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Page 12
Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
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Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
×
Page 13
Page 14
Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
×
Page 14
Page 15
Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
×
Page 15
Page 16
Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
×
Page 16
Page 17
Suggested Citation:"Chapter 2 - Understanding Gen Z Workers." National Academies of Sciences, Engineering, and Medicine. 2021. Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners. Washington, DC: The National Academies Press. doi: 10.17226/26429.
×
Page 17

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

12 Studies of the workforce for all industries and agencies have found there are distinct differences in capabilities, interests, and work habits among different generations. The baby boom generation (post-World War II to 1960s) exhibit very different workplace values than the Gen Z generation (born in the early 1990s to 2010). In order to identify effective strategies for recruiting, developing, and retaining transportation planners, it is important to understand the characteristics of the labor force that will populate agencies in the future. This chapter presents information on the Gen Z generation, some background on who they are, and some insight on their values as they relate to the work environment. Gen Z was selected because they are the most recent generation to enter the early stages of their work career, and exhibit many of the characteristics found in the millennial generation that precedes it. Although the focus on Gen Z emphasizes the young workforce, research showed that trans- portation agencies have found in recent years that individuals in their mid- to late 50s looking for a career change have been a major source of new planners. Thus, while this chapter summarizes some of the key characteristics of the Gen Z labor force, one should keep in mind that retraining older employees will be an important challenge for many transportation agencies. Much of the information on the workplace desires and habits of Gen Z employees comes from corporate studies and market research on how to attract the most capable and effective employees to a company. This information is often combined with internet marketing material to highlight the offerings of professional development and talent search firms. Academic research has been another source of information on Gen Z workforce characteristics. The following material is a synthesis of articles/reports on the Gen Z workforce, and on the implications to a transportation agency’s talent management strategy. These observations are commonly found in the studies of this generation’s workforce characteristics. These characteristics are usually obtained from employee surveys, and reflect how the majority of respondents answered. They should thus be viewed as general observations, that is, not every Gen Z employee might exhibit these characteristics. In addition, the observations have been modified to reflect a government agency work environment; little research has been conducted on how these observations relate to working in a public agency. 2.1 Gen Z General Observations Gen Z Is the Most Racially Diverse Entry-Level Employee Pool of All Generations Generally reflecting the changing demographics of the United States, Gen Z represents a much broader range of ethnic backgrounds than any of the prior generations. Census data show that almost half of those born in this generation are of a race and/or ethnicity other than non- Hispanic white. For example, between 2000–2010, the country’s Hispanic population grew at C H A P T E R 2 Understanding Gen Z Workers

Understanding Gen Z Workers 13   four times the rate of the total population. This means that the employees from this generation will be much more diverse than previous employee cohorts, many coming from a very different cultural background than what has been seen historically. One study also noted that Gen Z as compared to millennials(born between 1980 and mid-1990s) defined diversity more broadly, with emphasis placed almost equally on the importance of diversity of gender, race, ethnicity, age, disability, and education, and placed more emphasis on sexual orientation and religion than other cohorts. Implications to the Employer A more diverse employee pool will have important implications for recruitment and retention. Not only will recruitment have to recognize the values inherent in different cultural backgrounds, but the workplace environment will have to be conducive to cultural diversity and sensitivity. Dif- ferent cultural backgrounds can reflect differing perspectives on perceptions about managerial authority, work performance incentives, and inherent values an employee places on working for a particular agency. A culturally diverse staff also can provide different insights on equitable and culturally relevant plans, strategies, and engagement with stakeholders. Gen Z Is the Most Educated Entry-Level Employee Pool of All Generations The millennial generation was considered to be the most educated of all prior generations, but they have now been surpassed by Gen Z. The oldest of the Gen Z workers have entered college at a higher rate than millennials (59 percent for Gen Z and 53 percent for millennials). Although not directly related to this higher rate of pursuing education, Gen Z is also entering the workforce with much less prior experience working in any capacity in a job. For example, 48 percent of baby boomers aged 15 to 17 had reported (in 1968) working in a job during the previous year; 30 percent of millennials in the same age group reported working in the previous year; while only 19 percent of Gen Z workers did so. [9] Implications to the Employer A more educated workforce is an advantage to an agency in that new employees will likely have broader perspectives and skills than prior generations (although this does not necessarily relate to the specialized KSAs needed for a planning position). A larger commitment to educa- tion will likely mean a greater understanding of the value of continual learning throughout one’s career. The reduced experience in a work environment, however, could provide some challenges to an agency. Millennials tend to value teamwork, while Gen Z has been shown to be more inde- pendent and competitive. New employees who have not worked in a job might not understand some of the basic concepts of the work environment, such as human resource requirements, managerial supervision, acceptable conduct in a diverse environment, team-building, and appro- priate means of communication. This could require a greater attention to such concerns for those entering an agency’s workforce. Gen Z Is Technology Savvy Gen Z has grown up with the internet and is the first generation to be familiar with smart- phones (and the apps that go with them) for most of their lives. This has included all forms of social media. Some studies have shown the vast majority (80 percent) of Gen-Zers use social media to connect with others. They are comfortable digitally organizing much of their life around digital/electronic conveniences (e.g., relying on cards or phones for payment trans- actions). Studies of smartphone use consistently report Gen Z ownership of a smartphone at 98 percent with over four hours of daily usage. Reports from private companies have shown

