By: Jennifer Openshaw
GenZ – the largest segment of the world’s population with 2.46 billion globally — is worse off now than they were before Covid-19.
Gen Z – the cohort that follows millennials and were born after 1996 – is just now entering the workforce. Well, at least they were.
With the oldest turning 23 this year, this generation is facing systemic issues that could have a long-term ripple effect on their financial and mental well-being. The good news is that the George Floyd crisis may finally be a turning point for people of color.
Even before the virus broke loose, our national survey found that securing a job was one of their top concerns – with 59% saying it was a key worry occupying their minds, followed by mental health.
A full 23% had said that their single greatest concern was getting a job, according to the report, What’s Inside the Minds of GenZ?
With 40 million Americans out of work, companies putting the brakes on hiring, and economic pressures that are likely to keep earnings down, the outlook for GenZ isn’t so bright.
What will the future bring for this generation? And what can employers and parents do?
Let’s start with the outlook.
• Delayed college degrees, mounting pressures – The “Covid academic slide” is expected to hurt students, with as much as one-third of their academic progress in the previous year lost, particularly in math.
Colleges are re-imagining learning on the fly. The University of Connecticut, for example, is having to re-register all students and offer programs both in-person and online, adding to costs.
Others are predicting that colleges could lose up to 20% of students. The impact could be felt in college tenures that stretch to five years or more, adding to student costs and pressures.
Students, like my 23-year-old college niece, Isabelle, feel overwhelmed by an increased workload from professors: “They’re giving us double the work,” she says. “It’s like they think we need more to fill out time.”
• Hybrid learning come Fall – Our educational systems – from UCONN to the all-girls school Ethel Walker — are shifting to a combination of in-person and online learning this Fall.
As we speak, options under consideration range from a combination of in-person and live, online to splitting up the day half-and-half: half of students attend school in person from 8 am-12 noon and then shift to remote learning from home while the rest of the class heads to school in the afternoon.
College leaders tell me the move to hybrid will cost them more as they offer two delivery models – while parents and students will have to re-register for classes in some cases – yet another item on the to-do list.
• Job uncertainty — With the economic impact of Covid-19 still in the offing, even Federal Reserve chief Jerome Powell warns, “There’s a whole new level of uncertainty.”
Companies are still in a hiring freeze. It may take several years – three to five — before we return to the growth we enjoyed before.
Many GenZ students are now turning to the idea of having an experiential gap year as a way to delay college and the uncertainty – but with travel and in-person activities limited – options will be few and far between
And let’s not forget that venture capitalists and corporate America are all re-thinking innovation: where are the new hotspots for growth? How do we use digital to drive our business? What talent do we need to drive that growth?
The college student once considering owning a gym or being a doctor may not need to re-think given the huge pivot to digital-based engagement.
• Lower savings over time – Perhaps the greatest impact is on their earnings. In 2019, the average starting salary hovered about $51,000 according to Korn Ferry. Yet black Americans with a college education earn only two-thirds of what whites with only a high school diploma earn.
The loss of revenue for companies means that salaries may well go down for new hires – especially with such a large labor supply.
The $50,000 starting salary may well drop to $30,000, adding up to a loss of tens of thousands over time. The rule of saving 10-15% of your gross salary in your 20s will result in far less in the bank account – unless they’re living with Mom and Dad.
And companies are cutting benefits like 401(k)s – a key factor for GenZ employees when choosing an employer.
What can GenZ do?
First, know what companies are hiring today. Word has it that Facebook is scooping up talent, hiring “anyone qualified” as one person told me. Check out industries growing not just now – but as we look to a new world. Changing health care models, education, use of robotics to name a few.
If you’re among the 30% of GenZers who say running a business would most boost your confidence, re-think your model… and how your skills can fit in with employers who also need to shift. And, don’t ignore the importance of networking. So, ask around…parents, friends and teachers; they might be willing to help get your foot in the door, even if, for only a side-gig job. GenZ already comes to the table with a unique set of digital skills. Every business, from schools to Fortune 500 companies, needs to maximize their digital strategy now more than ever.
Second, re-think Summer, Gap Year. One of the worst things one can do is to sit back because traditional gap year experiences don’t exist.
“There’s a tremendous disconnect between what kids do after school or summer, like dishing ice cream, and what they could be doing to build their futures,” says Lynda Applegate, a Harvard Business School professor and advisor of Girls With Impact.
Students should turn to online internships and experiences to keep their resume current, their professional skills improving and their network building.
Girls With Impact, the live, online business and innovation Academy for teen girls, made a concerted push to help families impacted by Covid-19.
The result: nearly 1,000 teens from across the nation are learning entrepreneurship and what it means to launch a product, business or idea. Many are developing Covid-related venture ideas – any of which will give a big boost to their resumes and college applications.
And the outcomes – from a doubling of confidence, financial literacy and more – continue to prove that live, online, instructor-led education can help those from all backgrounds.
A series of Future Ready workshops has also been launched, complementing the virtual Summer camps.
Third, seek a remote-based mentor – With millions of Americans working from home, companies are looking for digital-based volunteering opportunities for their employees.
And GenZ values older, experienced mentors, according to our research.
Now may be the perfect time to find a mentor – whether through a formal program like the above or through your school or neighborhood network.
No need to travel – and the support, guidance and professional development may well help GenZ with the anxiety they’re facing.
Fourth, take the financial pressures off. Some colleges are delaying tuition payments – like Davidson College. Others, like Southern New Hampshire University are offering an “innovation scholarship” for all incoming freshmen covering 100% of first-year tuition.
Check out the options for your current or target college. Remember that delaying college might just put you further behind.
The Takeaway: The future may be uncertain for GenZ. But one thing is clear: Now, more than ever, it’s imperative to lean in, not sit back. Take these steps to be sure that, when the market is ready, you’re able to stand out from the crowd when applying for jobs in the future.
