Why Gen Z Prefers Experiences Over Possessions—And What It Means for Business

Every generation has unique characteristics, using which they shape the world around them. For example, baby boomers, which is the generation right after the second world war, are known as builders as they rebuilt societies and countries as we know it today.

The latest generation entering the workforce is called Generation Z or Gen Z. It refers to people who were born anytime from 1995 to 2010. They were born after the Internet was discovered, and hence, this is the first digital-native generation.

How are they likely to change the world around them?

Read on as we explore Gen Z preferences and what matters to them.

Decoding Gen Z

McKinsey has conducted a survey to identify the qualities of Gen Z. After analyzing their behavior and gathering insights about their thought process, one aspect stands out - their search for truth.

Unlike the previous generations, they were born at a time when the world saw the longest peacetime and a period of wealth accumulation. This explains why they prefer experiences over possessions. Additionally, this generation views possessions as a mark of individual identity rather than as compulsive consumer. Another standout aspect is their focus on ethics and fairness over mere things.

Experiences vs Material Things

Why are possessions important? Because they provide a sense of fulfillment. Still, Gen Z prefers experiences over these possessions.

For Gen Z, experiences are a way to achieve self-fulfilment and personal growth. Experiences add meaning to their lives and help them to better understand the world around them.

Below are some examples of experiences that Gen Z enjoys.

• Backpacking trips.
• Music concerts.
• Tech gaming sessions.
• Sustainability workshops.
• Community projects, and more.

As you can see, these experiences provide ample opportunity for self-growth, continuous improvement, and connection with like-minded people. These are the core values of this generation and explain the preference for Gen Z experiences over things.

Search for Truth

At the core of Gen Z’s values is the search for truth. They want to live life in a practical and pragmatic way with meaningful connections. They are more likely to seek groups with a similar mindset and want to be radically inclusive in the social circle they create.

They don’t care about stereotypes and want to stand out in terms of their individuality, and they are bold enough to express it.

This search for truth also leads Gen Z to question existing social norms and religious beliefs. They will only perform those actions and relate to those aspects that appeal to them and align with their values.

Emotional Connections

Another salient aspect of Gen Z is their yearning for emotional connections. They want to buy only those things with which they can connect emotionally. Some examples of possessions that can provide this emotional connection are:

• Favourite books.
• Personal items like pens, journals, etc.
• Sustainable products.
• Anything that has a personalized and unique touch.

In general, Gen Z may not run behind possessions because not everything can offer the same level of emotional connection.

Organizations looking to target Gen Z must strive to use storytelling and personalization to build trust and connection, so they can become loyal customers.

Gen Z at Work

What do Gen Z work preferences look like?

A highlight of Gen Z is that they value salary less than the other generations. Undoubtedly, salary is important for Gen Z, but if they get a better work environment for lower pay, they are most likely to choose that job.

Employers must understand this generation and strive to provide a flexible and conducive work environment to retain the top talent of this generation.

Also, Gen Z is extremely comfortable using digital tools, and this can be a huge plus for employers. They can work with a wide range of digital tools, including emerging ones, with little to no training.

The downside is that this generation has strong values and will not hesitate to move away if there are no sustainability efforts in your organization. Similarly, a lack of transparency, DEI, and toxicity can increase attrition.

Tips for Employers

Now that we have a vivid picture of Gen Z, how can employers leverage their potential? Here are some tips and tricks to consider.

• Establish internship programs that will challenge Gen Z. Moreover, these programs can help them find that emotional connection within your organization.
• Offer volunteer and sustainability-related opportunities in which Gen Z can participate. Make sure to create a strong CSR program that covers broad ethical, social, and environmental areas.
• Create multiple career paths to empower Gen Z, so they feel in control of their life.
• Suggest multiple work formats to keep them engaged always.
• Provide regular feedback instead of annual reviews. Also, train your managers to perform regular check-ins.
• Mental health is a critical factor for this generation. Make sure you give them access to wellness programs and the support they need to go through difficult situations.
• Promote work-life balance so they have the time and energy to enjoy the things that provide diverse experiences. Respect boundaries and business hours and set your expectations clearly, right at the beginning.
• Include them in discussions when possible, to make them feel connected to the organization. ALso, they have strong ethics and can guide you to make the right decisions.
• Give them access to continuous learning and development programs, as this will make them future-ready.

Lastly, leverage the expertise of the older generations to mentor Gen Z and build them into strong leaders. With these strategies, you can attract and retain the top talent of this generation for improved productivity and profitability in your organization.

Final Thoughts

To conclude, Gen Z is the most recent generation to enter the workforce. They are also very different from the previous generations because traditional motivational aspects like salary and stability don’t motivate them beyond a point.

Employers must understand this generation and what drives them before creating the right workplace and incentives that will drive them to perform well. At the same time, it’s also important to tap into the existing experience of employees to groom them into responsible employees.

Additionally, make sure to bring in generations speakers who can help you better understand Gen Z while appealing to this young generation.