The world of work is constantly changing - not only due to new technologies and work models, but also due to changes in the workforce. While the baby boomer generation will retire in the coming years, reducing the number of available workers in Germany, Generation Y (currently aged 30 to 44) and Generation Z (currently aged 16 to 29) are increasingly shaping the labor market. Both generations have grown up digitally, are often regarded as demanding in the work context - and present companies with new challenges. But what do young workers really expect from their jobs, careers and companies? What are the best channels and messages to reach them?
In this article, we combine our experience from numerous application processes with the results of a representative generation study conducted by the pilot agency group on the attitudes and media usage behavior of Generation Y (Gen Y) and Generation Z (Gen Z) in the context of work and career. The collected knowledge provides HR departments and decision-makers in companies with practical insights to successfully design modern and generation-appropriate recruiting.
Gen Y and Gen Z expectations of careers and companies
Career and education play a central role for Gen Y and Gen Z. According to the latest data from the pilot Generation Study, 67% of Gen Y are employed full-time, while 17% work part-time. For Gen Z, 42% work full-time and 10% work part-time, while about 40% are still in education. Despite high levels of satisfaction with their current jobs, both generations show a strong willingness to change jobs, with an absolute majority of 60% open to new job opportunities, regardless of age or previous work experience.
Marvin Virk, a partner at Eurosearch specializing in financial services, concludes: "Younger generations tend to view careers as a dynamic process, while older generations take a more long-term view of their working lives. However, we are also observing that social media can create more pressure among Gen Y and Gen Z to pursue a career quickly in order to keep up with their peers".
The pilot generation study shows: For Gen Y and Gen Z, personal satisfaction and financial security are the top priorities when choosing a career to ensure a good standard of living. Enjoyment of the job is the most important motivational criterion – especially for Gen Y (89%).
Good pay is more important than work-life balance for both generations. For example, 86% of Gen Y and 85% of Gen Z consider financial security to be crucial, while more free time in exchange for income sacrifice is a motivating factor for only 52% of Gen Y and 51% of Gen Z. In addition, the local workplace is seen as an important social environment, particularly by Gen Z (72%) – an aspect that is significantly less relevant for Gen Y (67%).
Our Eurosearch recruitment consultants also observe a stronger focus on self-fulfilment, meaningfulness of work and the employer's values among applicants from both generations.
Value orientation of Gen Y and Gen Z
This focus on values is also reflected in the pilot generational study: 69% of Gen Z and 66% of Gen Y think it is important that their potential employer represents the same values as they do.
Responsibility and trust are key expectations of employers: a respectful and appreciative corporate culture is of the utmost importance to 88% of Gen Y and 86% of Gen Z. Equally crucial: a credible and honest working environment (85% Gen Y, 83% Gen Z).
Social commitment and inclusion are significantly more important to Gen Z than Gen Y: 60% of Gen Z want the company to be socially responsible, compared to only 52% of Gen Y. The fact that their employer stands for inclusion is an important value criterion for 52% of Gen Z and 44% of Gen Y.
Diversity is valued, but at 42% (Gen Y) and 46% (Gen Z) is less important than often assumed.
Gen Z places significantly more value on professional growth (81% vs. 71% Gen Y) and benefits such as health & sports offers (64% vs. 57% Gen Y).
"Gen Y and Gen Z therefore expect companies to communicate their values transparently and offer clear prospects for career development and training," says Anja Peuten, partner at Eurosearch and specialist in recruiting IT talent.
Information seeking and media use of Gen Y and Gen Z
TikTok and Instagram instead of trade journals and exhibitions? "It is true that we are seeing a change in the channels used by Gen Y and Gen Z: Instagram, TikTok, LinkedIn and career sites are becoming more important - especially when it comes to reaching young talent. This means that it's easier to reach young people online when I want to tell them about a new professional challenge," observes Carla Wöhler, Recruiter at Eurosearch.
According to the pilot Generation Study, digital touchpoints within the talent journeys are decisive drivers for both generations. 60% of Gen Z and 47% of Gen Y use digital channels to gain an insight into the day-to-day work of companies. The corporate or career website as the company's central online touchpoint should therefore not be neglected.
Employer reviews are also important: 51% of Gen Y and 59% of Gen Z pay attention to platforms such as Kununu or Google when looking for a job. Professional networks such as LinkedIn are used by 41% of Gen Y and 43% of Gen Z to find out about potential employers and job offers. Social media is becoming increasingly important: Instagram and LinkedIn dominate for Gen Y, while TikTok is also relevant for Gen Z.
