Everyday you can skim headlines and find a plethora of articles discussing Millennials and Generation Z. They are tasked with staring down serious obstacles as they become full-fledged adults. Despite having the faculties and fortitude to take the challenges head on, they face significant headwinds. And those hurdles are impacting the way they view the workplace. As their expectations change, some employers have been caught flat footed. From high-turnover to union petitions, companies are dealing with significant fallout due to the inability to meet this group’s expectations at work. Employers are compelled to evolve as this disruptive force now dominates the employee pool. 

It’s no surprise as to why Millennials and Gen Z employees have such an uphill battle entering adulthood. Crippling debt, exorbitant housing costs, a movie-like pandemic, social media pressures and record inflation to boot are just a few of the burdens young people have had to endure as of late. Having never seen a period of great expansion like previous generations, it appears that today’s youth has only known volatility and angst. And amidst this backdrop, troubling mental health trends have begun to emerge among the Gen Z population. According to a recent report released by Murmuration and the Walton Family Foundation, Gen Z is about twice as likely as Americans over 25 to battle depression and have feelings of hopelessness. They are three times as likely to say their challenges are so severe that they thought they might be better off dead and one-fifth know someone who committed suicide.

It’s incumbent on employers to reflect on what they have to offer younger workers compared to the realities they face. The way this cohort views the world and what they want out of work are inextricably linked. 

A three percent annual raise, health insurance, two-weeks’ vacation, and a 401k no longer will suffice. 

Younger generation employees are facing a dire economic situation and they will chase money where they can. Over the last few years, companies have been forced to raise wages significantly to compete. Employees are in the driver’s seat and are going where they feel they are being paid their value.  Traditional benefit packages are not going to entice young workers. Health insurance is viewed as non-essential for many. They also look to achieve a healthy work-life balance and are looking for plenty of time off. Most are not interested in a 401k.  The ‘08 crash and the wild market swings they’ve seen has made them think twice about this as a retirement vehicle. Furthermore, most will admit they don’t understand what it is or how it works. 

An “open-door” policy and pizza parties will not yield the intended results. 

These workers have a lot to say, but don’t expect them to come to you necessarily. HR professionals and managers are charged with engaging these workers unlike older generations.. They prefer multiple brief face to face visits at work and a coaching management style that requires mindfulness and empathy. When it comes to rewarding a job well done, pizza is out. Food and snacks, although appreciated, do not achieve the goal. The reality is they are a quick, cheap, and convenient way for management to “check the box” and everyone knows it. What these employees really want is positive affirmation, public recognition, and pay for performance.

 Last minute and unpredictable scheduling are a non-starter. 

 Millennials and Gen Z highly value their free time and will unapologetically tell you that they don’t live to work. So, when it comes to scheduling, plenty of notice and maximum flexibility is desired. Some businesses struggle with this due to the nature of their industries. It’s those same industries that are having the most difficulty finding staff. Even if the pay is adequate, an inflexible schedule will have younger workers looking elsewhere. 

Unilateral decision making and top-down management will only serve to alienate.

Starbucks workers cited this as a main driver as to why they wanted to unionize. Younger employees want to be part of the process when it comes to the issues that impact them at work. It’s a tall order for employers to tackle but bringing these employees into the fold when it comes to forming policy and protocol is crucial to job satisfaction. It may even result in some unexpected surprises. Some of the best new ideas implemented in companies around the world come directly out of the hourly workforce. An initiative started by a former Frito-lay CEO to have employees pitch their ideas to the management led to the invention of Flamin’ Hot Cheetos, an innovation suggested by a janitor at the facility. Southwest’s famed comedic flight safety announcements, believed to be worth $140 million per year in increased customer loyalty, came about when management embraced one flight attendant’s creative take on the normally mundane monologue and encouraged others to follow suit. And what’s more, a decision-making process that includes the voices of a younger generation workforce speaks to a culture of inclusion and synergy, key traits sought after by Millennials and Gen Z employees. Lastly, providing a robust feedback program may serve to tamp down the common criticism that companies never listen to their employees.

Even with the enormity of the challenges Millennials and Gen Z face, they are undoubtedly equipped to succeed. They have shown incredible moxie and unique creativity in the face of adversity. They also bring a new viewpoint into the workplace that challenges the existing conditions, spurring innovation. They even encourage older generations to question their own expectations at work. They will continue to dare companies to think outside the box and keep managers on their toes. 

It’s vital that companies recognize and acknowledge the hardships that younger generations are enduring. There are incredible learning and growth opportunities for any company, manager, or HR personnel that are willing to hear out  the voices of these young adults and take action on the issues that matter to them. Rather than looking for third party representation, or riding the carousel of jobs, they will turn to management to help them resolve issues and provide solutions. By working together and fostering an environment conducive to adaptability, younger generation employees and their employers can take on whatever challenges and changes that the future may bring.

Written by Arthur Wentworth