Generation Z grows up
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- Maurice Merritt
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1 Z GROWS UP 1 Generation Z grows up A LOOK AT THE NEXT WAVE OF DIGITAL NATIVES HEADED FOR YOUR ORGANIZATION.
2 Z GROWS UP 2 While dozens of research initiatives explore Generation Z s values as consumers, few explore its attitudes about work. A new research study from Universum asks close to 50,000 high school graduates about their future careers, the necessity of higher education, and their attitudes to work and life insights hiring companies can use to attract and retain the next generation of digital natives. THE RACE FOR Z STARTS NOW.
3 Z GROWS UP 3 Employers are just beginning to understand and accommodate the needs of Millennials, and already we re discussing the next cohort of employees: Generation Z. Why focus on a group that is for the most part still in high school? Global companies are in a heated race to attract the kind of talent that will drive growth and innovation in the coming decade. According to the 2015 PwC 18th Annual Global CEO Survey, 73 percent of CEOs say they worry about finding the right people to realize their business goals (up from 63 percent last year). While Generation Z may appear too young to take seriously in 2015, consider that in the US economy they make up 25 percent of the population and by 2020 will represent 40 percent of all consumers. In just three years, the first wave of Generation Z will enter the workforce; that s why developing strategies for recruiting and retaining Generation Z starts now. FIND OUT MORE Universum s 2015 Generation Z research study surveyed approximately 50,000 respondents across 46 countries. Our study focuses on those born between 1996 and This executive summary offers snapshots of our findings, based on global averages. For a broader look at Gen Z s career goals, expectations and fears, as well as insights segmented by geography and gender, access our full collection of reports HERE.
4 Z GROWS UP 4 Gen Z: Digital talent for the next decade Across all industries, companies are struggling to keep pace with digital innovation and younger workers are often better positioned to meet this need. The PwC Global CEO survey shows CEOs are strongly focused on sourcing top digital talent in fields like mobile technology, data mining and analysis, and cyber security. In the coming decade, Generation Z will be stepping into these mission-critical roles, in part because they operate so differently from their older colleagues. As one Gen Z student explains, We are the first true digital natives. I can almost simultaneously create a document, edit it, post a photo on Instagram and talk on the phone, all from the user-friendly interface of my iphone. For companies that aim to compete based on digital innovation, preparing recruiting and branding efforts for Generation Z is simply a must. FIGURE 1: HOW STRATEGICALLY IMPORTANT ARE THE FOLLOWING DIGITAL TECHNOLOGIES TO YOUR ORGANIZATION? (Very important) Mobile technologies for customer engagement Data mining and analysis Cybersecurity 50% 48% 53% Source: PwC 18th Annual Global CEO survey
5 Z GROWS UP 5 They re more different than you think
6 Z GROWS UP 6 On the whole, Generation Z is optimistic about the years ahead, even if realistic about the challenges they face. Our research indicates 65 percent are hopeful about the future (roughly evenly split between somewhat hopeful or very hopeful ). However, compared to Gen Y, their outlook is significantly less optimistic about whether their quality of life will surpass that of their parents, particularly in the US and Western Europe. What exactly are Generation Z s career-related fears? More than a third fear they won t find a job that matches their personality or that they will work in a role that doesn t allow for development opportunities. Close behind is the fear of underperforming and the fear of not fulfilling career goals. It s important to note, however, that these findings vary widely by country. For example, the fear of not finding a job that matches my personality is a common fear in Japan and Hong Kong, where more than half choose it. Yet in China this figure is only 29 percent (Chinese students are significantly more likely than the global average to fear getting stuck with no development opportunities). FIGURE 2 How can organizations take advantage? Country-level discrepancies are critically important for global employers to understand, as it affects how recruiting and employee engagement efforts must be localized to match the attitudes of those students. Organizations that are able to tailor their employer value propositions to a specific high-value audience and in the case of Gen Z, do so well before competitors have reached them can greatly improve brand recognition and brand perception among this cohort.
7 Z GROWS UP 7 FIGURE 2 WHAT ARE YOUR GREATEST FEARS REGARDING YOUR WORK LIFE? Gen Z RETURN 40% 30% PERCENT 20% 10% 0 That I won't get a job that matches my personality That I will get stuck with no development opportunities That I will underperform That I won't realize my career goals
