For several decades, the workplace has been dominated by Baby Boomers (people born between 1946 and 1964) and Generation X (born between 1965 and 1980) employees. As we see these generations in leadership roles or reaching retirement age, Millennials (people born from 1981-1996) are entering their prime working era, and will soon make up the largest group in the global workforce.
At the same time, we are seeing a rise in Generation Zs (people born from 1997-2012) joining the workforce in full-time roles.
Making pronouncements on a whole generation’s traits is always hard, as we are all individuals and our priorities and needs change over time. The oldest of the Millenials are now in their early 40s, while Gen Zs are still teens or in their mid-twenties.
However, there is a body of research on the key workplace characteristics of Millennials (the leaders of today) and Gen Zs (the workforce of today and the leaders of tomorrow) and how their preferences differ.
Given they will continue to make up the bulk of the workforce, it’s vital for employers and managers to understand their proficiencies and expectations, what motivates them, and what might cause them to disengage.
In this article, we explore the two generations’ traits and provide tips on how you can harness individual strengths and support development to build a harmonious, collaborative work environment that drives success.
Technology use
Millennials were the first generation to grow up with the internet and have witnessed how tools like social media have evolved. This makes them early adopters of new technology, but they also remember how life was without the constant connection that has come as a result.
Gen Zs grew up with smart phones, devices, social media, and instant access to information. They are comfortable with the speed of technological advances, whether it be new software, platforms, or new trends such as artificial intelligence.
Tips for leaders
Both generations are digitally fluent, and can adapt to emerging technologies, using them to find innovative solutions and troubleshoot issues.Gen Zs are particularly tech-savvy and comfortable incorporating technology into workflows. Get them involved in projects where you’re trying to automate existing systems or workflows, and to be “super users” or champions of new systems or tools that you introduce to the workplace.
It’s also important to set clear expectations on employees’ use of social media in the workplace, especially around their interactactions and the content they put out. Not only can their online presence represent their own professional image, it can reflect on the business’ brand and reputation.
Get more tips for managing employees' social media activity.
Communication preferences
Millennials are comfortable with a range of communication methods, including phone calls and emails, and are likely to enjoy a level of in-person interaction. They value collaboration and teamwork, and are often open to longer, in-depth conversations through meetings. They’re likely to be fluent in “professional-speak”, being able to switch from communicating informally with colleagues and peers to being more formal with clients or seniors.
Gen Zs tend to prefer faster, concise digital communication (e.g. messages) over calls or long meetings. They value efficiency and brevity, often through digital platforms where there is more flexibility.
Because so much of their life is conducted online (including having their schooling or early-career years interrupted by the COVID-19 lockdowns and disruption), they may be less comfortable with in-person or over-the-phone interactions, and can include slang, colloquial language, and emojis in their communications, or avoid written communications and send voice notes where they can.
Tips for leaders
While being concise and direct improves productivity and efficiency, it is important to ensure employees maintain professionalism, especially on digital media, and to be mindful of the use of informal language, emojis etc. that can mean different things to different people (not everyone may know what rizz, smol, yeet, and pookie mean).
Keep an eye on how your Gen Z employees prefer to communicate - if you find that they shy away from in-person communication, they may need some coaching and support to build their confidence in this area.
Coaching and support may also be needed for Gen Zs in settings where a high degree of professionalism is expected - for example, attending client meetings, sending important emails or documents, and conducting themselves at social events in a work context.
Mental health awareness
Millennials have an increased awareness of mental health and want to discuss issues such as stress, anxiety, and work-life balance. They often seek employers who provide mental health resources and more flexible work arrangements.
Mental health is a top priority for Gen Zs, who are even more open and vocal about the need for a work environment that promotes mental wellbeing. They are more willing to demand employers prioritise wellbeing in the workplace and to leave workplaces that may be negatively impacting their mental health.
Tips for leaders
A focus on mental health awareness must be more than a token gesture, as it is a key driver of employee engagement, productivity, and retention. As a result, employers should focus on ways to implement benefits and programmes that boost mental wellbeing and prioritise work-life balance.
