Episode 404: Understanding Gen Z's Expectations and Behaviors

Gen Z expert and author, Hana Ben-Shabat joined the Focus podcast to demystify the expectations and behaviors of Generation Z, who are now in college and entering the workforce. Colleges and university leaders have now been tasked with attempting to understand their values to innovate new ways to appeal to this generation, as they are unlike any generations of the past.

Ben-Shabat shares her insights on Gen Z to help business leaders maximize the potential of this group by studying their motivations and culture. Through her company, Gen Z Planet, Ben-Shabat turns her research into growth engines that higher ed institutions can then implement to better understand Gen Z and build a strategy that engages them.

How Gen Z Culture is Defined

Much of Ben-Shabat’s conversation points come from her book “Gen Z 360,” which is the culmination of her quantitative and qualitative research. This generation, defined by being the first to grow up with the internet, computers and smart phones, were born between the years 1998 to 2016. The early marker coinciding with the launch of Google and the latter marker coinciding with several significant cultural events.

The first topic of the podcast episode dives into Gen Z culture. With 48% of this generation made up of minorities, they are the most diverse generation to ever live in the United States. Their diversity has developed a cultural and social lens, where inclusivity and social justice are highly valued.

Gen Z has always existed with access to the internet and technology, which in turn created a high-level of connectivity that exposed them to many world events and movements in formative years, and continues to do so. Because of this, Gen Z tends to challenge authority and advocate for the change they want in the world. They are a generation of creators, reimagining creative outlets and placing value in self-expression.

“I believe they are really creating a new age of creativity. This is a generation that because of the tools that they have, the technology is in their hands, they are demonstrating a level of creativity and entrepreneurship that we have not seen before,” says Ben-Shabat.

On the other hand, Gen Z has a greater struggle with mental health than other generations. These struggles stem from witnessing their parents’ anxiety from the 2008 recession, Covid-19, school shootings, higher divorce rates and other downturns in the past 20 years. As a result, Ben-Shabat notes that Gen Z strongly values family, equality, mental health and financial stability. When shifting to the perspective of higher education, campuses should create strategies that appeal to this generation's core beliefs and needs.

Outlook on Education and Work

As Gen Z seeks financial stability, higher education is often the answer. Ben-Shabat’s research shows that Gen Z is expected to attain the highest levels of academic achievement. Her data reveals that 89% of Gen Z plans to go to college, with two-thirds stating financial security as motivation to earn a degree.

However, Gen Z students are also extremely averse to debt, and try to avoid or at least minimize their loans. They understand the consequences of student loans, but also view college education as the path to having a job that provides stability.

Transitioning from school to work, Ben-Shabat believes Gen Z is the most educated, yet least prepared generation to enter the job market. While institutions have taught Gen Z the technical skills they need to enter the workforce, they often lack the soft skills to help them succeed. Gen Z is highly motivated to succeed, and now universities need to prepare them better to enter the workforce and show them their debts will pay off.

Gen Z Commerce

Gen Z’s core value of financial security is a major influence in their commerce traits. They have learned from the mistakes of others to take actions to make themselves more secure. Campuses have seen increases in spread out payment plans as students learn more about money and aim to be debt-free at the end of each semester rather than taking out loans. Additionally, they are already investing and putting money into retirement accounts, even at young ages.
As consumers, Gen Z does not distinguish between online and physical stores, but carry out extensive research online before buying a product. Colleges and universities should keep this in mind and make sure that campus entities can sell online, in person or through mobile apps. Ben-Shabat says Gen Z expects commerce to follow their culture – they want the brands they spend money on to do good in the world and value individuality, authenticity and diversity. This attitude goes beyond money spent on things, Gen Z also expects the schools they attend to share their values and have a vision for improving the future.

Takeaways

Ben-Shabat’s advice to higher ed leaders is to understand Gen Z culture, focusing on where they come from and the pressures they’re under. Institutions should also continue to develop better technology for students to use from admissions to ongoing operations.

Finally, leaders should recognize their need for community, diversity and authenticity to create campus environments where that can flourish. Gen Z doesn’t have to be a mystery, and through work like Ben-Shabat’s, higher ed institutions can continue to grow and adapt to fit their needs and values.