Chapter 5
E NGAGEMENT AND G ENERATION Z – C ULTURE R EQUIREMENTS FOR THE F UTURE
The nature of the workforce is changing. The values of each generation subtly evolve and members of each cohort group are motivated by important differences that, when best understood, can be effectively applied in creating working conditions and organizational cultures that support those individuals. Organizational leaders have a moral obligation to understand and meet the needs and expectations of their employees, and by understanding those needs those leaders are also able to increase the employee commitment and engagement that benefit organizations. That brief restatement applies as significantly to members of Generation Z – the future employees of the upcoming cohort – as they do to all previous generational groups.
The focus of this chapter is on understanding the unique qualities of the Generation Z age group and to identify the most effective way to engage them as company employees by creating a culture that resonates with their unique perspectives. We begin the chapter by identifying and describing the values and perspectives of the Generation Z cohort group – noting its common characteristics, identifying factors that distinguish this generation from other age groups, and explaining the significance of those factors in forming the values and priorities of Gen Zers.
We then identify the role of organizational culture in affecting employee engagement. Following that explanation, we suggest eight culturally-related management practices that can effectively address the distinctive characteristics of Generation Z employees and clarify how those management practices can assist organization leaders to encourage, empower, and engage with Generation Z workers. We identify four contributions that this chapter makes in helping practitioners to be effective in interacting with this employee group and challenge those who will be leaders of these employees to thoughtfully consider how they can increase the level of engagement, commitment, and ownership of the Generation Z cohort.
Understanding Generation Z
For each generational group, the significant events of their early years profoundly influence their lifetime values and their priorities1. For Generation Z, the impact of their formative years has been profound with the events of September 11, 2001, the 2007-2008 world fiscal crisis, and COVID-19 being the most notable factors affecting this generation.
However, perhaps the most significant factors that have influenced every member of Generation Z has been the advent of digital technology, the ubiquitous nature of the worldwide web, and the impacts of the smart phone and social networking2.
Generation Z, the youngest of all current generations, is a technology savvy and ethnically diverse cohort of young people who have been born in 1997 or thereafter3. They are motivated by financial stability
1 Massey, M., (1979). The People Puzzle: Understanding Yourself and Others. Englewood Cliffs, NJ: Reston Publishing Co.
2 The Barna Group, (2018). Gen Z: The Culture, Beliefs, and Motivations Shaping the Next Generation. Ventura, CA: Barna Group.
3Dimock, M., (2019). “Defining Generations: Where Millennials End and Generation Z Begins.” Pew Research Center, January 17, 2019 and found
yet want to make a change in the world4. They value diversity and have a deep commitment to saving and preserving the environment5. Their generation has never known a time when the internet was not readily available. They use Facebook to connect with family members but other social media apps to network with friends and colleagues6. Videogaming and online entertainment are high priorities among their favorite hobbies and the average Gen Zer spends three hours a day accessing technology7.
online on April 4, 2021 at Where Millennials end and Generation Z begins
| Pew Research Center.
4Harris, R. E., (2020). “Who Is Generation Z?” Psychology Today, December 8, 2020 and found online on April 4, 2021 at Who Is Generation Z? | Psychology Today.
5 Ibid.
6 Ibid.
7 Pearson.com, (2018). “Beyond Millennials: The Next Generation of Learners.” Pearson Global Research & Insights, August, 2018 and found online on April 4, 2021 atThe-Next-Generation-of-Learners_final.pdf (pearson.com)
The economic realities of COVID-19 have had a greater financial impact on Generation Z than on any other generational group8. During 2020 almost half of Generation Z saw their work hours decreased, more than one- third were unable to work or get paid, and one in four filed for unemployment9. In addition, 25% of Generation Z reported that they thought they would be financially worse off after the pandemic was over10. More than any other generational cohort, during the COVID-19 crisis, Generation Z members were also the most likely to become unemployed, have their work hours cut, or be assigned to a job that was different than the position for which they had been originally hired11.
