigration to the U.S. peaked in 2005 and then declined — that have shaped Gen Z’s demographics. There are fewer Gen Zs than Millennials who are foreign-born, but a higher number who were born in the U.S. to immigrant parents.

As Gen Z grows into the workforce, employers must learn how to best manage a diverse team and get serious about DEIB initiatives. This includes:

  • Ensuring a diverse slate of candidates to secure the best talent
  • Training other employees (particularly older generations) on DEIB, and
  • Ensuring there’s representation across the leadership team.
2. Livable pay

Pay was the number one topic Gen Z employees commented on in our research, with calls for better minimum wage and increased hourly pay. Only 69% of Gen Z employees said they feel they’re paid fairly, which is 7 points below other generations.

Because of their young age and career stage, most Gen Z employees are working in industries such as retail and hospitality, which tend to be lower-paying or reliant on tips. These were also the industries most impacted by lockdowns, leaving Gen Z workers bearing the brunt of COVID-19 furloughs and closures.

According to payroll company ADP, Gen Z was hardest hit by job losses in 2020, losing some 11% of their jobs, well above the national average (6.7%) and impacts to other age groups.

With the current hiring crunch slamming retail and hospitality in particular, employers wanting to attract Gen Z talent will need to offer fair pay and earn the trust of a generation uniquely hit by the crisis.

3. Mentally healthy and safe place to work

Some of the widest gaps between Gen Z and other generations are around feeling their workplaces are psychologically and emotionally healthy.

In our research, Gen Z employees showed a 7-point difference on statements measuring:

  • Psychologically and emotionally healthy workplace environment
  • Ability to take time off from work when necessary

The American Psychological Association has identified Gen Z as the most stressed generation, attributed to growing up while the world has faced severe global challenges like gun violence, climate change, political instability, racial reckoning and a pandemic.

Great employers will need to ensure Gen Z feels emotionally supported in the workplace, through things like regular check-ins and encouragement to practice self-care (although, to be clear, that’s something all generations could benefit from after the past year).

4. Special meaning

Finding purpose and special meaning is something that has typically been associated with the Millennial generation. But our research found the meaning deficit is even more acute for Gen Z, who scored their employers:

  • 8-points lower than other generations on how much their work has special meaning
  • 7-point lower than other generations on how much they feel they make a difference at work

Grocery chain Wegmans is one example of a company that’s giving employees a voice, and 93% of Gen Z respondents at the company ranked it as a great place to work.

Wegmans management frequently seeks out ideas from the front-line workers who interact with customers the most, and all staff are invited to make suggestions and ask questions through “Ask Jack,” the company’s SVP of operations, Jack DePeters.

Since launching in 2002, Jack has responded to over 16,000 employee comments, with 68% of employees choosing to identify themselves by name rather than submit anonymously.

5. Warm welcome

Gen Z is still young. Many of them are just getting started in the workforce. A warm and thoughtful welcome can go a long way when you’re onboarding new grads and first-time employees.

With many employers switching to remote or hybrid workplaces post-pandemic, this can present a challenge with the usual practices of showing a new hire around the office or taking them out for lunch not being an option for some workplaces.

But companies like YNAB are making it work. The software firm sends out welcome packages in the mail, timing them to arrive on an employee’s first day. The packages include YNAB swag, a booklet about the company’s vision and mission, personalized welcome messages from the team and a dinner gift card for the employee to celebrate their new job.

For someone new to the working world, efforts like this can go a long way to keeping them enthusiastic and engaged.

For years, Millennials have been the talked-about generation as brands have worked to woo them, either as customers or as employees (or both). But now that the next generation is on the workplace doorstep, employers need to start thinking about how they’re going to attract the next gen of talent.

Recruit and manage Gen Z in the workplace

Want to effectively manage a diverse workforce and appeal to Gen Z? Find out why Emprising™ is trusted by Best Workplaces™ around the world. With an employee survey and data analysis in one place, you can know exactly how your company culture is engaging Gen Z in the workplace.

OK Zoomer: Gen Z Primer https://business.bofa.com/content/dam/boamlimages/documents/articles/ID21_0026/GenZ_redacted.pdf
Here’s How the Filipino Gen Z Are Changing the Workplace https://manilarecruitment.com/manila-recruitment-articles-advice/how-filipino-gen-z-changing-workplace/

Great Place To Work identifies Best Workplaces™ in Asia by surveying over 1 million employees in Asia and the Middle East about the key factors that create great workplaces for all and analyzing company workplace programs impacting over 4.7 million employees in the region.

To be considered, companies must first be identified as outstanding in their local region by appearing on one or more of our Best Workplaces lists in Greater China (including China, Hong Kong and Taiwan), India, Indonesia, Japan, Kuwait, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, UAE, Vietnam during 2021 or early 2022.

Companies rank in three size categories: Small and Medium (10-499 employees); Large (500+); and Multinational. Multinational organizations are also assessed on their efforts to create great workplaces across multiple countries in the region. They must appear on at least two national lists in Asia and the Middle East and have at least 1,000 employees worldwide with at least 40% (or 5,000) of those employees located outside the headquarters country.

