2. Literature Review

This chapter provides a review of the existing literature on generational dynamics within the workplace, with a particular focus on Gen Z and their integration into the professional landscape. The purpose of this chapter is to synthesize current research, theories, and best practices, offering a foundation for the subsequent analysis presented in this study. By examining key scholarly contributions, this chapter aims to contextualize the evolving relationship between Gen Z and the workforce, while also identifying critical gaps in the existing knowledge that this research seeks to address.

The modern workplace is in a state of constant flux, shaped by technological advancements, digitalization, shifting organizational structures, and changing employee expectations. In this context, generational differences have emerged as a significant factor influencing workplace dynamics. The entry of Gen Z into the workforce has attracted considerable scholarly attention, as this generation is marked by distinct characteristics such as technological fluency and an entrepreneurial mindset.

Gen Z's drive for innovation and digital competence presents opportunities to reshape traditional work paradigms. However, alongside these opportunities, concerns have been raised regarding their communication skills, work ethic, and ability to adapt to established corporate norms. These contrasting elements underscore the need for a deeper understanding of how Gen Z interacts with existing workforce structures and organizational expectations.

2.1 Current Insights

In the context of Gen Z's integration into the workforce, several industrially acknowledged insights and practices have emerged to address the unique attributes of this generation. Their technological proficiency, entrepreneurial mindset, desire for autonomy, and commitment to social and environmental causes shape their workplace expectations. Additionally, concerns around mental health and a strong emphasis on diversity and inclusion have prompted organizations to adopt targeted strategies. This section explores these industry-driven practices, which serve as a foundation for understanding and addressing the generational dynamics at play in our research.

• Technological Proficiency  Gen Z is highly proficient with technology, having grown up in a digital world. This generation is comfortable with a variety of digital tools and platforms, which makes them valuable assets in tech-driven workplaces ​(Deloitte_1, 2017)​ and ​(Deloitte_2, 2022)​

• Entrepreneurial Spirit Gen Z is characterized by a strong entrepreneurial spirit. Many members of this generation are interested in starting their own businesses or side hustles. They are innovative and often look for ways to improve processes and create innovative solutions ​(Forbes_1, 2024)​

• Desire for Autonomy Gen Z values autonomy and flexibility in their work. They prefer roles that offer independence and the ability to work remotely. This generation is less interested in traditional hierarchical structures and more focused on results and impact​ (Forbes_1, 2024)​

• Social and Environmental Values  Gen Z is deeply committed to social and environmental causes. They expect their employers to demonstrate a commitment to corporate social responsibility and align with their values. This generation is more likely to support and stay loyal to companies that prioritize sustainability and social justice ​(Deloitte_1, 2017)​

• Mental Health Challenges Mental health is a major concern for Gen Z, with a sizable portion reporting prominent levels of anxiety and depression1. The McKinsey survey indicates that 55% of Gen Z respondents have been diagnosed with or treated for mental health issues, a much higher rate than older generations. This highlights the need for robust mental health support in workplaces.​ (McKinsey_1, 2022)​

• Diversity and Inclusion  Diversity and inclusion are important to Gen Z. They value workplaces that are inclusive and diverse, and they expect their employers to foster an environment where everyone feels valued and respected ​(Forbes_1, 2024)​

2.2 Theories Applied

The integration of Gen Z into the contemporary labor market presents a multifaceted challenge. To unravel the complexities of this process, our research draws upon relevant theories from diverse disciplines. By synthesizing insights from organizational behaviors, talent management, generational studies, and education theory, we aim to construct a robust framework that comprehensively examines the disparities in professional skills and value perceptions between Gen Z individuals and downstream companies.

Organizational Behavior Theories

• Expectancy Theory: Expectancy theory ​(Vroom, 2005)​ posits that individuals are motivated to apply effort when they believe that their efforts will lead to desirable outcomes. Understanding how Gen Z individuals perceive their contributions and rewards within the workplace can provide valuable insights into their motivation and engagement levels.

• Social Exchange Theory: Social exchange theory ​(Homans, 1974)​ explores the dynamics of interpersonal relationships within organizations, emphasizing the reciprocity of benefits and costs. Examining the exchange processes between Gen Z employees and downstream companies can illuminate the factors influencing workplace collaboration, trust, and loyalty.
  

