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Gen Z's expectations as consumers, employees and citizens are shaping a different future for us all.
Generational change is a topic often addressed in headlines and the media, but the reasons behind the shifts are often overlooked, greatly misrepresented and misunderstood. Generational cohorts — boomers, Gen X, millennials and now Gen Z and Alpha — are not merely age brackets on a timeline. They are a representation of the shifts in values and mindset that come from the societal events that shape how people view the world. As the needs of humans change, so too must the actions of businesses.
Marcie Merriman
EY Americas Cultural Insights & Customer Strategy Leader
With Gen Z, born roughly 1997–2007, the future is already happening now. The oldest are turning 27 this year — stepping into full-fledged adulthood and graduating out of their parents’ health insurance policies. The youngest are nearing the end of their high school years and making decisions about their education and future lifepath. For all, they are entering the life stages traditionally marked by financial independence, career development and family building. What worries them the most? How are they differing from past generations? How are they preparing for their future? How can your organization play a part?
All organizations need to listen to and understand today’s youth because it is critical to future relevancy. Recognizing their desires and expectations for sustainable, ethical products and services that are also convenient and affordable, will be key to avoiding an entire generation hitting the cancel button on you. Building organizations that share their values will be key to recruiting and retaining a workforce that will stand by you. Understanding how the next generation wants to live, work and play, and anticipating their fears and expectations will keep you on the right path.
Takeaways from the Gen Z Live Work Play Study
Gen Z’s pragmatic approach on finances allows them to work toward the future they desire, whether it’s buying a house, starting a family or other … eventually. How can businesses help them build a secure future? We must also question whether “traditional” measures of success — career, homeownership, family, status, etc. — will hold with Gen Z. Will they value these tangible life place markers, or will they chart new pathways of success?
Employee experience (how they are treated, understood and valued) will continue to be of increasing importance to Gen Z. Building personal relationships among colleagues is how Gen Z begins to develop trust in the workplace. Build on the positive relationships that already exist, and you can enhance the work experience for all. Gen Z says they trust their supervisor 71% of the time — much higher than the organization itself. It is also worth noting that the majority of Gen Z’s supervisors are, in fact, millennials. Perhaps there is less of a culture clash between these two generational cohorts than there is often made out to be.
Most Gen Z are focused on earning an income, versus building a company. They are not necessarily excited about building your company for you either. Gen Z is building on what millennials started in pushing back on the hustle culture of the boomer and Gen X eras. Re-evaluating priorities since the pandemic hit, many Gen Z consumers and employees are reprioritizing their time and wallet to wellbeing. This will bleed into decisions they make around what and where they buy, and who they choose to work for. What will this mean as Gen Z moves into future life stages? How will this perspective alter how they think about marriage, how they parent and raise children, and where and how they will choose to live in the future?
Fair and equal pay and salary transparency will continue to become more of a norm. Gen Z will increasingly evaluate businesses they buy from and work for based on fairness of pay (i.e., current and historical discrepancies in gender pay, comparable worth between senior and junior roles). But this thinking goes well beyond pay ranges and titles. The level of radical transparency that is becoming the expectation trickles down to the individually named person. Gen Z expects authenticity, transparency and integrity in every aspect of their lives — from who they bank with, who they buy from, who they work for and where they live and play.
Understanding Gen Z’s rewritten norms and underlying expectations can serve as a beacon for businesses looking to cast a winning future.
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