5 things I learned about Gen Z

Who are Gen Z?

I was always very intrigued by the naming convention of generations. For years, no one could provide me with a consistent definition of the term ‘Millennials’ (a group apparently, I was a member of), albeit it being one of the most popular topics for business and research groups.

After some Googling, it looks like the US Census only ever coined one term: ‘Baby Boomers’ (people born between 1946 and 1964). Other terms were unofficial. They are thus loosely defined. The definition varies from one research to another. Naturally, I want to know more about the new generation after my generation (who does not?) and that is why I decided to write about Generation Z (Gen Z) and the 3 stories I found fascinating (see next article on SubStack).

Merriam-Webster dictionary defines Gen Z as 'the generation of people born in the late 1990s and early 2000s'. There is also a new term of Gen Alpha for people born after 2010s. Pew Research specifies Gen Z as people born after 1996. For this article, let us say Gen Z are people aged 11 - 25 in the year of 2021.

Note for a global perspective as many popular terms are more US driven: When it comes to grouping of people, there is a local variation depending on its own significant events and milestones. For example, in China, because the last 40 years were changing at a super-fast pace, most think tanks analyse people’s behaviour and preference by a decade (e.g., 70s, 80s, 90s, 00s).

5 things I learned about Gen Z

1. They are the first generation of true digital natives.

While I witnessed the progress of globalisation, Gen Z was born into a globally connected world. According to the 2018 State of Gen Z study by CGK, 95% of Gen Z have a smartphone. Among them, 25% had a smartphone before the age of 10. For Gen Z, physical and digital worlds are inextricably tied to each other. From the Gen Z survey that was designed collaboratively by WP Engine and CGK and conducted in the U.S., Western Europe, and Australia, 58% of Gen Z said they cannot go without internet access for more than 4 hours without becoming uncomfortable.

In life, many of us know about the popularity of Snapchat and TikTok among Gen Z. They also have different entertainment preferences to their elder generations. Based on the study by Deloitte’s 2021 Digital Media Trends (US based), only 10% of Gen Z said watching TV or movies was their favourite entertainment pastime, comparing with 18% Millennials, 29% Gen X and 39% Boomers. Same goes with the way they acquire information, while 58% Boomers prefer news on TV, only 12% Gen Z would do so. Half of Gen Z respondents rank social media as the place their prefer to get news.

2. They grew up with massive developments in knowledge sharing and EdTech.

With more accessible learning at a click away, Gen Z is surrounded by abundant learning materials. It’s not a surprise that a US Pearson study showed that 59% of Gen Z prefer to learn by watching YouTube videos. 47% of Gen Z spend 3 or more hours per day on YouTube. YouTube has influenced Gen Z beyond learning, 55% of Gen Z said YouTube has contributed to their education, learning and/or personal development.

Gen Z also prefers learning by doing and learning with friends. According to the study by Barns & Noble College, more than half of respondents said they learn best by being hands-on. 8 out of 10 Gen Z prefer to study with friends, often virtually via Skype or other video apps.

3. They care about the world, and they have the means to make global impacts.

"My name is Greta Thunberg and I want you to panic." A much talked about example is probably without doubt about Greta Thunberg and her global impact in raising public awareness and pushing agenda to avoid climate disaster. There are many books already about her, so I will not elaborate more. Still, it is fascinating to see how much she has influenced us all in the last 3 years (yes, she is only 18 now. I still cannot believe it, she started advocating for a change since age 15!).

From Mckinsey’s study, Gen Zers are radically inclusive as they usually belong to various different virtual communities and groups. It is quite positive to see that 66% of Gen Zers believe that communities are created by causes and interests, not by economic backgrounds or educational levels. The study also shows that Gen Z views consumption as a matter of ethical concern. 70% of respondents said they try to purchase products from companies they consider ethical.

Note: In the US, Gen Z will be the most ethnically and racially diverse generation in history. Based on Pew Research Center, one in four is Hispanic, 14% are African-American and 6% are Asian.

4. They will be our major workforce soon and they like the idea of entrepreneurship.

Globally, there are about 2 billion of Gen Zers, which make up of almost 30% of the world’s population. Universum estimates that Gen Z will account for about 40% of world's workforce by 2040. In terms of what future jobs might look like, I guess it is hard for us to predict. For sure, there will be new type of jobs that never existed before which will be interesting to see.

Based on LinkedIn’s survey over 2000 professionals in the US, Gen Z is willing to change jobs more often to hunt for the right job that aligns with their values. They are also open to relocating, half of the respondents would consider moving for a new role. For Gen Z, personal relationships, learning & growth opportunities are becoming important considerations for them to stay in the job.

Gen Z has ambitious aspirations. Nielsen’s study showed that 54% of Gen Zers want to start their own company. I guess the fact that many of today’s influential companies are relatively young could inspire such entrepreneurial spirit. Also, the cost of setting up a business has becoming much lower (almost free) for Gen Z. A one-person team to cover delivery, operation and marketing is very doable thanks to convenient platforms and applications.

5. They face economic challenges and uncertainties from the covid-19 pandemic.

It was certainly interesting to think about technology lifestyle, accessible learning, diversity, and more meaningful work. But 2020 might have changed many things for Gen Z. I think many of us would worry how much Gen Z is affected by the global pandemic (although the millennials might be more unfortunate to have struck by both financial crisis and global pandemic in their adulthood).

A research report from Bank of America discusses how the pandemic has impeded Gen Z’s career and earning potential in a similar way how financial crisis in 2008 for millennials. If you are interested, I recommend a 23 min video from Bloomberg discussing general impacts to Gen Z from the pandemic.

Thanks for reading this article. I hope you find it useful. Let me know your views and thoughts.