Fulfilling Gen Z's Needs and Expectations in Industry 4.0: Attracting and Retaining Early Career Talent

Introduction

Industry 4.0 is a term used to describe the fourth industrial revolution, characterized by the increased use of technology in the manufacturing and production processes (Lasi et al., 2014). One of the main implications of Industry 4.0 regarding talent is the increased demand for skilled workers (Črešnar & Nedelko, 2020) in areas such as data analysis, AI, and robotics to enable businesses to automate processes, increase productivity, and reduce costs (World Economic Forum, 2018). The development of technologies also has implications for hiring and retaining talent. Donald et al. (2022a) observed that technology has the potential to streamline the hiring process and offer environmental impacts by reducing the volume of travelling or printing of assessment materials. However, they also found a substantial risk of biases encoded in the decision-making progress, which only becomes apparent at the end of the recruitment cycle. Optimizing the hiring process will become increasingly significant since, according to a report by McKinsey Global Institute (2018), 375 million workers may need to switch occupational categories by 2030 due to automation. The war for talent will also require reducing the time taken from application to job offer to avoid talent competitors securing talent first due to a more streamlined application and selection process. Therefore, Industry 4.0 will require businesses to adapt quickly to stay competitive. From a retention perspective, technology can help to monitor employee wellbeing and offer flexible working opportunities such as hybrid working or working from home (Donald, 2023a). The same study found that learning opportunities, remuneration, meaningful work, career progression, and wellbeing were prevalent in the desires of early career talent.

Consequently, given the impacts of Industry 4.0, employers need to understand the unique characteristics and skill sets of Generation Z (Gen Z) workers. As our first generation of digital natives, Gen Z is highly dependent on technology and possesses a strong proficiency in digital and mobile communication skills, making them well-suited for the demands of Industry 4.0 and the forthcoming Industry 5.0 (Löffler & Giebe, 2021; Xu et al., 2021). They are independent, creative, and innovative and value work-life balance, flexibility, purpose, and social impact (Lee et al., 2021). They are willing to forego high salaries for meaningful work (Gupta, 2020), making them ideal for positions that require a sense of purpose and social impact.

However, their impatience and restlessness also need to be channeled appropriately. Employers must balance harnessing Gen Z’s strengths with providing structure and direction to enable them to thrive in their careers (Nurjanah & Indawati, 2021). Gen Z has also been characterized as lacking ambition compared to previous generations. However, this perception is likely a result of their focus on work-life balance and a desire for flexibility in their careers (Bakker, 2020). They want to work in jobs that allow them to pursue their passions and interests and are willing to make career changes to achieve this goal. Therefore, employers need to communicate a clear sense of purpose and social impact within the organization to attract and retain members of this generation. They must also know the importance of authenticity and inclusivity in their interactions with Gen Z (Francis & Hoefel, 2018).