Due to the impending shortage of skilled workers, on the labour market an employee market is emerging. This requires addressing the needs of the youngest generation, Generation Z, in the labor market in order to attract and retain them in the company. This scientific contains possible motivational incentive systems based on practical case studies.
Economic and demographic circumstances have changed. There are several generations who take part the labour market now. These are subdivided in the baby boomer generation, the following generations x and y and the youngest one called Generation Z. The existence of several generations active on the labour market at one time was also the case in the past, but a demographic change can be observed, which has an increasing impact on the professional world. The retiring workers of the baby boomer generation leave a large number of vacancies. In contrast, the numerically smaller in the mid-90s born workers of Generation Z now gradually enter the labour market which creates an employee market. This can be seen by the proportion of young people between the ages of 15 and 24 in the total population, which at the beginning of 1981 was 16.6% and only 10.0% at the beginning of 2021. As a result, Generation Z is in an employee market due to the shortage of skilled workers.
Table of Contents
- List of Figures
- 1 Introduction
- 1.1 Problem Description
- 1.2 Objectives and Structure
- 2. Definitions and Theoretical Background
- 2.1 Motivation in a Professional Context
- 2.2 Motivation Theory Approach According to Alderfer (ERG Theory)
- 2.3 Generations Currently Active in the Labour Market
- 2.3.1 Generation Baby Boomers
- 2.3.2 Generation X
- 2.3.3 Generation Y
- 2.3.4 Generation Z
- 2.3.4.1 Essential Features and Characteristics
- 2.3.4.2 Demands on Working Life
- 3 Application Examples in Practice
- 3.1 Example A
- 3.2 Example B
- 4 Possible Motivational Incentive Systems
- 4.1 Company Management
- 4.2 Direct Managers
- 5 Results and Discussion
- 6 Concluding Remarks
- 6.1 Summary
- 6.2 Critical Review
- 6.3 Outlook
- Bibliography
Objectives & Key Themes
This scientific work addresses the critical challenge of motivating Generation Z in a rapidly evolving labor market characterized by demographic changes and a shortage of skilled workers. The primary objective is to describe and examine possible motivational incentive systems that enable companies to effectively attract and retain Generation Z employees by addressing their specific needs in a goal-oriented manner.
- Defining motivation in a professional context.
- Exploring Alderfer's ERG motivation theory and its application to generational needs.
- Differentiating characteristics and demands of various generations in the labor market, with a special focus on Generation Z.
- Identifying practical application examples to illustrate generational needs.
- Proposing possible motivational incentive systems for company management and direct managers.
- Discussing strategies for companies to adapt to the changing labor market and Generation Z's expectations.
Excerpt from the Book
Generation Z - An Overview of Possible Motivational Incentive Systems
Generation Z generally describes people who were born between 1997 and 2012.42 Most of them are currently in the phases of childhood, adolescence, university time or at the beginning of their professional life and some are already starting a family.43 The so-called digital natives are the first generation who grew up completely in the environment of modern internet, social media and a digitally networked world. In addition, they will feel a huge impact of the demographic change.
2.3.4.1 Essential Features and Characteristics
The socialization phase of digital natives extends from 2000 to 203044 with formative circumstances of increasing relevance of climate change and political and economic upheavals like Russia's attack on Ukraine or China's economic rise.45 It follows that there is increasing uncertainty, coupled with an unprecedented fast pace of life. "Generation Z wants fast communication and information transfer and thus feedback or confirmation..."46 and is motivated by as much freedom and flexibility as possible. Interpersonal communication and entertainment are possible anytime, anywhere and almost continuously via social media and smartphones.47 In addition to cost of living, climate change is one of the most important issues for Generation Z,48 which can be seen, among other things, in the recent climate activist events such as the Last Generation climate protests in Germany. In summary, Generation Z is more individualistic, they want to develop themselves and have a strong need for social interaction49 and thus have strong related needs and growth needs in relation to Alderfer's ERG theory.
2.3.4.2 Demands on Working Life
Meaningful work and possibilities for individual career development are more important in working life for Generation Z than for previous generations and even more important than adequate total compensation.50 “Work should above all bring fun and self-fulfillment to the younger generation ...",51 which means that, according to Alderfer's ERG theory, growth needs come to the fore. In addition, “about four out of ten Gen Zs and Millennials feel constantly stressed”.52 Thus, reduced working weeks and flexible working hours are demands of Generation Z53 and offers like part-time work or home office are becoming increasingly important54 to address relatedness needs. During the Corona pandemic, New Work approaches were already being implemented in companies, which was well received by Generation Z employees. it frees them up time to do other things they care about and has a positive impact on their financial situation and mental health.55
Chapter Summaries
1 Introduction: This chapter highlights the changing economic and demographic landscape, emphasizing the rise of Generation Z in an employee market and the resulting need for companies to adapt their motivational strategies.
