Last year, Agilus introduced the UnSalary Guide to help employers navigate a new era shaped by pay transparency and instant access to salary data across platforms. With legislation like British Columbia’s pay transparency mandates now in effect, the once-secret salary has become less central to attracting talent. Our 2024 UnSalary Guide explored how factors like fit, culture, values, mobility, and professional development have emerged as key drivers for job seekers.
This year, the focus shifts to another crucial factor: generational synergy. For the first time, five generations coexist in the workplace. While this diversity fuels innovation and creativity, it also brings challenges in communication and collaboration. Forward-thinking businesses recognize the need to understand what motivates each generation to improve not only retention but the overall work experience. To discover more about the impact of different generations on Canadian workforce, read our blog series “Creating Generational Synergies Series”.
At Agilus, we’ve developed resources to help employers harness this synergy and create workplaces where everyone thrives. Dive into our latest insights on Generation Z and their vital role in today’s workforce.
Generation Z (Born 1997-2012) in Canadian workplaces:
The newest generation to enter the Canadian job market is Generation Z. A 2021 census of working-age Canadians revealed that GenZ comprises 17.6% of the working population in Canada, followed by Generation X (19.7%) and Millennials (29.5%).
Even though GenZ is very much a part of the Canadian workplaces, research shows that they are stepping away from the conventional corporate jobs and choosing more diverse and flexible professions. Moreover, unlike their preceding generation, where only 66% of Millennials were keen to start their own ventures, 93% of Gen Z have already taken at least one step toward exploring entrepreneurship, according to Zen Business’s 2023 Neurodiversity and Entrepreneurship Survey. Their entrepreneurial mindset and unique perspective to traditional work will shape the future of work in Canada.
Gen Z, born between 1997 and 2012, grew up in a fast-paced digital age defined by social media, viral trends, and groundbreaking tech. Their formative years were shaped by the rise of Instagram influencers, the cultural dominance of Marvel movies, and binge-worthy shows like Stranger Things and Euphoria. Many vividly remember scrolling through TikTok during the pandemic, where dances and memes united millions in real-time. From AirPods to oversized streetwear and Y2K-inspired aesthetics, their cultural touchpoints define a generation that seamlessly blends nostalgia with innovation in a world where everything’s just a click away.
Some key characteristics of Generation Z:
Often associated with a desire for purpose and balance, GenZ is the first true digital-native generation, shaped by the internet, social media, and rapid technological advancements. They value meaningful work and are driven by opportunities for personal growth and societal impact rather than just a paycheck.
Gen Z tends to prioritize flexibility, often seeking remote work options and employers who champion diversity, mental health, and environmental sustainability. They thrive in collaborative environments and appreciate leadership that is inclusive, transparent, and authentic. While they welcome feedback, they prefer it to be more specifically constructive and delivered with empathy.
Much like the ever-evolving trends of their youth—whether it’s TikTok’s creativity, the social consciousness of Gen Z musicians like K-pop, Billie Eilish or Justin Bieber, or the progressive energy of movements like climate action—this generation is redefining the workforce with a forward-thinking, adaptable approach that embraces innovation and equity.
If you are managing, leading or working with a Gen Z, understanding their challenges and key drivers can enable you to leverage the opportunities this generation brings to your team.
Challenges faced by GenZ in workforce:
By 2031, 31.5% of GenZ will be working in the Canadian workforce. Despite making their first forays into the workforce, with their eldest members being spry 28 years old, this cohort is already experiencing its share of work challenges.
Ageism: One of the most common challenges faced by the GenZ is reverse ageism. A survey by Intelligent.com revealed that nearly 4 in 10 employers avoid hiring recent graduates in favour of older employees. The same survey also revealed that 58% of surveyed employers did not believe that graduates are prepared for the workforce. Blame it on lack of experience in terms of time spent in the industry or an unexplained prejudice against the younger generation, this generation is not actively considered when it comes to offering growth opportunities, promotions, etc., in workplaces, due to them being regarded as a “novice” in the workforce by more senior employees.
Stereotyping: Several stereotypes exist about GenZ and these can affect their ability to perform in their jobs and pursue career progression the way former generations have. For example, GenZ are often regarded as the digital native generation and as such, some employers do not trust they will do their jobs without using social media and other online resources. Their stereotype of being “tech-savy” can make them feel embarrassed to ask technology related questions since they are widely regarded as somewhat of digital natives Additionally, such biases may hinder the acceptance of their ideas and limit their ability to acquire valuable knowledge and experience within their teams. These stereotypes can lead to unfair treatment, including fewer opportunities for professional growth.
Work-Life balance & well-being: One of the most important critical challenges that this generation is battling with is mental health. Gen Z struggles with mental health conditions at higher rates than other generations. A recent article by Psychology Canada points out that, 37% of Gen Z teens feel persistently sad or hopeless. Thankfully, compared to other generations, their pursuit for better mental health is higher. This is evident by the report by Deloitte which reveals that when asked which aspect of their lives they prioritize most, mental health comes first for Gen Zs (28%), well ahead of their physical health (19%) in second place.
