Why Recruiting Early-Career Talent is Critical to Future Success

Forecasting your talent needs can be challenging, especially in such uncertain times. While the future may be unpredictable, it’s clear that a major skills gap is on the horizon. Baby boomers – ages 55 to 75 – are the largest demographic in the workforce, making up 1 in 4 U.S. workers by 2024. The growing issue is that they will be eligible for retirement at some point in the next decade, which means that 30 million people – 10,000 workers daily – might leave the workforce over the next 10 years! 

This looming talent void is why experts say companies should be proactive about filling their talent pipelines with candidates who are early in their careers. The savviest organizations will also develop workplace mentoring programs that pair older employees with younger ones to ensure that valuable business intelligence is not lost.

Early Career Hiring Can Give You a Competitive Edge

Many companies have put hiring on hold based on fear of a lingering recession. However, research shows that when you stop investing in your most valuable resource – people – you may face negative repercussions down the road. On the flip side, companies that continue to make strategic hires, with an eye toward the future, are more likely to maintain market share and brand reputations, as well as innovate and grow. 

There will potentially be 30 million job openings in the coming years to be filled by those who are currently students and recent graduates – Gen Z. Already we’re seeing steady growth in early talent hiring as 2020 marked the tenth straight year of increases. The organizations that win by hiring early talent will employ the most diverse, educated, tech-savvy generation we’ve ever seen – which makes early-career hiring critical to future success.

Three Reasons Gen Z is Good for Business:

1. Diversity

Born after 1996, this generation is the most racially and ethnically diverse generation to date, with nearly half (48%) considered racial or ethnic minorities (nonwhite). Why is this important? MIT research finds that the more diverse a workplace is, the more profitable it is. Supporting these findings, McKinsey’s talent report found that the top 25% of organizations in both gender and ethnic diversity are more likely to outperform their industry peers on profitability by 33%.

When you consider that employees of different ages, genders, races, and ethnic backgrounds bring a unique blend of experience, knowledge, and perspectives to the table, it’s easy to see why diversity is so beneficial. 

For instance, a study by Cloverpop reveals that diverse teams make better decisions than non-diverse teams up to 87% of the time. Diverse teams have also been proven to be smarter, more innovative, and more socially aware. Another study by Indeed found that diverse teams often have higher morale, increased productivity, and lower rates of turnover. 

And the quickest way to increase diversity that lasts is to hire at the entry level because this population is much more diverse than previous generations.

2. Education

“Post-Millennials,” including Gen Z, are also on track to be the best-educated generation, with 59% pursuing college. They have higher high school graduation rates and lower dropout rates. According to Gallup, 83% of Gen Zers in the U.S. believe that a college education is “very important” or “fairly important” for finding a good job. And 62% of the youngest members of Gen Z – those still enrolled in K-12 schools – intend to pursue a degree after high school. This is key because it’s projected that 70% of jobs will require postsecondary education by 2027, putting educated candidates in high demand.

Interestingly, Gen Z also places a priority on learning life skills along with academics. They value “real-world” skills like financial literacy, communication, and problem-solving. Recent surveys have found that Gen Z is the “most problem-solving” generation ever. 

A well-educated workforce, who value communication and problem-solving skills can add tremendous benefits to any organization. However, an educated workforce also improves an economy’s productivity as a whole, since skilled workers perform tasks more efficiently and innovate at higher rates. 

3. Technical Competence

Gen Z has come of age during unprecedented technological advancements. Smart devices, social media, and digital connectivity have made Gen Z tech-savvy and highly adept at multitasking. Tech is like a second language to this group, so they adapt to new tools quickly and understand how to use them to boost productivity and streamline processes. They can help companies stay agile and innovate effectively. 

This is important because experts like McKinsey predict that we’ll see more technological progress in the coming decade than we did in the preceding 100 years put together! With such rapid advancements in technology, including process automation and virtualization, companies will need a workforce that can keep up with these changes. 

Being raised in a “connected” world has also helped Gen Z become skilled collaborators. They seem to excel in team settings, brainstorming, and group problem-solving, whether in person or remotely, which can be a tremendous asset for companies in any industry.

How to Attract Early Talent

Of course, companies that want to attract and retain the best early career talent will need to offer things that appeal to this generation. “What Gen Z wants is to do meaningful work with a sense of autonomy and flexibility and work-life balance and work with people who work collaboratively,” said Julie Lee, director of technology and mental health at Harvard, and an expert on Gen Z health and employment.

A recent survey by the Ridley Consulting Group asked Gen Z graduates what they want from their employers. Their expectations include work-life integration/balance, technology-enabled work, inclusion and belonging transparent communication, and entrepreneurial opportunities.  

In Conclusion

No one can deny that a generational shift is occurring. John Hopkins University predicts that by 2030, about 30% of the workforce will be Gen Z. Now is the time to invest in the future of your workforce by hiring and developing Gen Z talent. There is already a compelling business case for investing in entry-level candidates. The companies who have already embraced this strategy agree that “this talent group can boost profit, accelerate digital transformation, and fill the growing gap left by Baby Boomers.”1

1 https://www.fastcompany.com/90451294/the-business-case-for-investing-in-entry-level-talent