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How Generation-Z Can Help Organizations Grow Significantly

Forbes Technology Council

Cofounder and chief executive officer of AvidXchange, a leading provider of accounts payable and payment automation technology.

According to the U.S. Bureau of Labor Statistics, Gen-Zers will make up one-third of the workforce by the end of the decade. Having spent their entire lives connected and immersed in technology, they bring prized technical and collaborative skill sets that can help define digital transformation strategies, giving their employers an advantage over those who fail to embrace innovation.

Their skills, along with the fresh perspectives and headstrong values they bring to the table, can transform outdated business processes to increase agility and enable more efficient operations. These young professionals also serve as an important reminder that leaders should take a closer look at what makes their people tick and what keeps them awake at night. A better understanding of Gen-Zers can refine retention and hiring strategies to empower continual growth despite a persistent labor crunch.

How can organizations tap into Gen-Z to generate growth and create competitive advantages?

Let Young Professionals Lead And Support Digital Transformation

Deloitte found that 71% of CEOs expect to see the talent and skills gap continue. As digital natives, Gen-Zers are a natural fit to fill the gap. A Dell Technologies study (via Forbes) found that 80% of Gen-Zers aspire to work with cutting-edge innovation like artificial intelligence, and an even higher percentage will factor an employer's level of innovation into their decision to take a job. Their desire to embrace technology can enable transformation efforts and pave the way for change.

Leaders can leverage these skills and tap these professionals for training sessions, integrating them into cross-generational teams and encouraging them to suggest new tools that streamline work processes. Building an open, collaborative culture across the organization can also encourage young professionals to think creatively and share ideas for change. In doing so, they can help build the business and attract a new generation of professionals to propel digital initiatives.

Provide The Human Connection That Gen-Z Craves

While Gen-Zers are undoubtedly reliant on digital communication channels, many of them yearn for more human connection and mentorship from managers and peers. Although flexibility is essential to provide the work balance they seek, a 2021 Generation Lab report (via Axios) shows that only 19% of college students and recent graduates prefer to work fully remotely.

This doesn't mean that organizations should abandon their hybrid work policies or their internal messaging channels. Instead, they should provide more human connection by offering in-person and virtual workspaces that promote collaboration. Tools like Zoom, Google Meetup and virtual reality (VR) can bridge silos formed by distanced teams, helping them feel better connected while eliminating inefficiencies that thwart change efforts and drain resources.

Managers can also be more mindful of providing constructive feedback or ongoing trainings that could help Gen-Z employees become part of the bigger picture and ensure they stay confident in their skills as technology evolves.

Align Holistically With Their Most Important Values

As employers fight to retain talent, Gen-Zers are compelling them to consider their employees' entire well-being—including their physical, mental, emotional and financial health.

According to McKinsey, in addition to reporting higher rates of mental health challenges than older generations, 58% of Gen-Zers reported two or more unmet social needs—such as income and education—compared with 16% of people from older generations. These challenges are a powerful reminder for organizations to recognize the diverse needs of their people and directly connect to support them.

Organizations can provide resources and tools that address multiple dimensions of health, including comprehensive medical and mental health benefits, counseling, paid time off, financial planning and volunteer time that allows employees to spend time nurturing their community. Additionally, organizations need to provide continual learning, advanced technical skill training, leadership development and advancement opportunities to support career growth for their employees' futures.

Place Diversity, Equity And Inclusion (DEI) Front And Center

Monster found that 83% of Gen-Z candidates view a company's commitment to diversity and inclusion as an important part of their decision to take a job and select one company over another.

Becoming more equitable and inclusive can position an organization to be an employer of choice while also enabling better business. A McKinsey study found that more diverse companies are more likely to financially outperform their peers.

Young professionals bring a powerful voice to DEI initiatives. Leaders should actively listen to their perspectives and partner with them to pinpoint areas for improvement. They should be invited to create or enhance existing DEI practices in order to forge open dialogues and raise awareness of inequities or unconscious bias. These discussions can lead to stronger policies, procedures and practices, enabling leaders and their teams to continuously ensure that every voice is heard and appreciated. As Gen-Zers progress in their careers, they can bring DEI skills to the generation that follows.

Lean On Gen-Z To Lead The Way Toward Change And Innovation

A pandemic and economic turmoil have accelerated the need for digital transformation efforts worldwide. Organizations that embrace them can create growth and a competitive advantage over those that are slower or resistant when it comes to implementing change. Digital transformation can also help solve the war on talent, delivering more rewarding work experiences for current and prospective employees.

The generation that's well on its way to becoming the new workforce expects nothing less. Delivering on that expectation means embracing Gen-Zers with open arms and leveraging all that they have to offer, including their digital savvy and open-mindedness to change. Companies that understand this dynamic will lean into their Gen-Z workforce as a catalyst in accelerating their digital transformation initiatives.


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