Gen Z in the workplace: What managers need to know about the new generation of employees

For many managers, Gen Z in the workplace can present a challenge, as they’re often seen as the “difficult” generation to manage. A recent global survey found that 3 out of 4 managers describe Gen Z as the most challenging age group in today’s workplace. Yet this same generation is quietly reshaping how we think about productivity and purpose, bringing fresh expectations around balance, learning, flexibility, financial security, and sustainability.

This is a group unafraid to question outdated hierarchies and redefine success on their own terms. For managers, understanding Gen Z isn’t about keeping up with a trend—it’s about learning how to build resilient, motivated teams. And in doing so, they create workplaces that keep people engaged while strengthening the company’s reputation.

Drawing on statistics from Deloitte’s 2025 Gen Z & Millennial Survey, here’s what managers need to know to attract, engage, and retain Gen Z talent.

Who is Gen Z in the workplace and what makes them different?

Gen Z (born between 1995 and 2006) is entering the workforce with a new definition of success. Many are less driven by titles or leadership roles, and more by learning opportunities, flexibility, and personal growth. As a result, Deloitte’s research suggests that if companies don’t invest in developing young professionals early, they risk a shortage of future leaders.

At the same time, Generation Z is challenging traditional ideas about money and motivation. Financial concerns remain real—52% live paycheck to paycheck, 37% struggle to cover monthly expenses, and 41% worry about retirement security—but they’re not driven by salary alone. They care deeply about values and purpose:

• 89% say purpose at work is essential for satisfaction and well-being
• 52% of those whose values align with their organization report feeling happy
• Only 41% see work as a key part of their identity
• 48% have encouraged their employer to act on environmental issues

For managers, this means Gen Z is looking for purpose, integrity, authenticity, and environmental awareness—not just a paycheck.

Attracting and managing Gen Z: How to motivate Generation Z in the workplace

To attract and engage Gen Z, authenticity matters more than slogans. This generation pays attention to how companies behave, not just what they promise. Deloitte found that 70% of Gen Zs consider a company’s environmental record when deciding where to work, and 15% have already left jobs over sustainability concerns.

As mentioned before, money is still important, but not at the expense of balance and meaning. Gen Z employees want workplaces that see well-being as part of productivity. Their biggest stress factors—long hours, lack of recognition, and unfair decision-making—all point to workplaces that still measure commitment by hours, not results. 

But when it comes to motivating Gen Z in the workplace, many also feel that managers could offer more guidance, support, inspiration, mentorship, as well as help in setting boundaries to ensure work-life balance. Deloitte’s Human Capital Trends report adds context: managers spend nearly 40% of their time on administrative work but only 13% on developing people, and more than a third don’t feel fully equipped to manage others. Strengthening leadership and people-development skills is therefore key to long-term engagement.

What managers can do:

• Be transparent about company values and purpose
• Back sustainability and inclusion efforts with measurable action—for example, set clear environmental goals or publish progress reports
• Offer flexibility beyond schedules—let employees decide how they achieve results, not just when they work 
• Recognize effort and progress with regular, transparent feedback instead of relying on annual reviews
• Offer guidance, feedback, and mentorship opportunities
• Help employees manage workloads and set realistic boundaries—tools like DeskTime can help managers identify overwork, encourage healthier habits, and support balance without micromanaging
• Encourage open conversations about mental health 
• Keep improving your own people-management skills

Learning as a core value for Gen Z

If one theme defines Gen Z, it’s the desire to learn. 70% are developing new skills at least once a week, 30% do so during working hours, and 67% continue learning in their personal time. For them, growth isn’t a bonus—it’s an expectation. So, we had to highlight learning as its own key factor in both attracting and retaining Gen Z talent in the workplace.

Most (86%) want guidance from experienced colleagues, and 89% prefer hands-on experience. They value both technical and soft skills—communication, leadership, empathy, and time management.

For companies, this is more than an HR trend—it’s a competitive advantage. Structured in-house learning programs, mentoring systems, access to online courses, and opportunities like job shadowing or project rotations help employees learn faster while strengthening internal talent pipelines.

AI is also reshaping how people grow at work. As automation transforms entry-level roles, organizations will need to reskill employees in both technological and human skills—from data literacy to emotional intelligence. Building AI confidence early will help teams adapt, while strengthening empathy and strategic thinking prepares them for future leadership.

Meanwhile, traditional career paths are shifting. Around a third of Gen Zs have chosen not to pursue higher education, which means recruitment practices should evolve too. Dropping degree requirements for some roles, offering apprenticeships, or partnering with universities to offer practical experience can help attract diverse, skilled candidates and close talent gaps.

What managers can do:

• Set aside regular time for learning during the workweek
• Support employees with budgets for external courses or certifications
• Create mentoring and peer-learning programs
• Encourage job rotation or shadowing to expand experience
• Integrate AI and digital-skills training into professional development
• Review recruitment criteria to focus on skills and potential, not just degrees

Retaining Gen Z: Building trust and growth

Retaining Gen Z in the workplace is one of the biggest challenges. Nearly one-third (31%) of Gen Z professionals plan to leave their current job within two years—not because of disloyalty, but to find better balance, clearer growth opportunities, purpose, and more meaningful work. 

• 44% have already left a job that lacked purpose 
• 86% want continuous mentoring and skill development
• Gen Z believes soft skills like empathy and leadership are now more important than ever. 

For Gen Z, loyalty grows from progress and trust. They stay where they can learn, be heard, and feel supported. That may be the key to attracting new talent and reducing turnover—and, most importantly, to building genuine engagement and long-term satisfaction.

What managers can do:

• Build trust through transparency and by openly explaining the “why” behind company decisions
• Offer visible growth paths and mentoring opportunities
• Support well-being by modeling healthy boundaries—encourage time off, avoid after-hours emails, and use productivity tools like DeskTime to spot overwork early
• Reward output rather than long hours

Gen Z at the workplace are not a challenge, but a wake-up call

Gen Z in the workplace isn’t a challenge—it’s a chance to build better, more balanced teams. This generation is asking important questions about purpose, flexibility, well-being, and growth, forcing organizations to rethink what truly drives performance.

For managers ready to adapt, Gen Z offers an opportunity to create workplaces where balance and productivity go hand in hand—and where both people and organizations can thrive.

Article written by

Julia Gifford

Julia Gifford is the co-founder of Truesix, an award-winning content marketing and PR agency with a focus on visibility for high tech organizations. She was part of the founding team of Printful, Latvia's first startup unicorn. She is an editor and contributor at Labs of Latvia and a regular contributor to Tech.eu.