New Gen Z Data Brings Businesses a Critical Question: What’s Your Plan Z?
EY Research Uncovers Five Distinct Gen Z Segments That Employers and Business Leaders Need to Know
Employers and business leaders take note: a one-size-fits-all approach to defining a generation will cost talent and customers. As Gen Z, the generation of those born between 1997 and 2007, begins to enter the workforce and flex its newfound spending power, connecting with them is critical. To do so, it is important to identify and acknowledge the differences within the generation — something many employers and business leaders failed to do with millennials, to their own detriment.
Ernst & Young LLP released the Gen Z Segmentation Study, which confirms bucketing the most diverse generation to date into one simple type, despite their individual characteristics, goals and values, would be a costly mistake.
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Don’t assume anything — Gen Z contradicts many expectations
Gen Z is a walking contradiction to society and past youth when it comes to social media usage, core values and politics. Employers and business leaders should get to know the generation before basing plans on stereotypes.
- Social media: Today’s youth are perceived to be obsessed with their social media activities, and while 84% of Gen Z say they have a social media account, they use it more for communication than for public sharing like past generations. When asked to choose their top reasons for using social media, EY research found:
- 80% of Gen Z use social media to connect with family and friends
- 72% use it to satisfy boredom
- 41% use it to stay up to date on news
- 22% share opinions through social sites
- Values: Today’s youth are driven and future-thinking, with 79% saying doing well in school is very or extremely important and 72% spending time on activities that will help them in the future.
- Politics: The assumption is that Gen Z is liberal, but the research shows that these young people represent the diversity of the political spectrum. The majority view themselves as moderate (39%), with an almost-even split between liberal (28%) and conservative (25%), and the smallest percentage falling into the “other” column (8%).
These identities provide the foundation for the five key Gen Z segments.
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The power of five
The EY Gen Z Segmentation Study identifies the five segments of the Gen Z population and shows how much of the population each segment represents:
- Stressed Strivers (35%): high achievers, driven by a fear of not being good enough
- Big Plans, Low Energy (18%): expect to do well and make money, but aren’t necessarily willing to put in the effort
- Carefree Constituents (16%): the definition of “go with the flow”; may not drive change, but will be the ones who adopt it into the mainstream
- Authentic Activists (16%): motivated by the obligation to save the world — and the fear of what will happen if they don’t
- Secluded Perfectionists (15%): focused on being the best, not for money or accolades, but for the love of what they do
“Companies need a Plan Z and to recognize the power of five — or that each Gen Z segment brings unique value,” says Marcie Merriman, EY Americas Cultural Insights & Customer Strategy Leader. “Combining their strengths can accelerate innovation and transformation throughout an organization. The research shows us that while, as a whole, Gen Z are the true digital natives who grew up with technology and unparalleled access to information, their individual attitudes are proving to be diverse and varied. Understanding the drivers of each Gen Z segment is critical to providing them with the products, services and experiences they desire as consumers and the jobs they seek as employees.”
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