Private chauffeurs, spa days and more independence: How businesses can deal with Gen Z employees... by a Gen Z boss
Our newest and youngest crop of workers, Gen Z – those born between 1997 and 2012 – have had plenty of mud slung at them, with accusations of being entitled and throwing their toys out of the pram if certain demands aren’t met.
But, young entrepreneur Tim Armoo has had a different experience of younger workers and believes it is old school management techniques that need to change, not the attitude of Gen Z…
At 21, I started a company to help brands reach Gen Z through influencers.
By 27, I had grown the company to 80 people with more than half the company under 25.
This provided me with a unique insight into not only how to reach them but also how to hire and retain the best talent.
La-Z Gen Z? Tim Armoo says it is a misconception and they just need to be managed better
The truth is, there are tons of misconceptions about Gen Z:
In my experience, that’s not true. What is true is that the old way of working and management doesn’t translate nearly as well.
Here are my tips on managing and understanding Gen Z to get the most out of them.
1. Expect them to be demanding
Gen Z has grown up with everything at their fingertips.
Amazon delivers in a day; Uber taxis within minutes; Deliveroo delivers food in 20 minutes, all with a few clicks on a smartphone.
This ‘on demand’ nature of living means that their sense of speed and urgency differs vastly from most people.
They’re constantly thinking things should be faster and this attitude can creep into their working environment.
Additionally, growing up in a social media-ruled world has exposed them to way more than previous generations were at that age.
Whilst some might think this is a problem, there are benefits – one is that they can react insanely quickly to news, issues and change.
Rapid adaptation is in their blood. They were raised on change, even if just from the memes they consumed and YouTube channels they watched.
This also means they are exceptional at reacting to criticism and praise. So if you have feedback, don’t save it for the performance review.
Tell them and let them change now. Chances are they will be able to change and adapt 3, 4, 5 times before the performance review arrives, and then it’s a very different conversation.
I know it can be easy to say: ‘These guys should wait their turn because you had to’ but understanding the need for speed is key. Without it, they will move on or stop trying.
How to put it into practice
You can use mini promotions through a job which don’t mean an increase in pay.
One example is giving responsibility for small things like a Christmas party, small client work, or organising a team building day.
It fulfils the desire for change and challenge that otherwise monotonous tasks don’t.
2. They’ve grown up with a ‘why’ mentality
‘Because I said so.’ doesn’t work on Gen Z. They do not accept orders without a justified ‘why’.
You’d have to explain ‘why’ a lot more.
This Is Money’s columnist Tim Armoo sold his social media agency for an 8 figure sum
When you have so much information at your fingertips you’re used to figuring out why things should be the case.
You make up frameworks in your head based on the information you have, and justify why certain decisions are made.
Take that away from someone with this mindset and you’ll be greeted with endless curiosity and answer demanding questions – not ideal.
An example is when I explained why we had to do certain reports in a particular way and that they couldn’t just figure it out themselves before sending it to clients.
This seems logical to most other people but to Gen Z it’s not a case of ‘how should I do it’ it’s ‘why should we do it this way?’
Very different questions that require very different management styles.
How to put this into practice
Try to explain two layers deep.
An example: We’re doing this sales pitch in person because Mr Smith is a more traditional businessman who places a high value on the person he buys from and their handshake, not the product they’re selling.
This is important because without going this extra mile, he’ll never agree to do business with us, no matter how good our offer is.
Now this is something Gen Z can understand.
Would they act the same way? No.
Do they have justification for their actions? Yes.
3. Reward with autonomy
The conventional world of work was based on seniority and experience.
That’s not the case anymore because Gen Z believes that the more money they create, the more money they should make.
To some degree this is a great thing. It means that they believe in working for their money but it can be a bad thing because it upsets the typical pecking order.
‘You have to wait 3 years to become a senior and make this money because that’s what everyone else did’ isn’t a pathway that Gen Z buys into. In fact, following this pathway is only going to drive away the top talent.
Things have to change.
How to put into practice
Bonus schemes that can give them a slice of the upside.
Perhaps their bonuses are mostly based on their contribution to the company rather than just a group.
Performance-related bonuses were critical to the success of my last company, and the Gen Z workforce loved it.
They deemed it was a fair deal and were happy to go the extra mile for extra pay.
Simple really.
Reward employees: Public social rewards are stronger than private financial rewards
4. Give it to them real
They’ve grown up in a world of fakeness.
Instagram is fake, emails are fake, politicians are fake, and influencers are fake.
Everything requires them to be sceptical, otherwise they run the risk of mindless consumption and manipulation. There have been far too many examples of this happening already, and Gen Z is fully aware of that.
There is a deep desire for realness and transparency. This is good because it means you can get to the end goal faster.
If someone is underperforming you don’t try and play it coy – the team knows and they know. Instead, tell them and tell them why. They all respect you more for that.
If you say you’re going to do something, do it and if you can’t, then say it. False promises are a really quick way to lose Gen Z’s trust.
Similarly, you can create a culture of transparency at your workplace.
This doesn’t mean belittling them, publicly shaming them and embarrassing the team. That’s a terrible idea.
All you should do is give them feedback directly, in private.
The culture is that of not sugarcoating feedback, not a culture of public criticism.
How to put into practice
Practice being more transparent at your next meeting or review.
Be clear and objective about performance and if someone is slacking, make a point to talk to them about it.
5. Public social rewards are stronger than private financial rewards
When you have a generation that has grown up with social media, their rewards are not just financial. If anything the more external it is the better.
Business energy: Can you save?
This is Money has partnered with business energy specialist Bionic to help you compare costs.
> See if Bionic can help your small business save on energy*
They need to flex it on Instagram and show off to their friends.
This is good for employers because it means that motivation is not just through more money but through things that actually cost less.
Examples include having a chauffeur pick them up every day for a week; Sending them on a spa day; vouchers for a fancy, in-demand restaurant, and so on.
These things are things they’d put on their social media which make the company look good and can also reduce your recruiting costs.
Their friends will see the rewards and think ‘I should work there’ – it really is a multi-benefit action.
Some of our best employees came in through this sort of method. So we doubled down, and even more employees came in via this method.
It’s a self-fulfilling cycle.
How to put into practice
List some social rewards which make them look good and are cheaper than giving the person a raise.
Focus on the virality and shareability of the reward.
Always ask yourself: ‘Will this be shared on Instagram?’
If the answer is yes, write it down.