I believe they are really creating a new age of creativity. This is a generation that because of the tools that they have, the technology is in their hands, they are demonstrating a level of creativity and entrepreneurship that we have not seen before. 

Welcome to focus, a podcast dedicated to the business of Higher Education. I'm your host, Heather Richmond. And we will be exploring the challenges and opportunities facing today's higher learning institutions. Today, I had the pleasure of speaking with Hana Ben-Shabbat, a leading expert on Gen Z, about their core values and how that's shaping their campus experience. 

Hi, Hana, thanks so much for joining us today. Thank you for having me. Well, I am so excited that we're gonna be talking about Gen Z today and the importance of understanding and connecting with them. But first, can you give our listeners an overview of your background?
 
Sure, so I started my career actually in sales and marketing of technology in the b2b space. And then the after several years moved to consulting, where I advised mostly retail and consumer goods companies. And that's where I developed my passion for understanding consumer behaviors and motivations. And that’s what basically led me eventually to start Gen Z planet. 

So before we get started, can you just define who makes up Gen Z?

Sure. So Gen Z is everyone who was born between 1998 and 2016. This is not an exact science. And generally speaking, we define generations by the major events that the cohort experienced during their formative years. And also by what we see with the data, there is a tendency to start, say, Gen Z in 1995, when the internet started. But in reality, in the data, we starting to see differences at 1998, which is actually a very interesting marker, because it took some time for the internet to actually catch up. And then in 1998, Google was incorporated. And that was really the beginning of a lot of the breakthroughs that came after that define this generation. On the endpoint, you know, jury's still out, we are not 100% sure, because we are still in the early days. But I would say that 2015/2016 are a good point to mark the end of this generation, because of everything that we have seen in the world. During this time, we had Brexit in England, we had the Donald Trump election in the United States, we had more trade wars with China, and so on, and so forth. And it's somehow you could say, it's the beginning of a new era. So I put my marker for Generation Z at that time. 

Makes a lot of sense to me. And I know your book, Gen Z 360, which I've read, covers a lot. And so I wanna really just kind of go into some of the specifics. But first, how did you approach your research for this book? And can you give us an overview?

Sure. So I think maybe start from the start. My passion for an interest in Gen Z, is really a direct result of what I observed and experienced as a management consultant. During my 20 year career, I saw many of my clients struggle with the rise of the millennials, the millennials did not fit the mold of what was taught to be a good employee, or followed the life stage patterns that informed marketing for years, that means, you know, graduate at a certain age, buy a house at a certain age, start a family and a certain age, and so on and so forth. And it was very confusing to people and companies were not prepared for the change that the millennials brought to the table. And as a result, resources were wasted and frustration was high, and many opportunities get lost along the way. And that's really what inspired me to start Gen Z planet and also write book to help business leaders to get things right from the start with Generation Z. And the way I approached it was really a combination of research methods. Obviously, the traditional you know, quantitative study, multi-generational studies of being able to compare between the generations and really see where Gen Z truly differs from other generations, but also a lot of interviews, one on one interviews, and where a possible, visiting Gen Z’ers in their own environment, and really see who they are, how they live their life, what is important to them, and try to bring it all together across the three dimensions of culture, work and commerce. 

Yeah, that makes a lot of sense. And I know in that first section that's when you really dig into what makes Gen Z, you know, unique culturally. And so, you know, what is it that makes this generation really different from previous generations and especially their immediate predecessors, the millennials?

Yes, and I would say there are perhaps three key attributes that I would say are the most important, critical and differentiating. The first one is diversity. Generation Z is the most diverse generation to ever live in this country. 48% are minorities. But it's not only a statistical figure, it is a cultural lens, and a social lens through which they view the world. And it is how they were raised and how they see things and what they expect when they go to school, or when they interact with brands or when they reach the workforce. The second thing is obviously, the technology, this is a generation that was born into a world that, they never experienced a world without a search engine, a mobile phone, or social media. And that has a huge impact about how they behave, how they think, how they process information, how they learn, when it comes to education, and so on and so forth. And that is really a defining factor of this generation. Because they don't have what we have, we have the before and after, we know how it was before the technology came. And we know how it is today. We all use technologies, it's not a generational thing. But when you grow up with this, it just becomes part of your life. And I always said, you know, when you ask Gen Z years, what role technology plays in your life, they just kind of look at you with a surprise face? Because they don't understand the question is technology is life for them. And I think it's very important, you know, like, whether it's the higher ed or brands or the workforce, to truly understand that aspect of Gen Z, because they don't have the same perspective that we have. And I think the third one is really, the result of the second, which is with the connectivity comes major exposure. And it means that this is a generation that lives through the 24/7 news cycles, experiencing everything that happens around them and in the world, in a very direct way, through their phones. And that has also a lot of implications for who they are, how they think and how they view the world around them. 

