Gen Z: The blueprint for a modern workplace

Younger workers have a “pragmatic, not fearful,” relationship with AI, feeling half as fearful about AI-caused displacement compared to their Baby Boomer counterparts, a study has revealed.

For its report, Gen Z Loyalty in the Workplace, recruitment firm Robert Walters explored how the different generations in Australia’s workforce viewed AI.

Raised amid a technological evolution

The chief executive of Robert Walters ANZ, Shay Peters (pictured), said Gen Z has a “pragmatic, not fearful,” relationship with AI.

However, Peters said employers who ignore tech transparency expectations risk losing trust and talent.

Based on its findings, only 10 per cent of Gen Z said they fear that AI would replace their role, compared to 21 per cent of Baby Boomers.

The report also found that Gen Zs expect workplaces to provide seamless workplace technology, transparent communication about the impacts of automation on roles, digital upskilling opportunities, and a voice in shaping organisational technology strategies.

Top loyalty drivers

The study revealed that Gen Z’s confidence in technology comes with strong expectations surrounding culture and wellbeing. Gen Z’s top loyalty drivers include diversity, mental health support, flexible work arrangements, learning pathways, and skills-based hiring.

Peters emphasised the importance that Gen Zs feel “included” in the future of work, as the firm’s data showed that 49 per cent of Gen Z said they need companies to explain AI’s role.

“The biggest mistake employers can make with AI is silence … when businesses share their roadmap and offer digital learning pathways, confidence increases – and so does loyalty,” he said.

Building engagement and trust

To build Gen Z engagement and trust, the research highlighted the importance of companies providing structured digital upskilling programs, including short courses, internal workshops, and learning pathways that have an emphasis on emerging technologies such as AI.

“This not only reassures employees but reinforces your position as a forward-thinking employer that invests in people,” it said.

Further, it urged that companies stay transparent about how AI and automation are being used across the business, and how they will enhance roles.

This will help to foster trust and will allow employees to see technology as an enabler, not a threat, it said.

“Gen Z’s expectations aren’t demands, they’re the blueprint for a modern, human-centred workplace,” Peters said.

“When organisations lead with authenticity, invest in capability, and involve their people in the journey, loyalty follows naturally.”