Job boards are relevant to 10% of Gen Y, compared to only 6% of Gen Z. However, Google is an important touchpoint for both generations: more than half use Google search (when they are genuinely interested) to research employers and job opportunities. Equally important, 69% of Gen Z get referrals from those around them, compared to 53% of Gen Y. This significant difference underscores how much Gen Z values real insight and trusted first-hand information.
Gen Z and Gen Y Expectations of Employer Communications
Digital corporate communications are therefore considered very important by both Gen Y and Gen Z. But what exactly do they expect from employer branding? What kind of implementation and creative content can employers use to really impress?
According to the pilot generational study, 63% of Gen Z and 61% of Gen Y place a high value on communications that reflect a clearly defined value proposition - that is, the values that the company stands for and supports. For both generations (61% each), it is also critical that the company culture is communicated in a transparent and credible manner.
Employee testimonials are another key element: 60% of Gen Z and 59% of Gen Y think it is important that these are included in communication. Equally relevant are sound bites from management, which offer real added value for half of those surveyed.
“Instead of glossy advertising brochures, Gen Y and Gen Z want to see real faces and stories when they find out about a potential new employer,” says Max-Emre Ateser, Partner at Eurosearch in the MedTech sector. Generations that have grown up digitally have long been aware of filters and retouching – they are therefore increasingly interested in looking behind the facade of the company on the website, Instagram or LinkedIn.
Challenges in recruiting Gen Y and Gen Z
Speed plays a crucial role in the application process for young talent. "We see time and time again that young talent expects fast, informal communication and wants quick feedback as they often follow up on multiple applications at the same time," explains Marvin Virk. An application process that takes several weeks between interviews puts off Gen Y and Gen Z. Younger candidates are also often more non-committal and willing to negotiate more on salary due to multiple applications. But they are also more risk-averse and more likely to accept fast-paced jobs, says Anja Peuten.
Effective employer branding strategies for Gen Y and Gen Z
In the competition for the best talent, companies themselves have become applicants. Generations Y and Z have clear expectations of application processes and their desired employer and must first be convinced. Companies should therefore address precisely these expectations with authentic employer branding - i.e. credible communication of values as an employer - and build visibility among recruitment-relevant target groups.
Continuity is the key here. The perception of the company is ultimately made up of various snapshots and contacts with the employer brand at various touchpoints. Only companies that are always visible and present create long-term trust and increase the likelihood that they will be perceived as an employer of choice at the decisive moment.
The following four lessons for successful employer branding communication in Gen Y and Gen Z can be concluded:
Lesson 1: Be Always On!
Gen Y and Gen Z are receptive to employer communication. Regardless of their current job satisfaction, they are willing to change jobs and can be activated with the right incentives. This means that it is always worthwhile for companies to reach out to Gen Y and Gen Z.
Well-executed employer communication is perceived as adding real value. It is therefore important to maintain a constant presence and to understand employer branding as a long-term process.
Lesson 2: Communicate values!
In addition to financial security, Gen Y and Gen Z are particularly interested in a respectful corporate culture, lived corporate values and an attractive local workplace. This is even more important than the much-discussed issue of remote work or working from home.
Companies must clearly define their values and embed them in their recruiting process and employer branding communications, both creatively and substantively, in order to be considered as an employer for Gen Y and Gen Z.
Learning 3: Digital first!
A positive and stringent digital footprint as an employer brand is crucial. Companies should optimize all relevant contact points along the talent journey and use them communicatively - as both Gen Y and Gen Z use them to form an impression of their desired employer.
“While social media channels are ideal for push and awareness communication, career websites, Google, kununu and job portals should be maintained and strategically used as pull channels,” summarizes Markus Kempf-Tschirko, Managing Director of Corporate and Employer Communications at pilot.
Learning 4: Authenticity is key!
Employer communication is most effective when it offers real insights and involves employees and managers. Gen Y and Gen Z value transparency and credibility more than polished commercials.
Companies should make their values authentically tangible - with honest messages from the workforce and a creative implementation that is appropriately staged depending on the channel and targeted at the relevant target groups via an effective media strategy.
About pilot corporate
pilot corporate is a specialized division of pilot, Germany's second largest owner-managed media agency group. The team of experts supports HR managers in companies in becoming attractive and successfully visible to target groups with authentic employer branding communication. The service portfolio includes strategic consulting and concept development for employer brands as well as production services ranging from moving images to career websites and social media content. In addition, pilot corporate plans and implements the accompanying media campaigns for targeted reach building and effective recruiting.
Detailed results of the pilot generational study in Gen Y and Gen Z including learnings for employer branding campaigns can be downloaded here free of charge (in German).