Great Place To Work identifies Best Workplaces in Asia™ by surveying 2.1 million employees in Asia and the Middle East about the key factors that create great workplaces for all and analyzing company workplace programs impacting 5.9 million employees in the region.

To be considered, companies must first be identified as outstanding in their local region by appearing on one or more of our Best Workplaces lists in Bahrain, Greater China (including China, Hong Kong and Taiwan), India, Indonesia, Japan, Kuwait, Oman, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, UAE, Vietnam during 2022 or early 2023.

Companies rank in three size categories: Small and Medium (10-499 employees); Large (500+); and Multinational. Multinational organizations are also assessed on their efforts to create great workplaces across multiple countries in the region. They must appear on at least two national lists in Asia and the Middle East and have at least 1,000 employees worldwide with at least 40% (or 5,000+) of those employees located outside the headquarters country.

For All™ Methodology

Great Place To Work, the global authority on workplace culture, determined the Philippines Best Workplaces™ 2023 List by conducting annual workforce studies through our Trust Index Survey™ and Culture Management platform Emprising®, representing the voices of over 450,000 employees across the Philippines.

Employees responded to over 60 survey questions describing the extent to which their organization creates a great place to work For All™, meaning that the company empowers all individuals to reach their full human potential. Eighty-five percent of the evaluation is based on what employees report about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. We analyze these experiences relative to each organization’s size, workforce makeup, and what’s typical in their industry and region. The remainder of the evaluation is an assessment of all employees’ daily experiences of the company’s values, people’s ability to contribute new ideas, and the effectiveness of their leaders to ensure they’re consistently experienced.

To ensure surveys truly represent all employees, we require enough people in each organization to respond that results are accurate to a 95% confidence level and 5% margin of error or better. We review any anomalies in survey responses, news, and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results.

For All™ Methodology

Great Place to Work, the global authority on workplace culture, determined the Philippines Best Workplaces™ 2022 List by conducting annual workforce studies through our Trust Index Survey™ and Culture Management platform Emprising®, representing the voices of over 130,000 employees across the Philippines.

Employees responded to over 60 survey questions describing the extent to which their organization creates a great place to work For All™, meaning that the company empowers all individuals to reach their full human potential. Eighty-five percent of the evaluation is based on what employees report about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. We analyze these experiences relative to each organization’s size, workforce makeup, and what’s typical in their industry and region. The remainder of the evaluation is an assessment of all employees’ daily experiences of the company’s values, people’s ability to contribute new ideas, and the effectiveness of their leaders to ensure they’re consistently experienced.

To ensure surveys truly represent all employees, we require enough people in each organization to respond that results are accurate to a 95% confidence level and 5% margin of error or better. We review any anomalies in survey responses, news, and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results.

Categories:
These organizations’ assessment is based 100% on employee responses to the Trust Index survey.

  • Small 10-99 Employees

For larger organizations with more than 100 employees, we also use our Culture Audit™ tool, asking organizations to share with us their practices, policies, and programs to create a great workplace For All™ and evaluate the approach they take.

  • Medium 100-999 Employees
  • Large 1000+ Employees

Why do you say in one place your national list scoring is based on 85%/15% and in another place that it is 75%/25%?

We are explaining two different things:
1.  The criteria we evaluate

  •  85% concerned with Trust and Maximizing Human Potential and
  • 15% concerned with everything else

2.  Where the data comes from

  • 100% Trust Index for organizations with less than 100 employees
  • 75% based on the Trust Index survey analytics and 25% based on responses to the Culture Audit for organizations with more than 100 employees.
For All™ Methodology

Great Place To Work, the global authority on workplace culture, determined the Philippines Best Workplaces™ 2023 List by conducting annual workforce studies through our Trust Index Survey™ and Culture Management platform Emprising®, representing the voices of over 450,000 employees across the Philippines.

Employees responded to over 60 survey questions describing the extent to which their organization creates a great place to work For All™, meaning that the company empowers all individuals to reach their full human potential. Eighty-five percent of the evaluation is based on what employees report about their experiences of trust and reaching their full human potential as part of their organization, no matter who they are or what they do. We analyze these experiences relative to each organization’s size, workforce makeup, and what’s typical in their industry and region. The remainder of the evaluation is an assessment of all employees’ daily experiences of the company’s values, people’s ability to contribute new ideas, and the effectiveness of their leaders to ensure they’re consistently experienced.

To ensure surveys truly represent all employees, we require enough people in each organization to respond that results are accurate to a 95% confidence level and 5% margin of error or better. We review any anomalies in survey responses, news, and financial performance to ensure there aren’t any extraordinary reasons to believe we couldn’t trust a company’s survey results.

Categories:
These organizations’ assessment is based 100% on employee responses to the Trust Index survey.

  • Small 10-99 Employees

For larger organizations with more than 100 employees, we also use our Culture Audit™ tool, asking organizations to share with us their practices, policies, and programs to create a great workplace For All™ and evaluate the approach they take.

  • Medium 100-999 Employees
  • Large 1000+ Employees