In a digital age where information flows freely, Gen Z is not just entering the workforce but reshaping its foundation. They’re driving a significant shift in workplace dynamics by demanding transparency from their employers. This tech-savvy and socially conscious cohort wants to understand expectations, progress, and the roadmap for success.
For example, more than 90 percent of Gen Zero consider whether companies provide adequate technology when weighing job offers. This generation expects access to information at their fingertips and the resources needed to succeed.
Gen Z will comprise 27 percent of the workforce by 2025, driving a significant shift for organizations to focus on growth, cross-functional collaboration, and meaningful work. Businesses embracing transparency attract and retain talent, foster inclusivity, enhance productivity, and meet business goals.
The Importance of Transparency
In the modern workplace, transparency—with pay, culture, and company goals—catalyzes meaningful dialogues between managers and employees. In the eyes of Gen Z, transparency isn’t a luxury; it’s a fundamental necessity. They expect openness to extend across an organization’s spectrum, from understanding pay structures and job expectations to getting a clear glimpse of the company’s culture—which 77 percent of prospective employees (regardless of generation) consider before applying.
Employers benefit from transparency because it builds trust, reduces turnover, and boosts productivity. It can increase job satisfaction and career development opportunities for employees and create a more positive and supportive work environment. This approach sets the stage for a future where everyone thrives.
This expectation for openness is reshaping the job market. In a survey of 3,700 U.S. college students, 87 percent consider pay transparency a top priority when choosing job opportunities, and more than half wouldn’t apply for a position if the employer didn’t provide salary details.
Hiring processes have become more transparent, with companies disclosing evaluation criteria, interview rounds, and decision timelines. Constructive feedback for candidates, even those not selected, is increasingly common, and employers offer flexible work arrangements and enhanced benefits to meet the rising demand for a work-life balance.
These practices are all ways organizations can enact transparency practices and foster clear communication. Employees who perceive transparent communication at work boast 12x greater job satisfaction, which, in turn, benefits employers through increased productivity, higher morale, and lower turnover rates.
Advancement Matters to Employees
Career advancement looks slightly different today because it now centers on companies fostering environments to nurture their employees’ professional and personal growth. And yet, while career progression plays a significant role in employee retention, only 25 percent of workers are confident in opportunities for growth within their current organizations.
The McKinsey Global Institute and Pew Research Center identified a lack of career development and advancement as the most prevalent reason for employee turnover. Nearly two-thirds of employees cited lack of advancement opportunities as the main reason for leaving their jobs.
Shifting the focus to employee growth and development is a natural response to changing workforce dynamics. Employers must address the significant gap between available opportunities and employee expectations for improved engagement. Organizations should outline advancement opportunities to foster employee growth, achievement, and retention.
Creating Career Growth with Clear Pathways
To promote career growth, employers should clearly define the path to the “next level.”
- Set clear expectations and implement a transparent performance management strategy. Use job descriptions, performance reviews, and regular check-ins.
- Provide feedback. Schedule regular opportunities to provide positive and constructive feedback.
- Share opportunities available to workers, including other possibilities organization-wide, to establish a clear path to advancement.
- Facilitate multi-departmental collaboration. Working in cross-functional teams helps employees understand each others’ roles and build skills needed for advancement.
- Leverage people operations to maintain transparency. Organizational charts help employees gain a holistic view of company structure and interdepartmental relationships.
Transparent Operational Practices for a More Engaged Workforce
Leaders nurture transparency effectively by advocating shared decision-making. Most workers value consistent, clear communication and want to understand their company’s choices. Sharing decisions—even the difficult ones—cultivates a culture of trust and helps employees feel like integral components of the process.
By weaving transparency into every facet of performance management, organizations illuminate employee growth paths, attract and retain top talent, improve employee satisfaction, and boost productivity.
Gen Z’s expectation of employer transparency has ignited a workplace revolution where employees of all generations feel valued, engaged, and motivated. By heeding Gen Z’s call, organizations gain a competitive edge and become attractive employers capable of driving innovation, diversity, and adaptability while charting a new path to collective success.