8 Z GROWS UP 8 The death of higher education?
9 Z GROWS UP 9 Among the more interesting findings is Generation Z s attitude toward tertiary study and how it differs markedly from the generations that precede it. We asked students whether they would consider joining the workforce before university an idea antithetical to older professionals. While only 15 percent accept the idea outright, 47 percent say they would maybe consider the notion. And 60 percent say they welcome information about how companies offer education to those with no university degree. What drives these attitudes? In some countries including the US Generation Z is spooked by massive student loan debts saddling Millennials and hampering their personal development. A recent US survey showed 56 percent of those aged 18 to 29 are putting off major events like marriage, purchasing a home or saving for retirement due to student debt. What s more, recent research suggests Generation Z isn t convinced universities are preparing students for the workplace. In the US, only 38 percent say college is doing a good job preparing them. In some European countries, a university degree is not a foregone conclusion for talented students; in Italy, for example, the dropout rate hit 40 percent in 2014 and unemployment post-graduation remains alarmingly high. What does this mean for your organization? FIGURE 3: WOULD YOU JOIN THE WORKFORCE INSTEAD OF PURSUING COLLEGE/UNIVERSITY? YES MAYBE NO Organizations must think carefully about whether it s feasible and appropriate to offer apprenticeships to promising students who may not be ready to invest time or money in a university degree. Is it possible to recruit talented youth to begin their careers either before or in parallel with post-secondary education, and what are the benefits (and risks) of doing so? What can organizations offer as a supplement or replacement to traditional university degrees? Given Gen Z s comfort with online learning, can organizations offer enough substance to replace a traditional four-year degree and will students find this an attractive alternative to tertiary education? 15% 47% 38%
10 Z GROWS UP 10 Generation startup
11 Z GROWS UP 11 A clear majority of respondents state an interest in setting up their own business and in some regions like the Middle East, and Central and Eastern Europe, the figure is close to 75 per cent. While this entrepreneurial trend has been emerging for some time, we appear to be approaching a tipping point with Generation Z. The majority of 16- to 19-year-olds would consider the possibility of starting their own business rather than taking the more conventional corporate route of previous generations. When you consider the headline-grabbing success of so many twenty-something internet startups over the last 10 years, this is perhaps less surprising than it first appears. of Wang Xinwen, who launched the highly popular mobile game Dot Arena in his mid-20s. Two years later, he now owns a business worth more than US$5 billion. And there are stories like this all over the world. While the potential to make a great deal of money in a short space of time is clearly a factor in explaining What does this mean for your organization? Generation Z s entrepreneurial aspirations, there are other factors driving this trend. In addition to being their own boss, the second most common reason they would consider starting their own business was to make an impact. It s telling that so many young people believe they are more likely to make an impact by going it alone than joining a large existing organization. Are you interested in starting your own company? 55 % YES When we think about this kind of success we tend to think of Mark Zuckerberg launching Facebook from his college dorm room and becoming a billionaire by the age of 23. However these stories aren t limited to the US. In China, teenagers are more likely to aspire to follow in the footsteps Given that so many young, talented people could be tempted to start or join a small company with large ambitions, it s important to consider what you need to highlight or improve to capture the attention and consideration of Generation Z. Three initial areas to focus on are: a clear sense of purpose (and meaningful impact on the wider world), scope for personal initiative, and more flexible working conditions. Although these are aspirations for many organizations, our results suggest an urgent need to turn these aspirations into reality.
12 Z GROWS UP 12 Social media communications
13 Z GROWS UP 13 As employers consider communicating with and engaging this university-bound group, they must decide which types of content are the most effective way to begin the relationship. We asked Generation Z whether they would feel comfortable being contacted in their social channels by a company regarding work opportunities (keep in mind the oldest students in our study are in their first year of How can you capitalize? college while most are still in high school); 83 percent say they are open to the idea. However, when asked how they feel about seeing advertisements from potential employers on social media, this number more than halves. Though social media seems an easy decision to reach Generation Z, employers must proceed with care. FIGURE 4 Our research suggests that employers should be careful of the use of advertising to attract the attention and interest of Generation Z, and focus more on sharing the opportunities available to those working at their companies through more personal forms of communication like employee profiles and stories. DOES MATTER? Yes! The majority of students expect brands to have a social presence, and none more so than the social media natives of Gen Z. Understanding what content resonates with talent is critical to being at the top of the newsfeed and successfully engaging with top talent. In an industry first, Universum s social analytics platform, Iris, helps demonstrate to employers which kind of content works and which fails. Linked with our research, you can discover if your social media activities are focused on the topics that will persuade talent to make you the employer of choice. For more information about Iris and how it can improve your communication with future talent, CLICK HERE.
14 Z GROWS UP 14 FIGURE 4 HOW DOES GEN Z FEEL ABOUT SEEING ADS FROM EMPLOYERS ON? US 35% 65% US vs global RETURN Global 41% 59% I like it very much/i like it somewhat I dislike it very much/i dislike it somewhat
15 Z GROWS UP 15 For the first time ever, the voices of Gen Z tell us what they want for their future. Our data, in combination with a Universum adviser, will provide you with actionable recommendations to attract and retain the next generation of talent. Workshop and findings include: The biggest influencers in Gen Z s career decisions What Gen Z looks for in an ideal employer How they differ from generations already in the workforce The role gender plays in career expectations Country-specific and regional comparisons Plus actionable insights with a Universum adviser VISIT OUR WEBSITE TO ACCESS RESULTS OF STRATEGIC IMPORTANCE TO YOUR ORGANIZATION AND ARRANGE A WORKSHOP WITH A UNIVERSUM ADVISER TO GET ACTIONABLE RECOMMENDATIONS.
16 Z GROWS UP 16
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