How do we create a friendly environment for Gen Zs and meet their needs?

With the rise of Gen Z workforce, the times have come for a new chapter in the books of HR functioning. All organisations possessed a steady process for recruiting, managing and for the retention of staff. the policies, rules and regulations were all set in stone. but the newly introduced generations no longer believe these to be employee-friendy processes/structures. due to the change in demands, some organizations have already begun looking at few of the following solutions to ensure that workplace provides a sane-free zone for Gen Z employees and to lower the current attrition rates. 

• Pay salaries well above the minimum wage : some companies even today tend to make a pay scale based on the number of years of experience or the seniority within the departments. However, considering the current situation it would be ideal to follow Adam's Equity Theory which encourages a pay structure based on their input rather than their designation or the seniority in the company. Gen Zs are more likely to be motivated to put in greater efforts knowing that the outcome would be matched to their level of input. As Adam stated on his demonstration on Equity Theory, employees feel demotivated when they perceive an imbalance in the input and output ration of their work in comparison with their colleagues (Channell, 2023). Therefore it is important to ensure that all employees understand that pay scales & other benefits they receive will be determined based on the level of input (skills, effort, dedication) they provide. This encourages all employees, despite their age or seniority, to put in an equal amount of effort. 

• Digital-First Approach : with the understanding that Gen Z grew up with technology, it is important to create an environment that incorporates technology in the day to day communication and work (Impact, 2023). Allowing them to be trained on new systems, creating a platform where Gen Z has the opportunity to streamline processes using their knowledge on technology would create a more friendly environment for Gen Z employees.

• Health Insurance and pension plans : in an article written by Sophie Bethune (2019) 91% Gen Z have declared at least one physical or mental health issue due to stress (Bethune, 2019). Therefore, they have demanded a sufficient insurance plan and a pension plan from organisations as additional benefits. HR professionals may feel pressured by the asks of Gen Z. However, it is important to understand that socio economic crises along with other detrimental issues in the current era are actual factors that are currently affecting the lives of Gen Z members. Therefore, whether we like it or not, systems and perspectives should begin to change in order to create a more human friendly environment at workplaces & keep the motivations of Gen Zs at a higher stage. As per the Incentive Theory proposed based on B. F. Skinner's operant conditioning, it is evident that behaviour and motivation can be impacted positively based on the reinforcements that's applied on the individual (Cherry, 2023). Therefore extra benefits such as health insurance and pension plans will play a major role in motivating the retention of Gen Z staff.  

• Company Culture: Culture as a whole needs a quick alteration in order to construct an amicable environment for Gen Z staff. Providing flexible hours, a space to be creative and continuous feedback, embracing modernization are few of the factors to be considered to create such a zone.

• Flexible hours : work life balance is highly appreciated by the Gen Zs as they believe in enjoying dinner time with family, small vacations every weekend etc are the reasons for living. Changing work structures to accommodate flexible hours and providing work from home options can increase the retention rate of Gen Z staff. 

• Space to be creative : creating space to be innovative and think out of the box can not only create a comfortable zone for Gen Z, but also benefit the company in moving forward in the industry with new ideas. 

• Feedback is Critical for Generation Z : criticism is taken positively by the Gen Z as they actively look for ways to develop themselves. They consider themselves as their own competitor and wish to enhance skills in every opportunity they get. Therefore it is important to provide at least quarterly appraisals or more frequent feedback that provides an understanding of where they stand and how to grow themselves further is a factor that motivates Gen Z staff comparatively to millennials.

Job demands- resources model introduced by Bakker and Demerouti in 2007 clearly signifies the importance of meeting employee demands and providing necessary resources for them to showcase high performance even if the workload is demanding and stressful (Mind Tools Content Team, 2023). 

Let's discuss further on how HR professionals can take Gen Z demands into consideration and create a model that supports a positive recruitment process and increase the retention rate. 

Reference

• Bethune, S. (2019). Gen Z more likely to report mental health concerns. American Psychological Association. [online] Jan. Available at: https://www.apa.org/monitor/2019/01/gen-z [Accessed 25 Nov. 2023].
• Channell, M. (2023). How Can Adams’ Equity Theory Boost Your Team’s Motivation? [online] Available at: https://www.tsw.co.uk/blog/leadership-and-management/adams-equity-theory/ [Accessed 25 Nov. 2023].
• Cherry, K. (2023). The Incentive Theory of Motivation Explains How Rewards Drive Actions. [online] Verywell Mind. Available at: https://www.verywellmind.com/the-incentive-theory-of-motivation-2795382 [Accessed 27 Nov. 2023].
• Impact (2023). Creating a Gen Z-Friendly Work Environment. [online] Impact. Available at: https://www.impact-london.com/news-events/creating-a-gen-z-friendly-work-environment/ [Accessed 25 Nov. 2023].
• Mind Tools (2022). MindTools | Home. [online] www.mindtools.com. Available at: https://www.mindtools.com/azv3n0k/adams-equity-theory [Accessed 27 Nov. 2023].
• Mind Tools Content Team (2023). MindTools | Home. [online] www.mindtools.com. Available at: https://www.mindtools.com/a5igk4e/the-jd-r-model [Accessed 28 Nov. 2023].