Understanding Gen Z in the Workforce

As Gen Z reshapes the workforce, employers must prioritize community, compensation and mental health initiatives.

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Generation Z is rapidly entering the workforce, and as a result, it is important for employers to understand their perspective to attract and retain this talent. To understand Gen Z at a deeper level, Tugman Consulting completed in-depth interviews with a sample of Generation Z participants ranging in age from 19-24, with 22 being the most common age within the study.

Generation Z, born between 1997 and 2012, makes up 27% of the global workforce as of 2025, bringing unique perspectives and expectations to the workplace. Their experiences, particularly during COVID-19, have shaped their values around work-life balance, mental health, and community.

The study findings:

Importance of Community in the Workplace

Gen Z places a high value on connection and community among coworkers, which significantly influences their job satisfaction.

  • Participants expressed a desire for friendships with coworkers outside of work.
  • Employers should facilitate opportunities for candidates to meet potential coworkers during the hiring process.
  • A welcoming environment that allows for open communication is essential for Gen Z employees.
Compensation and Financial Empowerment

Financial security is a top priority for Gen Z, who expect livable wages and compensation that allows for a fulfilling life.

  • Participants emphasized the importance of being paid fairly for their work.
  • Many expressed anxiety about achieving the same financial stability as previous generations.
  • Compensation should enable experiences, such as travel, rather than just covering basic living expenses.
Normalization of Mental Health Conversations

Mental health discussions are commonplace for Gen Z, who expect workplaces to support their mental well-being.

  • Participants indicated that time for therapy is crucial, and not allowing it is a deal-breaker.
  • Employers are expected to take an active role in preserving the mental health of their workforce.
  • Open conversations about mental health should be encouraged in the workplace.
  • Managers should take time to "know" employees so they can differentiate between an emerging mental health issue and a performance issue.
Diversity, Equity, and Inclusion as Core Values

Gen Z views diversity, equity, and inclusion (DEI) as essential components of a workplace culture, not just as programs.

  • Participants said visible diversity is crucial; lack of it could lead them to seek other job opportunities.
  • DEI should be integrated into business practices rather than treated as a checkbox exercise.
  • Inclusion means valuing contributions from people of all ages and experiences.
Flexibility in Work Arrangements

Flexibility is a key expectation for Gen Z, who seek a balance between work and personal life.

  • Participants want to work hard but do not want to be defined by their jobs.
  • They prefer environments that recognize personal needs and allow for flexibility in work hours.
  • Hybrid work arrangements are seen as ideal for maintaining work-life balance.
Career Growth and Development Opportunities

Opportunities for career advancement are critical for Gen Z, who desire transparency in growth paths.

  • Participants expressed a need for clear communication about development and learning opportunities.
  • They expect to be considered for advancement despite their age and level of experience.
  • Many believe that moving between roles is essential for growth and learning.
Impact of COVID-19 on Work Perspectives

The COVID-19 pandemic has significantly influenced Gen Z's views on work, emphasizing the importance of meaningful employment.

  • Participants want to work for companies that align with their values and contribute to society.
  • The pandemic has heightened their appreciation for in-person connections and the need for balance in work.
  • They resist returning to pre-pandemic work norms that do not prioritize well-being.

Generation Z is bringing new perspectives into the workplace. They are open about their mental health and where they stand on social issues. They will bring their whole selves to work, and they expect their managers to be comfortable with that. Employers should beware of stereotypes. 

While this generation does not work to live, they are hardworking and will give their all for the right work environment and financial compensation. Understanding this generation's perspective will not only help employers attract and retain them, but it will also help gain their trust and loyalty, which will lead to their optimal productivity.


Kristin Tugman

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Kristin Tugman

Kristin Tugman has been in the health and productivity and workplace mental health industries for over 25 years. 

Dr. Tugman is a Certified Rehabilitation Counselor by training and a Licensed Professional Counselor. Dr. Tugman graduated from Georgia State University with a master’s degree in rehabilitation counseling and earned a PhD in industrial and organizational psychology from Capella University. 

She is also an adjunct professor at the University of Southern Maine and Pacific Coast University for workplace health sciences. She was previously adjunct at Penn State University and University of Tennessee, Chattanooga.

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