Generation Z – those born after 1998 – are the latest entrants into the business world. And as with every generation, they bring a unique set of challenges and strengths that sets them apart and will define the workforce in years to come.
“Every generation is somewhat different, but Gen Z is truly and significantly different. While there are many factors on which they stand out, the foundational difference is that they were practically born with smartphones,” explains Chiranjeev Kohli, professor of marketing and a co-author of the study, “DITTO for Gen Z: A framework for leveraging the uniqueness of the new generation.”
The research, published in the journal Business Horizons, was co-authored by Marketing Chair and Professor Neil Granitz and Management Professor Shaun Pichler.
What Makes Gen Z Unique – and Why It Matters
Most members of Gen Z are too young to remember a world without smartphones or social media. And the work-from-home or distance-learning experience of COVID-19 has only strengthened their relationship with the virtual world as the way to connect with others, gain information, make friends and get work done.
“They are the first generation to have instant access to everything in the palm of their hands. So, all the developments that came with it are unique to them,” says Granitz. “Compared to previous generations, they spend more time alone and are more individualistic. For example, they learn through video, social media and search, they do not like working in groups and are less likely to enjoy the camaraderie.”
The more individualistic ethos of Generation Z may equate to greater ambition and achievement for some. But for others, isolation, anxiety and depression are significant personal headwinds.
Granitz points to rising rates of anxiety, non-suicidal self-injury and attempted suicide among undergraduates between 2007 and 2018. Socially, he notes that 74% of Gen Zers report struggles with in-person communication.
“These issues,” explains Kohli, “create a large generational gap; they have a very different orientation than their bosses at the workplace who came of age in more traditional times. So, organizations have to adapt, but we would argue that Gen Z also has to adapt to the way the workplace is currently structured.”
But ignoring Generation Z, chocking up their uniqueness as a fad or assuming that they will grow out of their challenges comes at a price.
With a labor shortage and increased retirements as baby boomers age, it is imperative for organizations of all kinds to connect with Generation Z.
“With workforce shrinkage and talent shortages, attracting and retraining Gen Z workers is key for organizational survival,” explains Pichler.
How to Keep Gen Z Happy and Productive
“As they are more individualistic, less social, more anxious, and rely more on electronic communications than workers from other generations, integrating them into team-based work requiring face-to-face interactions is a challenge that when addressed effectively can improve individual, team and firm performance,” explains Pichler.
“We suggest that to do so, firms should engage in DITTO, an acronym leveraging diversity, individualism and teamwork, technology, and organizational supports. This can be achieved through a variety of policies and practices, such as creating generationally diverse teams, adopting socialization programs that improve person-organization fit, promoting more virtual interactions, and designing supportive work conditions, respectively. This can create a win-win situation for workers of all generations and their employers.”
For the full framework proposed by Kohli, Granitz and Pichler, consult this chart below:
| Principles | Organizational Policies and Practices | Rationale |
| Diversity | Be prepared for the inherent diversity coming with Gen Z recruitmentRecruit a more diverse workforce through programs, such as targeted recruitmentCreate generationally diverse teams where Gen Z can serve as role models for openness to diversityImplement policies and practices that promote inclusivity, such as nondiscrimination policies and diversity training | Gen Z is one of the most diverse generationsGen Z is more open to diversity than other generationsPromoting diversity can increase firm performance |
| Individualism and teamwork | Adopt socialization programs that will enhance person-organization fit Promote meaningfulness through the understanding that being part of a team means being part of something that is bigger than oneself Provide opportunities for Gen Z workers to serve as exemplars in terms of coordinated work with team members who are dispersed geographically and communicate electronically | Gen Z is used to learning and working individually Gen Z is more individualistic than other generations Meaningfulness can improve individual and team performance |
| Technology | Implement opportunities that facilitate more virtual interactions through remote work and electronic communication technologies, which may become even more desirable in the post-pandemic workplace Allow employees to create their own avatars for intra-organizational communications Integrate technology with performance management and employee development systems | Technology is a way of life for Gen Z Gen Z is used to communicating through technology Leveraging technology for social interaction can help employees feel supported |
| Organizational supports | Consider adopting formal benefits, such as employee assistance (EAP) programs, as well as health benefits and deferred-income and savings programs Promote perceptions of organizational support through supportive work conditions (e.g., recognizing individuals for their work)Facilitate social support through electronic communications | Gen Z grew up in a financially precarious time Gen Z has a need to feel socially supported by others at workPerceptions of organizational support improve well-being |
Getting Gen Z to Work With Others
How can managers and leaders achieve the needed balance when considering the individualistic nature of Gen Z?
Start socialization programs that will help Gen Zers get to know their coworkers. Offer Q&A sessions with organizational leaders and human resource professionals.
“These socialization programs are essential because they can facilitate perceptions of person-organization fit among Gen Z workers. Person-organization fit is a perception that one’s background—for example, preferences, experience and personality—fit with the organization in terms of its culture and ways of working,” the authors wrote in their study.
“Of course, these types of socialization programs can enhance person-organization fit not only for Gen Z workers but for a firm’s workforce more generally. To the extent this enhances the person-organization fit, it also improves performance.”
One way to encourage collaboration? Getting Gen Z to recognize that working together furthers a cause. Even more so than millennials, America’s youngest generation is very cause-oriented. Think saving the earth, Black Lives Matter or animal rights. So, inspiration is key.
“Some organizations have found that a way to integrate Gen Z workers into teams and promote collaboration is by helping them understand that being part of a team means being part of something bigger than themselves and assisting others in building on their ideas,” the authors stated.
The authors note that self-directed group teams may be a perfect fit for Generation Z, as it supports the individualism of this generation while benefiting the larger organizational mission.
More on this Research
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For more on this research, contact Chiranjeev Kohli at [email protected], Neil Granitz at [email protected] and Shaun Pichler at [email protected].
