Gen Z is navigating uncharted workplace terrain: With that, comes challenges
Gen Z graduates face a substantial disconnect between the skills they possess upon graduation and those demanded by the contemporary workplace – a gap exacerbated by their disrupted education during the pandemic. Picture: iStock
The workforce landscape is witnessing a significant influx of Generation Z graduates — those born between the late-1990s and early 2000s — to the world of work.
While they bring with them a wealth of talent, fresh perspectives and a genuine desire to create meaningful impact, they’re also encountering a myriad of unique challenges previous generations will not have faced and, more importantly, may not be able to understand and relate to.
According to new IMI research, Gen Z graduates face a substantial disconnect between the skills they possess upon graduation and those demanded by the contemporary workplace — a gap exacerbated by their disrupted education during the pandemic and the mainly remote working environments they enter. Having spent much of their lives online, many Gen Z graduates lack critical social and interpersonal skills traditionally developed through in-person interaction and peer learning.
“Many clients are reporting a relatively sudden dilemma facing young talent as it struggles with onboarding, which appears to be a direct result of the pandemic, with pre-covid and post-covid graduates displaying different traits,” says Julie Ryan, Head of Customised Executive Education at IMI. “Without the opportunity to learn and practice these skills in person, Gen Z'ers are particularly struggling to navigate the social dynamics of the workplace.”
Critically, this skills gap is hindering graduates' ability to effectively contribute within their organisations. Interpersonal skills, communication abilities and emotional intelligence are vital for effective teamwork, collaboration and relationship-building.
Influencing and communicating with senior stakeholders can be a significant challenge for younger employees in any organisation, especially in more traditional top-down hierarchies, but the lack of in-person socialisation over the past few years has exacerbated this issue. Many Gen Z employees are showing a lack of confidence when it comes to asserting themselves — both with senior stakeholders and each other.
One reason suggested for this gap is the rapid evolution of digital technology and its integration into the workplace, and beyond. While Gen Z is often hailed as the first "digital-native" generation, and their proficiency in using social media and smartphones is unquestionable, they may be lacking key skills required in professional settings because they are not organically developing them in social settings.
Whereas generations before may have routinely picked up the phone to a friend, Gen Z are more likely to text or DM (direct message). Technology has transformed how they connect and communicate, but this hyperconnectivity can also lead to challenges in maintaining focus and effectively engaging in traditional interactions. Picking up the phone with a client or making a cold call to a potential prospect can be a source of extreme anxiety for Gen Z employees.
Graduates also have high expectations regarding career progression and work-life balance, which can create a clash between the traditional hierarchical structures of organisations and Gen Z’s desire for autonomy, flexibility and “meaningful” work. Gen Z want organisations to mirror their values and demonstrate visible commitment to sustainability, DE&I, mental health, etc. Balancing these expectations is a delicate task for graduates and employers, especially if the latter are from a generation that prioritised a traditional benefits package and where a job was just a job, not a higher calling.
But it is a balancing act. One which requires collaboration between organisations and employees, with employers providing the necessary supports to ensure their Gen Z workforce make valuable contributions. This level of support may be different to what was required by previous generations, something which IMI is well-placed to comment on.
“For 20 years, we have been supporting graduates transitioning from the world of academia to the world of work, and employers want to see personal leadership begin at the point of career entry,” says Julie Ryan.
Mentorship and coaching opportunities are key to developing the Gen Z workforce, along with offering capability-building training and development programmes. Through structured training, guidance and feedback, organisations can enable Gen Z to navigate workplace complexity.
IMI research shows onboarding is at the core of helping companies build, retain and engage highly effective teams, recommending that organisations put connection and empathy at the centre of this process. Gen Z ranks a “sense of belonging” in their top three concerns, and organisations should take note of the 56% increase in job performance when employees feel like they belong.
Because investing in Gen Z employees is a two-way, mutually beneficial street. For example, by pairing Gen Z graduates with experienced professionals through mentorship programs, companies can facilitate knowledge transfer and help bridge the skills gap. In return, seasoned professionals can benefit from the fresh perspectives and innovative ideas brought forth by the younger generation through reverse mentoring, especially when it comes to technology and digital tools.
Because the skills gap is not specific to Gen Z. McKinsey has estimated that at minimum 375 million jobs will be displaced by automation and AI by 2030, while the recent OECD Skills Strategy Report claims that Ireland is dangerously at risk of falling behind if it does not invest in continuous learning and upskilling initiatives.
The task confronting every economy, particularly advanced economies, will be to retrain and redeploy tens of millions of workers of middle-aged, mid-career workers, whose current skills and capabilities may be rendered obsolete by rapidly evolving technologies.
By contrast, Gen Z graduates possess an innate ability to adapt to new tools and platforms, acquire new technical skills and embrace emerging technologies. Their intuitive understanding of digital platforms and trends may prove invaluable to organisations navigating the complexities of the digital age.
Moreover, Gen Z graduates have a strong entrepreneurial spirit and a desire for continuous learning. Unlike previous generations, they are more inclined to take risks, experiment and seek unconventional career paths. Under the right conditions, this mindset fosters innovation and organisational adaptability, with graduates more open to challenging the status quo and exploring new possibilities.
Gen Z have the potential to bring fresh perspectives and offer unique insights that not only allow businesses to stay ahead in an ever-changing marketplace, but shape the future of work. In return, organisations must provide the necessary support and investment to harness Generation Z’s potential.
- Ben Davern leads research and insights with IMI
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