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Gartner Report

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Gartner Report

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ajayrajmahala
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The New Graduate:

The Career Aspirations


of Generation Z

Talent Acquisition Quarterly | First Quarter 2019 9


The Digitally Native Employee The quality of technology now available means
Gen Z candidates do not relate to concepts
Generation Z candidates (those born from of rigid work hours or “presenteeism.” These
the mid-1990s to the early 2000s), like their graduates expect employers to guarantee
millennial predecessors, have grown up in the flexibility they have taken advantage of
an age when knowledge work, rather than throughout their studies, which they believe will
also shape their professional lives.
industrial work, is dominant. Their main capital
as job seekers is their knowledge and skill set, This cohort certainly has a good idea of what
carefully shaped and grown over the course of they want from work; 37% of Gen Z candidates
their studies. agree or strongly agree they know what they
need from an offer to consider accepting it
While factory workers in the industrial age only (see Figure 1).
worked conveyor belts for a limited period
Location is not as important to this generation as
so they could benefit from natural daylight it was to its predecessors. Gen Z has carried out
(launching the nine-to-five workday), knowledge its studies in cafes or on beaches, over the Wi-Fi
workers can do their work anytime, anywhere. connection of a local Starbucks, or on mobile
However, since millennials entered the workforce, phones in the gym. To do research, read studies
the tools used to get this work done have and write papers, all this generation ever needed
proliferated and become more sophisticated. was a viable 3G signal.

Figure 1: “When I Applied for the Position, I Already Knew What I Needed to See
From an Offer to Consider Accepting It”
Percentage of Generation Z Respondents

40%
40%

31%

25%

20%
20%
17%

12%
8%
5%
2%
0%
0%
Strongly Disagree Somewhat Neither Somewhat Agree Strongly
Disagree Disagree Agree nor Agree Agree
Disagree
n = 753
Source: Gartner 2018 Candidate Recruiting Efficiency Survey

Talent Acquisition Quarterly | First Quarter 2019 10


In 2014, 28% of millennials aged 21 to 24 listed
location as a top attraction driver, versus just
“Today, it’s less about work-life
20% of Gen Z candidates aged 21 to 24 in 2017 balance and more about work-life
(see Figure 2). Knowledge work in the digital age
is not only defined by its offerings, but also by its integration.”
flexibility; graduates today do not expect to be
- Head of Recruiting,
rooted in one place because of their work.
Insurance Company
The flexibility knowledge work affords today’s
workers means Gen Z is being raised in an
environment where there is little delineation
between work and play. They believe work Figure 2: Location as a Top EVP Attribute
should accommodate play, and play should be Listed by Respondents Aged 21 to 24
incorporated in work.
Compensation is no longer a guaranteed method 30% 28%
of keeping the young workforce in seat: While
in 2013, 41% of millennials aged 21 to 24 listed
compensation as a driver of attrition, only 20%
36% of Gen Z candidates did so in 2017. The
consensus among graduate recruiting leaders
is that the next generation cares increasingly 15%
about work-life integration, not just work-life
balance. A better paycheck does not necessarily
allow the pursuit of a secondary career interest
— as budding entrepreneurs seek to develop
apps on the side while juggling their corporate 0%
jobs. As Gen Z candidates search for careers to 2014 (Millennials) 2017 (Generation Z)
accommodate their lifestyle, compensation is no
longer a definitive reason to leave a job that may n = 4,206 (2014); 4,508 (2017)
allow for work-life integration. Source: Gartner Global Labor Market Survey

Talent Acquisition Quarterly | First Quarter 2019 11


The Decline of the Planned Table 1: Top Five Memorable Career
Career Experiences by Generation

As the first truly digitally native graduate,


Millennials Generation Z
the Generation Z candidate has grown up
surrounded by technology that makes life easier, Arriving late due Negotiating changes
or at least faster. Deliveroo will get them their to an unexpected in compensation for
food when they want it from the lunch place change in your normal a direct report
they like. WhatsApp will tell them when their transportation
friends have read their texts. Uber will get them
Planning your career Being embroiled in
to their destination. This generation is used to
path at your current a conflict at work
an accelerated way of life, where response is
organization
instantaneous.
These factors bleed into Gen Z’s career Leaving work Dismissing a staff
expectations; they expect rapid progression early due to an member
and reward for their efforts — to be recognized unexpected change in
someone else’s schedule
on merit and potential, rather than tenure.
Generation Z’s predecessors list formalizing a Soft-skill training Being passed over for
career path at their current organization as a sponsored by employer a promotion
top “memorable” career experience. However,
Generation Z are more likely to remember the Being in a formal or Managing an
time they were passed over for a promotion informal accelerated underperformer
(see Table 1). development program
for high performers
Gen Z’s predecessors were strongly driven by
future career paths at their organizations (34% of n = 5,873 employees
Source: Gartner 2018 Digital Employee Experience Survey
millennials aged 21 to 24 listed this attribute as a
top attraction driver). Yet Gen Z do not rate the
career path as highly. In 2017, only 27% of Gen Z
candidates listed this attribute as a top attraction
driver (see Figure 3). Figure 3: Career Paths as a Top Attraction
Driver
Listed by Respondents Aged 21 to 24