That makes a lot of sense. Aren't you glad that we grew up in a low tech generation?

To an extent I do, but sometimes I do ask myself, you know, like, I'm thinking about a time that I was in university, and I'm sometimes saying to myself, like, how did we find each other like, you know, when we were going out, like in an evening? How did we always manage to kind of cluster in the same place, without texting and without calling? And it's kind of, you know, I'm always thinking like, how would I be if I had Instagram when I was a student? You know, it's you know, I don't know if I feel bad that or good that I didn't have it or did have it, but it's definitely sometimes I question that. 

Yeah, it was really interesting. And even just ourselves. Now, I don't know how I would survive without technology and my phone, telling me where to go? 

Yeah, exactly. 

Great. Well, how have all these factors really impacted the behavior of Gen Z?

I think again, there are a couple of things kind of, especially from a cultural perspective, obviously the diversity, we really see this is the generation that is creating a radical inclusivity culture, it's something that is very important to them. They want to see diversity in advertising, they want to see an inclusivity in the workplace and it's in all dimensions and it is something that they really live by and expect from the world around them. So I think that's one thing that is very important. And I think the second thing is connected to technology. I believe they are really creating a new age of creativity. This is a generation that because of the tools that they have, the technology is in their hands. They are demonstrating a level of creativity and entrepreneurship that we have not seen before. And that is something that I feel is unique to this generation, I mean, speak to some Gen Z’ers, and you will hear the word, you know, creators, they see themselves as content creators, as you know, as a group of people that use technology not only to do practical things, but also to be creative. And also, you know, in a way, to express themselves, to express opinions, to be social critics and whatever else comes with that. So I find it extremely fascinating. And the last but not least, is what I call challenging authority. I think with the exposure comes a natural need to question things. And this is a generation that sees so many of the issues that we are dealing with today as a society. And they're asking questions, why we haven't solved some of these issues, why do we still have gender inequality? Why do we have racial injustice in this country, and so on and so forth. But they're not only asking the questions they are willing to take the next step, and challenge authorities and demand change and do what they can do, at least at this point, to drive that change. I mean, we've seen them marching for climate change, we've seen them marching for social justice, and so on and so forth. But I expect that if we see that trend continue, this is going to be a generation that will drive civic engagement in a way we haven't seen before. 

Absolutely. I mean, again, this is a very, you know, revolutionary generation. And some of those key milestones you've talked about, are very impactful. But are there some other you know, events or even the, you know, parental influence that you've seen that really have helped to shape this generation?

Yeah, I think that the one thing that people sometimes ignore about this generation, which is again, pointing to a statistical figure, is the fact that 30% of Gen Z grew up in a single parent household. And I think it is quite an important fact to keep in mind when dealing with this generation, because it has a lot of implications about their ambition, about the way they relate to society, around them about the importance of community and support that they need to see around them. So I think that's one thing that I find quite fascinating about this generation, and how those who grew up in a single parent family, view themselves, view their parents and their relationship with their parents, and what they have to achieve in the world. I think, that's quite a significant part of the entire generation. I think there are, of course, other things, this is a generation that grew up between, you know, 1998, when they were born, to now, you know, it's only 24 years, and if you think what happened in the world, and the things that they experienced, be it, you know, the rise of social movements, like Me Too and BLM, in the United States, obviously, gun violence events have huge influence on, again, on how they view or perceive safety, and all these things together, you know, they contributed to strong core values, that include family and community and equality. And they all happened during their formative years. But perhaps one of the most important to our conversation is the fact that this is a generation that within their short lifespan have experienced two major recessions, Gen Z, where the older Gen Z was about 10 years old, who in 2008, when the great recession broke, and they have vivid memories of that period and great learning for life. I mean, these are kids who saw their parents either losing their jobs, or their home or even just having the anxiety that this is going to happen to them. And they internalize those events as something that, ‘this is a lesson for me, I need to learn from that, this cannot happen to me’. And sure enough, comes COVID-19 and they are going through yet another recession. And I think from that their attitudes towards money, and the way they view financial security is completely shaped by these two events. 

