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Gen Z in the Workplace: Who They Are and How to Manage Them

February 06, 2025 written by Rafael Spuldar

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For years, much of the discussion around a multi-generational workforce has centered around millennials (Generation Y) and baby boomers. While the latter are transitioning into retirement and reflecting on their legacy, the former shaped the modern workplace as the largest working generation—until recently. Now, managers must shift the spotlight to a new wave of professionals: Generation Z.

Gen Z has already become the majority of full-time workers in the U.S., and their presence is reshaping workplace culture and expectations. Ignoring this reality could leave organizations scrambling to adapt—as many did when millennials entered the workforce.

In this article, we’ll delve into what Gen Z is, what they expect from work and life, and how managers can address their values to retain top talent and make the most of opportunities.

What Is the Definition of Gen Z?

Gen Z is generally considered to be people born from the late 1990s to the early 2010s, more specifically between 1997 and 2012. They are often described as the first true “digital natives,” growing up with the internet, smartphones, and social media as everyday parts of life.

That said, we should stress that defining any generation is tricky because the concept of “generation” itself is subjective and fluid. Generations are often grouped by shared experiences, like growing up during specific technological shifts or major world events, but those experiences don’t affect everyone the same way.

Also, the lines between generations are blurry: someone born on the cusp of Gen Z and millennials might feel a connection to one or both groups. So, while Gen Z has its particular general vibe—like being tech-savvy and socially conscious—it’s important to remember that no label fully captures such a diverse group of individuals.

What Sets Gen Z Apart?

Gen Z is known for self-driven independence and a strong sense of collaboration and community. Gen Zers grew up in a hyper-connected, internet-driven world, so they developed “an early facility with powerful digital tools that allowed them to be self-reliant as well as collaborative,” says Roberta Katz, a senior research scholar at Stanford University. This exposure shaped their appreciation for diversity, authenticity, and flexible, non-hierarchical systems. They’re also pragmatic about tackling global issues like climate change, balancing optimism with a realistic approach to problem-solving.

Katz says a common misunderstanding about Gen Z is that they’re lazy or unwilling to grow up, but this misses how they’ve adapted to a changing world. For example, many earn money online through creative ventures rather than taking traditional jobs. In addition, their reluctance to rush into getting driver’s licenses reflects access to ride-sharing apps rather than immaturity. These differences highlight how Gen Z prioritizes relevance and efficiency in ways that align with the modern, tech-driven world.

At Careerminds, we offer leadership coaching and development programs to help your leaders navigate these challenges and manage this growing workforce more effectively to elevate the success and well-being of the entire organization. Click below to speak with our experts and learn more.

6 Facts About Gen Z in the Workplace (and How to Manage Them)

Now, let’s discuss how those particular characteristics reflect how Gen Zers work and collaborate with colleagues. We’ll use six key findings taken from recent, relevant research on the topic and then give tips and insights for managers and HR professionals to manage those traits and needs efficiently.

1. Gen Z Is Already the Majority of Workers in the U.S.

The workforce is undergoing a generational shift, and Gen Z is taking center stage. According to a Glassdoor study, they surpassed baby boomers in the full-time workforce in 2024, making them the most significant presence in offices and organizations nationwide.

With this shift comes new opportunities for cultural transformation—Gen Z cares deeply about community, inclusivity, and having their voices heard. For HR professionals, preparing for this transition means:

  • Building an inclusive workplace: Create diverse teams and foster an environment where every employee feels valued and respected.
  • Encouraging open communication: Gen Z values transparency and wants leaders who listen. Make sure leadership is approachable and responsive.
  • Fostering collaboration: Develop mentorship programs and team-building activities to create a sense of community and belonging.

By embracing these changes, organizations can not only attract Gen Z talent but also build a workplace culture that’s dynamic, inclusive, and future-ready.

2. Gen Z Sees Generative AI with Cautious Optimism

As the first “digital native” generation, Gen Zers have a particular grasp on technology, making them naturally inclined to adopt and incorporate new things into work. However, that comes with a cautious, if not wary, approach—especially regarding Generative AI.

A Deloitte study shows that Gen Z workers who frequently use GenAI have more trust (31% of respondents) and excitement (30%) with those tools than the total of respondents. However, 78% of those same frequent users say that GenAI will make them look for job opportunities that are less vulnerable to automation. In other words, the more hands-on experience a Gen Zer has with GenAI, the more positive their perceptions are, as well as workplace concerns.

