Millennials. Over the past decade, few groups have attracted as much attention as the generation that came of age in an era defined by smartphones, 9/11 and social media. And while Millennials continue to be of great interest, there’s a new generation that is already capturing the attention of demographers and forward-thinking organizations around the world.
The oldest members of Generation Z, representing those born since 1995, are now creeping into their 20s and becoming the latest generation to enter the workforce. Corporate real estate leaders need to start preparing now for the arrival of these new employees, who, like the generations that preceded them, will present new workplace challenges and opportunities. Although national and cultural influences will impact how Generation Z behaves from region to region, this generation will also share many commonalities that can guide global CRE managers on how to incorporate them into the workforce. If done correctly and responsively, the result will be workplaces that are not only more efficient and inclusive but also healthier and calmer.
GENERATION Z AND THE CHANGING FACE OF TOMORROW’S WORKFORCE
Workplaces around the world will soon experience a demographic shift with the first wave of Generation Z joining the global workforce alongside Millennials (born between 1980 and 1995), Gen Xers (1965-1980) and the last of the Baby Boomers (1945-1965). Like the older generations of workers they’ll join, Gen Zers will bring to the workplace their own distinct skills, habits and needs.
To understand what these young employees will need and how they will interact with the workplace differently than their colleagues, let’s take a quick look at the traits of the three generations that preceded them and make up the bulk of employees:
- Baby Boomers, born in the decades following World War II, are often described as idealistic, competitive and optimistic. This generation tends to value personal growth and gratification. Boomers challenge authority and can be workaholics. They prefer face-to-face conversations with colleagues and value respect.
- Generation X employees tend to be more skeptical, entrepreneurial and self-reliant than Boomers. As children, many Gen Xers were the first “latchkey kids” whose parents divorced and whose mothers entered the workforce en masse. Unlike the generations before them, most Gen Xers don’t expect to work for one employer their whole career. They dislike being micromanaged in the workplace and value direct communication.
- Millennials, or Generation Y, are civic-minded, technologically fluent and practical. Forty percent of Millennials in the U.S. hold bachelor’s degrees, making them the most highly educated generation.[i] In the workplace, they prefer to be coached rather than managed, and they value challenging work more than a high salary or job security.
As the first true digital natives, Gen Z will expect employers to provide the latest technology and will be viewed as the technology experts within the workplace. This generation has also come of age during the rise of the coworking model of shared and communal workspaces made possible by advances in digital connectivity that enable workers to untether from desks and 9-5 schedules.