The Great Negotiation

GenZ workers are pushing for more, and everyone may benefit

This original piece of art was created with the assistance of DALL-E.

Let's talk about the newest generation of workers, GenZ. They're shaking things up and set to take over the Boomers' position as the second largest generation of the workforce behind the Millennials. They aren’t interested in staying late at the office or dragging themselves to work when they're sick. They're all about meaningful work and aren't afraid to jump ship if they're not feeling it. Job hopping? It’s totally normal for them, and their actions are forcing companies to rethink current recruitment and retention practices, consider alternate labor pools that include older workers, and improve overall work conditions for all employees.

But what’s driving GenZ and their workplace behaviors? They’ve really had a rough go of it, haven't they? Imagine hitting adulthood right in the middle of a pandemic, graduating college via Zoom, trying to get a job when the economy was in a slump, and then going to an empty office when folks "returned to work. And to top it all off, many of these younger people have found that their paychecks aren't enough to cut the cord from living at home – more than two-thirds still live with their family members, according to a survey from RentCafe.com, and more than a third of those believe that will be the case in the next five years. 

GenZ is also feeling the pinch when it comes to other living costs, too, much like the rest of us, and the side hustles that they’re famous for aren’t always just for extra cash; they’re also about following their passions. What sets GenZ apart from older generations? They're not shy about saying they're unhappy (both in-person and online), talking openly about their mental health, saying ‘no’ to requests outside of office hours, and leaning into social justice issues. They're eager to change things up and they’re the tip of the spear in The Great Negotiation, a trend that LinkedIn News first reported on last year.

Not everyone’s buying it

On a recent episode of ABC News’ The View, Joy Behar, the actress and comedian who hosts, exclaimed, "Boohoo!" while discussing this generation's struggles and attitudes towards work. She’s not exactly shedding tears over what GenZ's going through and, it turns out, neither are some employers. 

Intelligent.com surveyed 800 managers, directors, and executives in December 2023 and found that more than a third admitted they'd rather hire someone with more experience than a recent college grad. And it doesn't stop there. Nearly half are even open to hiring older employees who are “overqualified” just to avoid bringing younger people into the mix. It's a pretty interesting shift in hiring preferences and a departure from recent historical norms that favored the young. 

However, Joy and these managers are missing the point that companies need to completely rethink what employee loyalty means now that a regular 9-to-5 doesn't cut it economically like it used to. Employers need to realize that the labor market isn’t flush with people looking for jobs like it used to be. As a result, hiring managers need to reconsider recruitment and retention practices across the board because GenZ might be asking for change. Still, other workers want and can benefit from change, too. 

What GenZ wants (and how they’re getting it)

It's not just about the money, although that factors in significantly. They're after a better work-life balance, the option to work from home, and a whole new deal on workplace conditions that foster boundaries, flexibility and professional growth. Simply put, their jobs aren't paying enough, aren't fulfilling enough, and are more demanding than ever, so they’re negotiating around the edges. And it's not just about one-on-one negotiations; it's a whole movement that is driven by desire, determination, collective action, and the willingness to openly share their work experiences across social media. 

And they're not just sharing on social media; they're actually using it as a leverage tool in their jobs. It's a pretty smart move, and companies are taking notice. Why? Well, if businesses don't play ball, they're facing some serious retention issues, especially for positions that aren't so easy to fill anymore, given the tight labor market.

Upwards of two-thirds of GenZ use social media at some point to engage with their employers before, during, and after the hiring process (including when they depart), and that's a huge shift from previous generations. GenZ has always been big on using social media for causes they care about, right? Remember how they boosted the labor and Black Lives Matter movements during the pandemic? But now, as they're getting hired, they're pushing even harder. They're not just fighting for better working conditions; they're challenging those old Industrial Age mindsets that are still lurking in many companies.

And guess what? Companies are scrambling to adapt. They're trying to revamp their cultures to resonate with these young workers. Companies are looking for ways to turn these GenZ employees from just being supporters of their values to becoming genuine, passionate advocates. It's a fascinating shift, and it's due in large part to how this generation uses social media and their collective voice.

Can everyone benefit?

It's tricky and not always even. It depends on the size of the company, its culture, its overall policies and its willingness to listen to employees and make changes.

There’s no debate that workplaces are increasingly responsive to the influence of GenZ. Insights from recruiters and hiring managers, particularly from organizations recognized as Top Workplaces, suggest that GenZ employees are significantly shaping the dynamics of their roles and office cultures. This influence spans a spectrum, from substantial changes in operational procedures to more nuanced adjustments in day-to-day interactions and benefits, of course.

But being exclusively responsive to GenZ isn’t a great strategy, especially if companies want to build resilient and innovative workplaces that can navigate change. So, leading companies are also starting to listen to mid-life and older workers and attempting to build workplaces that benefit everyone. And it turns out that there’s a lot of overlap between what younger and older workers want.

What can employers do? 

Companies have a choice. They can either stick to the old ways of doing business or listen to their workers and make changes. Everyone, not just the young, wants more time and flexibility. Most employees also want to feel purposeful and engaged in their work life. And nearly every employee wants to live with the security of having a good salary and benefits that meet their life stages. 

Employers can focus on helping young workers develop and learn new skills, even if they might leave the company, and invest in workers throughout their lives. This helps build real loyalty, especially in tough times; bosses need to set their workers up for success in their careers, not just in their current jobs. The best leaders are those who understand everything that affects their workers' success and loyalty. Helping them should be a goal, not making things harder.

But what about side hustles? Are they a distraction, and are they only the provenance of young workers? The short answer is no. With living costs going up, side hustles are often about making ends meet or growing professionally. Giving workers more chances to learn and grow can build trust and loyalty, improve retention, and help companies fill important gaps. It's all about reskilling, mentoring, and offering flexible work options.

And what about those workers who have been in the workforce for some time? As it turns out, they are an attractive option for employers who don’t want to meet each and every GenZ demand or find young workers difficult to manage. Bain and Company's research found that older workers often show more loyalty to their employers. They also seem to be happier at work and in life overall. By making room for the unique strengths that older employees bring, businesses can actually enhance the workplace culture for everyone. It's about tapping into the experiences and perspectives of people of all ages, which can enrich the work environment for the whole team and help young people grow into their careers and older workers build new skills.

In short, to get the most out of the new labor market – both from new and experienced talent – all parties need to come to the table in The Great Negotiation and build workplaces that support life stages and growth at all ages. Smart employers are giving little to get a lot. Companies that consider a multigenerational approach to management and the development of benefits are building better cultures that benefit not only their workers but also their bottom line.

Megan Gerhardt, a business professor, workplace researcher, and author of Gentelligence, says employers need to make their workforces more multigenerational. Says Gerhardt, a future guest on our forthcoming podcast series: “Organizations that attempt to launch change programs that revamp their cultures without holistically considering the views and needs of all generations will fail to survive.”

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