Gen Z, born between 1997 and 2012, are emerging as the most educated, informed and tech savvy generation yet. They are maturing as ‘digital natives’ in a world dominated by e-commerce, social media and content streaming.
As gen Z enters the workforce, their innate understanding of how technology integrates with our lives and how to source information shows they are an important and valuable resource for any enterprise or business moving forward.
Gen Z, understanding the developing and global connectivity, are progressive, embrace diversity, expect change and innovation, and they want options.
They are more acutely aware of climate change and global warming than any previous generation, so their social justice radars are tuned. Post-2007 recession, they are also a little more savvy with their cash and, coupled with their environmental and social views, have ditched the luxury brand label mentality of their parents, and perhaps older siblings, to embrace practical and ethically sourced products and services that reflect their values and identity.
Gen Z are more autonomous than millennials, and therefore seek more independent work environments. They want to follow their dreams, but also have an understanding of the value of their skills; they know flexibility is possible, they want the best of both worlds, with the options for professional development at their own pace.
Gen Z are smart and, while workplace models have changed post pandemic for most of us, recent reports state that they are also an extremely entrepreneurial bunch too. So they want to do things their way.
They want work-life balance. Although holistic health and wellness gave rise during the previous generation and was brought to the forefront during the pandemic, gen Z will put their mental, physical and social wellbeing and health front and centre as a priority.
In a labour market plagued by skills shortage, disruption of the gig economy, and other global nuances and trends that Gen Z is acutely attuned to, employers and businesses will need to be flexible, accommodating and socially conscious to attract and retain gen Z talent.
In other words, negotiable for meeting them on their own terms.
They will have done their homework before engaging with any business, so demonstrating that your organisation cares about the world is just as important as showcasing what you have to offer them.
Many employers and businesses are now engaging programs for staff wellbeing and offering flexible working arrangements, but the weekly, fortnightly, or monthly pay cycle lives on. Considering the flexibility of our work lives now, is this the last bastion for change, and an opportunity to attract and retain the talent of our gen Z workers?
An earned wage access platform that provides employees with early access to wages they have already earned, could be a massive opportunity for businesses. Gen Z are also the instant gratification generation, you’d have to assume that having to wait to purchase something wouldn’t sit well with them.”
While the emergence of apps that enable micro savings, BPNL services and financial coaching are available to tap into when needed, the option of earned wage access should be considered.
There is an opportunity to connect with gen Z via the advancements in technology. As digital natives, you can empower them to take control of their finances via platforms they are accustomed with.
Financial wellbeing is a concern for gen Z. They saw their parents struggle through the GFC, many are priced out of the property market, and they will likely face higher taxes to compensate for the national debt ballooning from the pandemic. Then there’s the astronomical costs associated with climate change.
They are adept at spending and saving, but managing debt and investment sees them more risk averse than previous generations. A 2022 Investopedia Survey indicated that almost one-third of gen Z’s feel they lack knowledge around paying tax and managing debt.
Personal credit and payday lenders are risky options for the ‘instant gratification’ gen Z seeks. These systems cause stress, which is ultimately carried into the workplace, disrupting productivity and team dynamics.
Empowering them through intuitive programs and tools can help. Earned wage access platforms, can allow workers to better manage their cash flow and mitigate some of the uncertainty associated with the ‘instant gratification’ phenomenon.
Research collected for an EY Employee Financial Wellbeing Survey in 2020 suggests that empowering employees by adopting an early wage access solution can have a visible impact on a business, speeding up recruitment by 27% and improving staff retention by 19% are significant and encouraging numbers.
Empowering employees, particularly gen Z’s, by offering them options, especially around their financial wellbeing, can help businesses become an ‘Employer of Choice’ for that generation. Asking employees how they want to get paid is a great way to at least start the dialogue.”
Marcus Lasarow is the CEO of CashD, with more than 20 years of experience in the strategy and entrepreneurial space.
