As more Gen Z graduates enter the workforce, many employers are finding themselves facing unexpected challenges.
After years of expressing concerns about the work ethic and professionalism of this generation, some companies are now taking action by letting go of young workers shortly after hiring them. According to a new report by Intelligent.com, six in ten employers have already terminated Gen Z employees they hired earlier this year. These firings are driven by complaints that these recent graduates are unprepared for the realities of the workplace.
Intelligent.com, a career guidance platform, surveyed nearly 1,000 US employers and found widespread dissatisfaction with recent Gen Z hires. Three-quarters of the companies reported that some or all of their new hires were unsatisfactory. The challenges cited by employers include lack of motivation, poor communication, unprofessional behavior, and an inability to handle workloads. In fact, 50% of respondents stated that a lack of initiative was a significant reason for parting ways with these employees.
As a result of these experiences, one in six employers expressed hesitancy about hiring new graduates in the future, with some even considering avoiding hiring from this group altogether next year.
One key issue appears to be a disconnect between what colleges are teaching and the skills needed in the workplace. Many Gen Z graduates are reportedly unprepared for professional environments, struggling with punctuality, appropriate dress codes, and workplace-appropriate communication. Over half of hiring managers concluded that these young workers lacked readiness for the professional world.
In response, some educational institutions are trying to bridge this gap. Michigan State University, for example, is teaching students how to network and interpret social cues in professional conversations, while a London high school is experimenting with a 12-hour school day to prepare students for the demands of adult life.
Despite these challenges, employers are clear about what could make Gen Z hires more successful. A positive attitude and a greater willingness to take initiative were listed as the top qualities needed to make recent graduates more hirable. Business experts like Huy Nguyen, chief advisor at Intelligent.com, suggest that young professionals observe how colleagues interact within the company to understand and adapt to its culture.
Nguyen encourages Gen Z workers to demonstrate motivation by asking thoughtful questions, seeking feedback, and showing dependability through meeting deadlines and volunteering for projects. Successful young professionals are often those who proactively integrate themselves into the workplace, reflecting their dedication to personal and professional growth.
While frustration is growing among employers, some experts warn that firing Gen Z workers could be a mistake. Gen Z is poised to make up 30% of the US workforce by 2030, meaning companies will need to adapt to their needs and values. Joy Taylor, managing director at Alliant, stresses that the ability to harness the strengths of this new generation will be crucial for long-term business success. Gen Z’s digital fluency, entrepreneurial mindset, and willingness to challenge corporate norms are assets that can help organizations innovate.
Business experts are also concerned that firing Gen Z workers too hastily could backfire, especially as this generation becomes a dominant force in the labor market. They argue that companies should be investing in mentorship, tailored onboarding, and cross-generational collaboration to better integrate young employees and capitalize on their unique skills.
For many Gen Z graduates, the difficulty in securing and retaining jobs is compounded by an unfavorable job market. As hiring rates have slowed, especially for roles requiring a college degree, young graduates have found it harder to land stable employment. While older workers were able to lock in jobs during the Great Resignation, many Gen Zers are entering a labor market with fewer openings and more competition.
Some industry leaders advise that Gen Z graduates stay resilient and proactive as they navigate this challenging environment. Employers, too, must reconsider how they engage with this generation, finding ways to adapt and leverage their strengths rather than viewing them solely as a challenge.
Companies that can effectively bridge the generational divide and foster a culture of collaboration and mentorship are likely to emerge as leaders in the coming decades. Ultimately, the question isn’t whether companies can afford to hire Gen Z workers, but whether they can afford not to.
With input from Fortune, Newsweek, and Business Insider.
