Two billion Gen Zers—those born between the mid-90s and late-00s—are coming of age, and they’re ready to take over. They bring fresh perspectives, prioritize values-driven work environments, and expect meaningful opportunities for growth. However, their distinct approach to work also presents new challenges for organizations, from managing high turnover to encouraging engagement.
Fortunately, with the right people-first approach, HR teams can build workplace dynamics that set everyone up for success by understanding Gen Z’s priorities.
In this guide, we’ll address some of the Gen Z challenges modern companies are facing and how to deliver success from A to Gen Z.
Note: In 2023, we surveyed 3,691 young tech professionals aged 20-30 across a range of companies in the United States, Australia, the United Kingdom, Ireland, Sweden, Spain, France, the Netherlands, and Germany. We looked at their motivations, current experience in the workplace, career plans, attitudes toward the rise of AI, and more. This guide is republishing some of the key takeaways regarding the Young Generation In Tech (YGIT), who are often regarded as the torchbearers of tomorrow’s innovations, unafraid to challenge norms and disrupt established paradigms.
Introducing Gen Z: The immediate future of your workforce
Generation Z, born between 1997 and 2012, is already shaping the way workplaces operate. From prioritizing values-driven work to seeking flexibility and connection, they’re redefining what it means to succeed professionally.
However, according to a recent survey, about one in six companies consider Gen Z graduates, or Zoomers, unprepared for the workforce, leading to hiring hesitation.
These perceptions aren’t entirely unfair. Gen Z is the most likely generation to feel ambivalent about their workplace. In fact, a recent Gallup poll showed that Zoomers are five points less engaged than last year. Gen Z team members often don’t feel connected to their co-workers and employers, and nearly 25 percent of Zoomers and Millennials in a recent survey plan to quit their jobs this year.
It’s not difficult to see why this takes a heavy toll on businesses, especially when budgets are tight; the time and resources it takes to offboard an employee, the resulting lost productivity, and finding and training their replacement typically costs 30-50 percent of an entry-level person’s base pay.
Still, businesses can’t avoid hiring Gen Z forever—they’re expected to make up 30 percent of the workforce by 2030. So what can modern organizations do to get ahead of the challenges of retaining, engaging, and motivating a generation that, according to the data, is disloyal, disengaged, and lacking motivation?
To engage Gen Z successfully in the workplace, improve retention, and keep them happy, it’s critical to invest time and resources into three key areas that are important to them:
To get a handle on what motivates Gen Z in the workplace, we first need to understand the challenges they’re facing and, in some cases, creating.
Millennials vs. Generation Z at work
Millennials and Gen Z may seem similar at first glance, but their work styles and priorities set them apart in meaningful ways. Here are a few key differences between these two generations:
Understanding these differences is essential for HR leaders who want to attract and engage both groups while creating a culture that resonates across generations.
Key characteristics of Gen Z at work
Understanding the unique traits of Gen Z professionals can help HR leaders better support and engage this generation. Here are a few key characteristics of the Zoomer workforce.
- Work-life balance focused: Work-life balance isn’t just a preference for Gen Z—it’s a priority. They value flexibility in their work arrangements, whether through hybrid schedules, remote options, or flexible hours. They see work as one piece of a bigger puzzle and are less inclined to sacrifice personal wellbeing for professional advancement.
- Reliant on more frequent feedback and recognition: Annual reviews alone aren’t enough to keep Gen Z motivated or aligned with organizational goals. They prefer ongoing conversations, whether through one-on-one check-ins, team meetings, or informal recognition.
- Prefer meaningful work: Gen Z wants to know their efforts contribute to a larger purpose. Whether it’s through sustainability initiatives, community outreach, or diversity efforts, they look for roles that align with their personal values.
- Interested in diversity and inclusivity: Diversity and inclusion are non-negotiable for Gen Z. They expect workplaces to prioritize equity and build a sense of belonging. This generation values representation and wants to see leadership teams championing diverse perspectives. Companies that actively support diversity, equity, inclusion, and belonging (DEI&B) initiatives and create inclusive environments not only meet Gen Z’s expectations but also benefit from the innovation that comes with diverse teams.
