Generation Z (or Gen Z) includes those born roughly between 1997 and 2012. Research shows that Gen Z has certain characteristics, values, and preferences distinct from previous generations. Since this generation has started to enter organizations and will become the dominant workforce, organizations need to understand their impact on culture to thrive in the coming decades. Following are some of the attributes of Gen Z that can impact organizational culture:

1. WORK ORIENTATION

Meaningful work: Gen Z employees place importance on meaningful work that aligns with their values. They are concerned about the effect of the organization on society and the environment. Thus, they may drive organizations to change their work policies and strategies, such that they make a positive impact on the external world. They are themselves likely to take initiatives, that lead to socially responsible or environmentally friendly outcomes for the organization.

Collaboration: Gen Z employees are inclined towards working collaboratively to achieve a common goal, rather than working alone. They flourish in an environment that promotes collective brainstorming, planning, and decision-making for a shared purpose. At the same time, they value a sense of ownership of their tasks, and freedom to decide how they want to execute their responsibilities.

Learning: Gen Z employees have a strong desire for personal and professional growth. They perceive the extent of learning and range of responsibilities as indicators of growth rather than just a higher salary or bigger position. They look forward to opportunities for continuous learning and development through formal
training programs, mentorship, or online courses.

Work-life balance: Personal life and enjoyment are as important as doing good work, for Gen Z. They prefer flexibility in work timings and location. They are comfortable working remotely and do not need face-to-face interaction to collaborate. They may be inclined towards work from anywhere and anytime model, rather than a fixed time and place system.

2. PEOPLE ORIENTATION

Open-mindedness: Gen Z employees are well-informed about people and societies from all over the world, making them globally aware and more open-minded. They are likely to expect and welcome diversity in workforce composition, equity in compensation, benefits and rewards, and inclusion in policies, processes, and interactions. They also value universalism, i.e., doing good to others. They would promote an environment of fair treatment, psychological safety, co-operation, and helpfulness in organizations.

Values centricity: They give importance to values and ethics in relationships. They are transparent and ethical in their decision-making and interaction with employees and customers. They expect their peers to respect each other and be mindful and considerate of diverse people, ideas, opinions and perspectives.

Instant communication: Gen Z employees expect clear and frequent communication from their managers about what tasks are to be done, how they are to be done, and how problems are to be resolved. They desire detailed and instant feedback on their performance, to be motivated in their work. They welcome negative feedback and perceive it as an opportunity to learn and grow.

3. TECHNOLOGICAL ORIENTATION

Communication technology: Gen Z is referred to as “digital natives” since it has grown up in an environment of fast-evolving technology. Gen Z employees are habituated to using technology tools and connecting digitally. They are likely to drive a shift towards more visually engaging and interactive forms of communication, such as videos, infographics, and virtual meetings.

Information technology: Besides, Gen Z is likely to quickly adapt to emerging technologies like artificial intelligence (AI). Since technology is constantly changing, Gen Z’s technological orientation can facilitate a learning environment where employees experiment with new emerging tools and platforms and explore different possibilities.

4. IMPACT ON CULTURE

The above characteristics of Gen Z can necessitate a significant shift in the different aspects of culture, as mentioned below.

Work: Purpose-driven approach to jobs, corporate social responsibility, sustainability projects, team-based activities, collaborative climate, flexible and remote working, and a learning environment.

People: Diversity, equity, and inclusion in policies and practices, ethical behavior in interpersonal relationships, value-driven leadership, and open two-way communication allowing instant feedback.

Technology: Technology integration and innovation, digital communication and collaboration, adoption of AI, information visualization, creativity, work automation, and continual process of adaption.

Conclusion

Gen Z employees do not worry about job security and stability, as much as the previous generations. They are comfortable about switching jobs, making a career transition, or simply taking a break, if they do not feel aligned to the values and goals of their organization, or their needs and wants are not met. Further, they prioritize mental health and well-being above compensation, job position or employer brand. Thus, it is critical that organizations understand the distinctive attributes of Gen Z, to be able to attract and retain the right talent. Taking proactive initiatives to adapt the culture based on the incoming workforce would not only ensure better employee engagement, but also result in a more productive, agile, innovative, and progressive work environment that helps the organization thrive in an increasingly complex and interconnected world.

Author: Prof. Smita Chaudhary, Faculty of Human Resources, FLAME University.