PREPARING WORKPLACES FOR THE NEXT GENERATIONAL SHIFT: GEN Y MANAGING GEN ZTERESA BRIDGES

Everyone loves to ask questions about Millennials, also known as Gen Y: what does Gen Y want? How do you work with Gen Y? Why can’t we stop talking about Gen Y? But the oldest Gen Yers are now approaching 35: They’re already part of the work culture and will soon be managing the next generation in the workplace – Generation Z. Currently, Gen Y dominates the US workforce with more than 53 million, surpassing Gen X by almost 1 million.1 Which also means that Gen Z is just around the corner. Gen Z currently makes up a quarter of the U.S. population, and more than 20 million of them are about to enter the workforce, all fueled by their own motivations and needs.

When discussing generations, it’s important to first understand why they are different and what’s shaping their habits and expectations. Baby Boomers, born in the mid-‘40’s to mid-‘60’s, were affected by the end of WWII, the start of the Civil Rights

Movement, the Vietnam war and the first man on the moon. Gen Xers, born in the mid ‘60’s to late ‘70’s, were affected by the first oil crisis, the Iranian hostage crisis, the first women appointed to the Supreme Court Justice – Sandra Day O’Connor, and the AIDS epidemic. Gen Yers, born in the early ‘80’s to the mid ‘90’s, were affected by Desert Storm, the Oklahoma City Bombing, the Clinton impeachment and the launch of Internet websites such as Wikipedia. And finally, Gen Zers, born in the mid ‘90’s to early ‘00’s, were affected by 9/11 and the Iraq & Afghanistan wars that followed, the Great Recession, the launch of Facebook and social networking sites. This generation, often referred as the “reality-check” generation, has grown up in a post-9/11 society, during the middle of the greatest financial crisis since the Great Depression, and in a transparent world due to the rise of social media.2

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Zurich North America, CannonDesign

A recent report from Adecco Staffing USA sheds light on Gen Z and its ideas about work and the workplace. There is a great deal of interesting data in the report, but one thing that stands out is their openness to moving from job to job. The report states that 83% of today’s students believe three years or less is the appropriate amount of time to spend at their first job and over a quarter (27%) of students believe you should stay at your job for a year or less.2

These stats aren’t good news for employers. Recruitment and retention remain key lines on every company’s balance sheet. Current data suggests it costs between $15,000 and $20,000 to replace millennial employees and increased turnover driven by Gen Z would only accelerate those costs.3 While there are many factors that will impact how companies attract and keep the next generation of employees, the time is now to start thinking about how the workplace can be an asset.

Here are five emerging themes from Gen Y and Gen Z and ideas for how organizations should address them to best position their workplaces for success.

If there’s one undeniable positive to be gleaned from the past decade of back and forth about open vs. enclosed office environments, it’s that organizations are now realizing they need to invest in customized workplace solutions that address four main types of work: concentration, collaboration, socialization, and education.

1: Prepare Gen Y for Managing Gen Z

There’s an interesting dichotomy that takes place as Gen Y begins to manage Gen Z as the two generations are similar, but have unique differences. Early research suggests both Gen Y and Gen Z prefer in-person communication with managers and peers.4 Gen Z shows a preference to well-defined chains of command and teaching-style leadership, which may bode well for Gen Y managers as they prefer working more openly and closely with their direct reports. Gen Y may have an easier time managing Gen Z in the workplace than their Baby Boomer superiors did with them, which may be due in part to the similar characteristics they both have: high levels of self-confidence, a desire to learn new job skills, and a “can-do” attitude toward work.

Where the two differ is that Gen Z tends to be more realistic regarding expectations in the workplace and has a stronger desire for managers to listen to their ideas and value their opinions. Gen Z has seen Gen Y struggle during the recession and is more concerned about financial stability, landing a stable job, and securing a healthy trajectory for their career. In addition, Gen Z tends to thrive on private time to think, tinker, and explore new ideas, while remaining close to their teammates for mentorship, advice, and connection. Gen Y managers will need to find opportunities for Gen Z employees to lead, showcase their abilities and provide a fresh perspective for many undertakings to fuel their entrepreneurial tendencies—all helping them secure a bright future within the company. Organizations will need to coach Gen Y on how to provide this type of management and also create workplaces that support these relationships to maximize Gen Z’s potential.