Although Gen Zers are very interested in education, they nonetheless are risk- and debt-averse and are open to online, community college, and career-based learning opportunities12. Many indicate that a
8 Dorsey, J., (2021). “7 Things You Need to Know about Generation Z.”
MarketWatch.com, January 29, 2021 and found online on April 4, 2021 at 7 things you need to know about Generation Z - MarketWatch.
9 Ibid.
10 Ibid.
11 Ibid.
12 Ibid.
traditional college education is not in their interest, although three in five believe that an advanced education is an important stepping stone to their success13. They express concern about accruing debt for an education that may have a marginal economic value14. In addition, 43% prefer learning from the internet than from other information sources. More than half cite YouTube as their preferred learning site15. Nearly two-thirds of Generation Z thinks that technology skills are more important than behavioral skills16.
Gen Z members are highly entrepreneurial, in part because the “gig economy” has required them to be flexible17. According to a recent Nielsen study, more than half of all Gen Zers want to start their own business18. Although Generation Z members are not as ambitious as Millennials about making it to the top of their profession, more than forty percent have set professional success as a personal goal19. The impact of the worldwide economic downturn, followed by the impacts of the COVID pandemic, has made concerns about financial stability a major factor in their lives20. Nearly
13 Pearson.com, (2018), op. cit.
14 Harris, (2020), op. cit.
15 Pearson.com, (2018), op. cit.
16 O’Brien, M. J., (2018). “Here’s How Gen Z is Shaping the Future of Learning.” HRExecutive.com December 27, 2018 and found online on April 4, 2021 at
17 Schroeder, B., (2020). “A Majority of Gen Z Aspires to be Entrepreneurs and Perhaps Delay or Skip College. Why That Might be a Good Idea.”
Forbes, February 18, 2020 and found online on April 4, 2021 at A Majority Of Gen Z Aspires To Be Entrepreneurs And Perhaps Delay Or Skip College. Why That Might Be A Good Idea (forbes.com).
18 Ibid.
19 Pearson.com, (2018), op. cit.
20 Merriman, M., (2020). “How Contradictions Define Generation Z.”
EY.com, January 28, 2020 and found online on April 4, 2021 at How contradictions define generation Z | EY - US.
two-thirds of Generation Z thinks that technology skills are more important than behavioral skills21.
Socially, 75% of the Gen Z cohort have friends from different races, backgrounds, and beliefs and 61% believe that having diverse friends makes them a better person22. They are more socially diverse than other cohorts – with 48% being members of racial minority groups23. One in four Gen Zers is Hispanic, 14% are Black, and 6% are Asian24. Politically, Generation Zers believe that government should play a greater role in society25 -- although only 20% indicated that they are “very interested” in political issues.
Although they tend to be somewhat liberal politically as a group, their political views span a wide range on the political spectrum. In the US, 39%
identify as moderate, 28% as liberal or very liberal, and only 25% identifying as conservative or very conservative26.
21 O’Bren, M. J., (2018). “Here’s How Gen Z is Shaping the Future of Learning.” HRExecutive.com, December 27, 2018 and found online on April 4, 2021 at
22 Pearson.com, (2018), op. cit.
23 Living Facts, (2020), op. cit.
24 Ibid.
25 Living Facts, (2020), op. cit.
26 Merriman, (2020), op. cit.
From a mental health perspective, more than 7 in 10 Generation Z members experienced depression during the COVID-19 pandemic – the highest level of stress reported by any generational cohort27. More than half of all teens reported that the pandemic made it impossible for them to plan for their futures – and that number rose to more than two-thirds of Gen Zers enrolled in colleges or universities. Stressed out by a world that they cannot control, they tend to see the world as uncertain and even threatening – and lack the life experience to put the status quo into perspective28. They report high levels of worry and anxiety, fear failure, and consequently are often uncertain and reluctant about making decisions about the future29.
When surveyed about their greatest worries, a majority of Gen Z felt
“very or extremely” uncertain about the future30. Concerns about having enough money (67%), getting a good or better job (64%) and paying for college or university (59%) were high level personal priorities in their lives31. In addition, they cited global issues of gun violence (62%) and climate change (61%) as being major concerns32. In prioritizing the importance of global concerns versus preparing for their own futures, most Gen Zers expressed the need to focus on their own needs33.
