For years, discussions around a multi-generational workforce have mainly focused on millennials (Generation Y) and baby boomers. While baby boomers gradually transition into retirement, millennials have shaped the modern workplace as the dominant working generation. Now, a new generation is stepping into the spotlight: Generation Z.

This article explores who Gen Z is, their expectations from work and life, and how managers can align with their values to retain top talent and foster a thriving workplace.

Gen Z refers to individuals born between the late 1990s and early 2010s, typically between 1997 and 2012. As the first true “digital natives,” they have grown up immersed in the internet, social media, and smartphones, shaping their worldview and communication styles.

Gen Z is already a significant part of the workforce in some countries. In the US, they became the largest group of full-time employees in 2024, surpassing baby boomers, according to Glassdoor. In Canada, while their numbers won’t surpass millennials for another 15 years, in 2021 they already made up nearly one in five people (17.6%) of the working-age population.

It’s important to remember that generational identities are fluid. While Gen Z is often described as tech-savvy and socially aware, experiences within the generation vary widely. Additionally, those born on the cusp of Gen Z and millennials may resonate with aspects of both generations.

Gen Zers are known for being independent yet highly collaborative. According to Stanford senior research scholar Roberta Katz, growing up in a hyper-connected world has equipped them with strong digital skills, making them both self-reliant and community-driven, valuing diversity, authenticity, and flexible workplace structures. Katz also notes that Gen Z takes a pragmatic approach to tackling global challenges like climate change, balancing optimism with realism.

A common misconception is that Gen Z is lazy or reluctant to grow up. In reality, says Katz, they’ve simply adapted to a rapidly changing world. Many pursue non-traditional income streams, such as content creation or gig work, instead of following conventional career paths. Even their reluctance to obtain driver’s licenses reflects their access to ride-sharing apps rather than a lack of ambition. Ultimately, Gen Z seeks efficiency and relevance in all aspects of life and work.

Gen Z’s entrance into the workforce is transforming workplace dynamics. Companies that fail to adapt risk falling behind – as many did when millennials first reshaped corporate culture. Below are six key insights from recent research and practical strategies for HR teams and managers to effectively support and engage Gen Z employees.

Mental health is a major concern for Gen Z. According to a 2024 global survey by Deloitte, only 51% of Gen Zs rate their mental health as good or very good, while 40% report feeling stressed most of the time. Also, a 2022 McKinsey study found that 55% of 18- to 24-year-olds in the US have received a mental health diagnosis or treatment, compared to just 31% of those aged 55 to 64.

To help Gen Zers address those issues and foster a healthier work environment, employers can:

• Provide mental health benefits – Offer access to therapy, counselling, and mental wellness apps.
• Normalize conversations around mental health – Encourage open discussions to reduce stigma and ensure employees feel supported.
• Train managers – Equip leaders with tools to recognize mental health struggles and offer appropriate resources.

Economic uncertainty is a pressing issue for Gen Z. The McKinsey survey found that 23% of Gen Z respondents don’t expect to retire, while only 41% believe they’ll ever own a home. Additionally, Deloitte reports that just 32% of Gen Zs think their country’s economy will improve in the next year, and 56% live paycheck to paycheck.

Employers and HR teams can help alleviate financial stress by:

• Providing financial wellness programs – Offer budgeting, saving, and investing resources.
• Promoting job stability – Highlight career growth opportunities within the company.
• Enhancing benefits packages – Employee benefits should include retirement plans, homeownership assistance, and financial incentives.

As digital natives, Gen Zers are quick to adopt new technologies but remain cautious about AI’s impact on jobs. Deloitte found that Gen Z workers who frequently use generative AI tend to trust it more (31%) and feel excited about its potential (30%). However, 78% of these users also worry that AI could make their jobs more vulnerable to automation.

Employers and HR professionals can take action to ease these concerns. Here’s how:

• Offering AI training programs – Many Gen Z employees feel unprepared to work with AI, so providing proper training is essential.
• Emphasizing career growth – Show how AI can enhance job roles rather than replace them.
• Encouraging open discussions – Create safe spaces for employees to voice AI-related concerns and explore solutions.

Deloitte reports that 86% of Gen Z employees consider a sense of purpose essential to job satisfaction. Furthermore, 50% have declined work assignments based on personal beliefs, and 44% have rejected job offers due to ethical concerns.

So, how can HR teams boost engagement among Gen Z employees? Here are some options:

• Offer clear career development paths – Provide mentorship, learning opportunities, and room for growth.
• Align job roles with company values – Help employees see how their work contributes to meaningful goals.
• Foster a culture of recognition – Ensure employees feel valued through regular feedback and appreciation.

Work-life balance is a top priority for Gen Z when choosing an employer. According to the Deloitte global survey, work-life balance is the number one consideration when Gen Zs choose an employer. The COVID-19 pandemic has further normalized these trends, prompting organizations to rethink their policies.

Organizations can support work-life balance (not only for Gen Z, but for everyone) by:

• Providing flexible work options – Offer hybrid, remote, or alternative work schedules.
• Implementing wellness programs – Include mental and physical health initiatives like gym memberships or mindfulness workshops.
• Respecting personal time – Encourage employees to disconnect outside of work hours.

Gen Z places a high value on inclusivity, belonging, and making a difference in their community and the world. According to the Deloitte global survey, 75% of Gen Zers say an organization’s community engagement and societal impact are key when considering a potential employer. Also, 46% have already changed or plan to change jobs or industries due to climate concerns. 

To build a more inclusive culture, employers, managers, and HR teams should:

• Prioritize diversity and equity – Foster a workplace where all employees feel respected and valued.
• Encourage transparent leadership – Ensure that company leaders are approachable and responsive.
• Promote collaboration – Implement mentorship programs and team-building initiatives to strengthen workplace connections.

As Gen Z continues to shape the workforce, companies must adapt to their values and expectations. Addressing concerns around mental health, economic security, AI, purpose-driven work, work-life balance, and inclusivity can help to attract and retain top Gen Z talent. Organizations that invest in understanding and supporting this generation will build a more engaged, innovative, and future-ready workplace.

One way to cater to the expectations of Gen Z is to offer outplacement services. By providing career coaching, job search tools, and empathetic support to departing employees, your company will show a human approach to people management – something that resonates with Gen Zers and boosts morale, productivity, and retention across the board.

Want to learn how Careerminds can help you with this strategy? Contact us today to speak with our experts and schedule a demo!

Rafael Spuldar

Rafael is a content writer, editor, and strategist with over 20 years of experience working with digital media, marketing agencies, and Tech companies. He started his career as a journalist: his past jobs included some of the world's most renowned media organizations, such as the BBC and Thomson Reuters. After shifting into content marketing, he specialized in B2B content, mainly in the Tech and SaaS industries. In this field, Rafael could leverage his previously acquired skills (as an interviewer, fact-checker, and copy editor) to create compelling, valuable, and performing content pieces for various companies. Rafael is into cinema, music, literature, food, wine, and sports (mainly soccer, tennis, and NBA).