14 Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners that many Gen Z employees are comfortable multitasking across five digital screens compared to two for the average millennial. [10] Implications to the Employer The familiarity with, and substantial use of, smartphones and social media by Gen-Zers have significant implications to an employer. Importantly, they reflect the strategies and actions taken to recruit new employees to an agency. For example, it has been shown in numerous studies that Facebook is the most visited website across all age groups, except for Gen-Zers who use YouTube more. A recruitment strategy should rely on a variety of opportunities for reaching out to potential employees. Training should include a broad range of social media outreach; Gen-Zers are not likely to use a paper training manual. Gen-Zers are also looking for employers with highly communicative recruiting approaches, transparency around employee concerns, and advanced candidate- and employee-facing tech- nology. [11] Even with Gen Z’s high dependence on smartphones and social media, employers must recognize that not all recruits have access to or choose to use these devices and platforms. Alternatives should be offered for those employees/recruits if the agency desires to be inclusive. A familiarity with email and other forms of digital communications also suggests an important need for policies and guidance on what type of material should be sent electronically and similarly what type of material is appropriate for internet searches. Such familiarity might also suggest guidance on the use of such communications technology while in meetings with others. One study showed that this comfort with technology might come with some challenges in working effectively with others. [11] This study noted, for example, that Gen-Zers often have difficulty understanding when personal interaction might be more appropriate for a particular instance instead of using an email or text. This could have detrimental effects on agency communications, particu- larly with external constituents. Gen Z Often Seeks More Personal Interaction Especially with Authority Gen Zers are driven by individualization, most likely enabled by social media. It is thus some- what surprising that studies have indicated that they tend to seek more human interaction, open- ness, and collaboration than millennials (perhaps in reaction to the isolation of interacting with an instrument or tool). This also has resulted in a desire for close relationships with those in authority. In one corporate study, 34 percent of Gen Zers wanted to work in an environment where senior leaders were accessible and available, with the implication that young employees were looking for opportunities to get to know and learn from leaders in the workplace. This could lead to a discomfort with (and sometimes lack of acknowledgment of) typical corporate hierar- chies. Some have reported that Gen Zers have a greater sense of equality among all employees. They feel they have just as much right to attend a meeting with an important client as an execu- tive. This could cause some conflict with more senior staff who are accustomed to a different style of interaction. The higher level of connectivity enabled by social media leads to an expectation that contacts or communications via such means will “obviously be responded to.” This often conflicts with a standard organization of information and authority in a typical public agency. Implications to the Employer The agency will have to balance a desire for an employee to be social media savvy with a desire for personal interaction. Gen Zers seem to have a desire to know personally who they are

Understanding Gen Z Workers 15   working with and for. This implies providing an environment and opportunities for personal interaction while at the same time the flexibility to use social media for connecting to others. Gen Z Is More Socially, Culturally, and Environmentally Aware and Concerned The millennial generation prioritized many of the concerns for such topics as sustainability, climate change, and social justice. Gen Z expects that something will be done about them. They are very concerned about the future, for themselves, families, communities, country, and planet. As Gen-Zers enter the voter pool in greater numbers, they could have an important influence on the types of issues a transportation agency might be concerned about. Implications to the Employer Gen Zers are likely to be advocates for a much broader set of perspectives when projects or agency actions are being considered. For example, studies have indicated that Gen Z places much greater emphasis on climate change than prior generations, and are leading advocates for govern- ment actions. Agencies might have to consider training and professional development activities that highlight the interface between transportation and such issues. It is interesting to note as reported in the next section that many state and local transportation planners and consultants rated this interface as a very important characteristic of the future planner’s skill set. With respect to recruitment, an agency might consider emphasizing such interfaces as part of its marketing strategy. Showing the positive impact of their work on society could be an important selling point for Gen Z. Also, including how the candidate might be able to impact such issues could be an important addition to a job posting/description. Gen Z Prioritizes Job Security and Job Benefits as the Most Important Factors in Job Satisfaction Perhaps due to the economic recession and disturbances that occurred while growing up, Gen Z is significantly more risk-averse than previous generations. Gen Zers have consistently indicated that job security and stability are the most important factors when pursing jobs and careers. They tend to stick to their jobs longer than millennials. Nearly half of Gen Zers are motivated to enter and stay in the workforce in order to provide financially for themselves or their family. A 2019 study of corporate employees found that Gen Zers are twice as likely (30 percent) to prefer working for a company that offers a good employee benefits package than one that offers employee perks such as free snacks, happy hours, or gym reimbursements (15 percent). [10] The highest priority benefits were: health-care coverage (41 percent), paid time-off (37 percent), retirement plan (33 percent), and life insurance (28 percent). These numbers were probably higher in 2020 with the economic uncertainty associated with the COVID-19 pandemic. One of the implications of job security for Gen-Zers has been on their work ethic. For example, Gen-Zers have been more willing to work overtime compared to millennials. Gen-Zers have been significantly more likely than older Americans to say that being successful is a result of hard work rather than luck. [10] Implications to the Employer One of the advantages of public agencies compared to private firms has traditionally been job security and good benefits. These should be emphasized in recruitment efforts. Many of these benefits are defined by civil service or, if present, union rules and thus might not be at the