Oh, absolutely. I mean, it's no wonder that, you know, I've definitely heard and I know you have in your data, too, that this generation is, you know, very debt adverse, and very much, you know, the core value being that financial stability, and really having that conservative nature financially. So how do you see this really translating into their education and their work lives? 


So yes, I think if we look at the education, Gen Z, first, truly believe that they have to go to college. 89% of the Gen Z’ers that I interviewed who were in high school, say that they want to go to college, and 25% believe that they will need a graduate degree to actually succeed, in our world. And I know that this may seem counter to all the big headlines that we have seen since the pandemic broke about, you know, Gen Z’ers, and kids dropping out of college or don't want to go to college, and so on and so forth. But I think that there was a slight drop in college admission and enrollment in the last couple of years. But I believe that at the core, because of the way they were brought up by their Gen X parents, they still believe that this is the way to go. Saying that, many of them know that they cannot afford it. And they are becoming very creative in finding ways around it, I spoke to many Gen Z’ers that said, you know, ‘I enrolled in community college, I do two years and then I transfer into a four year college’, that's kind of a very common path. Some who have outstanding high school achievements, trying to get scholarships, some are thinking they're going to work during college to minimize the amount of debt that they're going to have at the end. And then of course, many of them are setting their sights on those companies that recently started to offer tuition reimbursement as part of their employee benefits. So it's not like Gen Z is not going to take student loans. I mean, many of them just don't have a choice. But they are doing it in a less blind way than previous generations. They know the consequences. They look at their millennial siblings or friends, and they are, ‘I don't want to end up like this’. And they try to do everything they can to minimize that burden when they graduate.

Yeah, I think you know, we definitely see that even just with our solution, we have payment plans, and just seeing the increase of students enrolling over the last few years in these payment plans versus going the traditional student loan route. They definitely, you know, have that in mind. 

Yes, it's a mindset of being very cautious. And it's a mindset of look at what happened before me and learn from it. 

I know and I know that you said to you in your book that Gen Z is the most educated, but maybe the least prepared when entering the workforce. And so how can you know, maybe get some guidance to colleges, universities on how to help with this? 

Yes. And I think this is a really big, this is a really big question. It's not a new issue for financial, for educational institutions, and corporations. And then I think that in today's world, you know, we are facing kind of several challenges, Gen Z is joining at a time, even before the pandemic, that workplaces are transforming. Everyone is going through digital transformations and any other major transformation, because the corporate world is more and more dependent on innovation to be successful. So in a workplace that is driven by innovation, your technical skills are important but are not critical. What is more important is the ability to learn, is the ability to problem solve, and it’s more of the soft skills. And from the many interviews I had with, say executives in very large corporations, and some of those discussions are in my book, there is a very clear picture that is emerging, they say that newcomers are really well equipped, technically, they learned great things in universities. But no one really taught them how to adapt to this new world, of the workplace of the 21st century. And I think that gap needs to be bridged, as you know, as quickly as possible, and educational institutions will have to make sure that, you know, we teach newcomers how to learn and how to adjust, and I think Gen Z at the core, have that ability to adapt, because if you just think about their life, you know, change is the only constant in the way they lived. So they are very adaptable. And I think we need to build on that level of adaptability. And so, it can have value in the workplace. And we need to emphasize more soft skills, then technical skills, because frankly, technical skills in today's world become obsolete very quickly.