There are a few actions HR and managers can take to address this scenario:

  • Offer training sessions: Around half of Gen Zers say that employees aren’t trained enough on GenAI. So, ensure your employees are thoroughly educated on the uses and benefits of this technology.
  • Highlight growth opportunities: Emphasize how adopting AI can enhance career development, improve efficiency, and open pathways to more strategic and creative tasks.
  • Foster open communication: Create safe spaces for employees to express their concerns about AI and discuss its implications, ensuring that they feel heard and supported.

3. Gen Z Is More Prone to Resignations

According to the Project Management Institute’s 2023 Workplace Engagement Survey, more than half of young professionals are likely to leave their jobs due to dissatisfaction with fulfillment (59%), professional development (57%), and providing value (53%). These statistics highlight a key characteristic of Gen Z: they prioritize meaningful work and growth opportunities.

For HR professionals, addressing this challenge requires a proactive approach. Consider implementing the steps below to better understand the reasons behind Gen Z’s job mobility and develop strategies to improve retention and engagement:

  • Clear career development paths: Provide opportunities for upskilling, mentorship, and career progression.
  • Purpose-driven roles: Align job responsibilities with company values to help employees see the impact of their work.
  • Regular feedback and recognition: Create a culture of frequent communication to ensure employees feel valued and supported.

4. Gen Z Struggles with Mental Health

The mental health challenges faced by Gen Z are well-documented. McKinsey’s 2022 American Opportunity Survey found that 55% of 18- to 24-year-olds report receiving a diagnosis or treatment for a mental illness, compared to 31% of respondents aged 55 to 64 years old. These numbers reflect both increased awareness of mental health issues and a societal environment that may exacerbate them, including financial insecurity and disruptions caused by the pandemic.

Organizations can build a healthier, more resilient workforce by addressing mental health proactively. HR professionals can support Gen Z employees by:

  • Providing robust mental health benefits: Offer access to counseling, therapy, and mental health apps.
  • Creating a culture of openness: Normalize conversations about mental health to reduce stigma and encourage employees to seek help when needed.
  • Training managers: Equip leaders with the tools to recognize signs of mental health struggles and provide support.

5. Gen Z Doubts They’ll Ever Hit Key Economic Milestones

Economic pessimism is prevalent among Gen Z. McKinsey’s survey revealed that nearly a quarter of Gen Z respondents (23%) do not expect to retire, and only 41% expect to own a home. Additionally, 77% of Gen Z workers are actively looking for new job opportunities, nearly double the rate of other generations. This uncertainty underscores a deep sense of economic insecurity and skepticism about upward mobility.

Employers can address those pain points to help alleviate these concerns and foster trust and engagement among Gen Z employees. To achieve that, HR professionals can:

  • Offer financial wellness programs: Provide resources and education on budgeting, saving, and investing.
  • Promote job stability: Highlight internal mobility opportunities and demonstrate the organization’s commitment to long-term career growth.
  • Enhance benefits packages: Include retirement plans, homeownership assistance, and other financial incentives to address Gen Z’s economic concerns.

6. Gen Z Prioritizes Work-Life Balance

Gen Z’s emphasis on mental well-being and work-life balance is reshaping workplace expectations. According to Forbes, this generation values adaptable working models, including remote work and flexible schedules. The COVID-19 pandemic has further normalized these trends, prompting organizations to rethink their policies.

By prioritizing balance and wellness, organizations can enhance employee satisfaction and productivity. To meet these expectations, HR professionals should consider:

  • Flexible work arrangements: Offer options for remote work, hybrid schedules, or alternative hours.
  • Comprehensive wellness programs: Incorporate initiatives that address both physical and mental health, such as gym memberships, mindfulness workshops, and mental health days.
  • Boundary-setting policies: Encourage employees to disconnect after work hours and promote a culture that respects personal time.

Gen Z in the Workplace: Key Takeaways

Gen Z’s prominence in the workforce grows each day, presenting challenges and opportunities for HR professionals. Organizations can create environments that attract, engage, and retain this dynamic generation by understanding their priorities—from mental health and work-life balance to economic concerns and meaningful work. Aligning workplace practices with Gen Z’s values isn’t just a good strategy for today—it’s an investment in the future of your organization.

Want to learn how Careerminds can help you with those challenges—and more? Get in touch with us today to speak with our experts and schedule a demo!

Rafael Spuldar

Rafael Spuldar

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