Generation Z challenges in the workplace
We’ll explore top Gen Z challenges, solutions, and how these generational differences can offer employers opportunities to innovate and create more inclusive, dynamic workplaces.
1. FaceTime rather than face-to-face time has changed Gen Z’s attitude to workplace etiquette
To understand Gen Z fully, we must remember they entered the workforce as the world was locked down by and emerged from a global pandemic. During these formative years, they missed out on learning the nuances of in-person, non-verbal cues and workplace behaviors. As a result, 74 percent of business leaders say they find Gen Z more difficult to work with than any other generation, and 12 percent say they’ve fired a Gen Z employee within a week of them starting at work.
A British survey found surprising behaviors, including:
- 34 percent of Gen Z workers accepted a job offer but failed to report for their first day without notifying the employer
- 38 percent reported quitting without a formal resignation
- 44 percent went to their office for their badge but left immediately to work remotely
- 39 percent took time off without informing their bosses
How to address this Gen Z challenge
Employers can provide structured onboarding processes that clearly outline workplace etiquette and communication norms. Pairing new Gen Z hires with mentors or “workplace buddies” can also help them navigate office culture more comfortably.
Additionally, creating opportunities for informal interactions, such as team lunches or collaborative projects, can help them build confidence in face-to-face communication.
2. Zoomers crave in-person communication
Despite struggling with face-to-face communication, 82 percent of surveyed Zoomers say they feel more comfortable being with others in person, and 79 percent want to interact with people more “in the real world”.
Their desire for face-to-face communication and need for feedback in real-time means one thing: Gen Z wants to be in the office at least part of the time. Interestingly, our Young Generation in Tech (YGIT) research shows that Gen Z is not a strictly work-from-home (WFH) generation, with 56 percent preferring to be in the office at least four days a week.
And they’re not all remote-minded. YGIT found that 41 percent of Gen Z professionals feel more engaged in the office, and 37 percent worry about missing those real-time connections with colleagues.
How to address this Gen Z challenge
When communicating with Gen Z, prioritize direct, face-to-face conversations. They value clear and transparent dialogue, so avoid overly formal language or unnecessary layers of communication.
Managers can create regular touchpoints, such as weekly one-on-one meetings, to ensure open communication and opportunities for in-person connection. Additionally, offering hybrid work models that allow for in-office collaboration can satisfy their preference for personal interaction while maintaining flexibility.
Gen Zers also value a sense of community in their workplaces, so create opportunities for your people to connect with each other in meaningful ways. It’s something they feel is missing with the rise of widely distributed and remote workforces, making face-to-face opportunities a crucial time to foster personal and professional relationships.
Help Gen Z feel more connected by:
- Introducing ERGs and clubs
- Organizing meaningful, in-person opportunities for connection and team building
- Providing tools and opportunities for online connections across teams and departments
- Implementing formal peer mentorship programs and social events across departments
- Offering flexible schedules with more opportunities to spend time in the office meeting colleagues face-to-face to build relationships, learn through experience, and engage in mentorship opportunities
You can also help Gen Z professionals feel connected with a powerful employee value proposition (EVP) with touchpoints throughout the entire employee lifecycle (from recruitment to offboarding) to make them feel aligned with the company’s mission, vision, and values.
3. Gen Z lacks experience with critical technologies
It’s easy to assume that because Gen Zers are digital natives, they can seamlessly adapt to workplace technologies. However, this isn’t always the case. Zoomers are struggling with tech illiteracy because their learning has focused more on optimization rather than basic tool education.
According to Debbie Irish, Head of Human Resources at Hewlett Packard UK & Ireland, “While young professionals may be more accustomed to digital environments, and certainly social media platforms, this doesn’t always carry over to professional tools.” They might not have much experience (if any at all) with platforms like Teams, Slack, or even email, and because it’s assumed they’re tech-savvy, they may feel too embarrassed to ask for help.
It’s not just Gen Z either: 27 percent of workers feel they need more confidence in their digital capabilities.
