Gen Z—the cohort born between 1996 and 2010—is coming of age, and with that comes transformation of the workplace, and of the world. By 2025, 27 percent (more than a quarter) of the global workforce will be made up of the generation endearingly referred to as Zoomers.
Gen Z is often portrayed as TikTok-addicted, caramel-oat-latte-drinking digital obsessives. The results of our recent report “Where is customer care in 2024?” however, challenge these stereotypes. Our findings offer company leaders, recruiters, managers, and others an opportunity to check their perspectives and finesse their approach to engaging with a generation that is not only shaping the workplace but also is sorely needed for current and future business operations to succeed.
Not averse to phone calls
As the first digital native generation, it may be tempting to think that Gen Z would prefer to send direct messages on social media rather than waste time on small talk with another human. Our report shows that for personal connections that’s true: Gen Zers differ markedly from baby boomers—those born between 1945 and 1964—who prefer to use their phone line to connect with friends and family rather than texting or messaging, the first choice for Gen Z.
What we can also see is that baby boomers and Gen Zers do agree on one thing: phoning companies directly to solve their customer service problems, particularly when dealing with an issue with a product or service they have purchased or are thinking of purchasing. In fact, 71 percent of Gen Z customers agree that live phone calls are the quickest, most convenient way to get to the heart of a customer service matter to find a satisfying solution.
Gen Z premium segment expectations
Furthermore, Gen Zers are 35 percent to 40 percent more likely to call a business than their older siblings, the millennials, are, particularly when it comes to engaging with premium brands or services. Marketers and business strategists take note: the nexus of Gen Z and premium customer is the fastest-growing segment according to our data, with nearly a quarter of customers agreeing that live phone support is part of the premium service they expect. Talk of the demise of the contact center due to the rise of automation and armies of service bots may be, it seems, overdone, or at least an oversimplistic take. Instead, the phone will remain a prominent communication channel, with those able to find the right mix of human and machine positioned to lead.
Companies that want to cater to Gen Z can think about shifting their emphasis from resolution to engagement, keeping the phone lines open, and being able to handle increasingly complex problem-solving over the telephone, particularly for high-end products and services.
Bot what should I do about it?
This doesn’t mean businesses need to abandon chatbots and AI strategies for their customer service offerings. Quite the opposite. AI agents that handle run-of-the-mill enquiries will make space for human agents to focus on handling the complex problems that require the creative thinking and emotional engagement often sought through phone calls, as well as opportunities to get customers to consider new products or services. Many AI use cases have focused on chatbots, but companies that invest in developing a voice-enabled AI customer care service will often find high-grade human agency and engagement is the missing piece that completes the customer service puzzle.
Currently, we see leaders aiming high, aspiring to automate more than 60 percent of voice interactions. Time will tell if this truly reflects the needs of the modern customer, particularly those of Gen Zers.
It’s all about the flex
Just as Gen Z is beginning to shape the way customer service is developed and offered, the demographic is changing workplace cultures and expectations too. Many Gen Zers are already steadily progressing in their careers, with their younger counterparts soon to join them, and they have significantly different priorities and expectations from the generations of yore. For example, Gen Zers rank workplace flexibility as the top reason to stay in a job, whereas Gen Xers and boomers prioritize compensation. Career progression opportunities, or the lack of them, also beats compensation as the top reason for leaving a job for Gen Z. Culture and values are also top of mind for many Gen Zers, with matters such as salary transparency in job postings and environmental, social, and governance initiatives proving to be important factors as they chart the course of their careers. It remains to be seen whether these preferences will hold as mortgages and families become part of the factors behind Gen Z decision making.
Gen Z talent
In the light of Gen Z attitudes and expectations, how can customer care businesses wishing to improve their employee value propositions, and their customer engagement offerings, connect with an existing and potential workforce? One conclusion may be to ditch the idea that putting a carton of oat milk in the office will be enough to satisfy younger employees. In fact, it may be a step too far to expect them in the office long enough to drink it. Flexibility—in terms of work hours, locations, and styles—is part of the equation that Gen Z employees expect, even in careers like customer care that traditionally required large teams of people to be in the same place to manage productivity, coaching, and performance.
Remote work and collaboration is certainly seeing sustained demand, particularly from those who entered the workplace as technology more widely provided a bridge between work and the wherever-you-are worker. Understanding and taking this into account will be key to success in attracting and retaining the in-demand talent in today’s labor market.
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Brian Blackader is a partner in McKinsey’s Dusseldorf office.