Gen Z: The First Generation of The 21st Century Has Arrived!
Gen Z: The First Generation of The 21st Century Has Arrived!
Popularity spike
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beginning of school a smartphone, terrorist national in hot on the market War.
safety concerns. debuted. attacks. the U.S. yet).
Defining Gen Z
Gen Z is comprised of those born between 1996 and 2009. According to the National Center for Education Statistics and
the U.S. Department of Education, there are an estimated 57 million members of Gen Z in the United States, compared to 78
million Boomers, 48 million Xers, and 80 million Ys.
Of course, Gen Z is known for being tech savvy, but, more than technology, the members of this generation have been
shaped by the crises they were born into: the rise of school shootings, climate change, terrorism and the Great Recession.
These dark events have undoubtedly made this generation more cautious and pragmatic, but they have also provided the
generation with the inspiration to change the world – and their realistic approach to life is going to allow them to do it.
On the following pages, we explore who exactly Gen Z is, what influences them and how your organization can engage them.
Baby Boomers raised their Gen Y kids to believe in the American Dream. They encouraged Gen Y to chase their passions and
dreams wherever they may lead. Gen X watched Gen Y fail and the economy break down, and have chosen to raise Gen Z more
practically. They have taught Gen Z to find what they are good at and to pursue that.
Massachusetts
First YouTube video
becomes first state Facebook
“Me at the Zoo” Twitter Rise of texting.
to legalize gay launches.
debuts. launches.
marriage.
Boomers were one of the first generations to be “friends” with their kids. This new dynamic led to Boomers struggling to properly
send their kids off to learn to manage the world on their own. Boomers gave Gen Y everything they needed to succeed. One
example of this is allowing Gen Y to live at home into their mid- to late-20s. Gen X, however, has been teaching Gen Z skills to
succeed on their own. A great example of this is the incredibly high rate of homeschooled Gen Z students (done so by their Gen
X parents). Gen X is teaching their children how to survive and adapt—not just how to take tests.
With the American Dream alive and well, Boomers had no reason to teach Gen Y about competition. Instead, they taught Gen
Y to be team players because if everyone works hard, everyone can win. Gen X witnessed economic distress and realized that
not everyone can be winners. They have taught Gen Z to be competitive because only the best can win.
Implications
The generations’ different approaches to life and work have
many implications, but there are two that may surprise
business: Gen Z is going to lead and Gen Z will bridge the
gap between being passionate and making a living
After watching friends and family struggle to find work, lose their homes to foreclosure, and drown in debt, Gen Z is incredibly
money conscious. Although the need for instant gratification is common among the generation, it doesn’t seem to apply to
shopping; much like Gen Y, Gen Z is content to stall a purchase to take the time to do research. They read reviews, virtually
or physically try the product, and scour the internet for the best deals. Here at XYZ University, we conducted a survey of more
than 100 parents of Gen Z and confirmed this trend. Our research showed that 59% of parents of Gen Z members consider
their children money conscious and a majority of parents revealed that, whether the money be from an allowance or a job,
their children are careful with how they spend it. Parents shared that their children weigh the pros and cons before buying,
use coupons, and are even inquisitive about the household expenses—not just their own finances.
Gen Z is also painfully aware of, and frightened by, the cost of college. According to TD Ameritrade’s 2nd Annual Generation
Z Survey, when asked about their biggest financial concerns, 46% of Gen Z reported that they fear drowning in student debt
after graduation. With college costs increasing four times faster than the increase in the consumer price index and Gen Y
swimming in student debt, this is a valid concern, but Gen Z is not known to hide from their fears; this generation is full of
realists. They recognize that economy is still recovering and that if they want something, they have to work for it. So instead
of worrying, they are saving money. The Cassandra Report found that 57% of Gen Z said they would rather save money than
spend it immediately. Similarly, a United Nations study found that if given $500, 70% of Gen Z said they would save at least
part of it. For a generation that is dominated by those who are not even in high school yet, that is truly forward thinking.
What this means for businesses: Quality products and services at competitive prices are the only way
to reach Gen Z.
Gen Z is global-minded
Gen Z uses social media to connect with people around the world; our Parent
Survey found that despite their young age, 34% of Gen Z is connecting online with
friends in other states and 13% are connecting with friends in other countries.
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What this means for businesses: Do not underestimate the power of Gen Z. Just because this
generation spends a lot of time looking at screens does not mean they are not networking. Businesses
need to encourage Gen Z workers to tap into their networks to come up with creative solutions and
ideas for their brands.
