Gen Z’s Disruption: Redefining Hospitality Workplace Culture.

  24th November 2023

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Lying in the essence of meeting and exceeding customers expectation, the hospitality industry places high emphasis on standards and procedures in its serving manner. However, the customs of the industry is being disrupted by the new wave of human resources, generation Z (Gen Z). They are the newest generation to enter the workforce, offering their unique dynamics that challenges the industry conventional working culture. 

The new dynamics

Gen Z born between 1997 and 2012 is the most diverse and educated generation to date.  Expected to make up 30% of the workforce by 2030, the youngsters are entering the workforce in droves, bringing with them different expectations of the workplace than previous generations. They value work-life balance, diversity and inclusion, and care about social issues. They are also incredibly tech savvy and have the quickest access to information than any generations before.

Gen Z is often perceived to be overconfident, outspoken, and driven by personal recognition. But this is because they place a high emphasis on company culture rather than financial compensation. They seek for cultures that aligned with their values, and empowerment through job satisfaction. They also think highly of a stable career advancement and learning opportunity in the chosen work-field. 

Hospitality talent scarcity admits a Gen Z workforce.

To sustain the services excellency, the hospitality industry has traditionally relied on a conservative and hierarchical working culture. This, however, goes against Gen Z’s desire for a flexible, transparent, and flat hierarchy working environment. The industry’s high annual turnover rate highlights the urgency for companies and HR departments to reevaluate their recruitment and retention strategies to effectively engage this generation of talent.

How is the newest generation redefining the workplace culture?

Gen Z is the only generation of workers that does not place monetary affairs to be the main motivation. For this instance, they insist in a workplace practice that can offers them benefits beyond the tangible attributes. Gen Z is conceived by HR specialists to be “a good challenge” to the organization, as Gen Z enters the workforce, the disruption they bring can completely innovate the industry’s working culture and help companies meet the market’s future needs.

Demand Flexible work arrangements.

Gen Z is a “work to live” generation. They prioritize their well-being over work and would insist on a work-life balance. This is changing the perception of working in hospitality from an ‘all-hours, always-on’ inhospitable environment to one that offers greater flexibility. Managers are thinking creatively about the arrangements including 60–80% contracts, no weekend contracts, or scheduling in accordance to individual’s preference of working during daytime or nighttime. 

74% of Gen Z would change job to pursue work-life balance

Technology is a necessity.

The hospitality industry nowadays is undergoing a digital transformation, driven by the rapid adoption of advanced technologies such as artificial intelligence, automation, and contactless approaches. This surge in digitalization is fueled by the joining of Gen Z into the workforce, a generation that grow up with technology and possesses a high level of proficiency in using it effectively. Digitalization is going to reshape the future of hospitality, and companies that embrace this transformation will not only sustain their competitiveness but also attract the brightest new recruits.

Focus on sustainability and social responsibility.

Growing up in an era of social and environmental challenges, Gen Z has developed a heightened awareness of these issues, extending their concerns to the workplace. According to a 2023 survey by Deloitte, 55% of Gen Z employees would choose companies that prioritize sustainability. In response, hospitality businesses are adopting a holistic approach to sustainability, considering their environmental, social, and societal impacts simultaneously. By aligning themselves with the values of Gen Z, these companies are actively contributing to a more responsible and sustainable industry.

Desire for an inclusive work environment. 

Gen Z prioritizes diversity, equity, and inclusion (DEI), seeking workplaces that reflect the multicultural world in which they were raised. In the workplace, inclusivity signifies an employee’s worth and contribution to an organization despite their personal attributes. This cultural factor is the key in enhancing Gen Z’s commitment to their work. Around 50% of Gen Z would consider quitting if inclusivity is seen lacked in operation. Major hotel brands such as Kimpton, Marriott’s, Hilton, Hyatt, etc, have followed their own DEI management policy and also recognized it as a crucial human management practice.

What would the future look like?

The future presents challenges as the industry is rapidly growing post-pandemic, accompanied by high attrition. Gen Z, being the future dominant of the industry’s resources, can enhance the company’s adaptability to the market need and sustain operation competitiveness. It is crucial that hospitality companies make substantial changes, aligning their business values with the ones of Gen Z’s to raise the youngsters engagement with the industry. Hospitality as it meant to renovate hospitality and coming closer to a sustainable workforce. 

Can Gen Z disruptions change the essence of the hospitality industry? How do you think the future of this industry would be like when Gen Z advanced into management? 

Read more: Gen Z’s Disruption: Redefining Hospitality Workplace Culture.

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