Yeah, and I tell you, I think that's really interesting. From the technical side, I know sometimes some of our colleges, universities get a little nervous about, you know, timing of bringing new tech to the table and learning and this generation, bring it on, they can do that. And then the transition, though, is okay, if I can get more self-service tech going, then I can be more personable, and be able to have those conversations if they need more of a support standpoint. So I think that, you know, that helps that soft skills side too of being able to have someone to talk to if they're having financial troubles, and what payment plans can I get on? Or what are my options? Because, you know, using the tech to do it, they've got that all day long, they don't need to get trained. 

That's right. That's absolutely right. 

And it sounds like to just, you know, in your book, talking about Gen Z, really being very independent and liking to learn on their own. And so, you know, how do you see that, you know, impacting how they like to learn and receive information, you know, from their companies as they're going into the workforce and beyond.

Yeah, and I think that's right, they feel that they do their best work when they work on their own, however, and it may sound contradicting, they require detailed guidance and frequent feedback from their managers. And this is, again, one of the misconceptions about this generation, when executives or managers hear that need for constant feedback, they associate it with insecurity. And actually, I associate it more with being competitive and ambitious, they want to know all the time, where they stand and how they can exceed expectations. And it's not coming from a place of insecure, ‘oh my God, I don't know what to do’. But ‘I really want to do the best I can, on this particular assignment, or in this particular role, and you, my manager have to help me, together by giving me regular feedback’. So I think that's something that is very, very important. I think how they learn is very different, right? I mean, the days of big folders with PowerPoint printouts are over, a long time ago. But it's now more, kind of, you need to be like a little YouTube operation, you know, they like to learn on the go, they want to be able to get things in small chunks through videos, and that's how they learn. And I think one thing is, the way they process information, so they feel that they can absorb a short video better than they can absorb a memo. But I think there is also an element of convenience in that. You know, like I can look at this three minute video while I'm on the train home or while I'm doing something else and it has that kind of multitasking, kind of aspect to it, which you can’t do if you are walking around with a big folder. So that's something that obviously, educational institutions and workplaces already grasp and are already implementing in a very big way. And if they haven't, they should. And I think the other thing that is very important is really, how are we actually onboarding them, whether it is in universities or colleges or in the workplace. One thing that we have to remember, for us, it looks very natural, because we were just living through this, organizations have become extremely complex and interdependent in a way that it was not before, everything is much more interdisciplinary today than it was before. You know, when I started my career in marketing, I worked within my department, I had to liaise, a little bit with customer service, and maybe with another department. But it was not that complicated. Today, you have to be in connection with the E commerce team, with a PR team, with the supply chain team, with the manufacturing team, to get a campaign, you know, taking off, it has a lot of interdependency within a single organization. And think about that, when you are a newcomer that could be very overwhelming. For one reason is that you don't have a decision making authorities on most of these other functions. So your ability, and again, it's going back to the soft skill, your ability to negotiate your, ability to influence other people, so they can help you to execute your assignment. Because you need their input into what you do, is becoming so important. So if you bring people in, you just throw them in the water, they're not going to swim that quickly, because they don't really understand that level of complexity. So I think orientations of ‘hello, this is our mission and vision, and here is your gift bag’, again, these days are over. Orientation needs to really focus on, here's our organization, and here's how it works. And here are all the different kinds of function. And here are all the people you're going to be interacting with. And you got to understand the different stakeholders and their roles in our processes. And that's kind of a very different way to get people oriented, but it's absolutely critical. 

Yeah, it really is, I mean, really, this generation, we can call them the over multitasking generation, all of us, right. And in a complex world. So that combination is hard to get and keep attention. So thinking about that. So from an onboarding perspective, let's kind of back up a little bit and talk about recruitment. So how did you see you know, schools, you know, and then companies being able to better recruit Gen Z? 

