- Today, numerous businesses view Generation Z as requiring excessively high salaries.
In numerous sectors, the scarcity of workers has been a significant challenge for a prolonged period. Companies are contending fiercely for fresh talent emerging from training programs and entering the job market, while baby boomers gradually retire. As per HR specialist Eva Stock, "Those who don't bank on Gen Z now will soon find themselves without a workforce in their organization."
Gen Z, defined as individuals born between the mid-1990s and 2010, constitute the first generation to spend their entire upbringing in the digital age. A survey conducted by Job Teaser and EDHEC Business School indicates that many from this generation have specific career goals and preferences during the hiring process. However, HR departments often encounter difficulties in finding suitable candidates, primarily due to mismatched salary expectations.
According to the survey, over a third of HR professionals have experienced more difficulties in recruiting young talent over the past three years. The major disadvantages were a lack of qualified candidates (55%) and unrealistic salary expectations (46%). Lack of adaptability (40%) and lack of experience (36%) also pose problems.
Despite the challenges, young professionals are vital for a company's long-term growth. Almost all HR managers deem it significantly or just as crucial to hire them this year compared to last year, despite limited financial resources not always aligning accordingly. As Stock, from tech agency Comspace, points out, while experienced professionals may appear to be the superior choice from a public standpoint, young talents are crucial for achieving long-term success.
To attract them, companies should emphasize the salary figure in job advertisements (49%) and strive for a swift recruitment process with minimal interviews (43%), according to survey findings. These aspects were particularly appealing to individuals between the ages of 18 and 30.
On the flip side, nearly half of respondents cited a lack of closeness to the recruitment team and lack of salary transparency as reasons for abandoning the application process. An extended decision-making process by the company was also negatively perceived. In the eyes of young applicants, the application process should not take more than 20 days.
More than half of HR managers admitted to ghosting applicants – ceasing contact during the application process. Among students and young professionals, this figure was even close to three-quarters. Negative experiences in the application process could lead to damaging consequences for companies: 69% of young applicants with negative experiences asserted that the company's reputation had worsened for them.
In total, around 2000 people in Germany took part in the survey from May to June 2024. Around 1200 of the participants were 18-30-year-old students and young professionals, while more than 700 were HR managers from companies with at least ten employees. The samples were diverse, representing the gender and regional distribution of the population, as well as company size.
The survey showed that young applicants have clear expectations for their careers: about three-quarters understand their preferences, strengths, and weaknesses, and the industry they want to work in. Around 70% also know the career opportunities in their preferred position.
However, young respondents found estimating their expected salary to be their most significant hurdle: 41% of students and 34% of university graduates lacked salary expectations.
More than 60% were adept at making their resume, cover letter, and certificates eye-catching for recruiters. They also use AI for this purpose. Almost half stated that they employed AI to draft or improve application documents, and over 40% used it to compile essential job interview questions.
Only a scant percentage of job ads cater to Generation Z's preferences
Personnel managers are increasingly incorporating AI into their processes. 60% rely on AI for email responses, 50% for reviewing resumes, and 42% for preparation for job interviews.
However, only 22% of HR managers modify their job postings specifically for Generation Z, such as adjusting language to resonate with young people. Christian Stefan Braun from insurer Ergo, in relation to the study, said, "Job postings should thus be succinct and focused on the interests and values of the target audience."
The survey conducted by Job Teaser and EDHEC Business School revealed that over a third of HR professionals have encountered more difficulties in recruiting young talent over the past three years, primarily due to mismatched salary expectations. Despite these challenges, many companies need to modify their job postings to resonate with Generation Z, as only 22% currently do, according to insurer Ergo's Christian Stefan Braun.
