It is undeniable that Generation Z had a major impact on workplaces in 2023.
The eldest in the generation entered the workforce with a bang and made it very clear they weren’t going to blindly accept the “hustle culture” mindset promoted by Millennials, and certainly not the value Boomers place on being physically in the office sticking to traditional work hours.
More than any other generation before, Gen Z workers value work-life balance and they aren’t willing to sacrifice their personal lives just to get ahead at work.
As a result we saw a spate of new ‘work trends’ emerge in 2023 which specifically catered to the younger generation’s approach to employment.
Quiet Quitting, Bare Minimum Mondays, Lazy Girl Jobs and Loud Leaving are just a few of the many trends popularised by Gen Z this year.
And in 2024, Aussies have been told to expect this generation to continue to push for changes in how the typical workplace operates.
These are some of the major predictions of how your workplace may be about to change.
Gen Z, Millennials will make up workforce majority
In less than two years, the majority of workers will consist of either Gen Zers or Millennials, leading to a major shift in workplaces, according to Silvija Martincevic, CEO of leading global software company, Deputy.
“By 2025, 75 per cent of workers will consist of these two generations,” she said.
“These generations grew up with a phone in their hands, which ultimately will reshape workplace dynamics, fostering a tech-savvy and digitally connected environment.”
Both of these generations bring a unique perspective and values to working and, as the majority demographic, they are set to have major influence on company cultures in the coming years.
This doesn’t just mean pushing for a better work-life balance (though that will continue to be a major focus), with Ms Martincevic predicting there will be increased pressure for businesses to focus on diversity, sustainability and social responsibility.
These generations will also continue to drive demand for innovations and flexibility with how they are allowed to work.
“As these generations value the integration of personal and professional lives, employers will increasingly need to adapt by offering versatile work arrangements, including remote options and flexible hours,” Ms Martincevic said.
“A growing sentiment is a desire to move away from the traditional 9-5 work model.”
As a result, companies may start embracing “microshifts”, which allow for more personalised work arrangements.
This could look like allowing employees to work for four hours, take time off to attend to personal responsibilities, and then work another four hours at time that better suits them.
Baby Boomers retiring and the rise of AI
Ms Martincevic warned that the combination of Boomers retiring and the younger generation wanting to participate less in the workforce means there could be a “significant labour shortage looming”.
She warned in order for employers to retain workers in the changing landscape, then creating strong connections, fostering healthy communication with employees and offering opportunities for professional growth is crucial.
However, the changing landscape offers an opportunity to rethink ‘traditional employment’ and move to a more adaptable, efficient system, according to Liam D’Ortenzio, Head of People & Culture at Employment Hero.
He told news.com.au that companies should be prioritising better skills matching between employers and employees, something that can be made much more simple with the use of AI.
“For example, we should view the workforce as atomised. What does this mean? Imagine a jobseeker’s individual skills are shared efficiently across multiple employers,” he said.
“This model, propelled by the seamless flow of data and efficient matching of skills to jobs, offers unprecedented flexibility – for both employer and employee.”
For example, consider a skilled design professional looking for consistent work in a landscape where not every company requires a full-time design role.
“If this designer were able to digitally showcase their skills and availability in front of prospective employers, they could then better connect with multiple businesses in need of their expertise,” Mr D’Ortenzio said.
“This would result in them engaging in varied tasks across different organisations, enhancing their earnings and work diversity, without being tethered to a single employer.”
He noted this is something Employment Hero is already witnessing through its SmartMatch service, which allows small to medium businesses, with the help of AI, to automatically find the best talent for new roles.
“The use of AI cannot only better match employees and employers but also do it much quicker,” Mr D’Ortenzio said.
“This means no more endless searching for the right job amid unsuitable positions. Instead, jobseekers could more efficiently land their dream roles.”
Work from home here to stay – despite pushback
Throughout 2023 a growing number of industry leaders and CEOs began pushing for remote workers to return to the office, sparking a struggle between workers and employees.
We saw this battle play out across Australian workplaces this year, with major firms issuing notices for employees to return to the office, sparking major pushback.
There was even new research that suggested more than one-third of large Australian employers were planning to reduce the pay of staff who continue to work from home in the next three to five years.
But, despite this, working from home “isn’t going anywhere”, according to Mr D’Ortenzio.
“We’ve seen large organisations add ‘office attendance’ to scorecards determining employee bonuses, and in response, employees have justifiably pushed back,” he said.
“The growing number of employees challenging returning to the office and looking for remote work arrangements suggests the debate is not dying down.”
Research from Employment Hero found 78 per cent of employees said working remotely at least some of the time is better for reducing the cost of living.
Half of the hybrid and remote workers surveyed said they would consider quitting their jobs if their employer forced them to return to the office full time.
More than half (66 per cent) of workers from marginalised groups agreed that remote work protects them from discrimination in the workplace.
However, Mr D’Ortenzio said there was a much more pressing issue facing Australia beyond the working from home debate.
“We should be focused on outputs, not office attendance. How do we create a much more productive workforce that will drive us forward?” he said.
“Here, we need to be harnessing the latest technology, such as AI, to help advance our workforce, improve productivity and keep us on the front foot.”