Competing for Gen Z Workers—Europe's Smallest Talent Pool

In the current context of labor and talent shortages, more flexible thinking around work, life, and careers is key to attract and retain Gen Z. 

Born between 1997 and early 2010s,  Gen Z now represents about 30 percent of the total global population—more than 2 billion people—and will make up 27 percent of the workforce in OECD countries by 2025.  In Europe, where the population is aging rapidly and the overall working population is shrinking, this generation represents a smaller talent pool. The youngest cohort of people in the European labor force, individuals aged 15–24, is currently 9 percent. Understanding and trying to meet the expectations of Gen Z while ensuring a balance with the needs and expectations of other key constituencies (e.g., the rest of the workforce, customers, and owners) will help companies attract this cohort as employees and maintain sustainable pipelines of talent over the next decade.

Insights for What’s Ahead

• Gen Z workers seek evidence of purpose and values beyond catchy statements and marketing campaigns, which means companies must be authentic about their purpose and values by engaging in initiatives with a tangible impact.
• Building successful relationships with Gen Z employees depends on leaders showing authenticity, curiosity, and empathy. Leaders must be open to accommodating, where possible, Gen Z’s preferred ways of working.
• With Gen Z workers changing jobs at a more frequent pace than previous generations, a more dynamic approach to career development can help retain Gen Z employees and maintain a sustainable pipeline of talent.