27 Stieg, C., (2020). “More Than 7 in 10 Gen Zers Report Symptoms of Depression During Pandemic, Survey Finds.” CNBC.com October 21, 2020 and found online on April 4, 2021 at Survey: More than 7 in 10 Gen- Zers report depression during pandemic (cnbc.com).
28 Ibid.
29 Harris, (2020), op. cit.
30 Merriman, (2020), op. cit.
31 Ibid.
32 Ibid.
33 Ibid.
Overall, Generation Zers reflect the growing emphasis on diversity and change in society – with accompanying concerns about the future.
Although they love technology and are technologically advanced, they also value interpersonal interaction – although that interaction has often occurred via social networking, smart phone apps, and other technology. By necessity, their focus has been on striving to identify how they can succeed in an economically uncertain world. In a world that is increasingly diverse, they are accepting of others but also concerned about their own priorities and personal success34.
The Role of Culture and Engagement
An organization’s culture includes the artifacts, espoused values, and underlying beliefs that are present in every organization and that clarify
“how things get done” in accomplishing day-to-day work35. Those who have studied culture describe it in many ways.
34 Ibid.
35 Schein, E. H. & Schein, P. A., (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass.
In their landmark book about organizational culture, Edgar and Peter Schein have included the following list of ways that culture is viewed and that meanings are conveyed within organizations36.
Observed Behaviors of Interaction – These include the patterns, language, customs, and traditions of interpersonal behavior in the world of work.
36 Ibid, p. 3-5.
Work Climate – Work climate generates the feeling that is conveyed by the physical layout of a work environment and affects how work colleagues interact, how customers are treated, and how other outsiders are dealt with.
Rituals and Celebrations. Rituals include the ways in which organizations celebrate memorable events, promotions, completion of projects, or other regularly recurring events.
Espoused Values. Espoused values are the formally articulated principles and priorities which an organization uses to promote its business -- whether to its employees, customers, or the public.
Formal Philosophy. A company may adopt a formal statement of its philosophy or guiding assumptions which describe the company’s purpose and its beliefs about how its business should be conducted.
Group Norms. Employees may adopt informal group standards or norms that are intended to serve as shared expectations about how the entire group is expected to
perform-- such as the production standards that members of the group are expected to meet and/or not exceed.
Rules of the Game. These are implicit standards of conduct which govern how individuals within an organization are expected to interact, how they are to dress, and other informal group expectations about interpersonal conduct.
Identity and Image of Self. This group identity enumerates how an organization or group defines itself, the purpose of
the organization and its goals, and how work tasks are expected to be accomplished.
Embedded Skills. These skills are the unique competencies exhibited by organization members, often tacit skills that are passed on without being formally articulated but which are vital for the success of the organization.
Mental Models. Mental models are the habits of thinking, the paradigms, or the special language used within an organization that convey its shared cognitive framework and that are required for socialized members of the group.
Shared Meanings. These meanings are the unique ways in which members of a group communicate about work- related topics that are common to the group but may mean something different to outsiders.
Integrating Symbols. Symbols are often physical artifacts that represent special conditions, status, or significance within a group and that typically become embodied in the layout and aesthetic features that may exist.
Summarizing the importance of these elements, Schein and Schein defined culture as the means of shared learning of a group. That learning becomes the ground rules by which members interrelate as they strive to achieve the internal integration and smooth functioning of an organization as it seeks to adapt to conduct its business in the external world37. These two tasks of external adaptation and internal integration are required of every successful organization and are an important part of every company’s culture.
An organization’s culture and its ability to engage employees effectively are closely related factors38. Adopting a strategy that engages employees can positively impact both employee motivation and strengthen the ability of a company to create a culture that produces outcomes that
37 Ibid, p. 6.
38 Taneja, S., Sewell, S. S. & Odom, R. Y., (2015). “A Culture of Employee Engagement: A Strategic Perspective for Global Managers.”