How to address this Gen Z challenge
Integrate training for workplace tools into the onboarding process. Provide hands-on workshops, quick-reference guides, or video tutorials to give Gen Z the confidence they need to use essential platforms. Encourage a culture where asking questions or seeking help is welcomed and normalized, ensuring they feel supported as they navigate new systems.
You can also empower Gen Z to find answers on their own by investing in platforms with accessible self-service tools. This enables team members to find answers about company policies, benefits, growth opportunities, and more on their own, encouraging autonomy and reducing friction in daily workflows.
4. There’s a social skills gap, and Zoomers need mentoring
According to a recent US Harris Poll, 65 percent of Gen Z workers said they struggle to make conversation with colleagues. Core social skills like listening, adapting to different communication styles, and building rapport are essential for workplace success. Without strong skills in these areas, many Zoomer team members can encounter misunderstandings and collaboration challenges that affect their performance and put potential promotions at risk.
How to address this Gen Z challenge
Address this gap by implementing formal mentoring programs that connect Gen Z with seasoned colleagues. Regular feedback and coaching sessions can help them develop the interpersonal skills they need to succeed. In addition, offering soft skills workshops or role-playing exercises that focus on communication, collaboration, and conflict resolution can help boost their confidence in social interactions.
5. Gen Z struggles with engagement
Employers are seeing dramatic drops in engagement in younger generations. Gen Z’s struggle with engagement is often tied to feelings of burnout or stress, and they often report declines in career growth opportunities, connections to organizational missions, and caring relationships between team members as reasons for their disengagement.
How to address this Gen Z challenge
Start by identifying the root causes of disengagement through pulse surveys, exit surveys, and team discussions. Once you understand the reasons, take action:
- Address workload concerns by setting realistic expectations and providing tools to manage priorities
- Encourage open conversations about stress and wellbeing to normalize support-seeking
- Offer meaningful resources like mental health and wellbeing programs or flexible schedules to help your people maintain balance and stay engaged
6. Zoomers are seeking financial security and opportunities to grow
Although both Millennials and Zoomers prioritize having a sense of purpose in their job, Gen Zers care more about job and financial security. In fact, for many Zoomers financial wellness is part of their broader self-care practice, particularly as they face increasing costs of living and debt. Many prefer to join companies that can offer secure compensation packages and career path development.
According to the HiBob-Eight Roads research, 27 percent of Gen Z said that the number one motivator for joining a company is its “future potential.” This goes far beyond flexible working models or professional education opportunities. Almost 40 percent said a promotion would encourage them to stay with their current company above all else, and 30 percent said a better compensation package would do the job.
How to address this Gen Z challenge
To make sure Gen Zers feel supported and on a path to the career growth and financial security they seek, you can focus on:
- Empowering managers with the tools and training they need to act as trusted advisors to their direct reports
- Creating clear job descriptions and leveling, and putting structured performance management processes in place
- Providing structure and guidance for formal mentorship (58 percent of satisfied Gen Zers reported being part of such programs)
- Ensure there is scope for incremental growth at the start of their careers to keep them engaged
- Offering competitive pay and benefits packages, including regular cost-of-living adjustments
7. Gen Z wants to move up in the workforce quickly
Many Gen Z professionals enter the workforce with a clear ambition: to grow fast. They’re not just looking for a job—they’re seeking a career trajectory that feels meaningful and forward-moving. This generation values clarity and purpose, and they expect organizations to provide visible growth opportunities, not vague promises.
How to address this Gen Z challenge
Support Gen Z’s ambition by designing transparent, actionable career paths. Go beyond annual reviews—create clear promotion frameworks that outline the skills, behaviors, and timelines linked to progression. Make expectations easy to understand, and tie them to both personal development and business impact.
Use regular check-ins to offer feedback that’s both constructive and encouraging. Celebrate milestones—big and small—to keep motivation high and reinforce a sense of achievement. In parallel, introduce stretch assignments, mentorship, or leadership training that prepares them for what’s next and shows them a future in your organization.