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2: Detox Your Workplace of One-Size-Fits-All Solutions

If there’s one undeniable positive to be gleaned from the past decade of back and forth about open vs. enclosed office environments, it’s that organizations are now realizing they need to invest in customized workplace solutions that address four main types of work: concentration, collaboration, socialization, and education. This will become even more necessary as Gen Z brings enhanced individualistic and entrepreneurial drives into the workplace that will require rethinking how the workplace can support collaboration, idea generation, and recognition. With mobility on the rise and less time spent working at a personal desk, companies need to create purposeful spaces designed to support these various work modes.

Gen Z is eager to thrive in the corporate world and 30% believe their education has not taught them “real life” business skills.2 As a result, they’re looking for work environments that foster mentoring, learning and professional development opportunities. These desires are fueled by their concern for financial stability, the learning environments they are used to working in and their natural entrepreneurial tendencies. All of this, coupled with the preferences of three other generations in the workplace, means it’s even more imperative for organizations to invest in research and take closer looks at their organizations—their culture, the types of work their people do, the engagement level of employees—and create strategic responses. Understanding these realities and responding to them with workplace solutions creates a win-win for the company and its employees.

NYMEX, CannonDesign

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3: Encourage Team Work, Play, and Flexibility

Other telling statistics on Gen Z show that a friendly work environment and allowance for flexible schedules were both in the top five attributes Gen Z will look for in a job.2 More than any other previous generation, Gen Z will put pressure on organizations to provide flexible work environments. They will be looking for workplaces that stimulate their entrepreneurial edge, by balancing opportunities for short bursts of face-to-face collaboration with private space for independent quiet work. This means companies need to find creative ways to introduce a variety of spaces into their real estate. Embracing private spaces, open spaces, and fun, social spaces in technology-rich environments will be key to creating a work environment that is attractive to Gen Z.

Organizations also need to understand that modern technology means that employees do not need to be tethered to their desks. With the ability to read e-mail on their phone and update presentations on their iPads, Gen Z will look for highly flexible work environments and may choose to work at their desk for certain tasks and then from a collaborative open space for another. Some organizations are even beginning to look at how they can integrate outdoor environments to further enhance flexibility and choice for employees.

Beyond just the workplace, Gen Z will continue to blur the lines between work/life balance as they expect to have fun at work and stay connected digitally 24/7. With technology that enables us to work anywhere anytime, the 9-5 work day is quickly becoming a thing of the past.

CannonDesign Chicago Office

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5: Healthy Place, Healthy Bottom Line

Gen Z has grown up immersed in the discussion about climate change and the need for sustainable design solutions. They expect organizations to care about their energy use and carbon footprint and have an interest in helping. Data from Sustainable Brands in 2014 suggested that 77% of Gen Z feel businesses should make “doing good” a central part of their business and 45% agreed with the statement that they would rank working for a company that helps make the world a better place as important as salary.6 This is aligned with data that reveals 76% of Gen Z is concerned about human impact on the planet and believe they can operate as a change agent.7

In addition to sustainable design solutions, a recent global study by The Nielsen Company revealed that 40% of Gen Z prefer food ingredients that are sustainably sourced, reduce disease risk, and promote good health.8 Not only is this their preference, 41% of Gen Z and 32% of Gen Y are willing to pay a premium for it.8 These stats could bode well for companies’ wavering on whether or not to close their underutilized food service facilities or those looking to invest in healthier onsite food options for their employees. Moreover, reports from Millennial Branding and Randstad indicate 40% of Gen Z want companies to have a formal wellness program.4

These statistics are eye-opening and it suggests organizations need to truly embrace a sustainable, healthy culture that is embodied by their workplace - everything from how natural daylight fills the space, to energy performance, to space that accommodates virtual meetings, to a place for walking meetings, to the healthy food options available onsite. There are ways for every organization, regardless of size or scale, to create sustainable and healthy strategies that are integrated into workplace design.

4: Constant Connectedness Requires

Seamless Integration

Gen Z has never known a world without computers. Most of them spend hours a day connected digitally via their phone, laptop, or tablet. In fact, according to a Sparks & Honey report, these “digitarians” will often multi-task across five-screens throughout the day.5 Technology is an integral part of Gen Z’s lives and they will expect it to be seamless in their work experience.

