Understanding Generation Z in the Workplace
Generation Z, also known as centennials, is increasingly present in organizations. As digital natives, they are recognized for their innovative approach and interest in maintaining a balance between personal and professional life. Leaders have the opportunity to guide them, leveraging their fresh perspective and maximizing their skills.
Considering what Generation Z needs for development prevents turnover, as six out of ten companies in Latin America face issues with employee rotation, impacting costs and productivity, according to the Pandapé study on The 2025 Labor Market.
Younger employees may find it easier to handle technological tools, but they struggle with improving soft and social skills, especially when coexisting with other generations. This is related to the digital ecosystems in which they grew up, as many academic and professional interactions, especially during the pandemic, were virtual, reducing their essential in-person experiences for interpersonal skills development,” says Alejandra Martínez, market labor studies manager at Computrabajo.
Key Factors for Generation Z in an Organization
An organization can become a positive and attractive place for young profiles if their motivations are understood. Generation Z workers seek a function with a purpose that aligns with their ideals, such as social or environmental contributions. Implementing social impact initiatives can strengthen the bond between the company and its employees.
“It’s increasingly clear that new generations are not attracted solely by a job or salary; instead, they expect clear processes, personalized experiences, and an environment where technology facilitates communication and transparency,” comments Haydeé Jaime, content strategy manager at Pandapé.
Moreover, the balance between personal and professional life is crucial for this generation. They seek companies with hybrid modalities, flexible hours, and policies that promote work-life balance.
Additionally, continuous professional growth is appreciated by them, as 76% believe that learning new skills influences their retention within the company, according to Pandepé.
Recommendations for Managing Centennial Teams
In organizations, teams are already multigenerational, but Generation Z requires a different management approach for comfort and professional growth. Here are four areas of improvement for centennials, according to Computrabajo:
- 1. Boost their technological knowledge: Utilize technology tools like AI or digital platforms to enhance their skills, especially when assigned to projects requiring their expertise.
- 2. Strengthen their skills: Implement training programs on effective communication, feedback management, and resilience. These skills are increasingly important in the work environment.
- 3. Consider their speed: They are agile for creative tasks and quick to complete them. This can be improved by working alongside other colleagues who complement this ability, like attention to detail.
- 4. Provide constant recognition: As a team leader, it’s essential to give continuous feedback and address errors as areas for improvement.
Providing positive, clear, and empathetic feedback is crucial for professional development. Focus on specific behaviors rather than personal characteristics to foster openness and better results,” says Alejandra Martínez.
Connecting with new generations isn’t just about a good salary; it’s about understanding their development, transparency, and well-being expectations,” argues Haydeé Jaime.
Key Questions and Answers
- Q: Why is it important to understand Generation Z’s motivations? A: Understanding their motivations helps create a positive and attractive work environment, reducing turnover and fostering professional growth.
- Q: What skills should organizations focus on developing for Generation Z? A: Organizations should prioritize soft skills, effective communication, and resilience to meet the evolving work environment needs.
- Q: How can companies support Generation Z’s work-life balance preferences? A: Companies can offer hybrid modalities, flexible hours, and policies promoting work-life balance.
- Q: What role does continuous learning play in retaining Generation Z employees? A: Continuous learning opportunities are essential for Generation Z, as they value professional growth and skill development.