There is no doubt that happy workplaces benefit both the employer and the employee, and increasing amounts of academic literature support this. For instance, according to an article published in the Journal of Happiness Studies, happiness enhances performance. The research surveyed soldiers in the U.S. Army and found a correlation between happiness and performance. Soldiers who received awards (12.6%) demonstrated higher motivation and well-being, in contrast to those dominated by negative emotions like anger and sadness. This trend is shared across various sectors, from large corporations to rising startups, driving many companies to foster a culture of positivity and happiness at work.

But now, there is a new, fresh face in the workforce–Generation Z, also dubbed ‘Zoomers’, is known to prioritise mental health over other factors when choosing a job. Also sensitive to well-being and the social impact of their employers, Gen Z is undoubtedly leaving a mark in their workplaces with their affinity to novel technologies and active engagement on social media. Now, companies must champion a new brand of happy work culture that explicitly embraces mental health problems and fosters internal dialogue to address them.

There is already a broad spectrum of research done on Gen Z, presumably coupled with the concern about the pandemic’s toll on the career prospects and mental health of young people. Deloitte, Gallup, and EY are among many organisations that have released reports on Gen Z that shed light on their characteristics in the workplace. The EY survey found that Gen Z is tech-savvy, more likely to engage on social media, more interested in a company’s social impact, and more likely to prefer independent, outcome-focused work. Respondents picked real-life work (59%) and professional mentorship (57%) as the main tools for promoting better work, underlining employers’ need for active interaction. Despite the pandemic and economic downturns, Gen Z is still optimistic about job prospects, with 82% of respondents stating that they feel hopeful about finding work and addressing global challenges in 2030, and 78% feel positive about the emerging trends shaping the future of work. Additionally, 53% of Gen Z respondents replied that they look to corporations and large businesses to prepare them for the new norms of the post-pandemic world. The report concludes by stressing the need for firms to build more profound and meaningful connections with Gen Z employees to address their needs and play a more active role in their careers.

A survey by the Association of Chartered Certified Accountants (ACCA), which interviewed 9,000 Gen Z respondents worldwide, further highlights Gen Z’s preference for happy workplaces that are sensitive to mental health problems and communication. 51% of respondents cited personal well-being and mental health as a significant concern. The survey suggests that workplaces that prioritise employee mental health will have a leg up in recruiting Gen Z. A participant noted that “This is a generation that had expected to inherit a stable work environment with record unemployment. But instead what’s happened during a very formative stage of their careers is an international catastrophe, the kind of crisis that none of the previous generations that are actively working today have faced. So, they will definitely be stressed and scared.”

Many companies have been quick to adapt to these changes, demonstrating their commitment to employee well-being. Nike offers extensive mental health benefits, including 20 free therapy and coaching sessions for employees and their families. Nike also encourages employees to take short leaves to recharge during a dedicated Well-Being week in August. Microsoft, on the other hand, integrates technology with mental health, using social media and podcasts to foster discussions on well-being. The executives of Microsoft were also quick to adapt, releasing a series of honest testimonials about dealing with their mental health problems, aimed to foster a culture of open discussion within the company circles.

While many companies’ efforts are commendable, the work is not over. One in three Gen Z now report that they have experienced mental health problems, a significant rise from one in four at the turn of the millennium. Furthermore, the generous welfare benefits for employees are predominantly limited to big corporations. It is vital that smaller businesses also up their game in supporting their young employees. As Gen Z navigate through the pressures of recession, pandemics, and socio-political instability, it is crucial for employers to continue their commitment to addressing mental health to support their employees and create a happy workplace for all generations.

Sources:

• Dennison, Kara. “Why Companies Should Prioritize Employee Health and Happiness in 2024.” Forbes, Forbes Magazine, 26 Oct. 2023
• Golden, Ryan. “Global Gen Z Workers Optimistic about Job Prospects despite Downturn.” HR Dive, 29 Apr. 2021
• Lester, P.B., Stewart, E.P., Vie, L.L. et al. Happy Soldiers are Highest Performers. J Happiness Stud 23, 1099–1120 (2022)
• Lyon, Jamie. “Ground-Breakers: Gen Z and The Future of Accountancy.” ACCA Global, 5 May 2021
• Trapper, James. “What’s up with Generation Z?” The Guardian, Guardian News and Media, 3 Mar. 2024