Hey Gen Z, you’re looking for tech jobs in all the wrong places

For generation Z, finding a job seems to be more difficult than it’s been in recent years, and part of the problem is a lack of experience or skills companies want at a time when technology is changing at breakneck speed.

More than half of 1,000 workers ages 21 to 25 in the UK polled recently by Wiley Edge, a reskilling training provider, said they needed as much as nine months to find their first entry-level role, with 37% of Gen Z tech workers needing more than six months to do so. (Half the respondents were in a tech or IT-based job; the other half were in other types of jobs.)

Even as recent college grads hunt for that coveted first entry-level position, businesses face a critical technology skills gap, exacerbated by the fact that tech unemployment is low.

There are other cross-currents in play affecting hiring in IT:

• Organizations have shifted away from hiring based only on college degrees and more toward skills-based talent.
• Some of the most in-demand skills include full-stack developers, data scientists, and artificial intelligence (AI) engineers and developers.
• The quick rise of AI and generative AI could be having an adverse effect on entry-level IT positions that often involve lower-level or more mundane tasks.
• Gen Z tech specialists, according to Wiley Edge, prefer to work in big tech companies because they have a misconception of what a good tech career looks like.

Gen Z, typically considered those born between 1997 and 2012, is expected to make up 27% of the workforce by next year. So, increasingly, it will be important for companies who are hiring to find the skills they need in young workers, and for those workers to adjust their hiring expectations.

“This rift between the next generation of tech workers and expanding technology teams is exacerbated by two factors: how job seekers look for employment and the strategies employers use to find talent,” said Khadijah Pandor, head of partnerships at Wiley Edge.

“Great talent can be found anywhere, and hiring people with diverse backgrounds and life experiences brings new perspectives and different skill sets to benefit the workforce,” Pandor said. But “applying for a position at this type of company can be extremely competitive, with candidate demand outpacing the number of paid opportunities available.”

In reality, solid career opportunities can exist at tech companies from small to global, as well as in other sectors, from finance and healthcare to logistics.

What companies can do to attract younger workers

In light of the perception among young adult professionals of what it means to have a successful tech career, employers need to build awareness of tech jobs at smaller companies and in vertical industries other than technology, according Pandor. For example, finance, healthcare and logistics are all industries that need tech talent.

“A practical way to make a difference here is for businesses to promote their employer brand at a wider range of universities,” Pandor said. “Whether it’s in-person events like career fairs, virtual events, or online campaigns through social media, connecting with students from different backgrounds broadens the search to find great talent.”

It’s also key for organizations to to showcase their culture and how they create a sense of belonging to talent from all backgrounds. “Establishing and promoting forums such as employee resource groups can help ensure individuals’ voices are heard and make new recruits feel welcome,” Pandor said. “Sadly, our report suggested that many Gen Z professionals still feel excluded in the workplace; 60% have felt uncomfortable in a tech role due to their gender, ethnicity, disability, neurodevelopmental condition or socioeconomic background.”

One mistake some employers make is listing job requirements that aren’t actually necessary. This risks culling candidates who might not seem to fit the bill or putting off solid candidates from applying. Wiley Edge’s report showed almost half (45%) of businesses offering tech roles claim that candidates applying for entry-level positions lack core technical skills, despite holding a relevant degree. But many technical skills can be taught on the job.

It’s also helpful to consider applicants beyond those with degrees in computer science or science, technology, engineering, and math (STEM) who could bring valuable skills to the workforce, accorrding to Pandor.

What Gen Zers want

Business consultancy Deloitte last year surveyed 14,483 Gen Zs and 8,373 millennials across 44 countries; it found 49% of Gen Zs and 62% of millennials say work is central to their identity — but having a good work/life balance is the top trait they admire in their peers, and their top consideration when choosing a new employer.

The survey also found flexibility and trust are central to an environment where employers and employees are successful. Business leaders can address those needs by focusing on the design and practice of the work itself — and let that dictate workplace flexibility.

“Organizations should continue to be thoughtful and intentional about their hybrid work strategies and to allay concerns that employees may have about any potential adverse impacts of working in this way,” Deloitte said.