Yeah, so I think obviously from a process perspective, it's all about technology. It has to be Gen Z expects smooth, technology driven process, you know, they don't want to spend time trying to call you or, spend a lot of time traveling to meet someone for two minutes. They really want something that is very smooth and very easy to navigate. I however, I would put a word of caution here. We have seen so many examples where the use of technology has gone completely to the other side of that, everything is technology, and there is almost no human connection. And that could actually backfire. I spoke to several Gen Z’ers who describe their experience of doing a video interview, where they didn't speak to anyone, they got a question on a screen, they had to record themselves, submit, and then it's gone to a black box. And that could be actually be a turnoff to many Gen Z'ers. So finding that balance between technology and human connection, I think it's really important. It's easier said than done. But I think companies are starting to understand that yes, this is a digital generation. But that doesn't mean that they want everything to be digital. So that's and I think that's true also for educational institutions. I think in terms of employers, obviously it's the offer, what do you actually offer, what is your employer brand, what do you stand for? Showing that you understand, you know, who Gen Z is, where they come from.

A lot of issues that we covered already, you know, like Gen Z , is very well known for their openness about talking about mental health issues. How do you incorporate that into your employer benefits, into your work schedule, into how you coach and deal with these newcomers? Obviously, the financial pressure that we spoke about, all these things can be translated into completely different employer benefit models. And as I mentioned before, tuition reimbursement is not a very popular topic, but I think we are going to see that becoming even more popular. And then I don't think that we're going back on location and schedule flexibility, there are going to be many companies that will add a hybrid model, but for Gen Z, location, and schedule flexibility is extremely important. Location because they feel that with location flexibility, they could actually achieve some of their financial goals, I can live in a place that is not as expensive as living in a major metropolitan area, and very quickly get to the point that I can own a home, and build my financial securities, and then I only have to travel to meet my team, you know, once a week or once a month. So it's not just the work from home notion that it's much easier for me to work from home, it has some additional thinking behind it when it comes to Gen Z. And I think schedule flexibility is also very important. One thing that we need to understand with this generation is that 34% say they have side hustles, and they expect to maintain that side hustle while they work full time, because it's another way for them to make more money. And I know that, you know, for us Gen Xers or boomers, we would have looked at a colleague who has like a side business, like as if it is the most unreasonable thing to do. But for them, it is a very natural thing to do. And I think employers will have to accept that mentality and way of living, because this is who they are. And the fact that they have a side hustle doesn't mean they don't do their job as good as they can. And it's, the attitude should be, in my view, as long as they deliver, they can do whatever they want. That's their free time. But that's where the schedule flexibility comes. If I have schedule flexibility, I can manage whatever different things I need to do. And as long as I deliver on all of them, I'm fine. So I think that's another thing to consider when it comes to recruiting. 

Yeah, and it really just all kind of stems back to financial security being one of their core values. You know, and I think that was really interesting, from your book, just talking about how determined they are to do better and do whatever they can to learn from the mistakes of others, you know, previous generations and really secure that financial future as early as they possibly can. So what are some of those unique traits that Gen Z shows in really the commerce area?

So I would say in the commerce area, you know, we already understand Gen Z is a very cost conscious, I would say even frugal to an extent. And this is something that defines how they go about buying things, then they will always search before they buy, they will always compare prices or read reviews. And that's affects everyone you know, whether it is you buying clothing or you buying a pair of shoes, or you signing up for university, you want to know what you're going to get for your money. So I think that's something that is very important. And obviously, all these things are done with technology. And the other thing is about their savings. This is a generation that because of their focus on financial security, they're already investing and saving, some of them have retirement accounts. And you know, I spoke to Gen Z’ers, who were in part time jobs who told me that they put some of their money into a Roth IRA and I was so surprised. At such a young age. So obviously, some of it is a result of the exposure to the immense financial information that is out there. But it's also really core to who they are because of the life experiences that they have. And then of course, the technology that they have, you know how they do these things, you know they obviously invest online, they make payments using the cashless methods, and so on and so forth. So, you know, some would say that the younger part of the generation, those who are right now, I don't know, three and four years old, probably or five years old, they probably will not know a world where there was like real money, right? And yeah, still to be seen, but you know truly cashless generations? And you know, no matter where who you are, if you're a retailer or a financial institution or an educational institution, I think we all need to be prepared for that.

Yeah, you know, like you said, that's just the norm for them. And I'd say, you know, how are you seeing, you know, that their affinity to technology, and I'll say just, you know, being able to adopt and change so quickly, you know, how does that really translate into commerce and how they're making payments?

