The Australian workplace landscape is undergoing significant transformation largely driven by Generation Z (Gen Z), the demographic born between the mid-1990s and early 2010s. Having grown up in an era defined by rapid technological advancements and cultural shifts, they bring a unique set of values and expectations to the workplace.

A LinkedIn report, The Future of Recruiting 2023, identified Gen Z employers who value development and diversity. With priorities significantly different from their parent’s generation, Gen X, career advancement is key; they’re over 50% more likely to value moving up the ranks. With high expectations for work-life balance they crave leadership but perhaps what they need is management.

How do we navigate this relatively unchartered territory and succeed?

Leadership is setting a vision with long-term goals to inspire and motivate employees to achieve. With a demonstrated emphasis on innovation and change, leaders empower employees, influence them, and build relationships based on respect rather than formal authority. In essence, this is what Gen Z craves.

While these qualities are important, they need to be nestled within a more traditional, yet evolving, management style; one that embodies implementing the vision set by leaders, coordinating day-to-day operations to achieve goals, and establishing processes to minimise risk and avoid conflict.

Ben Klatt, a Workplace Training Expert, highlights this shift "Management and leadership have, until this generation gone hand in hand. A good appointee does both very well, but Gen Z has rewritten the rule book and it's become a real struggle for middle management. While we tend to blame Boomers for struggling with this kind of change, it's Generation X and Millennials at the coal face."

Managing Gen Z Effectively

To effectively manage Gen Z employees, managers need to adopt a leadership style that balances structure with flexibility and provides avenues for continuous feedback and development. A mouthful? Yes, and even more of a challenge for businesses that need to offer additional training to ensure management are upskilled and ready for the challenge.

• Technology: One of the most noticeable changes brought about by Gen Z is their fluency with technology. Having been immersed in digital platforms and social media from an early age, they seek workplaces that embrace technology for communication, collaboration, and efficiency.
• Freedom and feedback: Gen Z prefers leaders who value diversity and inclusivity. Don’t be fooled into using these terms merely as corporate buzzwords. They need to be integral components of a workplace with policies and practices that promote them.
• Motivation: When it comes to motivation, a study by IBM reported 43% of Gen Z employees prefer a management style that provides clear expectations and regular feedback, highlighting their desire for structured leadership that also nurtures their potential.
• Flexibility: We all enjoy trying to get our work-life balance right, however Gen Z expects it. Unlike previous generations, they prioritise flexibility and place significant value on the ability to work remotely with flexible schedules to accommodate their personal lives. According to a Deloitte study, 74% of Gen Z employees believe that their employers could do more to foster innovative thinking by embracing diverse work styles and preferences.

Attempting to manage Gen Z employees through rigid structures can lead to disengagement and higher turnover rates. Their inclination towards job-hopping is well-documented, with statistics showing that they are more likely to change jobs frequently in search of environments that align with their values. Hays' What Workers Want Report (2023) found that 52% of Gen Z in Australia are likely to change jobs in the next 12 months.

Born into a world shaped by technology Gen Z brings unique expectations focused on career advancement, meaningful work, and flexible environments. With a preference for leadership over management, employers need to adapt to these dynamics to attract and retain Gen Z talent in an increasingly competitive global market. We can't overlook the strong spirit they bring to the workplace. Their positivity and desire for continuous learning and career growth are infectious and can place a positive spin on a landscape that perhaps has remained stagnant for too long.