5 Setbacks That 'Gen Z' Are Facing In The Workplace

Gen Z are struggling to keep their head above water in the workplace. Here's why, according to psychological research.

By Mark Travers, Ph.D. | January 02, 2025

As an increasing number of Gen Z employees enter the workforce, they're finding it challenging to conform to traditional workplace practices, leading to high rates of termination. A survey from this August found that 60% of employers have fired Gen Z employees within months of hiring them.

This cohort of workers may be the most diverse, driven, emotionally aware and empathetic. However, they are vulnerable to setbacks in a corporate space as managers and leaders lay them off, citing reasons such as a lack of initiative and poor communication skills.

But are they entirely to blame? Gen Z are definitely vocal about systemic injustices, climate change and workplace issues. They are also quite tech-savvy and adept at navigating technology-related challenges. So what is holding them back, and how can managers help them adapt to workplace culture?

Here are five psychological factors contributing to these setbacks, according to research.

1. Gen Z Displays Heightened Emotional Awareness

Gen Z is often viewed as the most emotionally self-aware generation, which helps them connect with colleagues and advocate for their mental health. However, some might argue that Gen Z struggles to separate personal emotions from workplace dynamics, but effective conflict resolution becomes impossible if managers refuse to approach these issues with empathy.

A 2024 survey says that over 80% of frontline Gen Z employees face burnout at work. But the challenge goes both ways. Another survey this year found that 18% of managers in the U.S are, in turn, considering quitting due to the stress of managing Gen Z employees.

Striking the right balance between empathy and professionalism is key. Leaders can foster a healthier work environment by creating designated spaces and times for employees to voice concerns, while ensuring a professional atmosphere during critical work tasks.

2. Different Communication Styles Cause Rifts Between Colleagues

If you find a Gen Z employee texting you regarding your availability for a chat that day, don't be shocked that they did not email you. Gen Z prefers to communicate in a concise, direct and informal manner using text messaging platforms, which can clash with older generations' expectations of formality and protocol.

This challenge becomes more pronounced in hybrid or remote work environments, where most communication happens via text or email. This can lead to misunderstandings or conflicts. That said, Gen Z is not averse to face-to-face communication; they just tend to use text-based methods more.

If you're on the receiving end, and confused about their lingo, ask them questions about what they mean instead of reprimanding them for being unprofessional. If you give it enough time, you may even find their relaxed nature of communication fostering camaraderie and a sense of closeness.

3. A Feedback Vacuum Is A Barrier To Growth

Growing up in a culture of instant communication and interpersonal validation, Gen Z thrives on feedback. A 2018 survey suggests that over 65% of Gen Z employees want frequent feedback, at least once a week. Without it, they may feel disengaged and stuck, especially when it comes to autonomous work.

Additionally, even if Gen Z employees possess the hard skills required to excel, they may lack soft skills like organizational abilities, for example. Managers should guide them through tasks with patience, even when mistakes are made.

It's crucial to remember that universities often impart a completely different skill set from what is required in the workplace. While the gap between university and workplace culture is gradually narrowing, it remains significant, leaving newcomers unprepared for the type of work and environments they encounter.

If you're a Gen Z in the workplace, try to ask as many questions as possible, especially in the early days. Get to know your team so you can identify the right point of contact for any challenges you face. Unclear expectations and delayed performance reviews may lead to frustration, but remind yourself not to take any mistakes to heart. It's all part of the learning process.

4. Misaligned Values Create Conflict

Gen Z has a completely different set of values compared to other generations. They prioritize inclusivity, flexibility and purpose-driven work, which can sometimes clash with traditional workplace values like hierarchy and stability.

Conflict arises when these differing values impact productivity. For instance, a Gen Z employee requesting a mental health day during a high-pressure period may inadvertently cause frustration among colleagues who must take on additional work.

Gen Z consistently strives for work-life balance, and rightly so. Consequently, a lack of flexibility from leadership in accommodating their needs can lead to experiencing job dissatisfaction.

One effective way to bridge the generational gap is to set clear expectations from the outset. With a shared understanding of responsibilities and outcomes, supported by cooperation and mutual respect, workplaces can better harness the potential of their newest cohort without alienating them.

5. Workplaces Don't Meet Their Expectations

Many Gen Z workers enter the workforce with high expectations for job fulfillment and career progression. However, they end up facing layoffs, job insecurity or micromanagement, which can be a harsh reality check.

Research shows that 1 in 4 Gen Z employees are unhappy at work and 20% are already considering quitting. A 2022 McKinsey & Company survey also shows that they are more likely to be self-employed or have multiple jobs compared to their older counterparts.

Leaders need to actively listen to their demands and adapt their management styles to encourage a more inclusive and supportive workplace culture. This means not only providing constructive feedback and recognition, but creating opportunities for skill development and career growth. Instead of solely relying on their initiative, receiving training and flexibility can help Gen Z thrive.

Gen Z flourishes in a positive work environment where good work is rewarded and appreciated, overtime is well compensated and hybrid work settings are available. They value transparency and collaboration, so leaders should prioritize open communication and involve younger employees in decision-making processes where possible.

Gen Z's emotional awareness, communication styles and value-driven approach are reshaping the workplace, but these traits can also lead to setbacks and termination risks. They need to balance their strengths with strategies to overcome challenges, including adaptive communication and seeking feedback. And, by encouraging them to collaborate and helping them navigate workplace challenges, leaders can create harmonious and productive environments that benefit everyone.

Ultimately, Gen Z and their employers need to meet each other halfway. Rather than focusing on their differences, they need to pay attention to what they can learn from one another, as both offer valuable lessons on what the modern-day workplace should look and feel like.

Do you feel psychologically safe and valued in your workplace? Take this science-backed test to learn more: Psychological Safety Scale

A similar version of this article can also be found on Forbes.com, here.