<<Download free career path templates to help Gen Z team members navigate their future.>>
8. Zoomers are true advocates for mental health and wellbeing programs
Zoomers are willing to change jobs for better benefits. Effective health packages and a positive approach to wellbeing at work can be decisive factors when choosing between companies. While salary remains important, this generation views wellbeing not as a perk, but as a baseline expectation. They want to work for organizations that actively foster a culture of care—where taking a mental health day is normalized, and wellbeing initiatives are more than box-ticking exercises.
How to address this Gen Z challenge
As Rose Anna Garza writes in SHRM, “If you don’t invest in your people, they will feel like you don’t value them.” Build a benefits ecosystem that puts people first. Start with comprehensive health coverage and if your budget allows, include access to mental health professionals, therapy sessions, digital wellness tools like meditation or sleep apps, and gym or fitness stipends. Normalize practices like mental health days and no-meeting blocks.
Beyond offerings, communicate openly and frequently about wellbeing. Integrate these benefits into onboarding, manager training, and internal communications to ensure they’re easy to access and fully understood. Encourage team leads to model healthy behaviors—such as logging off on time or taking full vacation days—to reinforce a wellbeing-first culture.
Showing you value the whole person, not just the professional role, will not only boost engagement—it will help you stand out in a competitive talent market.
9. Gen Z wants a great work-life balance
The overwhelming majority (74 percent) of Gen Zers would change jobs in pursuit of a better work-life balance. Gen Z’s work ethic and values appear to be in stark contrast to Millennials and Baby Boomers who, according to LinkedIn, believe in long hours, loyalty to one’s employer, and a “pay your dues” mentality.
For Baby Boomers, the pay-off for working hard was a stable job and a step onto the housing ladder; for Gen Z they’re fighting for better working conditions to make up for the things they believe to be unattainable. It’s not the case that Gen Z doesn’t want to work. They just want a better deal in exchange for their labor.
How to address this Gen Z challenge
Support meaningful work-life balance by embracing flexibility at every level. Offer options like remote or hybrid work, flexible start and end times, and results-oriented performance metrics that prioritize output over hours logged.
Promote a company culture where boundaries are respected—no after-hours messages, no glorifying overwork, and clear encouragement to use paid time off (PTO). Empower managers to lead by example and create safe spaces where professionals feel comfortable setting limits without judgment.
10. Gen Z expects transparency from their employers
Gen Z wants to work for companies that believe in transparent work models that provide a more holistic work experience. They’ve grown up “in a world of perfect information” that provided near-instantaneous answers to “most of life’s questions at the push of a button.”
How to address this Gen Z challenge
To get the most out of Gen Z professionals, employers must show this young generation exactly where they’re going and how they fit into the organization’s mission and goals. This applies to everything from the interview process to Gen Z’s general career path. Here’s how you can integrate teamwork, trust, and transparency into your company’s culture:
- Hold regular team meetings and ensure managers hold regular (weekly or bi-weekly) one-on-ones.
- Make sure each one of your people—especially Gen Z—feels that their position and work have an impact on the business.
- Speak openly with your people about the state of the business. Explain why you’re taking certain actions—or choosing not to—and cover everything from benefits and people programs to how you’re navigating macroeconomic shifts, including potential redundancies. This transparency helps your people feel included and connected.
11. Zoomers prefer feedback in real-time
Research has shown that Gen Z’s brains have evolved to process information faster. As a result, Gen Zers like constant feedback from their managers. In response, many companies have remodeled the performance review to offer more focused, consistent, and impactful feedback.
This generation’s desire for feedback is part of their process of moving up the corporate ladder quickly, achieving more and more as they go. That can explain why, when looking at the YGIT data, approximately 50 percent of Gen Zers are already in managerial positions despite their young age.
How to address this Gen Z challenge
Move beyond the traditional annual review cycle and embed feedback into daily workflows. Start with regular check-ins that focus not just on performance, but also on development and wellbeing. Use these moments to set short-term goals collaboratively and track progress in real time.
