Gen Z and the Authority Dilemma

One of the main issues identified by British managers when it comes to working with Gen Z revolves around their attitudes towards authority. Managers report that these younger employees often present challenges due to their expectations around work-life balance (62%), salary demands (58%), and benefits (44%). Additionally, issues such as respect for authority (41%), emotional intelligence (38%), and professionalism (34%) are commonly cited as difficulties in managing this generation.

Valuing Youth for Creativity and Adaptability

Despite the hurdles, there’s a silver lining: 70% of people would rather work with or hire younger employees, primarily due to their creativity and adaptability – qualities that many believe are in short supply among older generations. This preference suggests that while managing Gen Z may be challenging, their potential contributions to innovation and flexibility in the workplace are highly valued.

Gen Z’s Financial Concerns and Vigilance

For Gen Z, financial security is a pressing concern. Around 13% of this age group think about their salary or pay rate on a daily basis. Incorrect pay not only causes immediate financial stress, with 40% stating they would struggle to pay bills, but it also triggers considerations of job change (22%) and sleep loss due to financial worries (22%). Consequently, Gen Z is the most diligent when it comes to checking payslips, with 30% carefully reviewing their pay to ensure accuracy.

The impact of incorrect pay isn’t limited to Gen Z; it affects employees across all age groups. For those aged 25 to 34, such errors can erode trust in their employer (43%) and lead to feelings of being undervalued (40%). Meanwhile, for the 45 to 54 age group, incorrect pay is often seen as an administrative burden that leads to frustration (40%).

Elevating HR’s Role in Managing Generational Challenges

When it comes to addressing the issues caused by younger employees, 40% of managers believe HR should take the lead. However, HiBob's findings indicate that many UK companies may not be fully equipped for this task. An analysis of FTSE 100 companies by GoodShape revealed that less than half (40%) of those that published their leadership teams have an HR director, and only 31% had a Chief People Officer or equivalent role.

This lack of HR representation at the highest levels is concerning to many. In fact, 95% of Brits think it's crucial for companies to have HR representation on their executive teams, and 73% believe HR should play a significant role in shaping company strategy. The reluctance to include HR in top-level decision-making is often attributed to the perception that HR is merely a support function rather than a strategic partner.

Conclusion

The findings from HiBob’s research shed light on the complexities of managing Gen Z employees. While their demands and attitudes may pose challenges, their creativity and adaptability make them valuable assets. To effectively manage this generational shift, businesses need to elevate HR’s role in strategy and decision-making, ensuring that the unique needs and contributions of all employees are recognised and addressed. 

Toby Hough, Director of People and Culture at HiBob, comments, “The role of HR leaders in organisations has been undervalued for a long time, as the C-Suite focused on business-critical issues that didn’t used to involve employee wellbeing or demographic societal shifts.

“Today’s research clearly identifies Gen Z as one of leadership teams’ biggest challenges. That said, each generation brings their own unique set of challenges and opportunities to the workplace and the HR function is critical to getting the best out of all generations. To maximise their potential in today’s intergenerational workplace, UK businesses must appoint HR leaders to the C-suite.”