Journal of Business Strategy, Vol. 36, Iss. 3, pp. 46-56.
increase success39. In creating the high trust that is required for engaging employees, leaders can effectively incorporate the many elements of culture to address the needs and priorities of their employees.
Employee engagement is facilitated and increased when organization leaders make the effort to understand the needs of their employees, involve them as partners in constantly improving an organization, and empower them to be contributors in the decisions made by the organization. As employers acknowledge that their actions are significant in promoting the psychological growth needs of their employees, they have the opportunity to change their cultures, increase engagement, and improve organizational results by creating a culture that emphasizes meaningful leader-follower relationships40.
39 Little, B. & Little, P., (2006). “Employee Engagement: Conceptual Issues.” Journal of Organizational Culture, Communications, and Conflict, Vol. 10, No. 1, pp. 111-120.
40 Clack, L., (2020). “Employee Engagement: Keys to Organizational Success.” The Palgrave Handbook of Personal Well-Being, pp. 1-28.
Cultural Practices for Gen Zers
As organization leaders consider ways to create cultural factors that will increase the engagement of Generation Z employees, several specific opportunities come quickly to mind. We suggest eight culturally-related management practices that seem to be aligned and integrated with Gen Zers and their needs.
1. Incorporate career-related employee training and development opportunities.
Generation Z’s present and future employees have a deep commitment to job-related training and education and demonstrating a commitment to constant learning resonates with that commitment. Employee engagement efforts are strengthened when companies provide employees with ongoing training and development programs and invest in employees’ futures41.
41 Clifton, J. & Harter, J., (2019). It’s the Manager. Omaha, NE: Gallup Press.
2. Adopt a world class corporate Employee Assistance Program to help employees to manage stress.
Employee Assistance Programs are highly regarded for their ability to assist employees to manage personal and job-related problems that can negatively affect job performance42. Adopting world class EAP resources will naturally appeal to Gen Zers who have faced high stress in their lives. Gen Zers want an employer who cares about their well-being43.
3. Create long-term employment contracts to build loyalty and commitment.
42 Cooper, C. L., Dewe, P., & O'Driscoll, M. (2003). “Employee assistance programs.” In J. C. Quick & L. E. Tetrick (Eds.), Handbook of
Occupational Health Psychology. Washington, D.C.: American Psychological Association, pp. 289-304.
43 O’Boyle, E., (2021). “4 Things Gen Z and Millennials Expect from Their Workplace.” Gallup, March 30, 2021 and found online on April 6, 2921 at 4 Things Gen Z and Millennials Expect From Their Workplace (gallup.com).
Employment stability and financial security are high priorities for Gen Zers and creating long-term employment relationships with members of this cohort group will increase their commitment and strengthen employee engagement. Long-term employment relationships build employee loyalty and strengthen the bond between employees and their leaders44.
4. Create career path opportunities that enable employees to advance professionally.
Generation Z is interested in making a positive difference and growing personally. Creating job ladders and career path opportunities within the organization demonstrates a company’s commitment to their employees’
44 Pfeffer, (1998), op. cit.
future progress45 and is consistent with the principles of employee engagement46.
5. Align Human Resource Management programs to reinforce corporate cultural values.
A key element of employee engagement and empowerment is in creating aligned systems, programs, and policies that affirm organization values47. Aligned Human Resource Management policies convey a company’s commitment to employees’ welfare and earns employee trust48.
45 Fitzgerald, J., (2006). Moving Up in the New Economy: Career Ladders for U. S. Workers. Ithaca, NY: Cornell University Press.
46 HR.Research Institute, (2019). The State of Employee Engagement in 2019. Aurora, Canada: HR.com.
47 Ibid.
48 Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA:
Jossey-Bass.
6. Institute a world class supervisor/manager training program to upgrade coaching skills.
The clear evidence confirms that supervisors and managers have lacked the interpersonal skills required to establish working relationships that engage employees49.