You can also incorporate digital tools that enable continuous feedback loops—whether through quick pulse surveys, project retrospectives, or peer recognition platforms.
Train managers to become coaches rather than critics. Encourage them to provide feedback in the moment, tied to outcomes and behavior, so it feels relevant and supportive. It should be specific, actionable, and balanced, and combine praise with guidance to help them grow with confidence.
<<Use these free performance review templates to improve your review process.>>
12. Zoomers are more willing to leave a role for one that matches their values
For Gen Z, work isn’t just a paycheck—it’s an extension of their identity. This generation prioritizes purpose, integrity, and social responsibility when choosing where to work. They want to feel proud of their employer, knowing the organization not only talks the talk but walks the walk when it comes to values like inclusivity, sustainability, and social impact.
In fact, alignment with personal values often outweighs job security or long-term tenure. Gen Z professionals are willing to switch roles—even industries—if they believe a company’s actions don’t reflect its stated mission.
One common value among Zoomers is diversity. Gen Z is the most diverse generation yet. So, it’s no surprise they consider DEI&B programs non-negotiable at the companies they work for—83 percent say an employer’s commitment to diversity and inclusion is significant when choosing where to work.
However, it’s also important to note Gen Z thinks about diversity differently. According to Monster.com, they’re “more likely to define diversity as a mix of experiences, identities, ideas, and opinions, rather than more traditional definitions of diversity, such as underrepresented racial, ethnic, and gender demographics.” That means companies must create collaborative environments where participation from people with different ideas and perspectives is truly valued.
How to address this Gen Z challenge
More than any generation that’s come before, Gen Z has high expectations for alignment between their personal values and the company’s mission and policies. Embed these principles into the foundation of your culture—not as a checkbox, but as a continuous commitment:
- Promote inclusivity and belonging, including through the use of pronouns and gender-neutral policies and facilities (just doing rainbow social media during Pride doesn’t count!)
- Support mental wellbeing by hosting internal training and awareness campaigns, ensuring manageable workloads, and creating psychologically safe spaces where professionals can share perspectives, challenge assumptions, and shape inclusive solutions
- Build inclusive hiring practices into every stage of the talent journey, using structured interviews, diverse hiring panels, and equitable job descriptions
- Establish and empower employee resource groups (ERGs) with budgets, executive sponsorship, and organizational visibility to drive education and cultural impac
- Deliver regular, high-impact training on topics like unconscious bias, inclusive leadership, and allyship to encourage lasting behavior change
- Track DEI&B metrics, share progress transparently, and align leadership goals with inclusion outcomes to create real accountability
- Encourage your people to speak up with consistent feedback cycles—and truly listen to what they have to say
13. Gen Z has a different perspective on workplace hierarchy
Gen Z professionals see the workplace as a space for collaboration—not command and control. They’ve grown up in digital communities where influence is earned through ideas, not titles, and they carry that mindset into their professional lives. For them, the traditional top-down hierarchy feels outdated and inefficient.
Instead, Gen Z values open dialogue, mutual respect, and inclusive decision-making. They want to contribute meaningfully from day one, regardless of job title or tenure. This generation thrives in cultures where feedback flows in all directions, leaders are accessible, and everyone’s voice counts.
Rigid hierarchies can stifle creativity and discourage innovation. In contrast, flatter structures—where leadership is seen as facilitative rather than authoritative—create the psychological safety Gen Z needs to share ideas and challenge norms constructively.
How to address this Gen Z challenge
Cultivate a collaborative culture by flattening traditional hierarchies and promoting transparency across teams. Start with open-door policies and tools that enable easy cross-functional communication. Make it clear that you welcome insights and feedback from everyone, not just senior team members.
Empower managers to act as mentors and facilitators rather than gatekeepers. Encourage cross-level project teams, inclusive brainstorming sessions, and shared goal-setting to model a more democratic approach to work.
