Who are Gen Z and how should they be managed in the workplace?
February 26, 2025 Written by Jen David
Until recently, discussions about the multigenerational workforce have focused on millennials and baby boomers. These days, the baby boomers are either retired or well on their way there. As the largest working generation, millennials shaped the modern workforce – until now. The workplace today is gradually being taken over by Generation Z – those born between the mid-nineties and early 2010s.
According to the Labour Force in Singapore report by the Ministry of Manpower, 14.6% of the labour force was under 30 years old in 2024. This group – Gen Z – has the potential to reshape workforce culture and expectations. Businesses need to prepare for this change now, or find themselves struggling to adapt as many did when millennials started working.
Let’s dive into what the new generation of workers expects from their employer, and how managers can retain top talent and make the most of the opportunities that Gen Z brings.
What is Gen Z?
Generally understood to be those born between 1997 and 2012, Generation Z have grown up with technology and are considered to be digital natives. They’ve never known a world where the internet, smartphones, and social media weren’t part of everyday life.
However, defining a whole generation in a sweeping statement is problematic – the concept of a generation is fluid, and the experiences we use to group them don’t affect everyone in the same way. Lines between generations blur – someone born on the cusp of a new generation may feel an affinity with one or both groups. While it can be helpful to identify Gen Z as tech-savvy and socially conscious, remember, as you read on, that this is just a label which can’t accurately capture the wonderful diversity of such a large group.
What makes Gen Z different?
While some Gen Z-ers will reject such labels and generalities, on the whole this group is known for its self-driven independence and sense of community. Growing up hyper-connected, in a way that no previous generation has, the tools they had access to enabled them to become self-reliant and collaborative.
On the whole, this led to an appreciation of diversity, authenticity, and non-hierarchical systems. They’ve also had early exposure to global issues, making them pragmatic about challenges, such as climate change, and giving them a realistic approach to problem solving.
Often described as lazy and unwilling to grow up, Gen Z has, in fact, adapted to a fast-changing world. They’ve learnt to earn money online with creative ventures, so don’t feel constrained by traditional jobs. In a tech-driven world, Gen Z prioritises relevance and efficiency.
Gen Z in the workplace – and how to manage them
Those characteristics are reflected in how Gen Z approaches work. These tips and insights will help managers and HR professionals meet their needs and manage this new generation of workers.
Gen Z is cautiously optimistic about generative AI
Confident and comfortable with technology, Gen Z is naturally inclined to adopt new tools and incorporate them into their work. A study by Deloitte showed that Gen Z-ers who frequently use generative AI have 31% more trust and 30% more excitement about such tools than other respondents, although there is still uncertainty around its use. While 38% plan to complete some training in GenAI, 78% will look for job opportunities that are less vulnerable to automation.
To address this, HR professionals and managers can:
- Offer GenAI training: About half of Gen Z say that employees don’t receive enough training on GenAI. By providing education on its uses and benefits, employers can support talent retention whilst maximising the efficiency potential of such tools.
- Promote growth opportunities: By emphasising how GenAI can improve efficiency and support career development, employers can open pathways to more strategic and creative roles.
- Encourage open communication: By providing safe spaces for employees to share their concerns about the implications of AI, employers can ensure they feel heard, supported, and valued.
Gen Z wants flexibility
According to HRM Asia, 69% of Gen Z would leave employers that asked them to work in the office more often. They would also refuse work in inflexible environments (42%) and wouldn’t work for a business that didn’t provide flexibility with working hours (68%) or location (61%).
Clearly, this is a generation that prioritises flexibility. To prevent a high turnover of staff, these steps could help to improve retention and engagement:
- Set clear career paths: Provide opportunities for career progression through upskilling and mentoring.
- Create value-driven roles: Align responsibilities with company values, so that employees can see the impact of their work and where they fit into the bigger picture.
- Offer feedback: Communicate openly and frequently to ensure employees feel recognised, valued, and supported.
Gen Z is aware of their mental health
With concerns such as the cost of living, climate change, the impact of Covid lockdowns, and burnout to contend with, it’s no surprise that the mental health challenges of Gen Z are well documented. They are more aware of mental health issues than previous generations, and live in an environment that exacerbates them.
A Deloitte survey noted that 86% of Gen Z think that mental health support and policies are important when choosing a potential employer. To proactively address mental health concerns and build a more resilient workforce, employers can:
- Offer mental health benefits: The benefits package could include access to counselling, therapy, and mental health apps, among other ideas.
- Normalise mental health conversations: A culture of openness will reduce stigma and encourage employees to seek help and support in the early stages.
- Provide training: Leaders and managers need to be equipped with the tools to recognise and support mental health challenges.
Gen Z has a pessimistic economic outlook
The Deloitte report identifies that the majority of Gen Z think the economic climate means that it will become harder to get a raise, a promotion, or a new job. On a more personal level, they also think it will become harder – or impossible – to buy a home or start a family. 51% live pay-cheque to pay-cheque, and 34% have taken on a second job.
To address these pain points and build trust, companies can:
- Offer financial wellness programmes: Resources on budgeting, saving, and investing will help employees to make the most of their income.
- Promote stability: Communicating internal career moves and demonstrating a commitment to long-term career growth can foster trust and reassurance.
- Improve benefits packages: Benefits can be expanded to incorporate retirement plans, home ownership assistance, childcare, and other incentives to address economic concerns.
Gen Z prioritises work-life balance above all
New expectations around flexibility and mental health means that Gen Z is reshaping the workforce. With a preference for flexible schedules and remote work, normalised during the pandemic, businesses have had to reevaluate their policies.
Companies can improve employee satisfaction by focusing on balance and wellness, such as:
- Offering flexible working: This could include remote work, hybrid work, alternative hours, or flexi-time.
- Incorporating wellness programmes: Mental and physical health initiatives could include gym membership, mindfulness workshops, and mental health days, to name a few.
- Developing new policies: Policies that encourage employees to disconnect outside their working hours shows that the organisation respects their personal time.
Final thoughts on Gen Z in the workplace
As Gen Z comes of age and continues to enter the workforce, new challenges continue to arise for their managers and HR professionals. However, with understanding and adaptation, businesses can develop policies, benefits packages, and cultures that attract and retain this dynamic generation.
By understanding their priorities around mental health, flexibility, and finance, workplaces can meet the expectations of Gen Z and future-proof their business.
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