Upgrading skills by providing those who supervise employees with insights about interacting more effectively with Gen Zers will
49 Clifton & Harter, (2019), op. cit.
enable those managers and supervisors to be more effective at coaching Generation Z employees and supporting their efforts to succeed.
7. Establish tuition reimbursement programs to upgrade employee learning opportunities.
Because Generation Z employees are reluctant to incur debt to obtain the necessary academic training required to develop the knowledge they need to perform at the highest levels, companies that offer tuition reimbursement for Gen Zers will be attractive as employers – while improving the capabilities of those employees and increasing their commitment to the company50.
8. Adopt and incorporate meaningful corporate citizenship goals that involve employees.
Because Gen Z members care about preserving the environment and want to be actively involved in making a
50 Pearson.com, (2018), op. cit.
positive contribution in the world, companies that have an authentic commitment to Corporate Social Responsibility are more likely to attract them and earn their respect51. Involving Gen Zers in achieving meaningful corporate citizenship goals as a company strategy is likely to make members of this cohort group more engaged and committed employees52. Gen Zers want their employers to be ethical53.
Each of these management practices addresses values that are representative of the priorities of Generation Z. Those leaders who incorporate these suggestions into the cultures of their organizations are thereby more likely to have Gen Zers feel comfortable with their companies and align themselves with their organization and its values. Recognizing the uniqueness of Generation Z employees, respecting their values and priorities, and appreciating their ability to add value to the companies for which they work will be likely to be reciprocated by this cohort group with high levels of personal commitment and engagement.
51 Harris, (2020), op. cit.
52 HR.Research Institute, (2019), op. cit.
53 O’Boyle, (2021), op. cit.
Contributions of the Chapter
We suggest that this chapter makes four useful contributions in helping practitioners to understand how they can be more effective as organization leaders in creating organization cultures that generate high levels of engagement from Generation Z employees. The information contained herein also has value for academic scholars and those studying this important cohort group.
1. We identify characteristics of Generation Zers, incorporating insights from other experts.
The descriptive summary of Generation Z attributes and attitudes can help both practitioners and academics to understand more about the unique individuals who make up this group.
2. We summarize the important factors that make up organizational culture and explain why an organization’s culture affects employee engagement.
An organization’s culture is a major determining factor that affects how individual employees are integrated within organizations and reflects its values and priorities.
Those factors significantly influence employees’ roles and the extent which an organization’s culture promotes employee engagement.
3. We affirm the need for organization leaders, managers, and supervisors to be aware of the importance of their actions in engaging Generation Z employees.
The importance of engaging these employees as full partners in the success of organizations can enable organizations to optimize the contribution that Gen Zers can make to their companies and to society.
4. We suggest eight culturally-related practices likely to increase the commitment and motivation of Generation Zers and increase their engagement.
These recommended management practices are aligned with many of the defining characteristics that typify many Gen Z members. Employing these practices is likely to enable leaders and organizations to more effectively engage Gen Z employees, with resulting positive benefits.
Each of these four contributions has practical value in today’s complex world where leaders and organizations have consistently struggled to engage employees and to optimally involve them as contributors and partners. The value for practitioners is to identify how the insights from this chapter can enable organizations to be more effective while the academic benefit provides opportunities for additional research and discussion about employee engagement and Generation Z.
Conclusion
The realities facing modern businesses affirm that many of the current assumptions about employees seem to be off target in their ability to generate high employee commitment and engagement. Leaders, managers, and supervisors have apparently lost sight of the importance of creating organizational cultures that treat employees as valued partners and the compelling evidence is that many of today’s managers and supervisors are ineffective and are major contributing causes to the levels of engagement currently found in organizations literally throughout the world54.
The increase in concern about employee engagement and how to achieve it has practical importance for practitioners and has attracted increasing interest from academic scholars. As the new generational cohort, Generation Z, begins to play an increasingly important role in the work force, identifying how companies can more fully engage this group of employees is a priority that will need to be thoughtfully addressed. Leaders and organizations need to incorporate management practices designed to increase their competitive position. The insights from this chapter are worth
5454 Clifton & Harter, (2019), op. cit.
carefully considering to meet the challenges facing tomorrow’s businesses and to most effectively involve Generation Z employees.