There’s a view often shared among business leaders that younger people (Millennials and Gen Zs alike) are prepared to “play the mental health card” to avoid accountability at work, however, workers of all ages have always had options for dodging accountability if they so wish.
If you have an employee who tells you that they’re having a tough time right now, believe them, and where reasonable, make accommodations at work to support them (just like you would someone who had a sprained ankle, wrist injury, or the flu).
Ultimately, if someone isn’t meeting expectations at work, you can hold them accountable regardless of their health status (mental health or otherwise), but seek professional support before doing so.
Find out more about building resilience in your people.
Workplace expectations and flexibility
Millennials value work-life balance more than any previous generation and are drawn to organisations with flexible work environments and a respectful, supportive company culture. Many prioritise job security and opportunities for long-term growth.
While Gen Zs also value flexibility, they tend to be more entrepreneurial in their approach, being open to project-based work or switching roles or companies if their needs are not met. Having entered the workforce in the era of remote work, being able to work from home (or anywhere) is essential for Gen Z workers.
Tips for leaders
Flexible work can present challenges for business leaders, particularly those currently attempting to wind back COVID-era remote and hybrid working policies, and encouraging employees back to the office.
In 2023, nearly 70% of SMEs surveyed by MyHR offered flexible working arrangements, so employers who don’t offer this are well and truly in the minority.
Working with your team on mutually-beneficial arrangements is always the best approach, as both generations expect employment arrangements and remuneration packages to be personalised.
Read more about balancing flexible work and returning to the workplace.
Purpose and social impact
Millennials tend to seek meaning in their work and are attracted to organisations with strong corporate social responsibility (CSR) and ethical practices. It’s common for millennial workers to be attracted to employers that prioritise sustainability or who partner with charitable organisations. As well, millennials find deep purpose, identity, and sense of belonging in being part of the larger mission of a company.
Similarly, Gen Zs are interested in the social impact of their employer, but are much more outspoken about issues like diversity, equity, and inclusion, and expect their employers to take firm stances on these matters. While not physical activists, Gen Zs are more prone to using social media platforms to hold organisations to account and encourage their employer to actively support movements.
Tips for leaders
Providing meaningful purpose and alignment of values can be a challenge for employers who have gotten away with largely symbolic efforts towards creating an open organisational culture, and taking a stance on environmental and societal issues.
For Gen Zs, contemporary social issues are especially crucial, and employers need to bake fairness and transparency into the work environment and their decision-making.
However, given the changing workplace expectations, it can be a challenge to create a cohesive work culture and to give purpose to employees who operate in a largely remote or project-based environment.
Financial attitudes
Millennials have been impacted by the 2008 financial crisis with high levels of student debt and rising housing costs. They tend to delay major financial decisions, compared to previous generations. Millennials are often seen as financially stressed, with a tendency to prioritise experiences over material goods. However, research suggests stability and financial rewards are key motivators.
Gen Zs have witnessed how Millennials struggled with financial pressures through debt and job instability. As a result, Gen Zs are more likely to be wary of financial risk and value savings and stability, seeking jobs with strong financial benefits, such as high hourly rates, paid overtime, and additional leave.
Tips for leaders
Employers can benefit from working with employees on compensation and meaningful benefit packages that will help boost motivation and retention. Providing transparency and offering clear pathways for advancement and equitable pay will also help attract and keep talented staff.
Attitudes towards education and training
Due to societal expectations and cultural norms in the early 2000s, Millennials were encouraged to pursue higher education through traditional pathways. They have typically entered the workforce well educated, but also with high levels of student debt.
Gen Zs are often more open to alternative forms of education and value on-the-job skill development and in-house training. Especially with technological advancements, online learning and online accreditation are readily available and accessible to Gen Zs.
Tips for leaders
Gen Zs are tech-savvy and comfortable using digital tools, so are able to be self-sufficient when it comes to self-learning through online resources. This can make them great team members as they are able to incorporate technology into their daily workflow and to share their knowledge.
Employers should keep broadening their hiring practices and focus on skills, experience, and practical knowledge as well as formal degrees, especially in creative fields like digital technology, design, and marketing.
