London, April 19 2023: Almost three quarters (74%) of business leaders in the UK report that the demands of Gen Z employees have fuelled a much needed rethink about workplace culture, benefits and compensation, which will have a positive impact on workers of all ages.
The new report, Navigating the Changing Talent Landscape, published by talent platform Beamery, is based on over 250 interviews with big business leaders in the UK, and over 400 interviews with their counterparts in the US, Australia and Germany. The report finds that Gen Z (18-26 year old) employees are playing an influential role in positively shaping the workplace for everyone, through their demands for better pay, promotion, wellbeing and technology.
Almost half (49%) of business leaders globally felt that Gen Z staff were demanding in terms of salary and benefits, 58% felt they were more likely to seek out fast-track career progression and promotion opportunities, 47% said employees had high expectations around workplace technology, and 42% felt Gen Z employees were more vocal about asks around employee wellbeing and the employee experience.
Ninety one percent (91%) of business leaders in the UK revealed that the needs and expectations vocalised by their younger employees could have a positive impact on all generations across their teams, as they seek to make changes that accommodate the more forthright and vocal Gen Z.
Keeping Gen Z employees happy is a big commitment for the UK senior leadership surveyed, and almost half (48%) said attracting and retaining this generation is one of the major challenges facing businesses over the next twelve months.
Business leaders are keen to lean-in to Gen Z demands to ensure they are attracting and retaining the next generation of talent, with 56% of business leaders globally saying that they had built “a culture where every employee is treated fairly and equally” and 58% revealing that they had already adapted workplace design to make it more collaborative. But leaders also recognised there was more to be done: 45% said they needed to develop personalised career paths for employees, 40% said they needed to introduce coaching and mentoring opportunities, and 40% want to optimise internal mobility so employees can easily move between roles.
Beyond the retention of Gen Z employees, the report also explored other major challenges that employers in the UK cited as concerns for the year ahead. Over half (53%) were concerned about increasing skills shortages, and fears over it being hard to find the skills their business might need, and 47% of employers were worried about being able to adapt HR approaches quickly in the face of changing market conditions.
The report also offered a snapshot of wider employer trends, particularly in a ‘post-covid’ world. This included employers reporting that leadership burnout is a bigger issue now than it was before the pandemic (69%).
Commenting on the new report, Beamery’s CEO, Abakar Saidov said: “Gen Z are an influential demographic and are upfront about what they want and need from their working lives.This new data gives us a fascinating insight into the mindset of employers across the UK – and paints a picture of how the workplace is changing globally.
It is heartening that these ambitions are having a positive impact on the whole workforce and are being taken seriously by business leaders. To truly enhance employee experience, employers have to take a personalised approach to talent management. As Gen Z is telling us: they want progress, pay and personal development – it’s not about one or the other. Forward-thinking employers will recognise this and deploy talent strategies that prioritise transparency, opportunity for progression, and personalised employee experiences.”
Notes to Editors
713 interviews with Business Leaders in the UK (255), US (253), Australia (103) and Germany (102) in organisations with 1000+ employees across all sectors were conducted during October 2022 by Insight Avenue.