"Didn't You Want to Work from Home?" Why Gen Z Wants to Leave the Office [Jjinbit]

[Asia Economy Reporter Hyunjin Jeong] "Many people have the mindset of 'Jobland,' a place where they just work. If you are in 'Careerland,' a place to build your career, you need to be with others to learn more from them."

James Gorman, CEO of Morgan Stanley, said this in a keynote speech at an event in Australia last March regarding the issue of office attendance. According to Bloomberg, CEO Gorman expressed that rather than worrying about productivity dropping due to remote work or employees being lazy at home, he worries about how much employees can develop their skills while working remotely away from colleagues. He said, "My role as a company leader is to educate employees and help them develop skills to become professionals," encouraging office attendance.

◆ You say Gen Z wants to go to the office?

The office space has played various roles over time. One of them is learning work and related skills from nearby colleagues. The opportunity to observe and learn specific parts of work that are difficult to acquire through official company training programs has disappeared. This is one reason why Gen Z, who has emphasized work flexibility, is stepping into the office.

On the 13th of last month (local time), the U.S. economic media Business Insider reported an article titled "Gen Z Actually Dislikes Remote Work." According to a survey cited in the article by Stanford Professor Nicholas Bloom, Mexico Autonomous Institute of Technology (ITAM) Professor Jose Barrero, and University of Chicago Professor Steven Davis, the proportion of workers wanting full-time remote work by generation showed that those in their 20s were the lowest at 24%. Those in their 30s were 29%, 40s were 33%, and 50-64 years old increased to 41%. A surprising result, isn't it?

(Source=Business Insider)

Business Insider stated, "While one might think young professionals would be the first to push for remote work, in reality, they are the ones who want to spend the most time in the office," adding, "They want direct mentors who can help them enter their careers well." These young professionals are less likely to have children or live in suburbs with long commutes, so their need for remote work is somewhat lower.

◆ Gen Z with high self-development desire: "We want mentors and a good office"

Looking deeper, a survey conducted by research company Generation Lab in July last year among about 500 U.S. college graduates found that 4 out of 10 wanted to go to the office daily. When asked what problems might arise from remote work, 74% of respondents worried about missing out on community formed within the office, and 41% said they would miss out on mentoring. Additionally, 66% of respondents preferred receiving feedback in person rather than getting separate materials from their boss or talking via Zoom.

As mentioned in a previous Jinbit article (May 25th, "One in Four Workers Will Be Gen Z in Three Years" What Do They Want?), Gen Z has a strong desire for self-development. In a LinkedIn survey, 40% of Gen Z responded they would accept up to a 5% pay cut if it meant having more opportunities to grow their careers, far exceeding the overall average response rate of 26%. These early-career Gen Z workers feel that if remote work continues, it will be difficult to build relationships with people in their field and to learn essential work skills early on.

Moreover, as they are just starting their social lives, their home environment for remote work is often not spacious. Living with roommates or parents, or alone in a small home, makes it hard to separate work and life, and the work environment itself is unsatisfactory. According to a LinkedIn survey of 4,000 Gen Z youth aged 18-25 in the UK, U.S., France, and Germany, among those who wanted to go to the office, 30% cited separation of work and life, 24% a productive work environment, 23% opportunities to build relationships with colleagues, and 21% mentoring as reasons.

◆ Gen Z also wants flexibility

That said, it does not mean Gen Z wants to give up flexible work and return fully to the office. In a Microsoft survey conducted in January and February with 30,000 participants, more than half of Gen Z respondents said they were considering changing jobs because of remote work options, exceeding the overall average response rate of 38%. In a McKinsey survey, about 60% of workers aged 18-34 said they would consider quitting if they could not choose whether to go to the office.

The UK Economist also reported on the 21st of last month that "there is an inverse relationship between talent shortages and flexible work policies," noting that industries like construction, finance, and manufacturing, where remote work is difficult, are losing popularity among college graduates and the skills gap is widening.

Considering these points, the conclusion is that Gen Z wants to secure some degree of work flexibility while having an environment where work and life can be separated, and where they can learn work know-how to grow as professionals. Some companies have introduced hybrid work and are experimenting with having everyone come to the office one day a week, which can be seen as stemming from this background. Professor Bloom told Business Insider that although this method restricts employees' freedom and is unpopular, it is the best way to make the office lively on certain days.

Gen Z is expected to account for about 30% of the total working-age population by 2025. Their desires for self-development and improved work environments are directly linked to corporate productivity. Amid various discussions about the future of work, it will be crucial for companies to accurately understand these characteristics and find work styles that increase job satisfaction, serving as an important foundation for securing and retaining talent and improving productivity.

Editor's Note[Jinbit] is short for 'Hyunjin Jeong's Business Trend' and 'Real Business Trend,' a corner that shows trends in corporate management such as organizational culture and HR systems. Based on analyses from foreign media and major overseas institutions that have not received much attention, we will deliver fresh and differentiated information and perspectives.