According to Renée Ward, founder of Teens4Hire, a majority of people under 25 have not held a paying job. While the older
generations spent their teen years getting job experience, Gen Z is not being given the opportunity. Ward shared just a few, of
the many, reasons why Gen Z is not getting work experience.
One of the most visible reasons Gen Z lacks job experience is the automatization of the workplace. Many of the companies
that have been known to hire young workers, such as fast food restaurants and amusement parks, are now employing
machines to sell meals and tickets. Another reason, although not a bad reason, teens are not getting jobs is due to child labor
laws. While Baby Boomers may have spent their teen years in factories, today, many retail stores require workers to be 18.
Finally, jobs that used to be seen as work for teens are getting scooped up by adults. Recent immigrants are happy to take
these jobs and with the recession, many adults, even those past retirement age, are staying in the workforce and picking up
second jobs.
What this means for businesses: Be ready to train Gen Z workers and teach them basic work ethic.
Members of Gen Z are society’s true “digital natives.” Our Parent Survey revealed
that 50% of Gen Z has their own tablet and 33% have their own smartphone. A
Wikia study found that all of Gen Z (100%) is connected online for 1+ hours per
day, but 46% are connected 10+ hours per day. Technology means something
different to Gen Z than it does to older generations.
To Gen Z, technology is more than just a tool—it is a part of who they are.
Their ability to use technology to expand their minds and fuel societal change is
empowering to them. It defines who they are and why society needs them. To Gen
Z, their gadgets and profiles are simply extensions of themselves.
What this means for businesses: Don’t try to rid workers of their technology, instead businesses need
to get creative and find ways to use Gen Z’s gadgets to their advantage.
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Importance of Gen Z
Businesses made the mistake of ignoring the incoming generation before; now, entire industries are struggling because Gen Y
(1982-1995) is reluctant to work with companies that are not interested in adapting to their needs. Businesses that don’t want
to repeat this mistake are beginning to pay attention to Gen Z today. It is important to recognize that the members of Gen Z
are not just kids; they are kids who hold the power to make or break companies in two ways: employment and influence.
Employment
Influence
Gen Z may be smaller than any of the other generations, but their influence exceeds their size. Due to their exposure to so
many brands on a daily basis—banner ads on mobile apps, suggested posts on social media, commercials, etc.—Gen Z has
become a group of demanding consumers. While being demanding does not equate to having influence, being demanding
and being constantly connected to the world does. If Gen Z has a good or bad experience with a company, they are not
going to keep it to themselves; they are going to tell the world. They are going to share their thoughts via mobile, social
media, and the internet.
Kids’ Influence in the U.S.
Perhaps even more significant than Gen Z’s online influence, is their influence over their
Statistics provided by Nickelodeon
parents. According to a recent study by Nickelodeon, more than ever before, kids are
influencing family purchasing decisions. The study found that in the U.S., 71% of parents
• 2/3 of parents agree that they are
solicit and consider their kids’ opinions when making purchases. Even when considering
closer to their children than their
a purchase for themselves, 28% of U.S. parents confer with their children. Given the
parents were to them.
power and influence Gen Z has, it would be careless for businesses to ignore them.
• 83% of parents consider their
child to be one of their best friends.
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Get to know the generations
In addition to the characteristics we’ve outlines on the previous pages, the chart below gives you a snapshot of generational
characteristics, how they are different and the problems each of them are facing now.
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having to watch friends and family suffer for years, research from psychologists at San Diego State University and the
University of California, Los Angeles, found that Great Recession-era high school seniors are more interested in social
problems and careers helping others than their counterparts who graduated before the downturn.
Stereotypes of Gen Z make them out to be a selfish, self-centered group, but that is not the case. A study sponsored
by the United Nations Foundation found that about seven out of eight children ages eight to 19 give money to charitable
organizations. Parrish Ravelli, team leader at Youth Empowered Solutions, shared that members of Gen Z “want to
contribute to something larger” and are “committed to seeing things through.”
What this means for businesses: Gen Z wants to shape the world. Businesses should be providing
ways for both customers and employees to get involved in community and charity programs.
Parents of Gen Z kids have augmented this stress by putting their kids in competitive environments since before they were
crawling, literally. There are crawling classes. Our parent survey reveled that over 70% of Gen Z has participated in a team
activity in which they had to compete for first place and over 54% have competed for first place as an individual.
