Gen Z and Inclusion: What the Next Workforce Generation Expects from Employers

The Gen Z Workforce is Redefining Workplace Inclusion

The youngest generation in today’s workforce—Gen Z (born between 1997 and 2012)—is pushing companies to rethink what it means to be an inclusive employer. Unlike previous generations, Gen Z expects more than just diversity statements and DEI workshops. They demand real action, transparency, and accountability. If a company doesn’t align with their values, they won’t hesitate to leave.

A 2023 study by Deloitte found that 77% of Gen Z employees consider diversity and inclusion a top priority when choosing an employer. Meanwhile, 42% have rejected a job offer due to a company’s lack of diversity efforts. This shift in expectations means HR leaders must go beyond traditional diversity programs and create truly inclusive environments where every employee feels valued and heard.

So, what exactly does Gen Z expect from inclusive workplaces, and how can companies adapt?

1. Authenticity Over Corporate Statements

Gen Z has grown up in the digital age, where information is readily available. They can easily research a company’s diversity efforts, leadership demographics, and employee reviews before applying for a job. A flashy DEI statement on a careers page isn’t enough—they want real proof of inclusion.

Companies that only talk about diversity without taking action risk being called out for performative activism. To build credibility, organizations should:

• Be transparent about representation data and share progress on DEI goals.

• Feature real employee stories that showcase diverse voices within the company.

• Take public stands on social issues that align with their values.

When companies genuinely commit to inclusion, Gen Z is more likely to trust them and stay engaged.

2. Equity and Fairness in Hiring & Career Growth

Gen Z expects equal opportunities for all employees, not just diverse hiring quotas. They want companies to eliminate bias in recruitment, promotions, and salary decisions.

A 2024 report by McKinsey showed that companies with diverse leadership teams are 39% more likely to outperform their competitors. However, many Gen Z workers feel that career progression is still biased toward certain groups.

To meet Gen Z’s expectations, companies should:

• Use AI-driven unbiased hiring tools to reduce discrimination in recruitment.

• Provide equal access to mentorship programs for underrepresented employees.

• Regularly conduct pay equity audits to address wage gaps.

• Offer clear and transparent promotion paths based on skills and performance.

When employees see fairness in opportunities, they feel valued and motivated to grow within the company.

3. Mental Health & Psychological Safety as a Priority

Unlike older generations, Gen Z openly discusses mental health and expects their employers to support it. In fact, a LinkedIn survey found that 71% of Gen Z workers would leave a job that negatively affects their mental health.

HR leaders should recognize that inclusion isn’t just about hiring diverse talent—it’s also about creating a safe environment where employees feel comfortable expressing themselves without fear of discrimination or judgment.

To foster psychological safety, companies can:

• Provide mental health resources such as therapy stipends or Employee Assistance Programs (EAPs).

• Train managers to recognize burnout and support struggling employees.

• Encourage open conversations around mental health without stigma.

A workplace that values mental well-being is more likely to retain and engage its Gen Z workforce.

4. Flexible & Inclusive Work Environments

Gen Z sees workplace flexibility as a necessity, not a perk. They believe that rigid 9-to-5 schedules can be exclusionary, especially for employees with disabilities, caregivers, and those who work best at different hours.

A 2023 Harvard Business Review study revealed that 80% of Gen Z workers prefer hybrid or remote work options. However, they also want remote workplaces to be inclusive and engaging.

To create an inclusive hybrid work culture, companies should:

• Ensure equal opportunities for promotions for both remote and in-office employees.

• Use collaboration technology to maintain strong communication.

• Offer flexible work schedules to accommodate different needs and lifestyles.

By embracing flexibility, companies can attract and retain top Gen Z talent.

5. Employee-Driven Activism & Social Impact

Gen Z employees don’t just want their employers to be inclusive internally—they want them to make a difference in the world. This generation is deeply engaged in social justice movements and expects companies to align with meaningful causes.

In a 2024 Edelman Trust Barometer survey, 64% of Gen Z workers said they would only work for companies that actively support social change.

To meet these expectations, companies can:

• Encourage employee resource groups (ERGs) to lead social impact initiatives.

• Partner with diverse community organizations and non-profits.

• Offer paid volunteer time so employees can contribute to causes they care about.

When companies take action beyond profit-making, they attract Gen Z employees who are passionate about making a difference.

The Future of Inclusion is Here—Is Your Company Ready?

Gen Z is reshaping workplace expectations, and inclusion is at the core of what they want from employers. Companies that fail to adapt will struggle to attract and retain top talent.

By prioritizing authenticity, equity, mental health, flexibility, and social impact, organizations can build workplaces where every employee—regardless of background—feels truly included.

The question for HR leaders isn’t whether to embrace inclusive workplace strategies, but how quickly they can make them a reality.

Are you ready to meet the expectations of the next workforce generation?