Y TO Z — The Changing of the Guards
During my upbringing in Ottawa, a memorable tradition was when my mom would take me to Parliament Hill to witness the Changing of the Guards. This ceremony, a lasting reminder of our British roots, marks the moment when the Old Guard steps aside to make way for the New Guard. In this ongoing series, where we delve into meta-trends destined to affect many, if not most of us, it’s important to explore the emergence and impact of Generation Z — the new torchbearers.
To better grasp the concept of Strategic Foresight that we’ll be applying to Generation Z, I recommend reading my primer on Medium.com titled “Mastering Change with Strategic Foresight and Innovation.”
Understanding generational shifts involves grouping individuals by their birth years, typically in roughly 15-year intervals. While it’s not an exact science, the dates we’ll be using in this article come from Pew Research, a respected source in generational research. They’ve dedicated years to this research and are frequently cited as a reliable authority.
I belong to Generation X (1965–1980), which happens to be the first generation with a letter attached. The “X” was symbolic of an unknown variable or a generation that resisted being pigeonholed. Back then, we were often labelled as slackers and complainers. When we entered adulthood, we faced high unemployment rates and mounting student debt.
As I ventured into my forties, the generational spotlight shifted to our successors, Generation Y, often called Millennials (1981–1996). Early on, they were branded as the entitled generation. However, they weathered a market crash that brought high unemployment, and they also managed escalating student debt. Just before the crash, a friend of mine founded Youthography in Toronto, a successful research and marketing firm aimed at helping leaders decipher this new generation.
Meet Generation Z
Now, in my fifties, I find myself witnessing another Changing of the Guards. Generation Z (1997–2012) encompasses individuals aged 11 to 25. Current news articles often depict older Gen Z as challenging, entitled, and unmotivated. Sound familiar? New generation, same headlines. But who is labelling them this way? Is it truly a generational trait, or merely a reflection of age? Criticizing youth culture, including music, fashion, values, and behaviour, has been a tradition for older adults, and this generation is no exception.
Generations age and evolve. Young adults of all generations grow into leaders, decision-makers, and active members of society. Studying generations or youth cohorts allows Strategic Foresight practitioners to anticipate their potential influence on the future. However, it’s vital to remember that current behaviours and values transform with age. A prime example is the many Baby Boomers who embraced capitalism as they grew older.
Present-day values among Gen Z include a deep appreciation for authenticity, diversity, and environmentalism. Having never known a world without the internet, they’ve wholeheartedly embraced mobile technology. Post-pandemic, they are redefining the role of work in their lives, seeking greater work-life balance, and placing a premium on mental health.
When it comes to employment, they actively seek companies that align with their values, even if it means taking a pay cut. They’re not afraid to walk away from jobs that don’t resonate with their principles.
Some sources suggest they are comfortable with e-learning and prefer remote or hybrid work. Interestingly, this contrasts with the Gen Z individuals in my life, who prefer in-person classes and on-site work. Although they agree that most of their peers prefer online work and classes, it remains a personal choice.
In this context, a local Toronto high school teacher corroborated that the level of technological proficiency among students varies significantly. It appears that despite growing up in a tech-centric era, not all are equally adept at navigating the digital landscape.
Agents of Change
Although only a fraction of Gen Z has entered the workforce, their presence is already being felt. Various Human Resource departments report that Gen Z individuals have no qualms about leaving an organisation where they feel unheard or where policies and procedures clash with their values. This has a significant impact on resources, including time, personnel, and budgets allocated to recruitment, training, and onboarding.
Mental health and work-life balance are pivotal values for Gen Z. Offering access to therapists as a benefit has become a competitive advantage in recruitment and retention. Gen Z is also a staunch supporter of the four-day workweek. A three-day weekend provides time for relaxation, spending time with family, or pursuing other interests. I personally support the four-day workweek; it enabled me to pursue my master’s degree in my early forties.
Furthermore, diversity within the workforce and the organization’s environmental footprint are also of paramount importance, but authenticity reigns supreme. This generation doesn’t just want to hear about their employer’s values; they want to see those values in action.
As mentioned earlier, they want their voices to be heard and to be included. Like the Baby Boomers before them, we’ve witnessed this generation rapidly mobilizing to advocate for gun control and climate change. Now, they aim to bring this drive for change into organizations.
Increasing Influence
As more members of this cohort enter the workforce, we’ll start seeing their impact on culture, policies, and processes. Already, their short tenures and unique use of language are shaping organizations.
Generational jargon is nothing new, but the way Gen Z uses language is distinct. They apply it not only as a generational marker but to express authenticity.
Human Resource departments are now concentrating not just on recruitment but also on retention. Some accounts suggest that the average tenure of a Gen Z employee is a mere year and a half. This may be partly due to their youth, lack of attachments, and mobility. However, I, too, did not hesitate to leave a job I no longer found fulfilling in my thirties.
Considering that traditional dreams of homeownership and higher education feel increasingly out of reach for some Gen Z individuals, it’s likely that their consumption and purchase habits will also undergo transformation. Millennials currently struggle with homeownership, many burdened by excessive housing costs. Rising interest rates are exacerbating this issue. What does this mean for Gen Z as they prepare to enter the housing market? What implications will this have for manufacturers and marketers if this new generation has even less disposable income?
Moving Forward
Young people join organizations daily, and their values and behavior are shaped by their environment, just like our own were. It’s a mutual process of influence.