2. Definitions and Theoretical Background: This section defines motivation in a professional context, introduces Alderfer's ERG theory as a development of Maslow's hierarchy of needs, and differentiates between various generations currently active in the labor market, detailing their characteristics and demands.
3 Application Examples in Practice: Two practical scenarios (Example A and Example B) are presented, illustrating how Generation Z employees' needs and motivations, interpreted through Alderfer's theory, manifest in real-world professional situations.
4 Possible Motivational Incentive Systems: This chapter outlines potential motivational incentive systems for both company management and direct managers, including concepts like Corporate Social Responsibility, flexible working models, talent programs, and transformational leadership, to address Generation Z's needs.
5 Results and Discussion: This section analyzes the application examples using Alderfer's satisfaction-progression and frustration-progression hypotheses, discussing how companies must integrate Gen Z's relatedness and growth needs into their HR strategies to attract and retain young talent.
6 Concluding Remarks: The final chapter summarizes the work's findings on motivating Generation Z, provides a critical review highlighting the limitations of generational stereotyping, and offers an outlook on future corporate adaptations and research needs.
Keywords
Generation Z, motivation, ERG theory, labor market, incentive systems, human resources, leadership, employee retention, demographic change, professional development, work-life balance, corporate social responsibility, digital natives, transformational leadership.
Frequently Asked Questions
What is this work fundamentally about?
This work fundamentally explores the motivational needs of Generation Z in the contemporary labor market and proposes effective incentive systems for companies to attract and retain these young employees.
What are the central thematic areas?
The central thematic areas include generational differences in the workforce, motivation theories (specifically Alderfer's ERG theory), practical application examples of motivational challenges, and the design of effective motivational incentive systems for company management and direct managers.
What is the primary objective or research question?
The primary objective is to describe possible motivational incentive systems that enable companies to satisfy the needs of Generation Z employees in a goal-oriented manner to win them over and keep them in the company.
Which scientific method is used?
The work employs a theoretical analysis of existing literature on motivation theories, generational characteristics, and labor market dynamics, supported by the discussion of practical application examples.
What is covered in the main part?
The main part covers the definition of motivation, Alderfer's ERG theory, a detailed differentiation of generations active in the labor market (with a focus on Generation Z's characteristics and demands), practical examples, and a discussion of possible motivational incentive systems for both company management and direct managers.
Which keywords characterize the work?
Generation Z, motivation, ERG theory, labor market, incentive systems, human resources, leadership, employee retention, demographic change, professional development, work-life balance, corporate social responsibility, digital natives, transformational leadership.
How does Alderfer's ERG theory differ from Maslow's hierarchy of needs in this context?
Alderfer's ERG theory, while building on Maslow's, proposes three core needs (Existence, Relatedness, Growth) that can be activated and pursued simultaneously, in contrast to Maslow's strict hierarchical progression. It also incorporates "frustration-regression" and "frustration-progression" hypotheses to explain dynamic need activation.
What specific demands does Generation Z place on working life?
Generation Z demands meaningful work, opportunities for individual career development, fun and self-fulfillment in their jobs, reduced working weeks, flexible working hours, and offers like part-time work or home office, alongside a strong need for social interaction and growth.
What role does Corporate Social Responsibility play in motivating Generation Z?
Corporate Social Responsibility (CSR) provides a crucial framework for company management to align economic goals with socially and ecologically sustainable actions, which strongly appeals to Generation Z's growth needs for meaningful work and ecological responsibility.
How can direct managers foster intrinsic motivation in Generation Z employees?
Direct managers can foster intrinsic motivation in Generation Z by strengthening their bond with the company through satisfactory onboarding, conveying clear visions and values, applying transformational leadership principles (idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration), and implementing workshops for change and initiative.
- Citar trabajo
- Dennis Arz (Autor), 2023, Motivation of Generation Z. An Overview of Possible Motivational Incentive Systems, Múnich, GRIN Verlag, https://www.grin.com/document/1370524