Talent Management Frameworks

• Human Capital Theory: Human capital theory ​(Becker, 1994)​emphasizes the importance of investing in education, training, and skill development to enhance individuals' productivity and employability. Assessing the alignment between Gen Z's skill sets and the demands of the labor market can inform talent management strategies aimed at maximizing workforce effectiveness.

• Talent Pipeline Model: The talent pipeline model ​(Berger, 2018)​ emphasizes the strategic development and retention of talent within organizations, from recruitment to succession planning. Exploring how downstream companies attract, onboard, and develop Gen Z talent can identify opportunities for improving talent management practices and fostering long-term organizational success.
  

Generational Divide Perspectives

• Generational Theory: Strauss-Howe generational theory ​(Howe, 1990)​ posits that societal attitudes and behaviors are cyclical and shaped by recurring generational archetypes. Analyzing the unique characteristics and experiences of Gen Z individuals within the context of broader generational trends can provide valuable insights into their values, preferences, and expectations in the workplace.

• Life Course Perspective: The life course perspective ​(Elder, 1998)​ examines individuals' life trajectories and transitions across various stages of development. Understanding how Gen Z individuals navigate key life transitions, such as education, employment, and family formation, can inform targeted interventions and support mechanisms to facilitate their successful integration into the labor market.
  

Education Theory Frameworks

• Constructivism: Constructivism Learning ​(Vygotsky, 1968)​ emphasizes the active construction of knowledge through meaningful learning experiences and social interactions. Applying constructivist principles to higher education settings can inform pedagogical approaches that foster critical thinking, problem-solving, and collaboration skills among Gen Z students.

• Experiential Learning Theory: Experiential Learning Theory (ELT) ​(Kolb, 1984)​ posits that individuals learn best through direct experience and reflection. Incorporating experiential learning opportunities, such as internships, co-op programs, and project-based learning, into the curriculum can enhance students' readiness for the demands of the workforce.
  

This comprehensive set of theories enables us to construct a robust framework to organize and interpret our research findings, while also linking various observations cohesively. For instance, we observe a clear intersection between Expectancy Theory and the Talent Management Model, which reveals that Gen Z is challenging traditional reward structures and introducing new expectations for workplace incentives. Similarly, these theories help illuminate emerging trends and shifts in organizational dynamics, allowing us to better understand the evolving relationship between Gen Z and the labor market. This integrative framework thus serves as a vital tool in mapping these complex interactions.

2.3 Empirical Research

This section outlines the empirical research methodologies employed in the study, incorporating both quantitative and qualitative approaches to provide a comprehensive analysis. Case studies explore real-world complexities through detailed investigation, and an international research review synthesizes global studies to identify broader insights and trends. Together, these methods offer a robust framework for understanding our research question.

• A Quantitative Survey:​ (Balnaves, 2001)​ aims to collect structured data from sample participants. We use closed-ended questions (e.g., Likert scales) to measure specific variables. These surveys are valuable for assessing trends, patterns, and relationships, exploring prevalence or frequency of behaviors attitudes, or opinions, and enabling statistical analysis, both descriptive and inferential.

• Qualitative Interviews: ​(Nathan, 2019)​ delve into participants' perspectives, experiences, and meanings. We use open-ended questions to elicit rich, detailed responses. These interviews provide an in-depth understanding of complex phenomena, allowing exploration of motivations, beliefs, and emotions. Moreover, they help identify themes and patterns while contextualizing quantitative data.

• Case Studies: ​(Hassan, 2024)​ investigate a specific phenomenon (individual, group, organization) in-depth. We collect diverse data (interviews, documents, observations) to construct a holistic view. These studies offer unique insights by examining real-world complexities, contextualizing theory, and providing rich, context-bound descriptions, making them valuable for practical applications.

• International Research Review: This review synthesizes studies from various Western countries and industrial sectors, focusing on identifying common trends and variations in company cultures, policies, and generational attributes. By comparing research from diverse industries within Western cultures, the review highlights shared practices and key insights. These comparisons provide valuable information on generational dynamics and help inform best practices and policy development across similar cultural contexts. The findings emphasize trends that are consistent within Western corporate environments, offering practical guidance for companies aiming to align their strategies with emerging generational expectations