The Gen Z Wave: Evolving Recruitment Strategies for a New Era

5 MIN READ   |  Last Updated on 13 April 2024

BY: Kanchana Nirupamala (E223799)

Source: (You'll Enjoy, 2023)

Attracting top personnel is an ever-changing strategy in response to the dynamic nature of the business world. Companies are realizing they need to change their recruiting strategies to appeal to Generation Z, who is known for their high level of digital nativity, high level of diversity and social and mental consciousness.

Decoding Generation Z

Generation Z (commonly referred to as "Gen Z” or Zoomers) are those born between 1997 and 2012 and are the second youngest generation before Generation Alpha (early 2010s to mid-2020s) and after Millennial/Generation Y (1981-96). By 2024, Gen Z will be between 12 and 27 years old (Beresford Research, 2024). These young people are either nearing the end of their secondary education, have completed their undergraduate degrees, or are just starting in the workforce. As of 2024, they account for 30% of the world population and by 2025 will account for 27% of the global workforce (Qureos, 2024).

Generation Chart

Source: (The Financial Brand, 2022)

Gen Z has unique traits that make them stand out. The specific socioeconomic circumstances and technical developments in which they have grown up have an impact on these traits (McKinsey & Company, 2018).

• Tech Savvy: People who were born into this generation have grown up with smartphones and the internet at their fingertips. Because of this interconnections, they are very proficient with technology, can learn new things rapidly, and can juggle many tasks at once.
• Constant Self-Discovery and Evolution: The most important thing for members of Generation Z is not to limit themselves to one stereotype but to try out many personas and develop their sense of self over time. This generation sees career and personal development as an ongoing process, one that is not just anticipated but actively pursued. This generation embraces change and innovation and sees personal and professional progress as an ongoing adventure.
• Diversity and Inclusion: This is the most diverse generation in human history, and as a result, they have come to demand an inclusive culture. They are more tolerant of ethnicity, sexual orientations, and identities that vary from their own, and they appreciate other points of view.
• Independent Learning: They are good at self-education and often do things independently when learning new things or fixing problems since they have easy access to a wealth of knowledge.
• Mental Health Consciousness:  Prioritizing mental health, work-life balance, and overall wellness, they are also more forward in discussing mental health difficulties compared to other generations. Ogilvy (2022) found that 70% of Gen Zers in the US feel their mental health is the area that requires the greatest attention. And no other cohort has a higher rate of reported mental health issues than Gen Z, according to a study by the American Psychological Association (2019).
• Social Consciousness: The Gen Z generations have high expectations for companies to have a beneficial impact on society and the environment. As per a survey conducted in the US by FirstInsight and Baker Retailing Center at The Wharton School of the University of Pennsylvania (2022), around 75% of Gen Zers care more about sustainability rather than brand names.

Key Features of Gen Z

Source: (Dombrosky, et al., 2018)

How Is Gen Z Disrupting Traditional Recruitment Practices in Companies?

The term "recruitment" describes the steps used to find, attract, interview, choose, hire, and onboard new staff (Otoo et al., 2018). It encompasses the whole process of determining personnel need and then filling it. A dramatic shift in how corporations find, hire and retain employees is underway, spurred on by the entry of members of Generation Z into the workforce.

• Technological Integration: Since they were born into the digital age, members of Generation Z have an inherent comfort with new technology and digital platforms. Companies are embracing new ways of attracting and engaging talent. More than ever before, businesses are reaching out to members of Generation Z via various online channels, including social media, mobile applications, and platforms. For recruiting processes to keep up with the speed and efficiency demands of Gen Z, artificial intelligence (AI) is increasingly being used for candidate screening and the automation of mundane jobs. IBM, KPMG, and Disney are some of the many global companies that use AI for talent acquisition (Elizabeth, 2024).
• Workplace Flexibility: Another important consideration is the growing need for more adaptable work arrangements. Members of Generation Z place a premium on work-life balance and the freedom to choose their schedules. Instead of being stuck in one mental state for lengthy periods, they want to think of their work-life connection as more fluid and interwoven. Remote work, more autonomy, and the ability to select their hours are all things they're looking for in a job.
• Value Alignment: Importantly, Gen Z places a premium on business values. To recruit and retain Gen Z talent, firms have had to rethink their value systems and how they convey them. In response, businesses are becoming more open and forthcoming about their goals, values, and sustainability efforts in hiring processes.
• Diversity and Inclusion: This generation has high expectations for workplace diversity and inclusion programs. Businesses are fostering an inclusive culture that values diversity by improving their recruiting methods to increase the representation of underrepresented groups. Global companies such as KPMG, Procter and Gamble, and Mastercard are a few companies embracing diversity and inclusion in their culture (Sustainability, 2024).
• Career Progression and Growth: To entice members of Generation Z, it is essential to provide them with opportunities for professional growth and success. They are on the lookout for positions that will allow them to develop professionally and advance in their careers. To connect with Gen Z applicants' goals and principles, companies are making these opportunities obvious in their recruiting materials and throughout the hiring process.

Check out this video for strategies for not only recruiting but also retaining and growing Gen Z teams. 