16 Attracting, Retaining, and Developing the Transportation Workforce: Transportation Planners discretion of the agency manager. However, job security, one of the most important motivating factors for Gen-Zers, is a distinct advantage for public agencies. Of particular interest given the COVID-19 pandemic, employers (private and public) are find- ing a greater need to provide mental health support for some of their employees. This is an aspect of an agency’s health benefits program that should be included with respect to all employees. Gen Z Expects Opportunities for Recognition and Professional/Career Growth Gen Z job expectations often include a desire for recognition of a “job well done” as well as a desire to progress to higher positions. This is perhaps related to the ability of individuals to prog- ress on tasks via social media and internet-based knowledge support systems. A 2019 survey of Gen Z and millennials found that an increase in recognition and rewards would make 79 percent of respondents more loyal to their employer, but 50 percent believe managers do not currently recognize strong job performance. Gen Zers are encouraged to do their best work when they feel their ideas, projects, and contributions are valued by the organization and its mission. [12] Spe- cifically, Gen Zers are eager for an agency to: • Provide training and projects to help them develop their skills; • Listen to their ideas and show they value their opinions; and • Allow them to work independently. Gen Zers generally do not want to be stifled by what they consider archaic technology and work rules. Being one of the more transparent generations, they are looking for clearly defined opportunities for growth and development. Studies have shown that nearly half of Gen Zers looking for a job expect to receive detailed information about their new job and role, and to receive training very early in the job. Implications to the Employer Employee recognition programs are commonly used in public agencies to acknowledge exem- plary work by individual employees or employee groups. Such programs could be even more important in the future where such recognition is considered an important part of Gen Zer job satisfaction. It is interesting to contemplate, however, how some of this recognition might be reframed for the Gen Z generation. Such recognition might include acknowledgment of contri- butions to the community, participation in societal initiatives, development of new apps or other social media tools, and the like. Gen Z desires also raise the profile of onboarding strategies, the actions employers take to introduce and acclimate new employees to the organization. Not only should the information be complete, but it should be available very quickly after an employee starts work and in formats familiar to Gen Z employees. Perhaps most importantly, the desire for professional/career advancement leads to a need for a clearly defined career path for transportation planners. As will be reported in the next chapter, many state DOTs do not have such career paths. Given Gen Zers’ desire for transparency, access to information, and desire for a stable career, the existence of a clear professional development path is an important element of attracting strong planner candidates. This desire also has impli- cations for professional development/training opportunities and agency support for attending professional meetings. Gen Z Is More Comfortable with and Expects Flexible Work Arrangements Given their propensity to use interactive technology as part of their lives and work, Gen Zers have become comfortable with working in different venues and at different times of the day (and

Understanding Gen Z Workers 17   night). The COVID-19 pandemic and resulting stay-at-home orders and changing office access rules have led many public agencies to implement work-from-home opportunities more so than they might have done previously. A study of work characteristics of Gen Zers showed that they care about autonomy and independence, and this mindset is reflected in the way they work. The internet has given them access to thousands of years of collective knowledge, and they’re much more accustomed to Googling things rather than asking for advice. [12] More than any previous generation, Gen Z also understands that alternatives to the traditional 9-to-5 job exist and are viable options, often in the context of work–life balance. The majority (84 percent) in this study viewed a healthy work–life balance as a priority. Implications to the Employer A changing work environment for some positions is likely to become more commonplace given how COVID-19-related work arrangements demonstrated their feasibility for both private firms and public agencies. Working from home, for example, has been viewed by many young employees as an important feature of the work environment as shown in the surveys conducted for this project. With internet-based information and communications technologies continuing to evolve into more powerful and easy-to-use work platforms, working from remote locations will be an important part of future work environments. Many of these characteristics of Gen Z, which reflect characteristics of several other genera- tional cohorts, have been incorporated into the QRG.

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For public agencies, attracting qualified, technically competent, culturally sensitive, and motivated planning staff can be challenging in a competitive landscape.

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Supplemental to the report are downloadable tools (one for employees and one for employers), an implementation memo, a Quick Reference Guide, and a Summary.

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