Navigating the Future: How SMEs and Startups Can Win the War for Gen Z Talent

The modern workplace is evolving, and with it, the expectations of the next generation of employees. At a recent event hosted by the University of Liverpool's Management School, in collaboration with the Liverpool Chamber, the spotlight was on Gen Z (born roughly between 1997 and 2012). This generation isn't just looking for a job; they're looking for a purpose, a partnership, and a place where they can grow. For small and medium-sized enterprises (SMEs) and start-ups, this presents a unique opportunity to stand out from the crowd.

Beyond the Paycheque: Values and Vision

Unlike previous generations, Gen Z are self-aware individuals who see employment as a two-way relationship. They're eager to learn and bring fresh ideas, but they want to know what a company stands for.

• Purpose-Driven Work: Gen Z wants to be a partner in your social responsibility. They are highly attuned to CSR/ESG (Corporate Social Responsibility/Environmental, Social, and Governance) values and expect businesses to have a clear, documented stance. Don't just talk about it, involve them in your initiatives. They have innovative ideas and a desire to contribute. This focus on purpose aligns with the core of companies like GoodShip*, we're a purpose-driven collaboration agency that works to empower clients while fostering the creative and tech community.
• A New Kind of Progression: Career growth for Gen Z isn't just about climbing a corporate ladder. It's about a clear path for developing new skills and being given ownership of projects. SMEs and start-ups, with their inherent freedom and flat structures, are perfectly positioned to offer this. You can provide the stretch and development opportunities they crave.

Rethinking the Employee Experience

The hiring and retention process for Gen Z requires a shift in thinking, moving away from traditional methods to a more dynamic approach.

• Honest and Equal Communication: This generation values transparency. Conversations should be on an equal level, and feedback should be given honestly and in the moment. It’s better to address performance issues as they happen, documenting both the issue and the support provided. This builds a foundation of trust.
• Flexible and Supportive Policies: Flexible working isn't a perk; it's an expectation. Businesses need to be proactive and document their flexible working and in-office policies from the start. Furthermore, employers must be aware of mental health challenges and be prepared to be supportive. Training for managers on how to navigate sensitive subjects and understand different communication styles is crucial.
• A Tailored Approach: The hiring process itself should be a representation of your brand. Consider using one face-to-face interview and work-based tests to assess skills over lengthy, generic interviews. And remember, tailored engagement for rejection is also part of your brand. A professional and respectful rejection can leave a lasting positive impression.

Final Takeaways for SMEs and Start-ups

To attract and retain this talented generation, focus on these core principles:

1. Invest in Soft Skills: Offer training and investment into soft skills like communication and self-awareness. This allows Gen Z to find their footing and thrive.
2. Embrace Innovation: Make innovation a key part of your company culture. Give Gen Z a new project to harness their creativity and drive.
3. Embrace Flexibility: Set the standard for flexibility from day one. This shows you trust your employees and value their work-life balance.
4. Tell Your Story: Don't just advertise a job; tell your company’s story. Show how your mission and purpose align with their values.
5. Show Clear Progression: Clearly outline how employees can grow and develop within the company. This provides the roadmap they need to feel secure and motivated.

By adapting to the unique values and desires of Gen Z, SMEs and start-ups can gain a competitive edge and build a dedicated, innovative, and future-ready workforce.

These principles cross over into our recent AI Activator pilot where we supported a group of 15 Gen Z graduates around how the world of work can operate around their key values and future work and life goals.