Advance technology will determine where and how Gen Z works, whether it’s an app that allows them to choose a place to work based on access to natural light, noise, and number of people nearby, to the gesture enabled smart watch they can use to send a document while in route to a meeting or even the virtual reality avatar they can use when they get to their destination. Gen Z is well versed in real-time workplace tools that allow them to communicate, edit documents, and advance work collaboratively regardless of geographies or time zone barriers.

No doubt, technology advances will continue to change the way we all work, but however technology is integrated into the workplace, speed is the critical name of the game. Gen Z has grown up always thinking “there’s an app for that,” and they rely on technology to expand their resources and be very efficient in their work. Downtime caused by technological inadequacies is especially frustrating to Gen Z and often a leading cause of dissatisfaction in the workplace.

Organizations that are at the forefront of workplace technology trends and invest in IT infrastructure that supports this seamless experience will be pleasantly surprised and rewarded by Gen Z’s ability to leverage this connectivity.

CannonDesign Chicago Office

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Conclusion

Gen Z is about to enter the workforce and companies will need to work harder than ever before to recruit and retain the best talent. Organizations need to start developing plans for success today because, before you know it, we’ll be talking about whatever generation comes after Gen Z, and it will be too late.

Here’s a few ways organizations can work with leaders and start preparing for workplace changes today:

• Include Gen Y managers in any future workplace conversations. Consider a top down, bottom up approach to soliciting information about the future workplace that includes a mix of Gen Y managers, along with Gen X and Baby Boomer leaders. Also, don’t forget to include Boomers and Gen Xers in staff conversations.

• Understand the talent your company is trying to attract and retain. Know how your company culture and workplace can attract the talent it desires. Design the experiences you want new employees to have and involve HR and IT leaders in future workplace conversations.

• Listen and ask the right questions. When soliciting feedback from employees, remember to ask about the importance of workplace attributes in addition to satisfaction. Don’t assume employees know what the workspace possibilities are and try to understand what they specifically need to be productive.

• Be open to changing your workplace and build a case for it. Just because your work environment has been successful for employees in the past, doesn’t mean it will be for the future generations entering the workforce. Ask yourself – is your workplace ready for post-boomer generations?

References

1. Robert Half. (2015). Get ready for Gen Z. Retrieved from https://www.roberthalf.com/workplace-research/get-ready-for-generation-z

2. Adecco Staffing. (n.d.). Yes, It Matters: What Millenials and Gen Z Really Think About Work. Retrieved from http://www.adeccousa.com/employers/resources/pages/generation-z-vs-millennials-ebook.aspx

3. Schawbel, D. (2013). Millennial Branding and Beyond.com Survey Reveals the Rising Cost of Hiring Workers from the Millennial Generation. Millennial Branding. Retrieved from http://millennialbranding.com/2013/cost-millennial-retention-study/

4. Schawbel, D. (2 September 2014). Millennial Branding and Randstad US Release First Worldwide Study Comparing Gen Y and Gen Z Workplace Expectations. Milennial Branding. Retrieved from http://millennialbranding.com/2014/geny-genz-global-workplace-expectations-study/

5. Sparks & Honey. (2014). Meet Generation Z: Forget Everything You Learned About Millennials. Retrieved from http://www.slideshare.net/sparksandhoney/generation-z-final-june-17.

6. Sustainable Brands. (19 November 2014). [Infographic] What Generation Z-ers Think of Business and Sustainability. Retrieved from http://www.sustainablebrands.com/digital_learning/research_report/marketing_comms/infographic_what_generation_z-ers_think_business_su

7. Ologie. (n.d.). This is Gen Z. Retrieved from http://ologie.com/gen-z/

8. Nielson. (January 2015). We Are What We Eat: Healthy Eating Trends Around the World. Retrieved from http://www.nielsen.com/content/dam/nielsenglobal/eu/nielseninsights/pdfs/Nielsen%20Global%20Health%20and%20Wellness%20Report%20-%20January%202015.pdf

About CannonDesign CannonDesign is an integrated, global design firm that unites a dynamic team of strategists, futurists, researchers, architects, engineers and industry specialists, driven by a singular goal — to help solve our client’s and society’s greatest challenges.

Contact Information

Teresa Bridges tbridges@cannondesign.com

For more information please visit cannondesign.com.