Creating a Company Culture for Gen Z

Just like the generations before them, Gen Z workers - those born between 1997 and 2012 - have distinct views on the world around them and their expectations of working life. These attitudes, interests and beliefs are shaped by the opportunities and challenges they’ve faced and determine how they work, where they work and what they will and won’t accept in the workplace.

Currently, 30% of the world’s population is Generation Z (or Gen Z), with 27% of the global workforce set to be Gen Z by 2025. Just like Millennials before them, Gen Z workers are already having a big impact on company culture and what the world of work looks like. As the future of the workforce, Gen Z’s expectations will have lasting repercussions for today’s employers. And those that don’t adapt quickly risk being left behind.

Read more: How to attract and retain Gen Z in the workplace

What does a Gen Z work culture look like?

While workers across all generations want fulfilling work and decent pay and conditions, there are several characteristics that set Gen Z apart. 

Gen Z workers have grown up in the aftermath of the global financial crisis and have lived through the Covid-19 pandemic and the cost of living crisis. You might assume that would make them motivated by money and job security. However, that’s not necessarily true. It’s made them wary of debt and taught them that they cannot necessarily rely on others for their financial security. That’s why they value entrepreneurial skills highly, with many Gen Z workers planning to go it alone at some point in their careers rather than working as employees. 

In terms of what they value most from the workplace, a study by Freshworks and the London School of Economics found that it’s flexibility above all else. That’s the flexibility to choose not only where they work, but also when. Meaningful work and career progression also ranked highly. The three most common reasons why Gen Z would leave their jobs are a lack of engagement, a long commute and a lack of career progression. 

In terms of their values, diversity and inclusion are important to Gen Z. They have high expectations when it comes to ethics and transparency and want their employers to care about the environment and be committed to fighting climate change. Greenwashing is not an option. Instead, they seek out genuinely sustainable companies to work for and buy from.

Preparing Your Office For Gen Z Culture

Now you know more about Gen Z and their expectations of the workplace, here are a few tips for creating a Gen Z work culture that can help you attract and retain the best talent.  

Redesign your office layout

It might seem like a small detail, but office layout is important to Gen Z. Studies show that only 28% of Gen Z workers favour traditional office layouts, compared with 45% of Millennials. Instead, Gen Z offices tend to favour hot desking - where employees don’t have a fixed seat in the office - and agile workspaces -where dedicated desks are replaced with a variety of shared spaces. Agile layouts have areas where employees can brainstorm ideas and work on projects together to boost workplace collaboration. 

There are a few things to look out for when creating your Gen Z office layout. Although Gen Z sees itself as a generation of master multitaskers, open offices can be noisy and distracting. To allow your employees to complete all their tasks effectively, you should also create private, quiet spaces that encourage and support solo activity.  

Gen Z’s desire for inclusion and equity in the workplace also means breaking the link between physical spaces and organisational status, such as when workers higher up the chain have private offices while other employees are in an open office layout.  Agile and collaborative layouts are most effective when everyone shares the same space, regardless of their status. 

Offer flexible working options

According to a US survey, 42% of Gen Z workers say work-life balance, remote working and flexible leave are their top priorities when looking for a job. While higher salaries and performance bonuses used to be at the top of employee wishlists, Gen Z workers want the chance to socialise, pursue their hobbies and have a fulfilling life outside their jobs. It’s hardly radical thinking.

There are lots of flexible working practices that can give Gen Z the freedom and choice they crave. Remote and hybrid working models cut down on commuting time, which according to the LSE study, is the second most common reason why Gen Z workers leave their jobs. Part-time working, flexible hours, holiday purchase schemes and sabbaticals can also be powerful retention tools.  

Prioritise diversity and inclusion 

For Gen Z, diversity and inclusion in the workplace isn’t a preference; it’s a requirement. In a 2020 survey, 83% of Gen Z job candidates said that a company’s commitment to diversity and inclusion was important. And for Gen Z workers, diversity and inclusion are about more than just gender, race, religion, age and physical ability. It also comes down to how different points of view are heard, accepted and valued. 

Promoting diversity and inclusion is not something that comes at a cost to the employer. In fact, the opposite is true. Diverse teams are more innovative, better at making decisions and a better representation of your customers. A McKinsey study also found that diverse teams are 33% more likely to outperform their peers. 

Invest in the right work perks  

As with the generations that have come before them, Gen Z expects employers to provide workplace benefits as well as a salary. Mental and physical health are priorities for Gen Z workers. 28% and 19% of Gen Zs rank mental and physical health respectively as the aspect of their lives they prioritise the most. That means benefits like gym memberships, employee assistance programmes and generous personal and sick leave policies should be well received. 

Benefits that help employees combat rising costs can also help to create a Gen Z work culture. Hybrid and remote working to reduce commuting costs, free or subsidised food and refreshments at work and travel ticket loans can all help to reduce staff outgoings when wage rises may not be possible. 

Revamp your leadership skills

Micromanagement has no place in a Gen Z office, so you should update your leadership training accordingly. Instead, focus on coaching rather than managing behaviours to empower Gen Z workers and give them the autonomy they crave.

Business leaders can foster a more autonomous environment and give Gen Z workers more independence by creating smaller teams that mirror a start-up’s culture. Creating autonomous units that still have the support of the wider business can help to boost performance and create a way of working that fits with Gen Z ideals. 

Gen Z employees also view their work life as a way to learn, grow and develop. They are not tied to a single role or career and do not value job security like previous generations. Leaders must learn to understand this mindset and give their teams continuous learning opportunities and new experiences if they want to retain them for the longer term.   

Find The Right Office Space With Knight Frank

If you want to create a Gen Z culture, you need an office space that’ll support it. Flexible workspaces that meet their expectations of working life and complement their working styles can help you attract and retain the best talent.

Given Gen Z’s preference for flexible working practices, it’s also important to choose an office location that offers more than they have at home. Walkability should feature high on your list of priorities, as should excellent transport links and nearby social and green spaces. 

At Knight Frank, we can help you find flexible office spaces that cater to a Gen Z workforce. Get in touch to discuss your requirements and we’ll use our expertise to find office spaces that are a good match for your needs and budget. We’ll even arrange viewings and negotiate the best deal on your behalf - and our service is free.