If you've read about the $2 trillion engagement crisis, here's the deeper story: Gen Z is driving much of that disengagement – and they'll comprise 30% of your workforce by 2030.
You understand the broader engagement challenge: more detached employees, bigger obstacles to launching initiatives, and a looming lack of shared purpose. But Gen Z is amplifying these gaps in a new way which ought to keep you up at night.
This generation, born between 1997 and 2012, is disengaging at rates that dwarf other age groups. They also represent 27% of the global workforce today, and will hit 30% by 2030.
This isn't just about those numbers, though. It's about a fundamental shift in the future of work,, and how to give it genuine meaning.
While the root causes of disengagement affect all workers, Gen Z experiences them with unique intensity:
86% of Gen Z thoroughly research a company's values, sustainability practices, and DEI initiatives before applying – and they're willing to put their money where their values are.
42% of Gen Z workers would take a pay cut if it meant working a job that has an impact, and 49% would not accept a job at a company that does not align with their values.
"I'd rather make less money at a company that's actually making a difference than get rich helping a company I don't believe in," explains one 25-year-old software developer who recently turned down a higher-paying offer for a role at a B-Corp.
84% prefer regular coaching-style conversations over formal reviews, yet most organizations still rely on annual performance cycles that feel glacially slow to a generation accustomed to real-time responses.
Here's a significant surprise: despite being labeled "digital-first," 72% of Gen Z employees value face-to-face communication for important work discussions. The isolation problem isn't about being remote – it's about feeling disconnected from meaningful relationships and mentorship across the board.
Only 6% of Gen Z say their primary career goal is to reach a leadership position in traditional hierarchical structures. Instead, they want leaders who are transparent, authentic, and willing to have two-way conversations about the future.
Here's another stat that should give every HR leader pause: 49% of Gen Z would prefer unemployment over a job that makes them unhappy, compared to just 29% of older workers.
This isn't entitlement, but a foundational shift in the relationship between work and identity. Gen Z watched millennials burn out chasing the traditional career ladder. They're saying: "We'd rather figure it out ourselves than be miserable for money."
Even more striking: This preference holds true regardless of financial obligations. 56% of Gen Z homeowners and 54% of those with student debt would still choose unemployment over unhappiness.
Gen Z doesn't just want different things; they process information differently. Consider these realities:
Visual Communication Dominance:
The Instant Feedback Loop:
Innovation Multiplier Effect:
Brand Advocacy Potential:
Future Leadership Pipeline:
Gen Z isn't asking you to lower your standards, but to raise your game. They've grown up as sophisticated consumers of content, experiences, and brands. Now they're bringing those same expectations to work: authenticity, transparency, and experiences that feel personally relevant.
They want to share their talents with organizations that communicate as effectively as their favorite apps, provide growth opportunities as compelling as running their own business, and create purpose as meaningful as the causes they champion on social media.
So, what does this look like?
✅ Consumer-grade communication that respects their intelligence LOCAL's Change Marketing™ creates visual, mobile-optimized content – like the 23 consumer-grade videos we produced for Southwest Airlines that engaged 70,000+ employees.
✅ Real-time feedback that helps them grow Our campaigns integrate recognition and development into daily workflows, not annual reviews, turning feedback into ongoing conversations like Republic Services' peer-to-peer customer recognition program.
✅ Transparent leadership that includes them in conversations The foundation of our BUILD phase methodology helps leaders craft authentic narratives that connect strategy to human impact, creating two-way dialogue rather than top-down directives.
✅ Purpose-driven work that connects to something bigger We turn abstract corporate initiatives into meaningful movements employees want to join – like connecting employee pride to shared values in the #IamCocaCola Ambassador Program that generated 15 million organic impressions.
✅ Flexibility that acknowledges they're whole humans, not just workers Our SUSTAIN approach embeds change into the employee lifecycle across all touchpoints, recognizing that engagement happens everywhere, not just during work hours.
The organizations that embrace treating employees like the savvy consumers they are, with the storytelling, creativity, and authenticity that Gen Z expects, will have their pick of the best young talent. Those that don't will watch their future workforce check out – literally.