In a thought-provoking BBC.com article titled “How Gen Z is Redefining ‘Prestigious Jobs’,” we meet Danielle Farage, who is building a side business as a work futurist focusing on Gen Z, and Andrew Roth, who founded a Gen Z research and strategy firm. This reminds me of Youthography, the now-defunct Millennial research and marketing firm in Toronto.
Are the clients who engage these firms entirely disconnected from younger generations? Is there a breakdown in communication between generations? If so, what causes it, and how can it be bridged?
I firmly believe that this generation will leave its mark on the world, much like the youth of yesteryears. In terms of scenario planning, the focus should now shift from Gen Z, who are still figuring out their place in the world, to Millennials, Gen X, and Baby Boomer leaders who are welcoming them into the workforce and society as a whole.
Two Common Scenarios
The first group of leaders remains stuck in the past. When faced with new Gen Z colleagues, they may dismiss their perspectives and fiercely guard traditional policies and cultures. This scenario is unfolding in media companies like Disney and X (formerly Twitter), where leaders are imposing rigid work methods. These are the individuals who, every 15 years or so, find it challenging to relate to younger team members or colleagues.
The second group of leaders fosters healthy, open, and collaborative working relationships with their younger colleagues. They embrace individuals of all ages, both within and outside their organizations. They view change as a natural part of life and often as an opportunity. It doesn’t mean they blindly accept all changes or enact change for change’s sake; they take a moment to assess change and weigh its risks and opportunities. This skill demands lifelong learning and open channels of communication. The payoff is a seamless transition between generations, integrated into organizational processes.
This second scenario really resonated with the younger Gen Z individuals in my life. They mentioned that their friends who work part-time jobs tend to stay in organizations where the environment is healthy and open. If not, they are quick to apply for other jobs.
These two scenarios span opposite sides of a spectrum, with individual leaders positioned at various points in between. As I write this, I can map previous colleagues and clients on this spectrum. Where do you land?
In the meantime, embrace the spotlight, Generation Z, for Generation Alpha is eagerly waiting in the wings.
Ideas in this article are pulled from the following resources:
Changing the Guard
By Royal.uk
Read: August 25, 2023
https://www.royal.uk/changing-guard#:~:text=The%20Changing%20of%20the%20Guard,other%20infantry%20battalions%20or%20units.
Defining generations: Where Millennials end and Generation Z begins
By Michael Dimock
January 17, 2019
https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/
Gen-Z Is Labeled As ‘Difficult’ In The Workplace, But There’s More To The Story
Jack Kelly
July 31, 2023
https://www.forbes.com/sites/jackkelly/2023/07/31/gen-z-is-labeled-as-difficult-in-the-workplace-but-theres-more-to-the-story/?sh=5423d8b97d7f
GenZ Wants To Invest In Line With Their Values, But The Economy Is Making That Harder
By Beth Treffeisen
August 1, 2023
https://www.investopedia.com/genz-wants-to-invest-in-line-with-their-values-but-the-economy-is-making-that-harder-7568328
Helping Gen Z Employees Find Their Place at Work
by Jenny Fernandez, Kathryn Landis, and Julie Lee
January 18, 2023
https://hbr.org/2023/01/helping-gen-z-employees-find-their-place-at-work
House prices won’t fall — and could soar 15% when mortgage rates drop, says ‘Shark Tank’ investor Barbara Corcoran
By Theron Mohamed
August, 25, 2023
https://markets.businessinsider.com/news/commodities/home-prices-housing-market-forecast-mortgage-rates-corcoran-shark-tank-2023-8
How Gen Z are disrupting the definition of ‘prestigious’ jobs
By Meredith Turits
April 26, 2023
https://www.bbc.com/worklife/article/20230426-gen-z-values-entrepreneurship-flexibility-jobs
How Gen Z is redefining professional prestige
By Reem Khokhar
August 21, 2023
https://lifestyle.livemint.com/news/big-story/work-life-balance-professional-prestige-flexible-workplace-job-market-111692432618633.html
How Gen Z’s Impact On The Workplace Continues To Grow
By Edward Segal
May 24, 2023
https://www.forbes.com/sites/edwardsegal/2023/05/24/how-gen-zs-impact-on-the-workplace-continues-to-grow/?sh=1c6aef296a5b
Millennial and Gen Z employees are rejecting assignments, turning down offers, and seeking purpose. Here’s what they expect of their employers, according to Deloitte’s latest survey
By Elizabeth Fabre
July 6, 2023
https://fortune.com/2023/07/06/millennial-gen-z-employees-are-rejecting-assignments-turning-down-offers-and-seeking-purpose-they-expect-of-employers-according-to-deloittes-latest-survey/
Millennials Are House-Rich And Cash-Poor
By Katie Jensen
December 09, 2021
https://nationalmortgageprofessional.com/news/millennials-are-house-rich-and-cash-poor
Understanding Generation Z in the workplace
By Tiffany Mawhinney and Kimberly Betts
Read August 21, 2023
https://www2.deloitte.com/us/en/pages/consumer-business/articles/understanding-generation-z-in-the-workplace.html
What is Gen Z?
McKinsey and Company
March 20, 2023
https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z
You’re Wrong About Gen Z
By Stephanie Bai
February 16, 2023
https://macleans.ca/longforms/gen-z-hustle-burnout-work-life-balance/
Your guide to Gen Z slang — to help you understand what your kids and Gen Z co-workers mean
By Hanna Seariac
August 21, 2023
https://news.yahoo.com/guide-gen-z-slang-help-232933429.html?