Blog Post

Gen Z on the Future of Work They Actually Want

Cornerstone Editors

The global workforce is welcoming a new generation of employees. By the end of 2020, polls predict that between 24 and 36 percent of workers will belong to the generation of people born between 1995 and 2012, also known as Gen Z. This generation came of age in a highly technologized world, and one full of economic uncertainty. The struggles they have faced, combined with their tech-driven social lives, shape their expectations for work, the people who lead them, and their organizations’ HR departments. But what exactly do these expectations look like?

Gen Z workers cite flexibility and a desire to feel their jobs make a difference in the world as their top employment concerns. Above all, Gen Z wants to feel heard by their employers. HR departments that listen to their Gen Z employees will be better equipped to create working conditions that help them and their companies thrive.

More Than Traditional Benefits

Most workers want traditional benefits like health insurance, time off and paid parental leave. Gen Z employees still want these things, but they also want employers to go a step further, especially in terms of providing mental health support. In a survey from Mind Share Partners, 75% of Gen Z respondents reported that they had left a job for mental health reasons.

"We can’t just keep going all the time," says Madison H., a social media manager from Miami, FL. "I’ve worked for people who treated us like robots, not recognizing how mental health changes how well you can do your job. If you get burned out, you’ll probably quit, so HR departments need to figure out ways to take care of their employees’ mental health. Time off helps, but mental health resources like free counseling are even better."

Offices Need Private Space and Flexibility

For Gen Z, office noise is the number one productivity killer, but not everyone agrees on how to fix it. Open floor plans have been shown to decrease productivity, so it’s no surprise Gen Z is begging for some privacy.

"I hate open offices," says Luis R., a graphic designer in Orlando, FL. "Doesn’t everyone? Where I work used to have one—then they did a big redesign. They made an open area with big tables where we can work together on projects; then there are smaller rooms, quiet rooms, where we have our own desks and can concentrate. It’s great."

Gen Z also wants flexibility in where and how they work. This is more than a desire to work from home. They're asking for flexible schedules and looking for trust from their employers that they will get the job done while taking care of their personal commitments.

"Sometimes you have to bring your kid into the office or you need to go to the doctor," says Harper, a paralegal in Atlanta, GA. "It’s great when you can go take care of what you need to, and your boss just lets you do it because they know they don’t have to watch you every second."

Gen Z Wants to Make a Difference

While Gen Z workers note that volunteering with their workplaces can be fun, extra work beyond their paid hours can put a strain on other commitments. Instead, about 45% of Gen Z workers expect their companies to already be doing good in the world, according to a survey by Girls with Impact. Businesses that take environmental sustainability and the human impact of their practices seriously will win over Gen Z employees.

"I can’t work for a company that’s destroying the world," says Kinsey, an office specialist in New York. "I want to call it stewardship. The people I work for need to be good stewards of the environment, and they need to make sure they’re not buying products from exploitative manufacturers in developing countries. I’d say my generation is really socially conscious. Our decisions matter, even the little ones."

Gen Z: "Treat Us Like People"

Gen Z workers also noted that HR departments might mistakenly assume that because they are so digitally savvy, they prefer only online communication. The reality is the opposite. Gen Z workers spend so much time using technology that they would prefer human interactions in the workplace to be done face to face

The main message that Gen Z has for its new HR departments is: Listen to us. "We want to be heard, not just seen as another cog in the machine," Kinsey says. "We need to be able to provide feedback and have it be heard. If you can give us a way to talk to the people who are making decisions, we’ll do better jobs, and the company will be better for it, too."

Want to learn more about how you can help Gen Z employees thrive at work? Check out Cornerstone’s DNA, or Digital Native Advancement, program.

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A New Poseidon Adventure: Flipping Succession Planning Upside Down

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A New Poseidon Adventure: Flipping Succession Planning Upside Down

Organizations make significant investments in efforts to hire the right candidates – the people who have the right experience and cultural fit. By carefully managing the performance and potential of these people over time, the organization can grow its leadership pipeline, keep a steady inventory of needed skills and competencies and remain nimble in the face of change (which we have plenty of all around us these day) – all of which can have serious impact on the bottom line. However, much of this pie-in-the-sky stuff relies on being able to locate and cultivate high-potential and high-performing talent across the board. Without an integrated succession management solution, recognizing and developing talent can be an ever-elusive process. The questions we are seeing asked today include: does the traditional top-down approach to succession management still make enough of a difference? Does managing succession for a slim strata of senior executives take full advantage of the kinds of talent data we now have at our fingertips? It doesn’t have to be so. Succession management can be an interactive process between senior leadership, managers and employees at all levels of the organization. And, if we trust them, we can actually let employees become active participants in their own career development. (Shudder.) Career Management (Succession Planning Flipped Upside Down) This "bottom-up" approach is gaining momentum because who better to tell us about employee career path preferences than employees themselves. Organizations actually have talent management and other HR systems in place that allow for collecting and analyzing a whole slew of data around: Career history Career preferences Mobility preferences Professional and special skills Education achieved Competency ratings Performance scores Goal achievement Training and certifications Etc. In short, pretty much everything we’d want to know to make well-informed succession planning and talent pooling decisions. For some, the leap is simply putting some power into the employee’s hands. The talent management system of 2011 is capable of displaying a clear internal career path for employees and then, on the basis of all that data bulleted out above, showing a "Readiness Gap" – what do you need to do to make the step to the next level? And if your talent management environment comes armed with a real Learning Management System, you can take it to the next level with a dynamically generated development plan that gets the employee on the right path to actually closing those gaps. Faster development, faster mobility. Organizations that seriously favor internal mobility don’t just make employees stick on pre-defined career paths – they can search for ANY job in the company and check their Readiness levels. I might be in accounting today, but what I really want to do is move to marketing. Giving employees the chance to explore various career avenues within the organization helps assure that "water finds its level" – that is, that the right people with the right skills and the right levels of motivation and engagement find the right job roles internally. Employee participation is key, but make no mistake – managers play an important role in this interactive process. They must be prepared to provide career coaching, identify development opportunities and recommend employees for job openings. The candid discussions require that employees have open access to information so they can best understand the criteria necessary to move to the next level. A Two-Way Street Employee-driven career management is just one tool. The more traditional top-down approach to succession management remains indispensable. But organizations that value talent mobility and the ability to be able to shift and mobilize talent resources quickly will find that attention to career pathing can be vital. For employees, of course, the impacts are immediate and include boosted levels of engagement, higher retention, increased productivity and more.

