Bridge the Gen Z skills gap with early-career development focused on tech and human skills, writes Pete Humphreys
In today’s rapidly evolving business landscape, organisations face a critical challenge: developing talent that can thrive in the digital age while maintaining essential human skills. This challenge is particularly acute when it comes to integrating Generation Z, those born during the mid-1990s and early 2010s, into the workplace as the skills gap between education and employment continues to widen.
Prioritising early-career development can yield substantial returns
Many Gen Z individuals joining organisations are increasingly frustrated as employers perceive them to be the problem. At times, referred to as the ‘snowflake’ generation, this is widely unfair. This is a group of critical talent joining employment, and organisations need to understand how to leverage their skills, rather than battle against the opportunity they bring.
The Gen Z dilemma
Generation Z is the first truly digital-native group to enter the professional landscape. While they bring technological savviness and innovative thinking, many struggle with the soft skills crucial for professional success.
According to Barclays research, 66% of SMEs in the UK report difficulty hiring Generation Z talent, and many SMEs believe this cohort exclusively seeks opportunities with larger corporations.
However, this perception doesn’t align with reality, because one-in-four Gen Z professionals express a preference for SME environments. This presents a prime opportunity for smaller businesses to attract and retain high-potential individuals.
Recent research from Harvard Business Review sheds additional light on the unique characteristics of Gen Z in the workforce:
- Digital fluency vs. interpersonal skills
While Gen Z is known for its digital fluency, many struggle with face-to-face communication and conflict resolution. The need for interpersonal skills training is therefore essential.
- Desire for stability
Contrary to popular belief, Gen Z values job security and stable careers. Organisations have an opportunity to attract and retain young talent by offering clear career progression paths and development opportunities.
- Emphasis on continuous learning
Gen Z has a strong appetite for continuous learning and development. Organisations should align their talent acquisition and retention with ongoing skill development and adaptability.
The widening skills gap
With the mismatch between skills gained through education and those demanded by businesses, it’s essential Gen Z can thrive from the word go with the right support.
From our recent Mind the Gap research (2023), we identified several human skills that are crucial for professional success across industries:
- Self-awareness and personal brand.
- Communication and relationship building.
- Adaptability and resilience.
Overall, helping Gen Z with the above skills will support their conduct in the workplace in all situations that may arise. However, the Covid-19 pandemic accelerated the shift towards digital learning, forcing organisations to quickly adapt their training methods placing emphasis on a more engaging and interactive approach to virtual learning, so that learners can engage with content in various formats.
Considering the human skills gap, it’s important to balance technology with human interaction. While some aspects of learning can be commoditised, such as instructional videos or basic materials, access to real-time, interactive training should underpin the support of this generation to lead to a deeper, more lasting change.
The science behind effective training
To boost retention and skill application, evidence shows that blended early-career training grounded in behavioural science and practical experience is most effective. Combining live, interactive sessions with self-paced learning creates a powerful mix that enhances long-term results.
It’s evident that participants who have the chance to learn alongside their peers and apply concepts to their own context are also able to solve problems on multiple levels. This real-time, collaborative learning environment is where we see the most significant breakthroughs and lasting changes in behaviour.
The cost of neglecting early-career development
The hidden costs of not addressing the Gen Z soft skills gap, especially for SMEs, include higher turnover rates, reduced productivity and missed opportunities for innovation. Therefore, prioritising early-career development can yield substantial returns.
Despite cultural differences, we found that the fundamental needs of early-career professionals remain remarkably consistent across the globe. Whether in Sydney, London or Singapore, young talent seeks environments where they can develop their skills, build relationships and see a clear path for career progression.
As the skills gap continues to widen, effective talent development becomes increasingly crucial. The balancing act is considering technological innovation with a focus on essential human skills, for integrating Gen Z into the workforce successfully.
A Gartner survey of 412 senior marketing and sales leaders conducted over a two-month period in 2023 found that organisations that blend digital and real-time interactions are almost twice as likely to exceed expected revenue growth.
By making high-quality development programmes accessible to businesses of all sizes, organisations build more adaptable, innovative and resilient workforces. In doing so, we are not just shaping individual careers but contributing to the future of work itself.
Looking to the future of the workplace
In a world where AI and automation are rapidly advancing, the ability to connect, empathise and innovate will set humans apart. By focusing on these uniquely human capabilities, organisations can ensure their Gen Z workforce is prepared to thrive in the digital age and beyond, effectively bridging the skills gap that threatens to hinder business growth.
As Adnan Zijadic, Director Analyst at Gartner, points out: “AI can provide a goldmine of insights and automate certain tasks, it supercharges the sales playbook rather than replaces it – the human element is still key.”
As we look ahead, the world of work will continue to evolve at a rapid pace. The skills that will be most valued are those that allow individuals to evolve and collaborate across cultural and geographical boundaries.
Pete Humphreys is CEO of Development Beyond Learning