Source: (Bython, 2018)

Revamping HR Dynamics in Gen Z Wave

Source: (myvirtualchangemanager, 2019)

The entrance of Generation Z is changing the demographic makeup of the workforce, putting HR departments at a strategic crossroads. Human resources are, therefore, no longer only an administrative function; they are also a key player in driving strategic and cultural adaptation (Jo et al., 2023).

Embracing inclusion and flexibility as fundamental principles of the workplace, HR is charged with cultivating a culture that aligns with the digital-first and value-centric mindset of Gen Z. In addition, Gen Z is attracted to unique and dynamic corporate narratives exhibited across different digital media channels; therefore, innovative recruiting strategies are necessary to appeal to them. To cater to Generation Z's appeal for lifelong learning, the HR department must provide open and diverse professional development programs and robust learning management systems. In conlusion, a company's ability to attract Gen Z talent and establish itself as an employer of choice for generations to come depends on its proactive and future-oriented strategy by HR department.

References

• American Psychological Association, (2019). Gen Z is more likely to report mental health concerns. [Online]. Available at: https://www.apa.org/monitor/2019/01/gen-z. Accessed on 22 March 2024.
• Beresford Research, (2024). Age Range by Generation. [Online]. Available at https://www.beresfordresearch.com/age-range-by-generation/. Accessed on 22 March 2024.
• Bython, (2018). Recruiting, Retaining, and Growing Generation Z Teams. [Online]. Available at: https://www.youtube.com/watch?v=P0UvLtPuR4w. Accessed on 22 March 2024.
• Dombrosky, K., Templeton, B. & Fong, J., 2018. An Insider’s Guide to Generation Z and Higher Education 2018, Washington, DC: UPCEA. [Online]. Available at https://upcea.edu/wp-content/uploads/2018/01/An-Insiders-Guide-to-Generation-Z-and-Higher-Education-eBook.pdf. Accessed on 22 March 2024.
• Elizabeth, (2024). The 'Amazon' Candidate Experience: Millennials and Gen Z Want AI. [Online]. Available at: https://www.retorio.com/blog/-candidate-experience-millennials-gen-z-ai. Accessed on 22 March 2024.
• FirstInsight & Baker Retailing Center at The Wharton School of the University of Pennsylvania, (2022). The State Of Consumer Spending: Gen Z Influencing All Generations
• To Make Sustainability-First Purchasing Decisions. [Online]. Available at: https://www.firstinsight.com/white-papers-posts/gen-z-influencing-all-generations-to-make-sustainability-first-purchasing-decisions. Accessed on 22 March 2024.
• Jo, J., Chadwick, C. & Han, J. H., 2023. How the human resource (HR) function adds strategic value: A relational perspective of the HR function. Human Resource Management, 63(1), pp. 1-159. [Online]. Available at https://onlinelibrary.wiley.com/doi/full/10.1002/hrm.22184. Accessed on 22 March 2024.
• McKinsey & Company, (2018). ‘True Gen’: Generation Z and its implications for companies. [Online] Available at https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. Accessed on 22 March 2024.
• myvirtualchangemanager, (2019). Changing your structure? You need to focus on your organisation's culture. [Online]. Available at https://www.myvirtualchangemanager.com/blog/changing-your-structure-consider-your-culture. Accessed 22 March 2024.
• Ogilvy, (2022). Gen Z and Mental Health in the U.S., Washington, DC: Ogilvy. [Online] Available at https://www.ogilvy.com/sites/g/files/dhpsjz106/files/pdfdocuments/Gen%20Z%20and%20Mental%20Health%20in%20the%20US_February%202022%20Report.pdf. Accessed on 22 March 2024.
• Otoo, I. C., Assuming, J. & Agyei, P. M., 2018. Effectiveness of Recruitment and Selection Practices in Public Sector Higher Education Institutions: Evidence from Ghana. European Scientific Journal, 14(13), pp. 199-214. [Online]. Available at https://core.ac.uk/download/pdf/236413221.pdf. Accessed on 22 March 2024.
• Qureos, (2024). Gen Z currently makes up 30% of the world's population and is expected to account for 27% of the workforce by 2025. [Online]. Available at https://www.qureos.com/hiring-guide/gen-z-statistics#:~:text=Gen%20Z%20currently%20makes%20up,flexible%20work%20policy%20(LinkedIn%20survey). Accessed on 22 March 2024.
• Sustainability, (2024). Top 10: Companies for Diversity & Inclusion. [Online]. Available at: https://sustainabilitymag.com/top10/top-10-diverse-leadership-teams. Accessed on 22 March 2024.
• The Financial Brand, (2022). How to Define the Generations: The Ultimate Guide for Marketers. [Online]. Available at https://thefinancialbrand.com/news/bank-marketing/how-to-define-the-generations-the-ultimate-guide-for-marketers-154417/. Accessed on 22 March 2024.
• You'll Enjoy, (2023). Navigating the Gen Z Wave: Insights for Effective Marketing. [Online]. Available at https://youll.be/navigating-the-gen-z-wave-insights-for-effective-marketing/. Accessed on 22 March 2024.