What this means for businesses: Recognize that Gen Z has had the road to success mapped out
for them their entire lives; they need a company structure that makes expectations clear and guides
workers from one position to the next.
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their strengths, weaknesses, likes, and dislikes.
Gen Z’s struggle for identity also explains their interest in fame culture. Many of today’s celebrities are simply famous for
being famous (i.e. the Kardashians). Gen Z is less interested in a celebrity’s talent and more interested in their personal lives.
Celebrities seem to have what Gen Z wants – a fully defined identity – and Gen Z is watching them in order to learn how to
define their own identities.
What this means for businesses: Tap into this need by creating brand and company cultures.
Businesses should be positioning their products, services and jobs as a means of creating an identity.
Video game companies have even created consoles and games that encourage kids to get off the couch and organizations like
The Interagency Working Group on Foods Marketed to Children are proposing guidelines for how companies can market junk
food to kids.
All of these prevention efforts have inspired Gen X to raise health conscious kids. Gen Xers are putting their kids in sports and
encouraging them to play outside. Gen Z members are being taught to avoid processed food and with the rise of so many
organic and healthy food companies, they are being given the access to better choices.
What this means for business: Gen Z will likely be drawn to employers that provide health-centered
workplaces with fitness centers, open outdoor green spaces, sports-related activities and benefits,
aggressive recycling and environmental programs, organic meals on-site, etc.
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Innovation and fast information have
made Gen Z creative
Nearly everyone we interviewed for this report agreed
on one thing – Gen Z is exceptionally creative. For this
generation, both literally and figuratively, the sky is not the
limit. For generations, stories illustrated the “future” as a
time when people used jet packs, people lived on Mars,
and robots roamed. Well, jet packs are set to be sold in the
next few years, in 2013, a group looking for volunteers to be
the first colony on Mars received 200,000 applications, and
robots are so commonplace that there is an International
Federation of Robotics. To be cliché, the future is now and
Gen Z interprets all this innovation as inspiration.
Another reason Gen Z is so creative is because they have a world of information at their fingertips. Unlike generations past,
Gen Z does not have to waste time searching for information; they can find much of what they need to know in a matter of
minutes and use the rest of their time to analyze the information and create solutions.
What this means for businesses: Give Gen Z time and freedom to come up with innovative ideas. Use
customer creativity to create user-generated content.
Rumor: Gen Z stays inside and does not spend time outdoors.
Survey Says: False. 96% of parents shared that their kids spend at least
some time outside each week and 74% said their children spend more than
three hours outside per week.
Survey Says: True. When asked how many hours per week their child spends reading the newspaper or watching television
news shows, 54% of parents said their children never use those resources and only 8% said their children use them more
than three hours per week.
Survey Says: False. When asked if their children understand and use proper social etiquette (speaking with respect,
holding doors open for elderly, etc.) and manners (saying please and thank you, placing napkin in lap while eating dinner,
etc.), 58% of parents reported their children often do and 39% said sometimes.
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Technology has given Gen Z unique learning habits
Gen Z is not the uneducated, detached generation some authors and professors claim they are; instead, it is a generation full
of realists. Gen Z is incredibly practical and their learning habits reflect that.
Generations past can remember sitting in school memorizing times tables, presidents, and dates; chances are, many of
those people can still recite all of that information, but Gen Z is not even bothering to consider retaining it. While that may
seem problematic, the fact is, they don’t have to. Gen Z has a world of information at their fingertips; they can simply Google
anything they need to know. Instead of wasting time memorizing what they can look up, Gen Z focuses on learning how to
find, interpret, and take advantage of information.
They multi-task
Constant stimulation in the form of video games, YouTube videos and television has created a generation of visual learners.
Educators should be employing tools such as interactive textbooks and educational games to meet the visual learning needs
of Gen Z.
Due to the generation’s tendency to move quickly when online and finding information, they often forget to verify the credibility
of what they read and report. These “digital natives” know a lot about how technology works, but they are still kids who need
to be shown how the world works. They need to be taught how to manage personal information online, the importance
guarding intellectual property, how to determine credibility, and how to protect themselves from online hazards.
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How to engage Gen Z
Gen Z is full of good workers, but they can seem difficult to recruit and manage if companies don’t understand how the
generation functions. Businesses cannot expect to maintain the same management system and hire around Gen Z’s
personality; they need to learn how Gen Z works and adapt to them.