As always, pay is an issue, especially for younger workers struggling to keep up with a higher cost of living. But Gen Zs and millennials with significant financial concerns aren’t often comfortable speaking with an employer about a raise or promotion, Deloitte reported.

Even in uncertain economic times, organizations have the ability, and responsibility, to help ensure the financial well-being of their employees, Deloitte said. “This can start with offering market-competitive salaries and benefits. Flexible benefits such as those relating to dependent care, healthcare, or commuting costs can also be a good option to help personalize benefits according to each person’s needs,” the report said.

What Gen Z workers need to do

The pace of digital adoption and technological change today is far greater than it’s ever been, according to Ger Doyle, senior vice president of US-based IT staffing firm Experis. The rise AI and genAI is likely to accelerate that trend, “so new graduates, as well as those in the workforce today, need to embrace a concept of life-long learning to stay relevant in the new world,” Doyle said.

Pandor agreed: “Candidates should remain consistently curious throughout the job-searching process. Keeping up to date with the latest trends and developments in the digital world by reading technical news enables them to showcase their interest in the ever-changing sector when they do land a job interview. From a more practical perspective, talent can also continue to practice and enhance their technical skills while job hunting so that they are ready to hit the ground running.”

Younger job candidates might not be aware of the breadth and diversity of roles available, Pandor said, and they shouldn’t rule out other opportunities early in their careers. It’s important to look at the most in-demand roles of the moment and skills required before tailoring applications to emphasise relevant skills.

And while the workplace has changed in recent years — most notably with the rise of remote and hybrid working patterns — don’t automaticaly eschew working in an office.

Though a majority of Gen Z job candidates now expects a level of flexibility in their professional lives never seen before the COVID-19 pandemic, “candidates new to the world of work may be inadvertently discounting great career opportunities as they are unaware of the learning and development benefits of working in an office environment,” Pandor said. 

A big part of success, she emphasized, is applying for a broader range of jobs outside of typical “Big Tech” roles to demonstrate job-seekers are on the market to a wider range of employers.

“Gen Z talent should widen their perception about the type of role they want to pursue and avoid setting their hearts on specific careers such as UX design or software engineering,” Pandor said. “Candidates may not even be aware of the breadth and diversity of roles available, which will only continue to develop as technology advances at scale and pace.”

Is higher education falling short?

Gaudy Jandron, CIO of US Signal, a provider of network, cloud and data center services, said she sees “a critical disconnect” between college classrooms and the demands of today’s highly competitive business landscape.

“Specifically, I am seeing graduates emerging from technology programs that lack hands-on experience, either because labs are outdated or internship programs are not designed to prepare these graduates for the realities of today’s business,” Jandron said. “In several instances, I’ve seen internship programs that lack formal structure, leaving their interns to figure out how to get maximum value out of the internship.”

In addition, while graduates might have foundational technical skills, they struggle to “communicate, collaborate, and translate tech-speak to the business,” she said.

One book Jandron believes should be a staple in any computer science or technology program, is Get in the Boat: A Journey to Relevance by Pat Bodin. It articulates the importance of soft skills so technologists can communicate the relevance of their work in terms business can understand.

Gartner

Studies have aligned with what Jandron sees — universities falling short on training young adults in the most critical skills. A study by Dell, for example, found that traditional higher education is not adequately preparing Gen Z for the demands of a tech-driven workforce, and a significant percentage feel schools don’t provide them with the necessary digital skills. 

According to the Dell study, 44% of Gen Zers surveyed said school only taught them very basic computing skills, and 40% consider learning new digital skills essential to future career options.

Though Gen Z employees feel the lowest level of skills preparedness across generations, according to Gartner research, “this is unsurprising because they are the least experienced in the workforce.”

However, skills preparedness for Gen Z employees has actually been increasing over time, from 36.7% two years ago to 41.4% now, according to Gartner.

Gartner

“They are the only generation with an upward trajectory in skills preparedness,” Gartner’s study stated. “This may represent a rebound from the COVID era, when Gen Z struggled due to remote education and starting their first jobs with fully remote work.”

