Gen Z: The New Era of Workforce Trailblazers

Unlike generations past, Gen Zers are the first group to be raised as digital natives. Even for the oldest of the generational cohort, iPhones were on the market by the time they were ten years old. This has influenced many aspects of their lives, from how they socialize to how they shop, but as this generation enters the workforce, it’s also clearly impacted their perspective on work.

As we reach another graduation season and anticipate a new influx of Gen Zers into the workforce, Upwork analyzed how Gen Zers are already shaping the workforce – bringing unique perspectives around skills, flexibility and the type of work arrangements they want.

Key findings include:

• Gen Zers are more likely to work for companies that engage knowledge freelancers: Nearly three-quarters (73%) of Gen Zers say they work for a company that uses freelancers; this compares to 67% of millennials, 58% of Gen Xers, and 53% of baby boomers.

• Younger generations are more likely to engage freelancers in the future: 65% of Gen Zers and 78% of millennials say they plan to use more freelancers over the next five years than they do today.

• Gen Zers recognize that freelancers are part of a full talent strategy: In fact, 61% of Gen Zers believe that using freelancers is a very effective lever for building talent pipelines, which compares to 47% of millennials, 35% of Gen Xers, and 37% of baby boomers.

• Gen Zers plan to keep remote work around: Nine out of ten Gen Zers and 82% of millennials said they are much more likely to redesign work toward remote as a key recruiting lever. This compares to only 71% of Gen Xers and 59% of baby boomers.

For starters, our most recent Freelance Forward report revealed that freelancing continues to be an appealing career choice for young professionals. This may be driven in part by the fact that Gen Zers, more so than other generational cohorts, believe power resides with organizations today rather than with the talent. The recent waves of mass layoffs and mandatory return to offices have certainly not helped in the perceived power imbalance.

According to our research, in 2022, 43% of all Gen Zers and 46% of millennial professionals freelanced. When looking at the top reasons for freelancing among this age group, “To be able to pursue work I am passionate about or find meaningful,” “To take more control over my personal development and career path,” and “To have flexibility in my schedule (i.e., what days or times I work)” all make the list. These young professionals want to control the work they do, who they do it for, and when they do it.

Gen Z is normalizing career paths and work opportunities outside of the traditional 9-to-5. Additionally, Gen Zers have also been exposed to new and exciting career paths that have been made possible by technology and freelancing. A prime example is the rise of career fields like social media influencers or content creators. The same Freelance Forward survey found that younger generations are creating more influencer content. Overall, about 23% of all freelancers say their work entails creating influencer-style content, which rises to 27% and 29% of Gen Z and millennial freelancers, respectively.

Our latest survey of over 1,000 hiring managers found that Gen Z professionals are far more open to designing a new way of working. We see this in the types of professionals they want to work with, their approach to flexibility, and even their thinking about skills. While this has not influenced every Gen Zer to become a freelancer, it has impacted the attitudes and behaviors of many of them in the workforce.

Gen Zers are more likely to work for companies that engage knowledge freelancers. Nearly three-quarters (73%) of Gen Zers say they work for a company that uses freelancers; this compares to 67% of millennials, 58% of Gen Xers, and 53% of baby boomers. And not only do they work with more freelancers, but younger generations also plan to continue this trend toward using scalable workforces. When asked about their use of freelancers in the future, 65% of Gen Zers and 78% of millennials say they plan to use more freelancers over the next five years than they do today.

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This plan to engage more freelancers in the future is likely due to Gen Z’s recognition of freelancers as part of a larger talent strategy. In fact, 61% of Gen Zers believe that using freelancers is a very effective lever for building talent pipelines, which compares to 47% of millennials, 35% of Gen Xers, and 37% of baby boomers.

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Given this, it’s unsurprising that Gen Zers are also the most positive in their expectations of freelancers compared to full-time employees than are all other generational cohorts. When asked about how they view freelancers as compared to all other types of workers, 38% of Gen Zers said they have more confidence in a freelancer, 46% believe they are more cost-effective, and 33% said freelancers provide a higher quality of skills. And Gen Zers have a high bar for learning new skills. On average, Gen Z professionals report the fastest average amount of time to reskill for a hard skill, like learning the latest coding language, at 3.6 months. The rest of the generations believed it would take 5 months, on average.

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Beyond just scalable workforces, Gen Zers also have plans for a more flexible future. When asked about remote work, nine out of ten Gen Zers and 82% of millennials said they’re much more likely to redesign work toward remote as a key recruiting lever. This compares to only 71% of Gen Xers and 59% of baby boomers.

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However this generation chooses to enter the workforce, Gen Z is poised to change how we work now. From the type of professional they want to be, to the professionals they want to work with, to how they want to work will impact organizations now and in the future.

Methodology:

The study was conducted by independent research firm ClearlyRated. 1,000 U.S. hiring managers were surveyed through a third-party independent online sample in December 2022. A descriptive analysis was conducted to compare generational cohorts responses within our sample. Statistically significant differences are reported.