Gen Z sees no distinction between the physical and virtual worlds. If a company is not active online, they
assume the organization is non-existent. Companies need to be active where Gen Z is—online. Despite
rumors that teens are drifting away from traditional social media sites like Facebook and Twitter, the
research suggests otherwise. According to the JWT Intelligence, 65% of those between the ages of 8
and 17 have a profile on Facebook and 26% have a Twitter profile. Businesses need to reach out to Gen
Z on these traditional sites as well as the networks that have a concentration of young users—Instagram,
SnapChat, Kik, and YouTube.
Gen Z wants and expects to be heard. Bronwyn Lucas, executive director of Youth Empowered
Solutions, shared that Gen Z is engaged and concerned, but they feel “disenfranchised” and like the
world has an “us versus them” mentality when it comes to the younger and older generations. Gen Z
does not want that. They want a place where they can come together with adults, have their opinions
heard and considered, and help make a difference. Companies that listen to Gen Z and allow them to truly
contribute to projects are going to gain a lot of loyalty and respect from Gen Z.
Gen Z has the motivation and skills to change the world, and companies have the resources to do it.
Gen Z loves companies that care enough about making an impact to provide insight and investments to
employees to help them make a difference.
Companies who want to appeal to Gen Z workers need to go beyond traditional marketing and focus on
mobile marketing—traditional marketing does not reach Gen Z. Ben Detofsky, managing director of Youth
Marketing Connection, emphasized this point when he shared some of the difficulties companies are
having marketing to the younger generations, “They’re mostly looking down, not up... the second screen
is here to stay. That’s terrifying for a lot of traditional channels.”
Much like Gen Y, Gen Z does not live to work. A healthy work-life balance is not just an expectation for
them, it is a requirement. One of the easiest ways for companies to meet this need is to allow employees
to work from home.
Provide structure
While Gen Z wants the freedom to work when they want, they need to know what to work toward. Fierce competition,
helicopter parents, and systematic schooling have made Gen Z crave structure. Lenore Skenazy, author of “Free-Range Kids:
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Giving Our Children the Freedom We Had Without Going Nuts with Worry,” shared that the lack of structure intimidates Gen
Z. They work more efficiently when they have a goal to work toward.
Gen Z is indifferent to authority. They have grown up being taught that everyone’s opinion is worth considering and that
everyone is equal. A majority of Gen Z considers their parents their best friends. Many schools encourage students to call
their teachers by their first names. Gen Z even engages with government officials and the police on a daily basis via Twitter.
Businesses need to understand that this indifference is not an act of defiance; it is a willingness to collaborate and work with
anyone.
Provide feedback
Annual or even quarterly reviews are not going to be enough for Gen Z. After growing up with games and toys that provided
them with instant results, this generation craves constant and immediate feedback. While this may seem like a negative
quality, it is not. They want feedback not because they are self-centered, but because they want to assess the success of
their work. They want to know what worked, what didn’t, and what they need in order to do better. Gen Z willingly seeks out
change if it means better results.
Adapt or perish
There needs to be an end to the “doom and gloom” mentality surrounding Gen Z. Focusing on Gen Z’s flaws makes it easy to
overlook their strengths, of which they have many, and although the majority of the generation isn’t old enough to drive, they
are already shaping the world. They are offering suggestions, spending money, and solving problems—all on a global scale.
It would be careless of businesses to ignore the influence and power this generation has currently and is going to have in the
future. Gen Z is here and it is up to businesses to decide whether they are going to adapt or perish.
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We can help For additional
information contact:
XYZ University provides next generation intelligence, which helps organizations
like yours create environments that thrive on generational differences. We’re a Sarah Sladek, CEO
future-focused management consulting company that specializes in helping XYZ University
organizations worldwide engage talent and seize market share among Generations [email protected]
X, Y and Z. 877.266.6689
www.xyzuniversity.com
Strategic
facebook.com/xyzuniversity
You can count on us to prepare your organization for what—and who—comes
next. Our services focus on succession planning, engagement and leadership
development. twitter.com/xyzuniversity
Engaging twitter.com/sarahsladek
Audiences worldwide have described our presentations as hugely relevant, LinkedIn Group: XYZ
rockin’, and a wake-up call. University Next Generation
Intelligence
Interactive
XYZ University is a
Our interactive education such as on-demand webinars and Next Generation management consulting
iPortal delivers topics on staying relevant and engaging the next generation. firm specializing in helping
organizations engage
the next generation of
Contact us. Your future depends on it. members, employees,
executives and advocates.
