Buffalo, NY - Some managers express frustration with Gen Z employees over issues such as unprofessional behavior and a lack of motivation, but insurance companies can't afford to turn their back on younger workers as older employees approach retirement age.
"If an organization is not investing in the Gen Z talent pipeline now, at the point in time the organization decides to make that investment, it will be too late," said Kyle Forrest, chief marketing officer for U.S. human capital at Deloitte.
Yet some organizations are reluctant to bring new grads on board. A survey by the website Intelligent.com found that almost 20% of hiring managers are hesitant to hire recent college graduates.
While almost all businesses surveyed had hired recent graduates in 2024, three-quarters said some or all of their hires didn't make the grade, and 60% said at least some were dismissed as a result. The most common concerns cited were a lack of motivation, unprofessionalism and poor communication skills.
A survey by ResumeTemplates.com found 90% of hiring managers have concerns about hiring Gen Zers for customer-facing roles, citing issues such as their lack of professional tone and lack of attention to detail. But Dan Bieler, principal analyst at Forrester, said such complaints aren't necessarily unique to this generation.
"Let's not forget, we were all young as well."
Companies can't afford to ignore Gen Z. By 2030, they are expected to comprise 30% of the labor force. By that year, all baby boomers will be older than 65.
Gen Z is typically defined as those born between 1997 and 2012. The median age for employees in the insurance and related activities sector was 44 as of 2023, according to the Bureau of Labor Statistics. Of the 2.9 million people employed in the industry, more than 700,000 — nearly a quarter — were age 55 or older.
"The pandemic and (political) polarization have had a profound impact on young people," said Harold Fields, vice president for student affairs and dean of students at Canisius University.
Their classroom education was knocked off track because of Covid-19, and the oldest members of the generation often started their careers working from home as companies shifted to remote work with the pandemic, said marketing executive and leadership coach Jenny Fernandez, who is also an adjunct professor at New York University and Columbia University.
Members of Gen Z have grown up with the internet, have been shaped by social media, and are a generation of digital natives, Fields said. "That is something we should appreciate — and lean into that particular skill set."
Technology often has made them more efficient when working, and they may use artificial intelligence to complement their work, Fields said.
The generation also is known for innovation, which can help organizations rethink their approaches to products and services and help them connect with younger customers, the experts said. They also place a high value on autonomy and flexibility — a trait that might have to be reined in to function well in a corporate setting. That could involve managers specifically outlining situations in which they don't need to obtain approval to be more flexible, and other areas where their managers or team must be involved before they try new things, Forrest said. Organizations also could offer younger employees specific projects in their areas of interest to help boost engagement, Fernandez said.
A critical aspect of hiring this idiosyncratic generation is to make sure both sides know what they're looking for — and what they're getting.
Before bringing new employees on board, organizations need to ask themselves if they are "asking the right questions to assess fit," Fernandez said. And organizations also need to set clear expectations for their new hires. "Conflict happens because of a mismatch of expectations," Fernandez said.
That could mean providing clarity up front as to whether the company is primarily remote, hybrid or in-office, and if the company is more formal, and requires professional work attire, or if it takes a more casual approach, she said.
Despite all the criticisms of Gen Z workers, Julia Toothacre, ResumeTemplate's chief career strategist, noted behaviors such as unprofessionalism or a lack of attention to detail can be changed if organizations adjust their training and feedback. Many companies have let their training and onboarding processes slip because they take time and can be costly, Toothacre said.
"If they really invest, they'll see different behavior," she said. For the new employee, "it shows we want you here. We train you in our way," Toothacre said.
Once new Gen Z hires are on board, managers need to articulate the business outcomes those employees' roles are expected to drive, Forrest said, and then provide them with clear feedback. That might involve explaining how they could handle things differently in the future, or providing recognition for a job done well.
Many younger employees also want to work in the office, so they have more opportunities to learn, Bieler said. To accommodate that, organizations can encourage Gen Xers and baby boomers to come to the office more frequently so they can develop mentorships, and knowledge can be transferred from one generation to the next, he said.
An organization's "talent strategy would have to address this issue in a much more comprehensive manner than we see today," Bieler said.
Despite the frustration with Gen Z employees, Toothacre counseled, "Don't count them out. Don't let one or two bad experiences taint the whole experience."
Story by: Susan Ladika/Financial Times/December 3, 2024
