Webinar: Gen Z is critical in meeting workforce needs

Generation Z is now the latest age demographic to enter the workforce. Born between 1997 and 2012, the workforce ranges in age from 13 to 28, and numbers roughly 69.3 million, according to the U.S. Census Bureau.

Gen Z also represents about 20% of the country’s population and 30% of the future workforce, but they are not like older generations, according to Zach Hrynowski, senior researcher at Gallup, who was part of an Onward Ozarks webinar held Friday (Aug. 8).

Hrynowski said unlike older generations, Gen Z looks at their career differently. He said 45% of Gen Z adults consider having their dream job as very important to having a great life. This generation is far more likely to prioritize a job that allows them to pursue something they are passionate about. They do want to earn enough money to self-sustain, but they are not fixated on wealth generation, he said.

He also said 45% of Gen Z job seekers seek work that allows them to be creative or innovative, and 41% said their job should also allow them to make a difference in their communities. Only 12% are pursuing a pathway to a higher status or managerial positions.

“Broadly speaking, they want their job to make a difference in their community. Older generations were looking for a pathway to advancement and higher wages to build wealth,” Hrynowski said. “Gen Z wants to understand their role in the organization. They want to understand what they’re doing day to day to impact the mission and how that mission is impacting the world around them, much more so than looking out for themselves and squeezing every dollar of advancement out of the jobs they have.”

INTERN PATH
Morgan Scholz, chief people officer at Fayetteville-based Acres, said companies not tapping Gen Z talent are missing out.

“We have had incredible experiences with hiring Gen Z employees and have very consistently been amazed and surprised,” she said during the webinar.

Scholz said many of the Gen Z employees began as interns. She said the company took some roles and split them into smaller intern positions. One thing Scholz said is critical for hiring Gen Z interns is to make the work project oriented. She said the entry-level job market is challenging in Northwest Arkansas, so when a company hires a Gen Z worker, they get loyalty if the job allows them to self-sustain, provides creativity and innovation and lets them know how their work impacts the greater company good.

She said work-life balance is far more important to this younger generation focused on quality of life and not spending two hours a day in a long commute to an office. Scholz said housing affordability is problematic in the region and across most of the country.

“But housing affordably is relative, and NWA does offer plenty of outdoor activities to enhance quality of life for those looking for that,” she said. “On the flip side, we are not Dallas, and we do not have a vibrant club scene anywhere in the region. We have been successful in retaining Gen Z recruits who want to enjoy the amenities here and can find housing close to their workplace.”

DIFFERENT JOB FOCUS
Hrynowski said Gen Z is often incorrectly labeled as “disengaged” or “lazy.” He said the younger generation is playing a larger part in the workforce than the baby boomers, who are retiring in record numbers.

“Gen Z does have some disillusionment, and many feel the people in power making the policies are not looking out for their generation’s needs,” he said. “They are intensely distrustful of large American institutions. But when you ask them how things are going, some 84% are optimistic about their future.”

He said employers who show Gen Z employees that the work is making a difference, they will be good employees. He also said they will not hesitate to leave a job if it does not fulfill their needs and provide an adequate work-life balance they crave.

Donna Katherine Graham, director of industry and community engagement at the University of Arkansas, said the younger generation can find work in the gig economy to fill gaps in major employment, and they don’t hesitate to do it.

Hrynowski said AI is increasingly changing the availability of entry-level jobs, and that is going to increase, which is something Gen Z understands. A report from financial technology firm Zogo found that Gen Z is among the most educated in history and still has higher unemployment rates than older generations. The U.S. Bureau of Labor Statistics reported in July that the Gen Z unemployment rate was 7.9%, compared to 3.4% for Millennials (ages 25 to 44) and 2.9% for Gen X workers (ages 45 to 54).

EMBRACE THE GENERATION
Zogo reports that the struggles behind Gen Z’s high unemployment are a result of phantom listings, algorithms that bury resumes and applicant pools in the hundreds. The report also states that most employers look for applicants with experience, which often results in a catch-22 for unemployed Gen Z. Graham said that is why the University of Arkansas pushes internships within many disciplines. She said students are encouraged to begin internships and work for local companies part time, beginning their freshman year.

Randy Wilburn, host of Onward Ozarks, said the region needs to embrace this generation. He said large companies like Walmart, J.B. Hunt and Tyson Foods are active in wooing this generation to their companies, but it is going to take everyone to join over the next few years as the older workforce retires.

Graham said there are about 34,000 students enrolled for the fall semester at the UA. That is the largest class on record, and about 50% of those students are coming from out of state, she said.

“We retain about 75% of our Arkansas students after graduation, and around 30% of out-of-state students,” Graham said. “We also have some parents moving here after visiting for several years. We consider ourselves a talent importer and talent pipeline for the whole state of Arkansas.”