As Generation Z - those born between 1997 and 2012 - enters the workforce in growing numbers, Canadian employers are encountering a cohort whose expectations and behaviours signal a fundamental shift from current norms.
Author
- Eddy Ng
Smith Professor of Equity and Inclusion in Business, Queen's University, Ontario
Unlike previous generations , Gen Z brings pragmatic sensibilities shaped by the unique social, economic and technological landscapes of their upbringing.
Gen Z grew up amid economic uncertainty, technological upheaval and heightened social awareness. Unlike millennials, who entered the job market with " great expectations " for rapid promotions and pay raises, Gen Z is more pragmatic.
And so if Canadian organizations want to attract, engage with and retain this generation of talent, it's essential to understand what makes them tick.
Purpose, values and why Gen Z stays
Recent research shows that this generation values job security, work-life balance and mental health above all else. These preferences are shaped by formative experiences, including observing their Gen X parents navigate dual-career households and witnessing economic disruptions and automation-driven restructuring .
For Gen Z, stability is seen as essential for their well-being at work.
This generation is ambitious, albeit in ways that diverge from traditional hierarchical advancement. Rather than prioritizing vertical mobility, they seek roles that provide flexibility, meaningful contribution and alignment with personal values.
Central to Gen Z's workplace vision is a desire to work for organizations that prioritize diversity, inclusion and corporate social responsibility. This generation is the most racially diverse in Canadian history and has grown up in a more socially conscious environment. They tend to hold strong views around equal treatment and environmental sustainability, often expecting their employers to "walk the talk."
One report suggests that Gen Z employees are significantly more likely to remain with organizations that offer purpose-driven work, with retention likelihood increasing by a factor of 3.6 when such alignment exists.
The rise of "conscious unbossing"
One notable trend within Gen Z is the preference for collaboration over authority.
A recent survey reveals that nearly half of Gen Z professionals favour promotions that do not entail supervisory responsibilities. This reluctance stems from the perceived drawbacks of traditional leadership roles, including heightened stress, rigid scheduling and diminished autonomy.
Some Gen Z workers even indicate a willingness to accept reduced compensation to avoid managerial obligations. This phenomenon, described as " conscious unbossing ," presents a structural challenge for organizations anticipating leadership gaps as baby boomers retire and millennials ascend to senior positions. This means a reconceptualization of leadership, emphasizing project-based authority, mentorship opportunities and expertise-driven influence rather than hierarchical control.
This generation is also the first to grow up entirely within a digital ecosystem , resulting in expectations for seamless technological integration across work processes. Gen Z actively leverages AI tools for skill development, yet formal organizational training often lags behind these self-directed practices. If organizations don't offer structured, technnology-based learning, digital gaps among employees will grow.
Employers will need to invest in continuous learning opportunities such as micro-credentialing, AI-driven platforms and intergenerational mentorship that can enhance skill acquisition while respecting Gen Z's preference for autonomy.
Flexible work arrangements also constitute an important characteristic of Gen Z workers' employment preferences. Having studied and entered the workforce during the COVID-19 pandemic, they view remote and hybrid work arrangements as normal rather than an exception .
Flexible scheduling and outcome-based performance metrics are perceived as baseline expectations rather than discretionary benefits. Employers that adhere rigidly to traditional work structures risk attrition among Gen Z employees. Instead, employers should prioritize policies that emphasize results over physical presence.
How employers must adapt or risk losing talent
To attract and retain Gen Z talent, Canadian employers should adopt evidence-based strategies that include redefining career pathways by moving away from traditional linear models toward frameworks that emphasize lateral mobility, project leadership and skills-based advancement.
As AI and algorithmic HR systems become more prevalent, employers must consider how these tools align with Gen Z's ways of working. They expect technology to enhance - but not replace - the human side of work.
While AI and automation can improve efficiency, Gen Z places a premium on trust and authentic relationships. Employers should ensure transparency in algorithmic decision-making and maintain opportunities for personal interaction, as these elements are critical to engagement and retention for this cohort that values connection as much as convenience.
Sustainability is another priority for Gen Z. For this generation, climate action is not a marketing slogan, but a moral imperative. Employers must move beyond superficial "greenwashing" and embed sustainability into employment practices, from eco-friendly benefits to green office policies.
These initiatives should be inclusive, ensuring that environmental efforts also advance equity and deliver tangible benefits for all employees. Gen Z expects organizations to demonstrate measurable progress on both ecological and social fronts. Likewise, diversity and inclusion will remain critical for Gen Z, even in politically polarized environments.
And because this generation values guidance but prefers collaborative, non-hierarchical relationships, mentorship must also evolve. Employers should expand mentoring programs to include underrepresented groups, creating pathways for career stability and growth.
Understanding Gen Z and taking the steps to meet these new professionals where they are will help employers create the necessary trust for meaningful growth.
Eddy Ng receives funding from the Social Sciences and Humanities Research Council of Canada.