“Students get their first 40%


40%
34%
promotion and then
their second and third 27%
promotions seem far away,
so they jump to a new 20%
company … after around
two years, they have to go
somewhere else to get to
the next step.” 0%
0%
2014 (Millennials) 2017 (Generation Z)
- Head of Recruiting, n = 4,206 (2014); 4,508 (2017)
Insurance Company Source: Gartner Global Labor Market Survey

Talent Acquisition Quarterly | First Quarter 2019 12


It no longer matters as much whether a Figure 4: Stability as a Top Attraction Driver
company has a dazzling lineup of future jobs Listed by Respondents Aged 21 to 24
available, because the Gen Z candidate is utterly
comfortable career hopping to get ahead. 40%
40% 33%
Planning a formal career path at one company
is not what motivates this generation: They are 27%
less driven by the promise of stability than their
predecessors, who grew up during the financial 20%
20%
crisis (see Figure 4).
This also shows in attrition data. Almost half
(46%) of millennials aged 21 to 24 in 2014 agreed 0%
0%
a lack of future career paths was a driver of 2014 (Millennials) 2017 (Generation Z)
attrition.1 But in 2017, only 38% of Gen Z saw n = 4,206 (2014); 4,508 (2017)
a future career path as a top reason to leave Source: Gartner Global Labor Market Survey
their company. This is not a generation that
easily commits: indeed, only 43% of Generation
Z graduates see themselves as having a long
Figure 5: Generation Z Future Career Paths
career in their organization. And only 30% of Gen
Z graduates have a clear plan in place for the Respondents Who Agree
next five years of their career (see Figure 5).
50%
50% 43%
The Age of Development
30%
Through its parents and professors, Gen Z has 25%
25%
seen the rapid changes the workplace goes
through with each technology innovation. And
it’s not just the workplace that undergoes these
transformations: More importantly for today’s 0%
0%
graduate, it’s the business models, products and I See Myself Having I Have a Clear Plan in
services of those workplaces, too. Today’s iPhone a Long Career at Place for the Next Five
will be replaced by tomorrow’s Android. Alexa My Organization Years of My Career
will have to compete with the Siris of the future. n = 753
Standing desks give way to treadmill desks. The Source: Gartner 2018 Recruiting Efficiency Survey for Candidates

Gen Z candidate understands innovation and


change are the new orders of the day — and
becoming an irrelevant or outdated resource is a Figure 6: Development Opportunities
key risk to mitigate as they take their first steps in
as a Top Attraction Driver
their careers.
Listed by Respondents Aged 21 to 24
As such, the steady rise in the importance of
development opportunities — such as enrollment 30%
30%
in training programs, continuing education or 23%
23%
participation in boot camps and workshops
17%
17%
— seems inevitable. In 2017, 23% of Gen Z
candidates listed development opportunities as 15%
15%
a top attraction driver, while five years earlier
only 17% of millennials aged 21 to 24 did so
(see Figure 6).
0%
0%
The development opportunities that will allow 2014 (Millennials) 2017 (Generation Z)
this generation to constantly grow and evolve its n = 4,206 (2014); 4,508 (2017)
skill sets are crucial to career commitment. Source: Gartner Global Labor Market Survey

Talent Acquisition Quarterly | First Quarter 2019 13


These candidates understand they will be hired
for their unique skill sets and knowledge as the
first digitally native class to be taught these
valuable new-to-world assets in university. But
they also understand how rapidly those skill sets
can become outdated.
More than anyone, it’s an employee’s manager
who influences the type of development an
employee gets on the job. The next generation
knows this; 33% of the Gen Z workforce ranked
manager quality as a top reason to leave their
current job in 2017, versus only 22% of millennials
aged 21 to 24 in 2013.

Conclusion
Today’s graduates are a product of the
environment they grew up in — fast-paced,
marked by change and driven by convenience.
Compensation no longer holds the dominance
it once had to attract the future workforce,
as the boundaries between work and play
become blurred and the ability to accommodate
lifestyle interests becomes a priority to the
next generation.
Motivated by growth and opportunity, Gen Z will
not commit to a formal career plan or be swayed
by an organization’s future career opportunities if
it does not offer the fast progression expected in
an age of acceleration and innovation. Managers
become ever more important in this narrative,
as today’s graduates rely on them to connect to
development opportunities that ensure up-to-
date skill sets.

Talent Acquisition Quarterly | First Quarter 2019 14

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