In 2025, the global workforce is characterised by unprecedented generational overlap, with up to five different age groups concurrently employed. Gen Z individuals are increasingly starting employment and will represent almost one third of the workforce within the next decade, leading to a fundamental shift in the skills, attitudes, work styles and culture that defines the modern workplace.
“To remain competitive, organisations must continue to meet the needs of an evolving and increasingly diverse workforce, balancing different generational values and expectations,” says Chris Tan, Associate Partner for Gerard Daniels.
Business leaders must also be able to attract, retain and engage talent that is:
- Highly attuned to market requirements to deliver on future organisational strategy
- Impactful and transformative in nature with future-focused skills and capability
- Capable of innovative and critical thinking
- Technology savvy, bringing skills that elevate digital fluency
- Equipped with new perspective and awareness to navigate contemporary risk.
Understanding and leading a Gen Z workforce
Organisations must consider some critical issues to attract, engage and retain a growing Gen Z workforce.
“Each generation is defined by different skills, attitudes, behaviours and values that shape the workplace and employee experience,” says Chris. “To build a future workforce, organisations must develop a culture and value proposition that aligns with the needs of age diverse employees, with a particular focus on Gen Z.”
Continued growth and learning
As part of closing the experience gap and accelerating career advancement, Gen Z places considerable value on the availability of growth and development opportunities. “In the absence of climbing rank salaries, self-improvement is perceived as an important career progression tool for Gen Z. The commitment to develop employees through personalised training and development plans can help to offset any gaps in salary expectations,” says Chris. “In modern workplaces, where employee focus and attention spans are constantly challenged, learning and development strategies must seek to innovate and engage through delivery.”
Flexibility and work life balance
The desire for flexibility and work-life balance exists across all generations. However, Gen Z has a unique perspective, with many individuals spending the early part of their career working through COVID. “As this was a period when remote working was largely mandated, flexibility became the working norm for Gen Z,” says Chris. “Given this experience, many individuals continue to prioritise remote and hybrid opportunities over the traditional 9-5 in-office work model.”
This generation is also challenging the presenteeism that’s reinforced when a physical presence holds greater value than meeting performance and cultural expectations. “Some individuals actively pursue opportunities to make a favourable contribution to the physical work environment, as a means to achieving job satisfaction and enhancing career progression ahead of online-only peers,” says Chris.
Balancing work environment preferences
While the desire for this flexible work arrangements is clear, balancing this need with what is practical and achievable remains an ongoing organisational challenge. “As a society we want to embrace flexibility to draw on diverse individuals and abilities, but – like many employee expectations – it isn’t always commercially viable,” says Chris. “As such, many corporates are now pushing back on flexible work, due to the reality of delivering on organisational and market demands.”
To attract and retain future talent, organisations must weigh-up the cost and opportunity of hybrid vs in-office engagements. “Building trust, transparency, accountability and maturity into organisational culture is critical to resolving this and many other employee issues,” says Chris. “When people understand and are able to deliver on what is expected of them, it’s much easier to find solutions that balance all needs. Creating an environment where honest conversations can happen also allows people to feel seen – which is often half the battle.”
Wellbeing and mental health
As a generation, Gen Z is finely attuned to health and wellbeing with an approach that is far more open and holistically than previous generations. “Wellbeing and mental health is no longer considered an employee benefit, but a necessity for retaining talent and building a future workforce,” says Chris. “As awareness grows around psychological safety and what’s expected of employers, organisations must also be exemplary in how they resource and support the workforce in this area.”
Honesty and integrity
This hyper-aware, social media savvy generation has a ‘fake radar’ like no other and will not tolerate leadership that lacks integrity, transparency and authenticity. “Gen Z wants to work for organisations that keep everything out in the open, pushing for transparency around once-guarded issues such as job descriptions, career progression and wages,” says Chris. “To demonstrate corporate accountability, leaders must walk the talk and communicate honestly and openly – particularly on the issues that matter most to this generation.”
Empathy and inclusivity
Guided by a strong moral compass, Gen Z responds well to empathetic leadership and is drawn to inclusive work environments with a genuine commitment to diversity, equity, inclusion, and belonging (DEIB). “To attract a future values-driven workforce, organisations must move beyond policy to deliver meaningful action that progresses the interests of all individuals,” says Chris. “Leaders must also be approachable at all levels.”
Values in action
Care and inclusion feature in most employee handbooks today, but Gen Z expects organisations to do more than just pay lip service to these values. “This generation seeks shared values and holds employers to account for demonstrating these behaviours at all levels of an organisation,” says Chris. “Building an authentic employee brand is key to attracting a future Gen Z workforce, which requires shared values to align with strategy and demonstrable action.”
“This generation’s contemporary world view is further shaped by its exposure to diverse social, political and cultural influences,” Chris continues. “As such, Gen Z is more tolerant and open to respectfully addressing sensitive issues, expecting the same level of openness and accountability from leaders.”
Technology
As the first generation of digital natives, Gen Z doesn’t know a world without technology. Born into an always-on existence, this generation expects constant connectivity as it seamlessly integrates technology into all aspects of life.
“To meet the needs of a future workforce, organisations must invest in building digital-first environments where performance enhancing technologies and streamlined systems are the norm,” says Chris. “Business leaders must also build a culture of innovation to attract Gen Z and the advanced skills and digital fluency that it brings.”
“We are also seeing delivery systems being reimagined through AI and Gen Z is key to leading this change,” Chris continues. “Leveraging this capability is not only forward thinking, but it highlights the value that should be placed on the unique skills and qualities this generation brings.”
Leveraging Gen Z’s unique relationship with risk
Gen Z brings considerable value to organisations in navigating contemporary risk. “This generation grew up in an environment shaped by significant change and unique challenges, including evolution in social justice, rapid technological advancement and the many challenges brought on by climate change,” says Chris. “Starting out during COVID also exposed Gen Z to a diverse risk landscape that now equips this workforce with unique perspective to address risk and other ongoing organisational challenges.”
To build your leadership capability and future proof your workforce, connect with Chris or reach out to your local Gerard Daniels team.