The Hidden Costs of Ignoring Your Talent Management Strategy

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The Hidden Costs of Ignoring Your Talent Management Strategy

Building and maintaining a successful company hinges on having the right people to execute projects and drive results. People, we hear time and again, are your company's most valuable asset. But their success — and HR's ability to recruit, engage and retain them — depends on HR pros who are strategic decision-makers, armed with the proper tools to let them excel at their jobs. Modern HR professionals manage much more than payroll and benefits. But their technology tools, in many cases, haven't evolved past basic productivity software like email or Microsoft Word. HR simply can't be strategic with old-school tools that reduce people to statistics and give little insight into what the numbers mean. Emails and spreadsheets were not designed to deliver meaningful insights into people's performance, suggest when employees should be promoted or highlight skills gaps in a company. For that, HR needs a broader, more strategic set of talent management tools, which lets professionals manage every aspect of the workforce, from training and performance reviews to collaboration and succession planning. Yet, research shows that less than 25% of companies use a unified, holistic approach to their talent management. The Real Costs of "Doing Nothing" As a Talent Management Strategy The critical relationship between business strategy and HR strategy too often gets overlooked by senior leadership. While it may seem like the company is saving money by managing recruiting, training, performance and succession via manual and paper-based processes, in reality it’s costing your business more than you know. For example: Without a talent management strategy, a company with 2,000 employees is losing almost $2 million every year in preventable turnover alone. Businesses that don’t invest in learning suffer from decreased employee performance and engagement to such a degree that they can expect to realize less than half the median revenue per employee. That’s a direct impact on the business. In employee performance management, organizations without a focused strategy waste up to 34 days each year managing underperformers and realize lower net income. To learn more about the business impact of talent management and how to start building out your strategy, check out the eBook Why Your Nonexistent Talent Management Strategy is Costing You Money (And How to Fix It) and register for the March 19th webinar, Building the Business Case for Talent Management.

The Return of the Moderate Merit Budget – Wreaking Havoc on Pay for Performance

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The Return of the Moderate Merit Budget – Wreaking Havoc on Pay for Performance

With the economy now on steadier ground, most organizations have returned to administering a merit budget to the pre-recession levels of 3 to 3.5%. In the years immediately following the economic downturn, many merit budgets were eliminated entirely or were reduced significantly and reserved for a select segment of the employee population. Pay for performance has become a necessity for many organizations that are expected to accomplish more with fewer resources. I often get asked: "How can I truly award my top performers with such a limited budget? Should I do so at the expense of my ’Meets Expectations’ performers? What if I need to retain my ’Meets Expectations’ performers and giving them 0% to 2% increase puts me at great risk for turnover? But if I don’t recognize my top performers, don’t I risk losing them...?" These are difficult questions to answer, however you can determine the best solution for your organization by considering the following: Are your employees paid at market pay levels? Is your organization’s performance management process mature? Does your organization have other compensation programs in place to reward top performers (e.g. variable pay)? Market Pay If turnover is a concern, and your organization needs to maintain ’bench strength’ in order to achieve its strategic objectives, your biggest priority should be to ensure that you are paying your employees at market pay levels. Why? Historically, as the labor market strengthens, organizations become vulnerable in terms of losing people. Hiring and onboarding replacement talent is not only costly to the organization, but can also cause dissension among existing employees since new hires may be getting paid more. Be sure to stay abreast of market pay levels and trends, and use the merit budget to correct disparities. Performance Management Process Organizations vary significantly in terms of the maturity of their performance management process. Closely examine your organization’s process and look for ways to improve it. If there is a perception that one management team is an ’easier grader’ than the others, the process is inherently flawed and any pay for performance program will not be viewed as credible and fair by employees. A good place to start is to get a calibration process in place and communicate broad guidelines on expected distribution ratings. Variable Pay Programs Variable pay programs (e.g. bonuses) have become increasingly more popular across all industries and career levels. These programs provide the opportunity for employees to share in the organization’s success while not adding to fixed payroll costs. Some plans have an individual performance component which can be a very effective means to recognize top performers. However, in order for this type of program to be successful, individual goals and targets must be well documented and communicated. Again, this is largely based on the maturity of the organization’s performance management process which takes time to evolve. What are the best steps to avoid wreaking havoc on your pay for performance process? First ensure your pay levels are keeping pace with the market Continue to evolve your performance programs with calibration among managers and a rigorous goal setting process Promote variable pay plans to reward high performers without adding to fixed pay roll costs It’s not always an easy journey but, in the end, it’s best to use a measured approach that is based on business needs and a realistic assessment of your current programs and processes.

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