Identifying, planning, mapping and launching Gen Z engagement initiatives is one thing. Sustaining them leads to higher engagement, increased productivity, and greater retention rates. Our EX Integration incorporates new initiatives into your employees’ daily life, which is particularly powerful for Gen Z because it:
When you solve long-term engagement for Gen Z, you don't just retain young innovators – you build the kind of workplace that attracts and energizes everyone.
Ready to transform your old approach for new talent? Schedule a conversation with Neil or Andrew to discuss your specific challenges, plus share ideas on how you can do more than engage Gen Z, but create the kind of workplace experience that keeps them committed for years to come.
Continue exploring workforce trends that matter. Subscribe to our Changemaker Newsletter for insights on engaging every generation.
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About LOCAL: We're the award-winning employee marketing consultancy that invented Change Marketing™. We help Fortune 2000 companies engage employees across all generations by treating them like the sophisticated consumers they are. Learn more at localindustries.com.
Help other leaders understand the Gen Z engagement challenge:
[1] Harter, J. (2025, January 13). "U.S. Employee Engagement Sinks to 10-Year Low." Gallup Workplace. https://www.gallup.com/workplace/654911/employee-engagement-sinks-year-low.aspx
[2] Agrawal, S. & Bueno, A. (2025, August 5). "Anemic Employee Engagement Points to Leadership Challenges." Gallup Workplace. https://www.gallup.com/workplace/692954/anemic-employee-engagement-points-leadership-challenges.aspx
[3] Sullivan Benefits. (2025). "Engaging Generation Z in the Workplace." Research Report. https://www.sullivan-benefits.com/wp-content/uploads/2025/04/Engaging-Gen-Z-in-the-Workplace.pdf
[4] Paytime Solutions. (2025). "Understanding and Engaging Generation Z in the Workplace: 2025 Insights." LinkedIn Pulse. https://www.linkedin.com/pulse/understanding-engaging-generation-z-workplace-2025-insights-tjjdf
[6] Center for Generational Kinetics. (2024). "State of Gen Z Report." https://genhq.com/wp-content/uploads/2022/08/State-of-Gen-Z-2018.pdf
[7] Pearson Education. (2024). "Generation Z Learning Preferences Study." Referenced in EdScoop research.
[8] Kantar Millward Brown. (2024). "Gen Z Digital Content Consumption Study." https://www.kantar.com/north-america/inspiration/consumer/how-well-do-you-know-gen-z-and-millennials
[10] ADP Research Institute. (2025). "Generational Differences in Happiness at Work." HR Morning. https://www.hrmorning.com/articles/work-generational-differences-research/
[12] Deloitte Global. (2025). "Gen Z and AI in the Workplace." 2025 Gen Z and Millennial Survey. https://www.deloitte.com/global/en/issues/work/genz-millennial-survey.html
[13] Millennial Branding. (2024). "Gen Z Entrepreneurship Statistics." Referenced in Insider Intelligence research.
[14] McKinsey & Company. (2024). "Gen Z Social Responsibility Expectations." https://www.mckinsey.com/industries/retail/our-insights/the-influence-of-woke-consumers-on-fashion
[15] WorkForce Institute. (2024). "Gen Z Internal Mobility Preferences." Referenced in workplace retention studies.
[16] TechnologyAdvice. (2025). "Generation Z in the Workplace." https://technologyadvice.com/blog/human-resources/generation-z-in-the-workplace/
[17] MarketWatch. (2024). "Why Gen Z is willing to trade lower pay for a better work-life balance." https://www.marketwatch.com/story/why-gen-z-is-willing-to-trade-lower-pay-for-a-better-work-life-balance
[18] Workplace Ethics Advice. (2025). "Millennials and Gen Z Influenced by Ethics and Sustainability in Job Decisions." https://www.workplaceethicsadvice.com/2025/08/millennials-and-gen-z-influenced-by-ethics-and-sustainability-in-job-decisions.html
