New research by HiBob reveals that 70 percent of managers find it challenging to manage Gen Z employees, citing issues such as work-life balance demands, salary expectations, and attitudes toward authority.
However, despite these challenges, younger workers are recognised for their creativity and adaptability, qualities that many UK workers believe are lacking in older generations.
The study shows that nearly a quarter (24%) of British workers would prefer replacing younger employees with older workers, citing concerns around emotional intelligence and professionalism.
However, 70 percent of respondents still favour working with younger colleagues due to their innovative and flexible approach.
Managing Gen Z: Challenges and Opportunities
The report outlines specific hurdles managers face when working with Gen Z (18-to-24-year-olds). The biggest issues include work-life balance demands (62%), salary expectations (58%), and benefits (44%). Additionally, managers report difficulties with authority (41%), emotional intelligence (38%), and professionalism (34%) among younger workers.
Despite these challenges, most UK workers recognize the creativity and adaptability of younger employees, emphasizing their value in today’s dynamic workplace. These skills, they say, are often missing among older generations.
Payroll Issues Are a Key Concern for Gen Z
One of the most pressing concerns for Gen Z is payroll accuracy. Nearly one in seven (13%) Gen Z employees think about their salary daily, with 40 percent saying incorrect pay would cause financial distress, and 22% indicating it could lead to job dissatisfaction or sleepless nights. Gen Z workers are also the most diligent about checking their payslips, with 30 percent reviewing them carefully for accuracy.
Incorrect pay affects all generations, but the emotional toll varies. Workers aged 25-34 say payroll errors damage trust in their employer (43%), while those aged 45-54 describe it as a frustrating administrative headache (40%).
HR Leaders Play a Crucial Role in Bridging Generational Gaps
The research highlights the critical role of HR in managing workplace issues across generations. Forty percent of managers believe HR leaders should handle challenges posed by younger workers. A vast majority (95%) of British workers agree that HR should have representation at the executive level, and 73 percent think HR should play a strong role in shaping company strategy.
Despite this, a GoodShape analysis of FTSE 100 companies shows that less than half (40%) have HR directors on their leadership teams, and only 31 percent have a Chief People Officer or equivalent.
Toby Hough, Director of People and Culture at HiBob, comments: “The role of HR leaders has long been undervalued, as leadership teams focused on business issues that didn’t typically involve employee wellbeing or societal shifts. Our research identifies Gen Z as one of today’s most significant challenges for leadership teams. Each generation brings unique challenges and opportunities, and HR is essential in maximizing their potential.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
