As the next generation comes of age, their beliefs and expectations will likely reshape the landscape for brands and employers alike
Move over, millennials. Gen Z may be taking its turn in the spotlight. Born between the late 1990s and early 2010s,1 Gen Zers —like generations before them—are beginning to shape the cultural conversation and workplace expectations.
What tends to make Gen Z unique? Among other factors, Gen Z grew up in a world dominated by smartphones and social media.2 Older members of Gen Z finished their education and entered the workforce during the pandemic, when many companies went remote for months or longer.3 Meanwhile, cost of living and sustainability are major concerns for this generation, according to the 2023 Deloitte Global Gen Z and Millennial Survey. In fact, 50% of Gen Z respondents say they and their colleagues are pressuring businesses to take action on climate change.
As many younger members of Gen Z finish their educations and get their first jobs over the coming years, this generation is likely to become an even bigger part of every brand’s customer base and talent pool. This means that Gen Z attitudes and behaviors will likely impact the market even more. CMOs should get to know this generation both as customers and as employees—which can help all C-suite leaders shape an organization’s strategy for the future.
Gen Z as Customers
When marketing to this audience, CMOs can consider the following strategies:
Build trust through social impact. Deloitte’s research shows that across industries, Gen Z has the lowest trust of any generation. This research showed that, compared with other age groups, Gen Z is least influenced by actions that companies have historically used to build trust, such as transparency around financial practices or positive interactions with customer support. Instead, this cohort tends to develop trust based on whether a company has an authentically positive impact on humanity, such as strong diversity, equity, and inclusion or sustainability efforts.
Motivate through micro-influencers and social capital. Rather than traditional search engines, Gen Z uses social media platforms as a tool for finding advice, tutorials, and even new products.4 To reach Gen Z audiences, however, products often must first pass the test of micro-influencers—content creators this group often perceives as more trustworthy than influencers with massive audiences, according to Deloitte research. Gen Z may also be motivated by a desire to be part of a larger movement that aligns with their values. To help tap into this impulse, brands can partner with micro-influencers who have followings concerning causes that are top of mind for this generation—for example, reducing waste in clothing production.
Blend virtual and “IRL” experiences. Many Gen Zers grew up with devices in-hand5—and that experience may be reflected in their comfort with the virtual world. Half of Gen Z consider online experiences to be meaningful replacements for in-person interactions—compared with about one-third of the U.S. population—and 48% spend more time socializing on social media than in the physical world, according to Deloitte’s 2023 Digital Media Trends report. Brands can capitalize on this behavior by smoothly integrating branded online experiences into Gen Z’s existing online worlds, coordinated with real-world campaigns.
Deliver tailored content and instant gratification. Coming of age with social media, many Gen Zers are accustomed to an endless stream of targeted, user-generated content—and that expectation of a seamless, hyper-customized experience seems to extend to brand interactions. In fact, Deloitte’s research shows that Gen Zers tend to believe that most online tasks should be convenient and easy to accomplish. Marketers can work to meet this demand by establishing one-click purchase on social platforms, for example, or offering customized purchase recommendations.
Gen Z in the Workforce
Just as Gen Zers are making their voices heard as consumers, they’re also doing so in the workplace. As a voice of the customer in the C-suite, CMOs can partner with talent leaders to help the rest of the organization better understand the younger generation’s needs as employees. The following insights can serve as a starting point for change:
Gen Z seems hungry to learn—and needs to. Only half of Gen Z respondents to a Deloitte survey feel they’ve been trained well enough to be successful when they enter the workforce, and 59% of bosses said the same about their Gen Z workers. This gap could create an opportunity for organizations to develop unique programs tailored to Gen Z employees—some of whom started their first jobs in a virtual environment.
Empathy and mental health are top priorities. Asked to rank the top traits needed to relate to Gen Z, members of this generation rated empathy as the second most important trait in a boss, behind only patience. Yet bosses ranked empathy fifth. Deloitte’s research also finds that Gen Z tends to feel that their ideas differ most from those of workplace leaders when it comes to the mental health impact of work. To create a healthier and more engaged workforce, CMOs and other C-suite leaders can look for ways to bridge these disconnects and better support Gen Z.
Time off is a valuable reward. Gen Z workers ranked time off as their top choice for recognition by their bosses, according to Deloitte’s research. However, when bosses were asked how they currently reward or recognize employees, they listed time off a distant 12th. Time off as a reward may be best deployed to boost morale and help employees recharge after an employee or team works long hours and/or meets tight deadlines.
Gen Z finds less of their identity in their work. Deloitte’s research shows that Gen Zers place less value on work as part of their personal identities than their bosses do. In fact, only 49% of Gen Z polled in Deloitte’s Gen Z and Millennial Survey view work as important to their identity. This finding could present an opportunity for bosses to think about how to motivate their employees based upon each individual’s priorities, identity, and values.
The factors that tend to make Gen Z unique also represent a potential opportunity for brands and employers to forge connections. The more companies work to deeply understand Gen Z as customers and employees, the more likely Gen Z may be to buy from and work for them. And in this effort, CMOs can lead the way.
Content written by Deliotte for CMO Today. See more here