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Our newest, youngest generation of workers, Generation Z (those born between 1997 and 2012), have had a lot of mud thrown at them, with accusations of being entitled and throwing their toys out of the stroller if certain demands are not met.
But young entrepreneur Tim Armoo has had a different experience with younger workers and believes it’s old-school management techniques that need to change, not the attitude of Generation Z…
At age 21, I founded a company to help brands reach Generation Z through influencers.
By 27, he had grown the company to 80 people and more than half of the company was under 25 years old.
This gave me unique insight into not only how to reach them but also how to recruit and retain top talent.
La-Z Generation Z? Tim Armoo says it’s a misconception and they simply need to be managed better.
The truth is, there are tons of misconceptions about Generation Z:
In my experience, that is not true. What is true is that the old way of working and managing does not translate as well.
Here are my tips on how to manage and understand Generation Z to get the most out of them.
1. Expect them to be demanding
Generation Z has grown up with everything at their fingertips.
Amazon delivers in one day; Uber taxis in minutes; Deliveroo delivers food in 20 minutes, all with a few clicks on a smartphone.
This “on-demand” nature of living means that your sense of speed and urgency differs greatly from that of most people.
They constantly think that things should be faster, and this attitude can creep into their work environment.
Additionally, growing up in a world ruled by social media has exposed them to much more than previous generations at that age.
While some might think this is a problem, there are benefits: one is that they can react incredibly quickly to news, problems, and changes.
Quick adaptation is in their blood. They were raised on change, if only by the memes they consumed and the YouTube channels they watched.
This also means that 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 can change and adapt 3, 4, 5 times before the performance review comes around, and then it will be 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 that don’t mean a salary increase.
An example is taking responsibility for small things like a Christmas party, small jobs for clients, or organizing a team building day.
It satisfies the desire for change and challenge that otherwise monotonous tasks fail to achieve.
2. They have grown up with a “why” mentality
‘Because I said.’ doesn’t work on Generation Z. They don’t accept requests without a justified “why.”
You would have to explain the “why” a lot more.
This Is Money 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 way they are.
You create 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 answering demanding questions, which isn’t ideal.
An example is when I explained to them why we had to do certain reports in a particular way and that they couldn’t figure it out themselves before sending them to clients.
This seems logical to most people, but for Gen Z it’s not about “how should I do it,” but rather “why should we do it this way?”
Very different issues that require very different management styles.
How to put this into practice
It tries to explain two layers deep.
An example: We are doing this sales pitch in person because Mr. Smith is a more traditional businessman who highly values the person he is buying from and their handshake, not the product he is selling.
This is important because without going the extra mile, you will never agree to do business with us, no matter how good our offer is.
This is something that Generation Z can understand.
Would they act the same way? No.
Do they have justification for their actions? Yeah.
3. Reward with autonomy
The conventional world of work was based on seniority and experience.
That is no longer the case because Generation Z believes that the more money they create, the more money they should make.
To some extent, this is a great thing. It means they believe in working for their money, but it can be a bad thing because it disrupts 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” is not a path Gen Z accepts. In fact, going this route will only scare away top talent.
Things have to change.
How to put into practice
Bonus schemes that can give them a slice of advantage.
Perhaps your bonuses are based primarily on your contribution to the company and not just a group.
Performance-related bonuses were critical to the success of my last company and the Gen Z workforce loved them.
They felt it was a fair deal and were happy to go the extra mile to get extra pay.
Really simple.
Reward employees: Public social rewards are stronger than private financial rewards
4. Give it real
They have grown up in a world of falsehood.
Instagram is fake, emails are fake, politicians are fake, and influencers are fake.
Everything requires them to be skeptical, otherwise they run the risk of meaningless consumption and manipulation. There have already been too many examples of this happening, and Generation Z is fully aware of this.
There is a deep desire for reality and transparency. This is good because it means you can get to the end goal faster.
If someone is underperforming, don’t try to be coy – the team knows it and they know it. Instead, tell them and tell them why. Everyone respects you more for that.
If you say you are going to do something, do it and if you can’t, say so. False promises are a really quick way to lose the trust of Generation Z.
Likewise, you can create a culture of transparency in your workplace.
This doesn’t mean belittling them, publicly shaming them, and shaming the team. That’s a terrible idea.
All you have to do is give them your opinion directly, in private.
The culture is one of not sugarcoating feedback, not a culture of public criticism.
How to put into practice
Practice being more transparent in your next meeting or review.
Be clear and objective about performance, and if someone is slack, try 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, its rewards are not just financial. In any case, the more external it is, the better.
They need to show it off on Instagram and brag to their friends.
This is good for employers because it means that motivation comes not just through more money but through things that actually cost less.
Examples include having a driver pick them up every day for a week; Send them on a spa day; vouchers for an elegant and sought-after restaurant, etc.
These are things they would put on their social media that make the company look good and can also reduce hiring costs.
Your friends will see the rewards and think “I should work there”; It really is an action with multiple benefits.
Some of our best employees came through this type of method. So we doubled down and even more employees came in through this method.
It is a self-fulfilling cycle.
How to put into practice
List some social rewards that make them look good and are cheaper than giving the person a raise.
Focus on virality and shareability of the reward.
Always ask yourself, ‘Will this be shared on Instagram?’
If the answer is yes, write it down.
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