Yeah, so, you know, Gen Z is a digital, you know, digital first generation. So it is no surprised that many of them are using methods of payments that are, you know, non-cash methods, it could be Google Pay, or Apple Pay and for them it’s just very natural. They don't see a point of paying in a different way, because this is just so easy.

Yeah, I think that too, I read that in their world, we talk about, oh, how are you paying online? Versus how are you paying in person? They don't see it that way. Do they?

No and I think this is really an important point that you're bringing, which I make in the book, which is the separation of online and offline, or online and physical store, physical place, is something that we, the older generation, make, because again, we have that before and after, you know, we grew up in a world where there was no Internet, and then the Internet came, and then there was fast, it was possible to shop online. And now we have online shopping and in store shopping, and we make that kind of separation. For Gen Z, this separation does not really exist in their mind. For them, there is only one retail. And it's very important to understand that because for them, they see a brand, it could be the university, it could be it could be Nike, it could be Whole Foods, it's a brand. And I have a choice of how I'm accessing these brands. And you don't access the brand only through a store or their e-commerce platform, you access a brand through every touchpoint that they have to the consumer. So they see you on Instagram, they see you on Facebook, they see you on Tik Tok, they see you in all those different touchpoints. And in each of these touchpoint has meaning to the way they perceive you as a brand and the way they interact with you. And they can make a final decision of you know, where do I want to transact today, and sometimes it will be, you know, shop directly from an Instagram app or I go to a store or I order online. The interesting thing about this generation is that despite of the fact that they don't like to make this kind of separation. And they have that view. If you ask them, if they prefer to go to a store, or shop online, the majority close to 60% will say they still prefer to go to store because they like to have that personal connection. In addition to having the option to do everything through technology.

Yeah, it's really interesting that in our own minds, we just think about why are we separating it, this is just how it works. We hear a lot about omni channel and it's like, they just think it's a channel.

That's right. 

Well beyond technology, you know, what are the other expectations that Gen Z exhibits when it comes to commerce and making payments?

I think this is really going back to where we started with culture. I think that it's very important to them that the entities that they interact with, under individuality and authenticity. So how you communicate with them only affect how they interact with you. You know, they look to be treated as individuals, they don't want to just be, you know, a number. And they feel that they want to stand out. So how do you help them to do that? It's very important. I think they have very strong values, as we discussed before. So they want to be part of organizations that share those values. And they want to be part of an organization that not only talks about doing great things in the world, but also have something to show for it. And I think that's something that, you know, people have to be very careful with Gen Z, because, you know, we have seen, in the past few years, a lot of what I would call greenwashing and people making a lot of statements about how the environment is so important to them, but really, in reality, you don't see any evidence that they actually care. And you know, Gen Z, see that and call people out on that. So I think that's something that is very, very important, to know it's not only words, you have to demonstrate that with action. They want to see diversity, and they want to see inclusivity everywhere they go. So I think that's something that is very critical, I would say, for organizations that want to interact and have Gen Z’ers as their customers.

I think that's great. So what would you tell our higher ed leaders, what are the biggest takeaways about Gen Z.

So I would say that for educational institution leaders that may be three things you have to keep in mind when it comes to Gen Z. One is understand where they come from, and the pressures that they are under. And it's not only the financial pressure, but they are under tremendous pressure to succeed. And there is a lot of things that educational institution can do to help them achieve their goals. The use of technology from admission to an ongoing operation is absolutely key. This is a digital first generation. And the third thing is really recognize the need for community, diversity and authenticity.

Yeah, I think those are really great. Three key pieces to take away. So I'm sure a lot of our listeners have a lot more questions for you. So can you just tell us how people can connect with you?

Absolutely, you can visit my website www.Gen Z planet.com. You can follow me on Twitter @HBS360. And if you're interested in getting a copy of the book, the book is available on amazon.com, Gen Z 360: Preparing for the inevitable change in culture, work and commerce.

It's wonderful, and I highly recommend everybody to get that book. It was a great read and a lot of great stories and from you know, this generation and understanding them better. Hana, thank you so much. This has been so great. And I know this information is going to be so helpful to the higher ed community.

Thank you so much for having me. It was a pleasure. 

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