<< Learn how Bob helps you engage and retain your Gen Z workforce. >>
Gen Z workforce statistics
How to leverage HR tech to solve Gen Z challenges in the workplace
The right HR platform, while not a silver bullet to all the challenges of engaging with Gen Z, will help you attract, motivate, and retain them—and faster. Here’s how:
HR automation
With a best-in-class human capital management solution, you can automate HR activities while delivering personalized employee experiences that are connected to companywide initiatives—helping to create the belonging and community that Gen Z craves.
Performance tracking
We’ve discovered that Gen Z needs solid and measurable career paths so they know they’re on track to meet their aspirations. The right HR tech gives you 360-degree performance reviews for all employees, with clear, actionable goals and growth plans aligned to team, department, and company goals.
Surveys
Take the pulse of your workforce, helping Gen Zers feel engaged and valued across the entire employee lifecycle. You can track different milestones, like time spent at the company, or regularly measure satisfaction to get the data that helps you correct the course of your HR strategy.
People analytics
Help put DEI&B at the top of the agenda as a measurable KPI with advanced people analytics. Get the insights you need into the make-up of your workforce, as well as get customized dashboards on headcount, retention, absenteeism, and growth.
Compensation management
Increase pay transparency with compensation bands and ensure fair pay for new hires and current employees. Keep all stakeholders on the same page for a data-driven, fair, and equitable process—just what Gen Z is looking for.
The future of work with Gen Z
To stay engaged, motivated, and loyal, you know Zoomers need transparency, demonstrable career growth, alignment with personal values, mentoring opportunities, and direct, face-to-face conversation.
It’s also clear that the right mix of HR tech, strategy, and careful, tailored management can get Gen Z to bring more to the workplace. Some leaders have been guilty of giving them a bad rap. But that’s because they’ve not taken the time to understand them. When Gen Z feels seen, heard, and understood, they have the power to be one of the most creative, dynamic, innovative, and driven generations we’ve ever seen.
That’s not just good for your company—that’s a force for good that the world needs, too. Why wouldn’t you want to unlock it?
<< Learn how Bob helps you engage and retain your Gen Z workforce >>
Generation Z challenges FAQs
How do you effectively manage Gen Z employees?
To manage Gen Z effectively, focus on what matters most to them:
- Be transparent about goals, expectations, and company priorities
- Hold regular one-on-ones to build trust and encourage open dialogue
- Provide clear career paths with structured development, mentorship, and measurable performance reviews
- Foster collaboration through team projects and inclusive decision-making
- Offer flexibility with hybrid models or adaptable schedules to support autonomy
Why is mental health so important to Gen Z?
Mental health is a priority for Gen Z because they’ve grown up in a time of significant social, economic, and global challenges. They’re more aware of mental health issues and the impact they can have on overall wellbeing and productivity. Unlike previous generations, they’re less likely to view mental health as a taboo topic and are more willing to seek support when they need it.
For Gen Z, mental health isn’t just about personal resilience—it’s about creating a workplace culture where they feel safe and supported. They expect employers to provide resources like counseling and therapy. These initiatives signal that the organization values them as people, not just professionals.
Employers can also promote mental health by building a culture of openness. Managers who lead by example—discussing their own challenges and encouraging conversations about mental health—can help reduce stigma and create a more supportive environment. Providing flexibility in how and when people work can also alleviate stress, contributing to a healthier and more engaged workforce.
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How can we support work-life balance for Gen Z employees?
To support Gen Z’s work-life balance, you can:
- Offer flexible arrangements such as hybrid schedules, remote work, or adjustable hours to support autonomy and individual work styles
- Encourage healthy boundaries by setting clear expectations around availability and limiting after-hours communication unless urgent
- Promote wellbeing through accessible programs—think gym memberships, meditation apps, wellness stipends, or in-house workshops
- Monitor workloads regularly by checking in with team members and rebalancing responsibilities when needed to avoid burnout
How can organizations attract Gen Z talent?
You can attract Gen Z talent by:
- Leading with values—highlight transparency, purpose, and DEI efforts in your branding
- Showing career growth opportunities through mentorship, training, and clear advancement paths
- Offering competitive, transparent compensation with perks like student loan assistance
- Creating a personal, engaging hiring experience with clear job descriptions and timely updates