Gen Z graduates will face numerous challenges as they enter the workforce, but there are tips for … [+]
The class of 2024 marks the midway point for Gen Z (1997-2007), with millions of students set to join the workforce and become part of a booming segment of the labor force. As companies navigate this transition, some business leaders advocate reshaping traditional work practices to create environments where Gen Z can thrive. After five years of Gen Z’s influence on the workplace, the new graduates face a number of obstacles from AI usurping new jobs to living down earlier criticisms about how difficult they are to work with. I spoke with several business leaders who believe Gen Z can expect to encounter six hurdles as they enter the workplace.
1- Competition With AI
Gen Z’s biggest competitor is generative AI. Cosmin Pitigoi, CFO at Flywire, told me by email that he has seen more companies cut entry-level jobs in favor of using generative AI to automate tedious tasks that new hires would previously have done to gain experience in the field. He adds that AI can replace tasks but not necessarily jobs.
“I believe it presents a big opportunity for this group, not a hindrance to employment, if leveraged appropriately. My advice to new grads is to harness AI to help them do their jobs better and ultimately help their organizations find efficiencies,” Pitigoi advises. “Capabilities such as machine learning, data structuring and automation through coding have been around for many years, and the new grads who demonstrate these capabilities gain an edge early in their careers. I encourage my team to experiment with the new tools, increase sophistication when it comes to data, to take extended education courses, and to even master programming languages like Python that are common in artificial intelligence so they can keep honing their craft.”
2- Gen Z Reputation
“There have been a lot of negative comments about Gen Z’s work ethic and attitude in the workplace,” Pitigoi acknowledges. A recent study reported that 45% of hiring managers say Gen Z are the worst to manage. Their earlier peers, feeling vilified and misunderstood, are getting a bad rap from previous generations and business leaders. The younger workers are criticized for having too many rules, refusing to comply with corporate demands, being oppositional and lacking etiquette, reliability and flexibility.
“One thing I admire about Gen Z is they tend to bring their full selves to work, and they often prioritize work environments and organizations that are purpose-driven, engage with the wider community and give back,” Pitigoi asserts. “I’ve found that everyone does their best work when these things line up—true fulfillment at work comes from personal and professional satisfaction and from bringing our whole selves to work, and because of this, I think we can learn a lot from Gen Z about success in the workplace.”
According to Marcie Merriman, Americas Cultural Insights & Customer Strategy Leader at EY, “Executives’ views fall on a continuum. One end includes ‘the victims’ who believe the worst assumptions about the younger generation. They, as employers, believe they are the victim, having to ‘suffer’ through what this next generation of workers brings to the organization. At the other end of the continuum are those that are endlessly curious, wanting to gain a better and deeper understanding of those that think differently than themselves or the organizational status quo. The executives who leverage this new diversity will make their organization the winner of the future. Bottomline, ignore the negative headlines stereotyping an entire, very diverse generation and get to know them as people and what drives their views.”
3- Economic Uncertainties
Merriman, cites an ongoing “vibecession” where graduates are facing a shaky job market, ongoing inflation and higher rates of debt because of a cost of living crisis that is impacting Gen Zers entering the workforce. A recent report from Handshake discovered that finances and the economy are ongoing sources of stress, and many 2024 graduates are anxious about experiencing burnout or struggling to advance as they navigate the transition to full-time work. Although confident about finding a job, the study revealed that 67% of Gen Z are still afraid of making ends meet.
4- Companies Not Hiring Entry-Level Employees
Entry-level workers are losing confidence in getting a job. In March, their rate of a positive outlook dropped to 46.1%, the lowest it’s been since 2016, owing to a depressed hiring market and minimal turnover, according to Glassdoor. Companies are not eager to hire entry level employees this year, according to SHL. They plan to hire 5.8% fewer new graduates than they did last year, mainly because AI is coming for entry level jobs. Only 27% of companies rank graduate hiring programs as their number one priority for the next year, and 57% of organizations are focusing more on hiring and developing talent internally.
5- Flexibility
Merriman told me by email that Gen Z has grown up with tools and technology that created an “anywhere anytime” mindset influencing their education, relationships, entertainment and shopping behaviors. “They are expecting this same ease and flexibility as they enter the work-world,” she predicts. “Where these expectations aren’t met we will likely see declining creativity, productivity and loyalty. The most ambitious and talented employees will move on when they don’t see a company’s will to change, or if they aren’t moving fast enough. Some will move on to other companies, where many will find the same problems and become numb to it. Other Gen Z will strike out on their own and find new ways to work. Many of these trailblazers will become the disruptors and catalysts of change, challenging and potentially upending the companies that choose to cling to the status quo.”
6- Outdated, Inefficient Systems
The upcoming workforce is poised for a revelation as they encounter the stark contrast between the cutting-edge consumer technologies they’ve grown accustomed to throughout their lives and the outdated, cumbersome and inefficient systems prevalent in many of today’s workplaces, Merriman notes. “Many companies, often entrenched in their traditional ways of operating—whether it’s through long-standing policies, concepts or technologies—have managed to reach their current status without adapting their internal systems to the rapid advancements that define the digital age. Gen Z—a cohort raised in an era of instant gratification and seamless digital experiences, from ordering groceries to planning social events with a simple tap on their smartphones—may find their expectations for a fluid and efficient work environment significantly unmet by these antiquated platforms and practices.