877.266.6689 | [email protected]
www.xyzuniversity.com
Alyx Grabinger provided extensive research and interview source gathering for this report. A
current communication and journalism student, Alyx is a writer and content project manager. Alyx
has worked with many for-profit and non-profit businesses to create and revitalize their website
content strategies; she also writes blog posts and web content for businesses all across the
United States. To each project, Alyx brings an array of skills, including the ability to effectively
communicate across age groups. She is also able to take dense, complex information and break
it down into manageable, and understandable, pieces.
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Interview Sources and References
Interviews mobile-social-content-more-than-other-generations
Renée Ward, Teens4Hire We want tech gadgets, not toys! How children as young as
Parrish Ravelli, Youth Empowered Solutions seven are becoming hooked on technology
Larry Rosen, California State University-Dominguez Hills www.dailymail.co.uk/femail/article-2335133/We-want-
tech-gadgets-toys-How-children-young-seven-hooked-
Bronwyn Lucas, Youth Empowered Solutions
technology.html#ixzz2kfxXTM1C
Ben Detofsky, Youth Marketing Connection
How the next generation will surpass Gen Y
Lenore Skenazy, author blog.penelopetrunk.com/2012/12/21/why-the-next-
generation-will-hate-gen-y
Articles, surveys and research
Generation Z: If They’re Awake, They’re Online
TD Ameritrade’s 2nd Annual Generation Z Survey
www.marketingpilgrim.com/2013/03/generation-z-if-theyre-
Is it Okay to Let Your Toddler Play with the iPad? awake-theyre-online.html
www.psychologytoday.com/em/77235
Study: Recession Made Teens More Socially Conscious
Understanding the Gen Y Debt Battle associationsnow.com/2013/07/study-recession-
www.huffingtonpost.com/saveup/understanding-the-gen-y- made-teens-more-socially-conscious/?utm_
d_b_3613508.html source=AN%2BDaily%2BNews&utm_medium=email&utm_
Gen Z Shuns Credit Cards campaign=20130718%2BThursday
www.learnvest.com/2013/07/gen-z-moving-away-from- The Future of Social: What Jobs Will Generation Z Have?
credit-cards/ www.brandwatch.com/2013/10/generation-z-the-future-of-
‘Gen Z’ is financially-savvy, with one big exception careers-infographic/
www.getrichslowly.org/blog/2013/07/09/gen-z-is- On the Job: New generation is arriving in the workplace
financially-savvy-with-one-big-exception/ www.usatoday.com/story/money/columnist/
Tech-savvy ‘iGeneration’ kids multi-task, connect bruzzese/2013/10/20/on-the-job-generation-z/2999689/
usatoday30.usatoday.com/news/health/2010-02-10- Nickelodeon Study Affirms Kids’ Strong Influence on Family
igeneration10_CV_N.htm Purchasing Decisions
Have We Added Another Lost Generation? www.broadcastingcable.com/article/488764-Nickelodeon_
www.huffingtonpost.com/marc-joseph/generation-z- Study_Affirms_Kids_Strong_Influence_on_Family_
summer-camps_b_1416380.html Purchasing_Decisions.php
Get Ready For Generation Z: They’re Texting, Tweeting And This Is Your Brain on Multitasking
Totally Game www.psychologytoday.com/blog/brain-trust/201202/is-
jobs.aol.com/articles/2012/04/25/get-ready-for-generation- your-brain-multitasking
z-theyre-texting-tweeting-and-not-tu/ Generations X,Y, Z and the Others
Tweens Define Another Segment Of Family Travel www.socialmarketing.org/newsletter/features/generation3.
www.mediapost.com/publications/article/180208/ htm
tweens-define-another-segment-of-family-travel. Stress by Generation
html#axzz2htRcEh6G www.apa.org/news/press/releases/stress/2012/
What Kids Can Teach Us About Charitable Giving generations.aspx
associationsnow.com/2013/09/what-kids- Teens, Social Media, and Privacy
can-teach-us-about-charitable-giving/?utm_ www.pewinternet.org/Reports/2013/Teens-Social-Media-
source=AN%2BDaily%2BNews&utm_medium=email&utm_ And-Privacy/Summary-of-Findings.aspx
campaign=20130919%2BThursday
Who’s the boss? There isn’t one
Gen-Z Trusts Mobile, Social Content More Than Other online.wsj.com/news/articles/SB100014240527023033792
Generations Do 04577474953586383604
www.marketingprofs.com/charts/2013/10462/gen-z-trusts-
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