Gen Z in the workplace: A small business success guide

Generation Z has joined the workforce, and just like the generations before them, they'll reshape how we work. Compromising around 20% of the small business workforce as of 2023 year, this new generation of purpose-driven and tech-savvy individuals has much to teach us—and not just about social media. 

With Gen Z in the workplace, understanding what shaped them and their unique traits is crucial to building a work environment that appeals to them and other generations. So, what does Gen Z want? To shape businesses to embrace diversity, technology, and work-life balance—things we’ve all wanted and needed but didn’t know were an option from employers. 

If you’re not a Gen Z, but you’re eager to get to know them more, dive into who Generation Z is and their workplace mentality. This will help you understand how you can adapt your business to a new generation while hiring and retaining Gen Z employees.

Who is Gen Z?

Generation Z currently includes individuals born between 1997 and 2012, according to Pew Research. However, the exact generation dates and definitions can vary slightly. As of 2023, the oldest Gen Zers are 25 years old, which means that soon they’ll be filling the workforce from entry-level to senior positions. 

Most people might think of Gen Z as technology natives—they grew up in a world where digital technology, smartphones, and the internet were already well-established. They enter more spaces with Wi-Fi than without. But there’s much more about this new generation that makes them unique. And while not all members of a generation will embody the quintessential associated characteristics, businesses can take inspiration from Gen Z’s positive and open worldview.  

According to PMI, characteristics often associated with Gen Z include: 

• Passionate about diversity and inclusion: They are more culturally diverse compared to previous generations and embrace and advocate for inclusivity and social justice. 
• Entrepreneurial spirits: They have an entrepreneurial mindset and want to start their own businesses, find new career paths, and try side hustles. 
• Globally aware: Growing up with the internet, they have easy access to information from around the world, making them more globally aware and concerned about international issues, like climate change and human rights. 
• Financially cautious: They grew up during economic recessions, experienced the pandemic, and faced student loans, so they are generally more financially aware and realistic about finances—although they prefer not to talk about their finances. 
• Connected online: They were heavily influenced by social media platforms, shaping how they communicate, interact, and shop, as well as their preferences. 

These are only some of Gen Z’s characteristics that set them apart from other generations. But that doesn’t mean every Gen Z member is the same—individual personalities and experiences vary widely within generations.

Gen Z's workplace mentality—and its benefits for businesses

As with every generation, experiences in Gen Z’s childhood, teenage, and young adult years might impact their workplace mentality. Growing up in a fast-changing technological world with information overload, Gen Z also has a preference when it comes to their careers. 

Although workplace mentality can vary among them, there are several trends and characteristics shaping Gen Z's attitude toward work. 

According to NSHSS, here are some of Gen Z’s attitudes toward work and how they’ll change the workplace: 

• Purpose-driven mindset and social responsibility: The Gen Z workforce prioritizes meaningful work and wants to work for companies that align with their values. They are attracted to purpose-driven employers committed to social and environmental causes. 
• Tech-savvy and innovative tendencies: They are proficient in using technology and are adaptable to new tools and software. Gen Z employees bring fresh perspectives on how to use technology, streamline processes, and improve efficiency. 
• Desire for continuous learning and career growth: With a learning and growth mindset, they strive to continuously develop their skills. They look for employers that offer training, mentorship, and career development opportunities. 
• Emphasis on work-life integration and flexibility: Gen Z values work-life balance, flexibility, and a healthy work environment, making them more likely to seek hybrid and remote work options.  
• Collaborative and team-oriented nature: They are comfortable collaborating and can adapt to teamwork. Gen Z appreciates open communication with managers and co-workers and constructive feedback. 

Gen Z workers bring a new reality to the workplace. Although they focus on the value businesses can bring to their own lives, their desire for continuous learning and flexibility can be valuable for your business. 

They’ll help your business grow its social and environmental impact, increase learning, and technology use—all while maintaining a healthy work-life balance and focusing on mental health.

How small businesses can adapt to—and retain—Gen Z in the workplace

Changing how your business does things is not an easy task—especially if you’ve been doing things the same way for years. But adapting to industry advances and a new generation is crucial to growing your business and attracting top talent.

As members of Gen Z join the workforce, they’ll impact your business’s processes and mindset. If you want to attract and retain Gen Z talent and see their impact on your business, here’s how you can adapt your small business to a new generation. 

Create a tech-enabled work environment

Working with Gen Z means embracing technology. They are naturally skilled at using and adapting to new technologies, which can drive your business to adopt and integrate digital tools and innovative processes. Ensure your business has access to technology to enhance productivity, communication, and collaboration. 

