Friday, January 24, 2025

Gen-Z Employee Performance

Gen-Z employees, born after 1996, today comprise a third of the workforce. Gen-Z employees who are already integrated into the workforce are generally toned more than traditional human resources management practices.

It is imperative to engage Gen-Z employees with various initiatives that not only engage them but also make them a part of the complete life cycle of these initiatives.

The impact of their entry is swift and profound. They have their effect on everything in the workplace including technology and culture. Radically different than Millennials, this generation has an entirely unique perspective on careers. They have different parameters to define success in life and in the workforce.

Improving the performance of Gen Z employees requires a combination of understanding their unique characteristics, creating a conducive work environment, and implementing effective management strategies.

Gen-Z employees are brimming with fresh ideas, competitive edge, and global networking capabilities. Organizations today, need to unleash this potential and use it to give a completely new dimension to business growth.

Here are some ways that can enhance the performance of Gen Z employees in any organization:

Quality of Work

Gen Z employees look for the 3 “C’s” – Challenging, Creative, and Collaborative Work. They constantly need avenues for new learning in an organization. Gen-Z-ers are fast learners, technologically savvy, and culturally sensitive. This keeps them ahead of the learning curve and in-career aspirations. Organizations can leverage these qualities to bring a new perspective to business dynamics.

Building Leaders

This generation likes to have a dialogue with various stakeholders of an organization such as team members, customers & leadership. Instead of just completing a task, they want to interact with those who can answer the “WHY” part of any assignment to bring in a bigger and better outcome.

They like to have visibility of both short-term & long-term perspectives of the projects that they are involved in. Gen-Z performs effectively when leaders are directive, collaborative, and semi-formal. They look up to leaders who are supportive and understanding.

Gen-Z likes to engage in the latest and updated methodologies & tools to complete the task, efficiently rather than the traditional or manual way.  They constantly aspire to upskill and go up the corporate ladder and also upscale themselves for the same.

Performance & Rewards

While salary is the most important factor in deciding on a job, Gen-Z is motivated by meaningful work that aligns with their values. If given a choice between a better-paying monotonous job and a challenging job that may not pay as well but is a reservoir of new learning and growth, Gen Z will choose the latter.

Performance-based bonuses or monetary rewards do not necessarily sit well with Gen-Z. They are usually much more interested in knowing exactly what needs to be accomplished within their work hours. Thus, instead of compensating overtime with non-wage benefits, paying them fairly for overtime is crucial. Equally important to pay is recognition. Recognize them early and often to stimulate their motivation levels.

To win the hearts of Generation Z, companies and employers need to highlight their efforts as good global citizens. As they say, actions speak louder than words, companies must demonstrate their commitment to a broader set of societal challenges such as sustainability, climate change, and hunger.

Policy & Process

Gen-Zers demand an efficient and automated work process. They like to have details of their job titles, levels, responsibilities, and KPIs all at the click of a button on the company’s online portal. They also prefer to have all information like onboarding, leave policy, performance KPIs, benefits, salary details, L&D, promotions, etc. in a single view to easily access them on demand.

Office Aesthetic

It is not only important to provide the best-in-class workspace but also to provide Gen-Z employees with a space that elevates their physical and mental well-being. Sports, entertainment & cultural activities, along with access to a healthy diet will complement their lifestyle.

Engage & Align

The key to retaining Gen Z-ers is to engage with them right from the hiring phase. Organizations need to create an effective campus with corporate programs that align these employees with the company’s values.

As an organization, we should create a bridge that will seamlessly amalgamate the company’s vision & values into their belief system.

From onboarding to exit, an organization needs to provide the Gen- Z employees with visibility and engage with them in every stage of their employee life cycle.    

Organizations today need to accept that every individual is unique. Thus, it is important to be open to changes and adapt your strategies based on the specific needs and preferences of the new generation that is coming in. This will not only create a conducive work environment but will also help the organization evolve and transform itself.

By creating an environment that supports their growth, values their contributions, and provides meaningful opportunities, you can improve the performance of Gen Z employees.

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Nikhil Raj
Nikhil Raj
Nikhil Raj heads the Human Resources department at Equiniti. With over 20 years of quality experience helming the HR function in leading companies. At Equiniti, he is responsible for developing and driving the entire spectrum of the HR function ranging from people process, HR automation, policy and culture, compensation & benefits strategy, to employee engagement & change Management, HRBP, talent development & succession planning strategy as well as the overall HR operations for Equiniti India.