Two business professionals in a meeting, one gesturing while discussing work at a laptop, representing human resource management and workplace communication.

5-Minute Guide to Human Resource Management, Top-10 Issues With Generation Z Workers

January 08, 20264 min read

Intended Audience: Business owners, managers, supervisors & human resource professions.

Definitions:

  • Generation Z (Zommers): Those Americans born between 1997 to 2012.

  • Baby Boomers: Those born between 1946 and 1964.

  • Generation X: Born from 1965 to 1980.

  • Millennials: 1981 to 1996.

Generation Z Data:

  • Around 20% of U.S. population is classified as belong to Generation Z.

  • According to several sources, Generation Z will represent 1/3 of all U.S. workers by the end of 2025.

  • Generation Z is the most racially and ethnically diverse age group in American history.

  • This is the first age generation that has grown up entirely in the digital age.

  • Generation Z is the most engaged age group when it comes to social issues such as diversity, climate change and renewable energy.

  • Compared to previous generations, they tend to have higher IQ’s but are less creative when it comes to ideas and problem solving.

  • Generation Z has lower math and reading proficiency than previous generations.

  • Generation Z has the poorest overall mental health of all previous generations.

The Top-5 Concerns of Generation Z Workers:

  1. Their own mental health & wellbeing

  2. The high cost of living

  3. Their personal finances

  4. Diversity & inclusivity

  5. The environment

Work-Related Problems with Generation Z:

  1. Job Turnover at a rate considerably higher than previous generations at only 1.1-years compared to the national average of just under 4-years.

  2. Job Burnout Feelings at a 2025 rate of 74% compared to the national average of 66%.

  3. Different Communication Skills as Generation Z generally does well digitally but can struggle with in-person communication compared to other age groups.

  4. Financial Stress because of the high cost of paying off incurred student debt, along with the increased costs of home and auto ownership.

  5. Unrealistic Job Expectations driven by overly inflated self-values resulting in unrealistically high salaries demands and rapid job promotions expectations.

  6. Remote Work Expectations based on their personal experience with the Pandemic that has caused them to shun the traditional office environment.

  7. Difficulty Following Rules because of growing up in an era of lax parental controls and an educational system that has been soft on authority, discipline & rules compliance.

  8. Work/Life Balance that has low tolerances for long working hours, travel times away from home and inflexible work scheduling.

  9. Workplace Diversity Philosophies that places less of an emphasis on a person’s education, qualifications and experience in hirings and promotions.

  10. Performance Feedback based on wanting frequent, informal comments from their managers as opposed to formal performance reviews at set intervals.

Best Management Practices with Generation Z Workers:

  • Mental Test Assessments that should be conducted with job applicants to identify those with possible maturity, emotional or stress issues.

  • Work Performance Standards that should be outlined by management during the interview process to include attendance, job output, work quality, dress code standards and prohibited workplace conduct.

  • Employee Benefits Packages that have a strong mental health component offering counseling and online services.

  • Strong Work Cultures by promoting the idea that their organization is headed in the right direction as a business and is of value to their customers and community.

  • Organization Loyalty by overcoming job hopping tendencies through offering obtainable career paths, competitive salaries and desirable employee benefits.

  • Work Technology which appeals to younger employees that is state-of-the-art, mobile across devices and allows for group collaboration.

  • Team Work Encouragement with chat-based collaboration programs like Microsoft Teams rather than just sending and receiving emails.

  • Recognition & Rewards as Generation Z employees are all about getting recognized by management for their self-perceived talents and accomplishments.

Generation Z Final Takeaway:

More than previous generations, this group has less respect for authority, rules and conformity and is more attracted to higher ideals such making a positive difference for mankind and sustainability.

About the Author:

Rob Brooks is the Loss Control Manager for Centurion Insurance Services in Charleston, West Virginia. He has over 40-years experience in his profession having worked for some of the leading insurance carriers and brokers. Rob has professional certifications in both human resource management (CHRS) and workers compensation (CWCP) from Michigan State University’s School of Human Resources & Labor Relations.

Disclaimer:

  • This publication is intended for general educational purposes only, and not to be considered as business, financial or legal advice.

  • Centurion Insurance Services and the writer makes no guarantees or warranties of any kind, express or implied, about the reliability, completeness or suitability of the information contained herein.

  • Readers should consult with appropriate professionals before making any decisions based on the content of this newsletter.

  • We will not be liable for any losses or damages arising from the use of the information provided

Rob Brooks

Browse all blog posts by Rob Brooks at Centurion Insurance Services — expert articles on commercial risk, employee benefits, and insurance industry insights.

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