Business View Magazine | February 2020

16 BUSINESS VIEW MAGAZINE FEBRUARY 2020 power of five — or that each Gen Z segment brings unique value,” says Marcie Merriman, EY Americas Cultural Insights & Customer Strategy Leader. “Combining their strengths can accelerate innovation and transformation throughout an organization. The research shows us that while, as a whole, Gen Z are the true digital natives who grew up with technology and unparalleled access to information, their individual attitudes are proving to be diverse and varied. Understanding the drivers of each Gen Z segment is critical to providing them with the products, services and experiences they desire as consumers and the jobs they seek as employees.” Societal changes impact how Gen Z is being raised There are many components influencing the diversity we are seeing among Gen Z, such as technological innovations, medical advances, and changing social norms. Gen Z is the first US generation born of three generations, meaning their parents can be baby boomers, Gen X, or Millennials. The research shows that diversity also exists among the parents of Gen Z: • Free-Range (ish) (38%): care about their children’s well-being and will help them when they’re struggling, but overall, encourage their kids to be independent • Controlling Critics (33%): dictate what their children do and make their decisions for them, rather than raise them to be independent • Helicopter Parents (16%): worry about their children and want to have control to ensure they are on the right path for success, a holdover from the millennial era • Hands-Off (13%): detached from their kids’ lives, providing limited emotional support The study found a correlation between parenting styles and the Gen Z segments they foster. The more involved parents are, the more likely their child is to be a Stressed Striver or Authentic Activist, while the more detached parents are likely to raise a Carefree Constituent or Secluded Perfectionist. The following chart further details these relationships: Companies should embrace transparency to address Gen Z’s trust concerns As an extremely diverse, independent, and proactive generation, Gen Zs have strong personalities and values, making it hard to gain their loyalty— 67% of Gen Zs say that people cannot be trusted. With the disposable nature of the current society, loyalty may seem like a lower priority to Gen Zs, causing a greater challenge for companies. Transparency will help companies gain Gen Z’s trust and provide them with a platform to remain authentic, connected and fulfilled, and therefore, more aligned with their values. Are companies ready with a Plan Z? To maintain relevancy in our fast-changing world, businesses need to adopt a Plan Z. Today’s youth are markedly different from past generations. They are more tech-savvy and globally aware, and have unprecedented access to information and opportunities to educate themselves — these truths have previously defined Gen Z. However, as they come of age, the contradictions and individuality within the generation are becoming clear. To take advantage of this endlessly empowered generation, companies need to understand the diversity within and the unique drivers in each segment, rather than viewing them as one. Gen Z’s influence in the workplace, economy and society will be increasingly felt in the coming years, and understanding how they see and approach the world will remain important for employers, marketers, technologists, business leaders and more.