Survey: Gen Z is Unprepared for the Workforce, but Nearly Half of Companies Have Yet to Adapt to Them

Known for their tech and social media savvy, but perceived as lacking motivation and workplace etiquette, Gen Z is the new cultural obsession — and workplace punching bag.

This first generation growing up entirely in the digital world — and during a pandemic — has executives (and let’s be honest, a lot of us) scratching their heads.

But do today’s early-career employees really work that differently compared to previous generations?

New research from Endeavor Business Intelligence shows that a majority of executive, department-level and HR leaders are seeing a significant gap between what early-career employees bring to the workforce and what’s expected of them.

What is the problem with Gen Z?

The stakes are high to get things right with Gen Z, those born between 1997 and 2012. Currently aged 13 to 28, they will continue to flow into early-career positions over the next decade and make up more than 30% of the workforce by 2030.

Not only did 92% of leaders in the EBI survey (you can download the results here) observe a change in behavior in this generation compared to those of yesteryear in terms of work ethic, attitude and professionalism, but 90% said that change was for the worse.

The big concern wasn’t technical skills, but human ones. The survey of 649 leaders, most of whom have responsibilities for hiring, onboarding, managing and absorbing the cost of the readiness gap, identified more concerns about issues such as motivation, reliability and professionalism than about technical or job-related skills.

Write-in responses to the survey deployed from March 24 to April 16 were illuminating and more cutting. Responses repeatedly revealed themes of entitlement and unrealistic compensation expectations among early-career employees, along with a low tolerance for feedback and a fundamentally different relationship to work itself.  

The EBI survey, which attracted responses across EndeavorB2B’s brands, framed the predicament this way in its final report: “A motivation problem you can manage around; a generational recalibration of what work is worth is a far harder thing to train or incentivize away.”

What are Gen Z's strengths?

While most leaders in the survey pointed to Gen Z’s strengths, such as digital literacy and self-advocacy, a vocal minority said they could find no redeeming qualities in this generation and voiced alarm about what this means for their industries' long-term.

Most respondents acknowledged that generational stereotypes and social media narratives shape perceptions of Gen Z. Yet their responses remained critical of employees in that generation.

“That tension is the real finding here: Even employers who recognize the bias lens still land in the same place, suggesting the challenges feel real and observable enough to survive self-reflection,” read the report.

The expectations gap is a costly one. Taking on employees unprepared for the modern workforce leads to higher onboarding costs, longer ramp times and filling foundational skills gaps that other generations had when they arrived.

What’s next?

Employers indicated that laying out expectations from day one, with more structured training, clearer expectations and mentorship, is key to future success (although leaders were split on whether the gap will improve over the next three to five years; “Worsen” slightly won out).

Despite the concerns, few companies have made significant adjustments to address the challenges these early-career employees pose. Four out of 10 leaders said their company has made no changes to adapt to this generation through onboarding, mentoring or training programs; 37% have made moderate changes; 13% have made significant changes.

This moment requires leadership to adapt, just as they did in past generations shaped by conditions beyond their control, said Jamika Bivens, a leadership strategist and author of “The Power of Legacy: Holistic Leadership for Lasting Impact.”

Gen Z is centered on authenticity and is observant, she said. “If your culture says ‘people matter,’ but your systems reward burnout, your workforce will believe your system and not your words, and that's where Gen Z really places the mirror up to the corporate world and up to business in general,” she said.

The key to closing the gap lies in learning how to connect with this new generation, said Maya Hu-Chan, president of Global Leadership Associates, who works with executive leaders and Gen Z clients.

Several behaviors from leadership erode motivation from this group, namely micromanaging, playing favorites, advocating more for the bottom line than for workers and expecting more work without giving anything in return, whether it be compensation or acknowledgment, she said.

“Gen Z were not born lazy or unmotivated. It's a learned behavior. Motivation or reliability, those are skillsets they can develop if they feel this is something important and meaningful to them,” Hu-Chan said.

Action items for leaders

• Stop leading by assumption about generations. Have real conversations with employees about data and observations.
• Help employees understand how their role connects to the bigger picture. This generation has grown up with a lot of information at their fingertips, and they want to understand the “why” behind decisions. Explaining and building alignment between what these employees do and the overall goal will increase their engagement and ultimately their commitment.
• Create psychological safety. The world as a whole has become more understanding about issues like trauma, burnout and work-life balance. Employees have to feel heard, respected and safe to contribute and receive feedback without feeling ostracized or criticized in a non-helpful way.
• Customize your leadership style to different types of employees. “One size fits all, leadership no longer works,” Bivens said. For instance, a mid- or late-career employee who doesn’t need much attention or direction would benefit from one style of leadership, whereas a Gen Z employee who has many questions to understand the big picture would benefit from a different style.
• Provide smarter oversight. Create shared project trackers to check in regularly and build a habit of reliability and consistency. Shift your messaging from “Did you do that?” to “What do you need from me?” Provide the conditions for success.
• Stop playing favorites. Fairness and equity are strong values for this generation. Distribute assignments and workload intentionally. Ask employees what they think. Check yourself: do you gravitate toward employees who remind you of yourself? Remember, it’s your job to develop everyone on your team.
• Advocate for employees, rather than the bottom line. When the bottom line is the priority, this generation feels like they don’t really matter. Be a visible champion for your team’s needs, both with them and in rooms they are not in. Be transparent and don’t sugarcoat. Celebrate contributions publicly and ask what’s getting in their way. When they feel valued, they will try harder.
• Respect boundaries of the job description. Piling on extra responsibilities without additional compensation or recognition will cause them to leave. Be transparent when you need to ask for more, and acknowledge that they are going above and beyond. Be generous with public recognition of their extra work. Loyalty is earned with reciprocity.