Pay equity, diversity & women leaders key to attracting Gen Z

Diversity, women in leadership, meaningful work, social justice, pay equity and transparency are key to attracting Gen Z, according to new research.

“Women make up almost 60% of undergraduate students, and by 2030, Generation Z will make up a third of the workforce,” confirmed Christine Cruzvergara, Vice President of Higher Education and Student Success at career network Handshake. “As our country begins on a path to economic recovery, employers must pay close attention to this generation’s motivations, preferences and concerns as they attract new talent.”

Its new report, Handshake Network Trends Report: Gender, Equity, and Gen Z, examines the factors that compel early talent to apply for certain jobs and choose between employers, providing valuable insights to employers. 

DIVERSITY & PAY EQUITY MATTERS

If you want to hire more women, start by promoting women, noted the research. Around 65% of Gen Z women look for women in leadership roles before applying for a job, according to Handshake’s data. Diversity matters a lot, and not just to women. More than half of respondents said they wouldn’t apply for a job at a company that lacked diversity. In fact, 75% of women and 66% of men say they are more likely to choose a company with a demonstrated commitment to a diverse, inclusive and equitable workforce. And about half of respondents said they would leave a job if it did not meet their expectations for social justice or equity. 

Meaningful work also matters to Gen Z, especially to women and non-binary individuals. Non-binary individuals ranked meaningful work as the most important factor when choosing to stay in a role, and women ranked it second. Men ranked meaningful work fourth. Pay equity and transparency are also important for this generation. Gen Z overwhelmingly supports pay-transparency measures as a means of promoting equal pay for equal work; and addressing the gender wage gap. The majority of our Gen Z say that showing salary ranges makes them more likely to apply for a job. In fact, 62% said they’d be more likely to apply to a company if the company had a commitment to equal pay. 

CULTURE FIT ‘UNIMPORTANT’

Additionally, both women and men both ranked salary/compensation as the most important factor when choosing a job and employer. Gen Z women and men also say salary is the number one motivator for staying in a job. 

Interestingly, culture is relatively unimportant to Gen Z prospective employees. Only 7% of respondents said culture was the most important reason to stay in a job. And work culture did not rank as one of the top three most important job characteristics for men, women or non-binary individuals.

“We know that for Gen Z, good intentions are not enough. They want proof that prospective employers’ practices align with their values,” said Lindsey Pollak, generational expert and New York Times best-selling author. “This survey surfaces several actionable insights for employers: promote women, and be transparent about your pay. Top talent is always in demand; and as employers put a stake in the ground on diversity and inclusion, they’ll be wise to listen to this next generation of hires; particularly, women and non-binary individuals.”

Generation Z is also setting the agenda for the future of work, reveals another new study. Click here to read more.