Technology: A common perception about GenZ is that they thrive on technology as they are regarded as digital natives. There is no doubt that their familiarity and participation in social media, communication tools and data tools have been a driving force to the tech advancement as we know today. However, when it comes to professional tools, their experience is limited according to senior leaders. For instance, as Debbie Irish, Head of Human Resources at Hewlett Packard UK & Ireland points out, “While young professionals may be more accustomed to digital environments, and certainly social media platforms, this doesn’t always carry over to professional tools.” They might not have much experience (if any at all) with platforms like Teams, Slack, or even email etiquettes, and because it’s assumed they’re tech-savvy, they may feel too embarrassed to ask for help.
Opportunities for Employers:
The entry of GenZ presents a unique opportunity for Canadian workplaces. This generation’s perspectives, priorities and attitudes in history, are greatly shaped by global events such as the Covid-19 pandemic, political turmoil, and social instability. Gen Z brings a unique mix of fresh perspective and technological savviness to workplace. Here are some ways employers can harness the true potential of this generation:
Mentorship: While many employers are concerned about the lack of adequate skilled labour to replace the retiring/exiting workforce, and rightly so, it is important to recognize that the replacement of current working generations in workforce by GenZ is inevitable. Under such circumstances, it is imperative to train and mentor this generation to bring them up to skill. Mentorship is valued by GenZ- a research by Waterloo University found that three out of four GenZ respondents rated mentorship as essential to their learning support from employers.
Making mentoring opportunities available for GenZ can not only help them feel valued, but also help employers pass on the legacy of proven skills to this new cohort. Employers who are ahead of the curve recognize that mentoring is an important part of recruitment and a significant piece of a strategic plan to ramp up hiring, improve retention and provide employees with opportunities to increase their knowledge and skills.
Retention Strategies: GenZ is dubbed a restless generation. An article by Forbes Magazine reveals that 40% of GenZ want to leave their current role within two years and 35% say they would leave their current job without having another one to move to. Another report suggests that 1 in 4 Gen Z employees are unhappy at work and 20% are considering quitting their jobs. Just like their preceding generation, this generation values flexible work opportunities and opportunities for continuous growth and development. However, they are not encouraged by monetary benefits alone, and place more importance on work with a purpose, and diversity and inclusion within workplaces. Businesses will need to adopt a truly unique approach if they aspire to retain GenZ talent keeping all these factors in mind.
Reverse Mentorship: Knowledge transfer within organizations plays a pivotal role in ensuring the continuity and growth of institutional expertise. As GenZ enters the workforce, it is imperative for them to have opportunities to enrich their industry knowledge, historical context, and gain practical learnings from the previous generations. But, it is also important for them to feel that they are not only learning but also contributing. One unique way to shift this paradigm is by “reverse mentoring.” Having lived their entire lives as digital natives, GenZ are primed to transfer their expertise in technology, digital skills and other emerging trends to the preceding generations. Business leaders who can implement reverse mentoring in their teams facilitate a circular flow of information and skills transforming workplaces into a reciprocal learning environment.
Upskilling Programs: One keyway of bridging gaps between multi-generational team members is providing upskilling, reskilling and continuous learning opportunities. Statistics show that 57% Gen Z believe that upskilling is very important for advancing their careers. With this intrinsic motivation to learn and adopt new skills, employers have a huge opportunity to leverage GenZ’s keenness to upskill by providing and supporting learning and growth opportunities. These can encompass granting access to training programs, workshops and various resources that aid in their skill development for career advancement. The combination of these upskilling programs, in addition with mentorship, can help business leaders build a strong, resilient workforce.
Conclusion
GenZ are disrupting the Canadian work culture with new perspectives and unique approaches to work. Their expertise in technology and digital advancements will pave the way to creating a forward-looking and technologically advanced Canadian economy. Recognizing their value and addressing their challenges are essential steps toward building an inclusive and resilient workforce. Employers should create talent strategies that harness their skills and capabilities while creating the workforce of tomorrow.
Leading a multigenerational team requires cultivating an inclusive environment where everyone feels valued, respected, and empowered to bring their unique strengths. Successful businesses in Canada recognize the value of seeing beyond stereotypes and look for opportunities. They recognize that while generational traits may stem from shared timelines and experiences, they don’t define individuals. Prioritizing clear communication, encouraging mutual respect, and tailoring approaches to meet individual motivations and needs can help leverage the diverse strengths of multigenerational teams and instill a feeling of value and belonging.
Building common ground is a shared responsibility. By understanding what drives each generation, we can close gaps, foster collaboration, and unlock full potential of a diverse team.
At Agilus, our experience of working with multi generational and diverse candidates, enables us to understand the nuances of recruiting talent from different generations. If you are looking for more resources on how to drive success from a multi-generational workforce, watch our recorded webinar and download our free workbook today.