5 red flags that show you don’t understand your Gen Z employees 

Navigating the ever-evolving workplace is no small feat, especially when understanding Gen Z. In nearly two decades of steering organizations through change, I’ve witnessed how this generation is shaking things up. Here are five signs you’re not engaging them effectively, and strategies to get you back on track.

Not realizing Gen Z is way more skeptical of AI than millennials

Don’t assume that the first generation of digital natives would be more comfortable with AI than their older co-workers, the millennials. While both generations are tech-savvy, their attitudes toward artificial intelligence (AI) diverge in important ways.

According to a recent survey my company led of 1,200 knowledge workers, managers, and leaders, Gen Z is less likely than millennials to use AI. Only 63% believe AI has or will contribute to a more innovative work environment, compared to 73% of millennials, and only half agree that AI will improve decision-making, compared with 66% of millennials. The top emotion Gen Z feels about AI is “uncertainty.”

Strategy: Invest the time to thoroughly understand Gen Z’s unique perspectives around technology and the integration of AI at work. Learn from their life-long experience with the good and bad effects of technology. Acknowledge and value their cautious approach. Invite them to help identify, test, and drive the adoption of AI tools. Develop their AI capabilities and demonstrate how they can leverage them to enhance their roles and career growth. In short, engage Gen Z to be a part of your AI adoption strategy.

Assuming you can attract and retain them without strong company values

Gen Z employees want their employers to be a force for good in society and want to work for companies with values aligned with their own.

A recent report indicates that four in five would refuse to work for an organization that doesn’t share their values and several surveys reveal that more than half would quit. It’s also essential to this generation that companies be willing to speak out on the issues they care about and provide opportunities to learn and talk about them at work.

Strategy: Make sure your company’s mission, purpose, and values are clearly stated and your actions reflect your stated values to build a strong, inclusive culture. Be willing to take clear, public stands on important societal issues that make sense for your business and align with your purpose and values. Create forums for open, respectful, and authentic discussions within the workplace.

Thinking DEI is old news and not essential to your company’s future

Gen Z is the most ethnically and racially diverse generation that values working in diverse, inclusive workplaces. For them, diversity, equity, and inclusion are not a fad or a program, it’s core to their most cherished values and generational identity.

With Gen Z slated to become 30% of the workforce by 2030, shifting demographics suggest it’s unlikely the current DEI backlash will ultimately prevail. For this generation, DEI extends beyond racial and ethnic diversity to include sexual and gender diversity across all levels of the organization. Gen Z wants to see leaders who look like them. If they don’t, they’ll go elsewhere.

Strategy: Ensure leaders at every level of the organization understand how to build diverse and inclusive teams characterized by psychological safety and hold them accountable. Establish strong policies and practices to ensure equity in pay and opportunity. Embed the principles of inclusion into every facet of your culture. Notice and celebrate how diversity and inclusion create better outcomes.

Failing to harness Gen Z’s enthusiasm toward their employers

Leaders may be surprised to learn that Gen Z is generally more positive about the companies they work for than any other generation in the workforce. According to our survey findings, three in four believe their company treats employees fairly and 83% have confidence in their manager’s leadership. Additionally, more than three in four see themselves working for their current employer in two years.

Strategy: Leverage the positive attitudes of your Gen Z employees and continue to engage them: They want to be seen, heard, and valued. To the extent possible involve them in decision-making processes and maintain transparent communication. Continue to nurture this culture of trust to drive performance, spur innovation, and build loyalty.

Thinking that giving them flexibility means you’ll never see them in the office

Flexibility in the workplace is not just a perk for Gen Z; it is a necessity. Despite this, many organizations operate with the assumption that Gen Z employees need to work in traditional office settings to “earn the right” to have flexibility.

Gen Z more than any other generation believes in flexibility in where and when they work. But nearly two-thirds prefer a hybrid environment rather than exclusively remote work—higher than their Millennial, Gen X, and Baby Boom counterparts. They view in-office time as opportunities for learning, collaboration, and culture building.

Strategy: Consider hybrid models that enable employees to choose when and where they work best. Communicate your policies and apply them as consistently as possible to foster trust. If you ask Gen Z to be in the office more, be sure that a key component of their time is focused on developing the skills, relationships, and judgment needed for greater flexibility.

Understanding Gen Z requires a nuanced approach. By recognizing their distinct values—the importance of flexible work environments, publicly advocating for societal change, and diversity, equity, and inclusion—employers can attract and retain Gen Z talent and foster a dynamic and innovative organizational culture. Ignoring these signs can result in disengagement, high turnover, and a failure to capitalize on Gen Z’s fresh perspectives and skills.