Some ways to integrate technology into your workplace include: 

• Adopting collaboration tools: Consider using collaboration platforms for real-time communication, project management, and file sharing to help team members to work more efficiently. 
• Embracing virtual meetings: Use video conferencing tools for meetings and training to enhance collaboration and face-to-face interactions. Encourage participants to have their cameras on during video meetings.
• Implementing AI and automation: Leverage AI-powered tools and automation to streamline repetitive tasks.
• Emphasizing mobile compatibility: Consider how your digital tools and website work on mobile devices, as Gen Z are heavy smartphone and tablet users. 
• Staying up to trends and innovations: Stay up to date with tech trends and innovations to find ways to streamline productivity and processes. 
• Providing training and support: Offer comprehensive training and support for digital tools to team members to make them feel confident using them. 

Creating a tech-enabled work environment can enhance productivity and provide the right tools to support this tech-savvy generation. But you should also consider their personal preferences. Ask them how they prefer to communicate, join social activities, and collaborate at work. 

Prioritize purpose-driven initiatives

When seeking the ideal place to work, Gen Z care about businesses that support social and environmental causes with authenticity and transparency.

Consider implementing these purpose-driven initiatives in your business and products: 

• Promote corporate social responsibility: Identify causes that align with your business’ values and mission, and implement initiatives such as volunteering programs, sustainability projects, and charitable donations. 
• Start a donation matching program: Encourage employees to engage with social causes by matching a portion of employee donations to nonprofit organizations. 
• Build community partnerships: Collaborate with local nonprofits and community groups working on social and environmental causes. Support them through fundraising and sponsorships.  
• Practice sustainability: Implement a small business sustainability plan by adopting eco-friendly packaging, reducing waste, and minimizing energy consumption. 
• Focus on Diversity, Equity, and Inclusion (DEI): Develop a DEI policy to foster an inclusive workplace and provide training and workshops. 

Remember, focusing on purpose-driven initiatives should be part of your business’s core values and operations. These meaningful actions can positively impact society and the environment while appealing to consumers and Gen Zers.

Offer flexible work arrangements

Gen Z appreciates flexibility, so where and how they work matters to them. If your business can provide a more flexible workplace, you’ll attract and retain more Gen Z talent. 

Consider implementing flexible work arrangements such as: 

• Remote and hybrid work options
• Flexible work hours
• Four day work weeks
• Mental health day offs
• Paid time off
• Parental leave
• Sabbaticals

Providing flexible work arrangements goes beyond remote work. Gen Zers want a healthy work-life balance and to focus on mental health. When implementing flexible work arrangements, you should establish guidelines and any necessary support and resources to ensure a smooth transition and maintain productivity.

Provide professional development opportunities

Members of Gen Z are great learners and strive to develop their skills. Because of that, they value workplaces that can provide learning opportunities and career growth. 

You can provide professional development opportunities with: 

• Training programs: Host training programs and workshops on communication skills, project management, leadership, or industry-specific skills. 
• External workshops: Encourage employees to attend external workshops and conferences by providing financial support or reimbursement for registration fees and travel expenses.
• Career growth: Be transparent about roles and responsibilities and how employees can grow within the company, and provide mentorships and performance reviews. 
• Mentorship: Establish a mentorship or coaching program that pairs new employees with experienced mentors to provide guidance, advice, and feedback. 
• Department collaborations: Encourage collaboration across departments and allow employees to connect, learn about other roles, and develop skill sets. 

Investing in employee professional development shows commitment to growth and success, which can enhance employees’ skills and contribute to job satisfaction and employee retention.

Craft a new recruitment plan

When hiring Gen Z employees, it’s essential to understand their characteristics and preferences so that you can tailor your recruitment plan and onboarding process. 

Here are some tips to effectively hiring Gen Z: 

• Try digital recruitment: Use digital platforms and social media to reach Gen Z candidates, and post job openings on job search websites.
• Showcase company values: Highlight your company’s missions and values during the hiring process and on your website and social media channels. 
• Emphasize career growth opportunities: Communicate how your business is committed to professional development and career growth. 
• Streamline the application process: Make the application process efficient and straightforward, and communicate with candidates throughout the hiring process. 
• Be transparent about compensation: Explain your compensation packages, and company benefits through the hiring process. 
• Consider your branding: Craft your job descriptions and ensure your business branding appeals to Gen Z. 

By incorporating these strategies, you’ll increase your chances of attracting and hiring Gen Z candidates who will contribute to your organization.

Run your business with confidence

Changing how your business works and runs is not an easy task. But adapting and embracing a generation coming into the workforce is crucial to growing your business. 

With Gen Z in the workplace, emphasizing a purpose-driven and inclusive work environment can help build a future-ready organization. Of course, staying tech-savvy is a huge part of this—for instance, by managing payroll and people all in one place with QuickBooks.

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