A seperate survey, performed by workforce management vendor Kronos, found that  only half of Gen Zers found their college or high school experience to be critical preparation for the working world — yet they expect managers and business leaders to trust their abilities and support their work performance and professional growth.

“It is important to note that the demand in tech decreased significantly in the past year or so, which makes the job hunt even more difficult for anyone, but perhaps more particularly for those that have no experience directly coming out of school,” Doyle said. “These factors contribute to the difficulties that Gen Z individuals encounter in securing tech jobs.”

According to Gartner, Gen Z candidates feel less prepared than other generations for the skills they need. “While their skills preparedness has been increasing…, they are still struggling to feel prepared for their jobs,” said Jamie Kohn, a Gartner senior director of research.

“However, our data shows no evidence that Gen Z candidates are broadly struggling to find new jobs — at least not more than other generations,” Kohn continued. “More than two-thirds report having multiple offers in their last job search process. They also report spending less time on their job search than other generations, which may suggest a lack of urgency or an ease of finding work.”

The rise of soft skills-based hiring

More and more employers now hire based on hard and soft skills — that is, specific capabilities that fit tech needs and demonstrate an employee’s ability to advance while being an integral part of a team.

In fact, a growing number of organizations are dropping traditional college degree requirements in favor of skills gained through alternative methods. Capabilities such as network management, data mining, AI engineering, and software development are high on the list of desirable skills. (Some companies are even seeking gamers.)

“Soft skills have become increasingly important in the workplace, driven mostly by the transition to a knowledge and service economy over the past decades,” according to Serevine Zaslavski, vice president and head of product development at global staffing firm ManpowerGroup.

Just over a quarter of businesses offering tech roles think candidates applying for entry-level positions lack soft skills, such as communications, critical thinking, capacity to learn, ability to work in a team, and creativity. “ManpowerGroup continues to see higher growth of skilled technical and business professional jobs globally, all roles which require critical thinking skills combined with interpersonal skills,” Zaslavski said.

The professional work environment, she said, has also become more complex ,with rapid technological change and a changing workforce composition. “Employees need to adapt to the use of new tools, new processes, and more of them must work across functions, cultures, and geographies,” she said.

While the demand for soft skills has increased, on the supply side (or skill acquisition side) of the equation, a more systematic approach to their development is just beginning, according to Zaslavski.

“Soft skills have just started to show in continuous education syllabuses in the last few years. On the corporate side, it is important to note that most organizations have the soft skills they need within their talent pool,” she said. “What is missing is the alignment and matching of soft skills to roles, thus creating gaps in performance.”

Ironically, many people have great soft skills but are not encouraged or incentivized to deploy them, Zaslavski said. “So, we end up with a paradoxical situation where employers complain about lacking soft skills they inadvertently ignore or neglect. Then they go to buy them from the outside.”

The role of job tenure — and satisfaction

According to Gartner, Gen Z is more likely than other generations to prioritize career growth and a more interesting career path. That leads younger tech workers to spend less time at any one company before seeking career growth at another.

A Policy Research Working Paper from the World Bank showed a worker born in 1980 has, on average, 3.6 years’ shorter tenure than a worker born in the 1940s. In other words, younger workers change jobs more often.

In fact, a survey of 11,000 employees from eight countries by Boston Consulting Group (BCG) revealed that in a labor market where there is still record low unemployment, 28% of workers — whether actively or passively looking for a new job — do not see themselves with their current employer within a year.

Gen Z places a higher emphasis on their experience in a role than other generations, according to Gartner. In a poll of 2,626 Gen Zers who recently accepted a job, 65% said the experience they have at work is just as important to their job satisfaction as compensation and benefits; 57% of millennials, 56% of Gen. X, and 53% of baby Boomers felt that way.

So, if employers hope to retain new workers, it’s more critical than ever to understand what really matters to them. When it came to determining why an employee would stay in a job, according to BSG, pay mattered less than emotional factors such as job security, being treated fairly and respected, enjoying work, feeling valued and appreciated, and feeling supported.

“If companies want to keep their employees, they need to meet these emotional needs,” BSG said.