A Word to the Wise: Businesses That Ignore Gen-Zers Do So At Their Own Peril

For the last two years, Dr. Matthew Cole , Associate Professor of Management and Interim Dean of the College of Business and Information Technology (CoBIT), has been studying Gen-Zers. This group, numbering 68 million in the United States, are business’ incoming employees. “Since the pandemic, I’ve been investigating the attitudes and expectations of LTU students in the Human Resource Management class (HRM3023) as they’re the next influx of employees. I wanted to answer the research question ‘What should employers and HR managers do to increase employee retention of Gen-Z workers,’ ” Cole said. Cole has asked LTU students, who range in age from 18 to 25, to complete a survey of four questions that seek to tease out the answer to that research question.

Unique for these students is that not only are they the subjects of the survey, but they are also the collectors and analysts of the data as part of a class research project. LTU has made an ongoing commitment to an initiative called Undergraduate Course-based Research Experience or CRE. The essence and benefit of this initiative is that undergraduate students, particularly from underserved communities, can engage in practical and important research under the direction of their professors. Within the College of Business and IT, the HRM course gives them the opportunity to engage in empirical research. Cole explained, “They helped me put together my ongoing research in this area.”

The qualitative survey asked respondents the following questions:

• How do Gen-Zers define themselves?
• How do Gen-Zers want to be attracted?
• How do Gen-Zers want to be engaged?
• How do Gen-Zers want to be retained?

To date, over 130 students randomly selected from among the population of Gen-Z students at Lawrence Tech form the study sample for the conclusions that Cole and the students reached. Students conducted a thematic analysis of the data, a type of analysis of open-ended responses to find emerging themes. Then Cole extended the survey results into a more robust and detailed analysis to guide CEOs and HR managers in understanding what this age group wants and expects from the workplace. The data have implications for all industries and professions, including Lawrence Tech. Cole presented findings from this research to attendees of the September 2023 Society for Human Resource Management Detroit conference. “What is the Role of HR in Hiring, Training, Engaging and Retaining GenZ Talent for the New Economy?” revealed the unique characteristics of Gen-Zers.

Key Insights on Gen-Z Characteristics and Values:

Tech-Savviness (38.24%):
The dominant theme is Gen-Zers’ deep integration with technology. Growing up in the digital age, they seamlessly intertwine their lives with technology, marking their distinct tech-savviness.

Work Environment & Inclusivity (19.12%):
Gen-Zers prioritize a conducive work environment. They are attracted to workplaces that foster inclusivity, embrace diversity, and provide a welcoming atmosphere.

Social Awareness & Sensitivity (14.71%):
Representing their evolved socio-cultural understanding, approximately 15% of respondents underline Gen-Zers’ acute social awareness. They are attuned to global and societal dynamics and exhibit heightened sensitivity.

Importance of Authentic Communication (11.76%):
Gen-Zers, though digitally oriented, value genuine human interactions. About 12% said they prefer authentic, direct communication, underscoring the importance of transparency and clarity.

Value for Personal Growth (10.29%):
Over 10% of Gen-Zers prioritize continuous personal and professional growth. They seek environments that nurture their ambitions and facilitate their development.

Independence & Determination (5.88%):
Showcasing their self-driven spirit, nearly 6% depict Gen-Zers’ independent nature. They set clear goals, chart their paths, and are determined to achieve their aspirations.

From the data, Cole offered the following recommendations to attract Gen-Z employees. “In essence, to effectively attract Gen-Z talent, employers should focus on fostering a positive work environment, offering competitive benefits and pay, providing flexible work conditions, maintaining a strong online presence, and ensuring clear pathways for growth and advancement.”

Cole also told the audience, “To ensure GenZ employees are engaged, employers should focus on providing meaningful work, continuous feedback, and a supportive work environment. Recognizing and rewarding efforts, offering clear growth opportunities, and promoting an inclusive culture further enhance their engagement levels.

“In summary, these themes highlight the multifaceted expectations of Gen-Z employees. While compensation remains a key factor, there's a clear emphasis on holistic well-being, growth, and open communication. Addressing these themes can help organizations retain and nurture their Gen-Z talent effectively.”

Cole also sees critical parallels for LTU and CoBIT. “This research is indirectly helping me as the dean reflect on how we continue to grow and optimize CoBIT to meet our current students’ needs in terms of curriculum and academic readiness. It has value for LTU’s Career Services as well. How do my colleagues in Career Services advise and prepare Gen-Z students to enter the workplace?”

The data is what Cole calls “lived-experience data. It is also data that is removed from actual experiences in the workplace. Students may have this ideal notion of what it’s going to be like when they get their first job. Our challenge is to provide more internship opportunities to transfer the ideal view to the real world.”

But Cole also sees that the world of business is changing in response to the “ideal.” “We’re seeing more ESG (Environmental Social Governance) investing, more attention paid to social issues like sustainability, organic food, green climate."

“In our College, our foundational perspective of business is that it must have a broader societal impact. We teach the ‘triple bottom line:’ People, Planet, Profit. So ESG is part of that reframing of business. We need businesses to be profitable, to make money, to survive. Really, the value of business is that they give people income so they can put food on the table and raise their children, and to help them create wealth. Businesses are the entities for how we deal with the world’s resources for sustainability and to create and manufacture.

“When you think of business from the perspective of the triple bottom line, all of these become your metrics for business success!” Cole said.