REFERENCES:
Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA: Jossey-Bass.
Clack, L., (2020). “Employee Engagement: Keys to Organizational Success.” The Palgrave Handbook of Personal Well-Being, pp. 1- 28.
Clifton, J. & Harter, J., (2019). It’s the Manager. Omaha, NE: Gallup Press.
Cooper, C. L., Dewe, P., & O'Driscoll, M. (2003). “Employee assistance programs.” In J. C. Quick & L. E. Tetrick (Eds.), Handbook of Occupational Health Psychology. Washington, D.C.: American Psychological Association, pp. 289-304.
Dimock, M., (2019). “Defining Generations: Where Millennials End and Generation Z Begins.” Pew Research Center, January 17, 2019 and found online on April 4, 2021 at Where Millennials end and Generation Z begins | Pew Research Center.
Dorsey, J., (2021). “7 Things You Need to Know about Generation Z.”
MarketWatch.com, January 29, 2021 and found online on April 4, 2021 at 7 things you need to know about Generation Z -
MarketWatch.
Fitzgerald, J., (2006). Moving Up in the New Economy: Career Ladders for U. S. Workers. Ithaca, NY: Cornell University Press.
Harris, R. E., (2020). “Who Is Generation Z?” Psychology Today, December 8, 2020 and found online on April 4, 2021 at Who Is Generation Z? | Psychology Today.
HR.Research Institute, (2019). The State of Employee Engagement in 2019. Aurora, Canada: HR.com.
Little, B. & Little, P., (2006). “Employee Engagement: Conceptual Issues.”
Journal of Organizational Culture, Communications, and Conflict, Vol. 10, No. 1, pp. 111-120.
Living Facts, (2020). “Meet Gen Z.” Pew Charitable Trust, December 9, 2020 and found online on April 4, 2021 at Meet Gen Z
(livingfacts.org)
Massey, M., (1979). The People Puzzle: Understanding Yourself and Others. Englewood Cliffs, NJ: Reston Publishing Co.
Merriman, M., (2020). “How Contradictions Define Generation Z.”
EY.com, January 28, 2020 and found online on April 4, 2021 at How contradictions define generation Z | EY - US.
O’Brien, M. J., (2018). “Here’s How Gen Z is Shaping the Future of Learning.” HRExecutive.com December 27, 2018
O’Boyle, E., (2021). “4 Things Gen Z and Millennials Expect from Their Workplace.” Gallup, March 30, 2021 and found online on April 6, 2921 at 4 Things Gen Z and Millennials Expect From Their Workplace (gallup.com).
Pearson.com, (2018). “Beyond Millennials: The Next Generation of Learners.” Pearson Global Research & Insights, August, 2018 and found online on April 4, 2021 atThe-Next-Generation-of-
Learners_final.pdf (pearson.com)
Schein, E. H. & Schein, P. A., (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass.
Schroeder, B., (2020). “A Majority of Gen Z Aspires to be Entrepreneurs and Perhaps Delay or Skip College. Why That Might be a Good Idea.” Forbes, February 18, 2020 and found online on April 4, 2021 at A Majority Of Gen Z Aspires To Be Entrepreneurs And Perhaps Delay Or Skip College. Why That Might Be A Good Idea (forbes.com).
Stieg, C., (2020). “More Than 7 in 10 Gen Zers Report Symptoms of Depression During Pandemic, Survey Finds.” CNBC.com October 21, 2020 and found online on April 4, 2021 at Survey: More than 7 in 10 Gen-Zers report depression during pandemic (cnbc.com).
Taneja, S., Sewell, S. S. & Odom, R. Y., (2015). “A Culture of Employee Engagement: A Strategic Perspective for Global Managers.”
Journal of Business Strategy, Vol. 36, Iss. 3, pp. 46-56.
The Barna Group, (2018). Gen Z: The Culture, Beliefs, and Motivations Shaping the Next Generation. Ventura, CA: Barna Group.
