Generation Z seems to be the problematic child of the labor market. More than 70% of managers claim that working with Generation Z presents more challenges than with other generations. At the same time, they face the challenge that by 2025, almost 30% of the workforce will be made up of Zillennials (Source). 

On the other hand, it is revealing to know that 42% (Source) of this generation prefers to join a startup instead of an established corporation. In addition, almost 50% of people under 25 express their desire to have their own business (Source). These data underline a clear trend: Gen Z not only seeks dynamic and flexible work environments, but they also have a strong inclination towards entrepreneurship and innovation.

So, what can this generation contribute to the labor market and how do they perceive startups?

1. The first step to their professional future.

For Generation Z, working in a startup is a golden opportunity to develop a wide range of skills and gain valuable experience. Thanks to their horizontal structures and the variety of roles they offer, they allow young professionals to take on multiple responsibilities and learn quickly. This not only enriches their resume but also prepares them for future job opportunities. They become multidisciplinary professionals who have been able to take on more responsibility than they would in larger companies. 

Additionally, many times the startup environment facilitates access to mentors and experienced leaders, which is crucial for personal and professional development. The proximity to founders and other leaders also allows them to receive direct feedback and guidance that accelerates their growth and strengthens their capabilities. The feeling of truly contributing to the company and experiencing exponential growth is a great motivation for Gen Z.

2. Instantaneity as a driving force.

Generation Z is often described as impatient, as they are accustomed to the instant gratification that characterizes the digital world in which they have grown up. Social networks, online shopping, and immediate access to information have shaped their expectations toward quick rewards. However, this apparent impatience can become a powerful engine for achieving short-term goals, especially in the startup environment. Agile methodologies, which many startups already implement, align perfectly with the mindset of Generation Z. 

These methodologies, which divide projects into short cycles called sprints, align perfectly with their mentality, allowing them to work intensively on specific tasks and see quick results. This immediate gratification reinforces their motivation and commitment, feeding a cycle of constant achievements. Seeing how their work directly impacts long-term goals gives them a sense of purpose and belonging, which is crucial for the success of the startup. 

3. Risk as an opportunity for growth.

Risk is an inherent part of the startup environment. Unlike traditional companies, this type of company often operates under conditions of high uncertainty. The ability to pivot, that is, to change direction quickly in response to new opportunities or challenges, is crucial. Successful startups are those that can effectively manage risk and adapt quickly. 

For Generation Z, risk in this case represents learning opportunities. This generation's willingness to learn from failures and recover quickly is a valuable asset in the world of startups. This is why they feel more comfortable in innovative environments where failures are common and necessary for growth. Environments in which they overcome obstacles and keep moving forward without losing momentum.

4. The importance of culture and values.

Generation Z deeply values the ethics and principles of the companies they work for. In fact, more than 90% choose their job based on the impact of the company (source). There is an intrinsic motivation in seeing that their team shares their concerns about sustainability, social responsibility, and business ethics. They seek jobs that allow them to make a tangible difference in the world, so they prefer roles that offer them purpose and the opportunity to contribute to something meaningful. 

Moreover, they place special importance on the culture and people within companies. They value interpersonal connections and team culture.

5. Future vision: business opportunities.

With a clear vision of cultural and technological trends, Generation Z can help startups anticipate and respond to the changing needs of the market. These insights can uncover growth opportunities for the company and even create new businesses adjacent to the core business. 

Being immersed in communities and social networks, they have a deep understanding of the needs and desires of their generation. This can lead companies to develop diversification initiatives that leverage new trends or market needs that have yet to be explored by other competitors. These can also position the company as a leader in its industry. 50% of them want to be entrepreneurs, showcasing their entrepreneurial spirit and making them the driving force of the startups of the future.

Conclusion.

Although Generation Z is currently seen as the biggest challenge in the labor market due to their differences in motivations and expectations, it is essential to understand their perspective and motivations. Despite these challenges, there are also significant opportunities to leverage their strengths and distinctive characteristics of this generation.

It is crucial to adopt inclusive and flexible practices that harness this generation's impatience for quick results and their inclination toward autonomy and continuous learning. Fostering a work environment that values generational diversity not only stimulates innovation and creativity but also strengthens organizational culture. Companies that understand and effectively adapt to the unique motivations of Generation Z will be able to lead in a dynamic and competitive labor market, establishing solid foundations for future growth.