Why diversity, equity, and inclusion are non-negotiable for GenZ

Amid the rapidly changing nature of jobs and the workplace, every generation brings in a perspective that is unique compared to that of previous generations. This is especially true for Generation Z (GenZ) professionals. With 20% of the global GenZ population residing in India, this generation is already challenging the status quo and making its mark in the workplace. Besides, by 2030, the global GenZ workforce is projected to reach 51 million. So, whether they are ready or not, businesses across industry verticals must alter their approach to hiring and work cultures to ensure they attract top talent. This impending change begs the question--why is diversity and inclusion non-negotiable for the incumbent generation?

It’s well-known that GenZ are digital natives who grew up in an era of rapid technological advancement. The tech-savvy generation possesses unique digital skills that can be game-changers for several businesses across industries. However, tech prowess isn’t the sole aspect they bring to the table. As one of the most diverse generations, GenZ’s strong sense of social awareness and their distinct outlook towards life and work sets them apart from other generations.

GenZ doesn’t wish to build their life around work; they prefer work to fit into their lives, seeking a healthy work-life balance. A recent study revealed that GenZ’s expectations from employers go beyond the paycheck. They value job satisfaction, purpose-driven jobs, and supportive work environments. The study showed that 72% of GenZ value job satisfaction over their salaries, while 47% of them viewed work-life balance as a critical factor when assessing employers. One more aspect is a strong determinant of GenZ's consideration of an organisation—diversity, equity, and inclusion (DEI).

GenZ views diversity, equity, and inclusion as the foundation upon which an organisation builds its identity and culture. They expect their workplaces to reflect the diverse world they have grown up in, with the diversity being multi-dimensional and extending to race, gender, ethnicity, neurodiversity, and the range of ideas and experiences individuals bring. This expectation of DEI isn’t just a preference; it’s a non-negotiable requirement that determines whether they will join or stay with a company.

Unlike previous generations, GenZ doesn’t prefer to adapt to pre-existing workplace standards. With the baby boomer generation retiring and labour shortages rampant, GenZ is in a unique position to shape and redefine the culture of work. They are not just passive participants; they are actively driving changes in hiring practices, leadership diversity, and workplace policies. Organisations need to recognise this shift and adapt to ensure they remain attractive to this emerging workforce.

GenZ also considers leadership diversity to be an important factor. Over half of them would refuse a job if they do not see diverse representation in leadership roles; 68% of GenZ employees feel that their current employers are falling short of building a genuinely inclusive workplace. This highlights a gap between organisational DEI efforts and GenZ’s expectations. For businesses to attract and retain Gen Z talent, they must demonstrate genuine commitment and take actionable steps toward creating inclusive environments at all levels, especially in leadership.

GenZ also possesses a strong social awareness and wishes to act on things rather than read/watch and move on. With 74% of this generation having supported social or political causes in the past year, they expect their employers to share similar values. They seek companies that not only promote inclusivity internally but also actively engage in social and environmental initiatives externally. Companies that invest in corporate social responsibility (CSR) programmes, sustainability efforts, and community partnerships are more likely to earn GenZ’s trust and loyalty.

Apart from these, one of the primary characteristics of GenZ employees is valuing collaboration and inclusivity in decision-making at the workplace. They want to feel heard and included in conversations about the company’s future direction. This generation appreciates leaders who embrace empathy—those who understand their challenges and respond with genuine support. An empathetic approach not only helps build trust but also fosters a culture where diverse ideas can thrive. Companies that encourage open dialogue and value diverse perspectives are more likely to innovate and succeed.

To align with GenZ’s values, companies must go beyond surface-level diversity initiatives. This means implementing robust DEI policies that foster inclusivity at every level of the organisation. Recruiting from a diverse talent pool, conducting training on unconscious bias, and providing platforms for all voices to be heard are essential steps. It’s not just about meeting quotas; it’s about building an environment where everyone feels valued and empowered.

CSR is another area through which organisations can connect with their GenZ workforce. By demonstrating a commitment to social and environmental causes, companies can show they care about more than just profit. GenZ employees want to see meaningful efforts—sustainability programmes, partnerships with non-profits, and initiatives that have a positive impact on communities. This not only attracts GenZ talent but also strengthens a company’s reputation and brand loyalty.

The growing influence of GenZ in the workforce isn’t just about meeting their expectations; it’s about aligning core business strategies and values to create meaningful and impactful change. This shift will set the stage for a more inclusive, empathetic, and socially responsible workplace—one that benefits not just GenZ but all generations. By prioritising DEI, empathy, and social responsibility, businesses are investing in a resilient and forward-thinking culture that will lay the foundation for long-term success.

This article is authored by Ankit Aggarwal, founder and CEO, Unstop.