"Working with the Youngest Employees Is the Most Difficult"… U.S. Companies Adapting to Generation Z

US Labor Market Share: Generation Z Surpasses Baby Boomers
"What They Seek at Work Differs from the Past"
Meaningful Work, Growth Opportunities, and Mental Health Matter

Starting this year, the proportion of Generation Z (born in the mid-1990s to early 2000s) in the U.S. labor market is expected to surpass that of the Baby Boomer generation (born 1946?1964), prompting companies unfamiliar with Generation Z to devise countermeasures.

On the 2nd (local time), The Wall Street Journal (WSJ) reported, "According to several recent surveys conducted by U.S. companies, working with the youngest Generation Z employees is considered the most challenging." Many of these employees joined the workforce after completing internships remotely during the COVID-19 pandemic and lack face-to-face communication skills with other employees, naturally struggling to adapt to corporate culture.

In particular, conflicts have arisen because the newly dominant Generation Z seeks different things from work life compared to previous generations. Existing employees often do not feel justified in accommodating Generation Z's demands. Christine Heckert, CEO of Xapa, a company that analyzes Generation Z and develops necessary apps, said in June at a gathering of dozens of executives from U.S. publicly traded companies in Palo Alto, California, "The younger generation wants meaning, mentorship, and a sense of purpose." However, most attendees did not fully understand this statement, and one corporate executive retorted, "Why should everything be the company's responsibility?"

In response, CEO Heckert explained, "If companies help meet the demands of young workers, Generation Z will become better employees, benefiting the company as well," adding, "Generation Z leaves very quickly when the company does not listen to their voices, when there are no growth opportunities, or when they are not recognized."

Recently, U.S. companies have been offering new types of welfare for Generation Z employees, such as teaching communication methods, providing psychological therapy, or even deploying on-site therapists. Synchrony Financial, a credit card issuing company in Stamford, Connecticut, was surprised when dozens of new employees were asked what welfare benefits they wanted and many responded with "free psychological therapy." Synchrony's head of human resources, DJ Casto, explained, "Twenty-five to thirty years ago, a gym membership would have been the request. Now, they want someone to help them find ways to maintain proper mental health."

Additionally, semiconductor company SiTime has replaced the traditional annual performance review with one or two individual meetings per quarter to share feedback and confirm employees' long-term goals. Subsequently, the top 20?30% performers are given additional mentorship opportunities. Rajesh Bashist, CEO of SiTime, said, "What they want is meaningful work. We pay very well, but that is not enough. Young people live on feedback."