A major demographic change is underway with Generation Z entering the workforce in the masses, and by 2024, the young generation will tally more full-time workers than the number of Baby Boomers.
According to a recent analysis published by Glassdoor, this age shift brings new values and influence to the forefront of work-life preferences — including a heightened focus on community, transparency, and diversity. Companies are now tasked with adapting to these changing preferences in order to attract and retain top talent emerging from Gen Z.
The data shows that from the late 1970s until late 2011, Baby Boomers have long been the largest generation actively participating in full-time work. Then, Generation X (Gen X) had a small period from 2012 to 2018 when they were the largest participating generation. However, Millennials took over that spot, and are positioned to remain the largest demographic in the workforce for many years to come (based on the number of full-time millennial workers). Glassdoor estimates that Gen Z won’t outnumber the Millennial generation until sometime in the early 2040s.
The report also lists other trends to look out for in the upcoming year. There’s a trend towards increasing wages, but it’s reported that this will come with the potential erosion of non-cash benefits. This trend could contribute to a rise in employees placing greater value on direct monetary compensation over traditional benefits like health insurance or retirement plans.
In the tech industry, a notable change is the expected decline in equity compensation. This reflects a cooling in the competition for skilled workers and could signal a shift in the attractiveness of tech roles, which have traditionally been lured by lucrative equity offerings.
The psychological impact of layoffs from 2023 is also predicted to have a lasting effect on employee morale next year. It’s reported that companies that underwent layoffs have seen a drop in employee satisfaction — a trend that could persist and affect various aspects of workplace culture.
Remote work dynamics will continue to evolve and play a major role in the workforce. The report cites the rising trend towards adopting flexible work policies — particularly in smaller companies. This might contribute to a talent shift from larger corporations to smaller firms.
These trends, and others cited by Glassdoor, point to a workforce that’s adapting and evolving to rapid technological advancements, major changes in age demographics, and workplace arrangements. Companies that can navigate these changes effectively will likely emerge stronger and more resilient in the face of competition and economic challenges.