3 ways to make the future of work work for Generation Z

With more than a billion young people set to enter the workforce by 2030, we have an unprecedented chance to rethink how we connect talent to opportunity.

To create a future of work that benefits the next generation, we need to take three bold steps:

Today, automated CV-based applicant tracking systems (ATS) limit assessments to three criteria: work experience, education and connections. This leaves many young job seekers at a disadvantage. For starters, they face a Catch-22: they need experience to get experience. And then, 63% of young people do not benefit from higher education or have the privilege of strong professional networks.

The pandemic also exposed our reliance on rigid hiring criteria. While hospitals faced a nursing shortage, the hospitality sector saw mass layoffs. Both fields require empathy, communication, adaptability and a people-first mindset.

In the absence of a skills-based approach that could have transitioned hospitality workers into healthcare roles, however, hospitality employment fell by 49% in the US alone in early 2020.

Businesses need to think about creating a future-ready workforce. Many of today’s jobs won’t exist tomorrow, and many of tomorrow’s jobs don’t exist yet. By prioritizing skills-based hiring, employers can future-proof their workforce.

That’s why the World Economic Forum has initiated a Reskilling Revolution and launched a Future Skills Alliance to encourage employers to value candidates based on skills and potential. Accenture is another good example of how a company can successfully adopt a skills-based hiring approach. It has removed degree requirements for 50% of roles, hiring 1,200 apprentices since 2016 – 80% without a four-year degree – and achieving strong retention rates.

“We look for the widest pools of talent, which means focusing on diversity but also creating new pathways for talent,” explains Julie Sweet, Accenture’s CEO.

By investing in skilling programmes, companies can build the talent pipeline they need.

Many employers, particularly in the global North, are facing a growing talent shortage, with companies around the world reporting difficulties in filling roles. The OECD workforce is also ageing. For every 100 workers, there are 44 people aged 50 and older who are either inactive or retired – and this is expected to rise to 56 by 2050, creating an increasing strain on the labour market. If not addressed, the global human talent shortage could result in $8.5 trillion in unrealized revenues for companies.

But the global South has a growing surplus of young talent. While 90% of the growth of the global working-age population will come from Sub-Saharan Africa, for every 11 young people who enter the workforce each year, only three jobs are created.

This provides a unique opportunity to level the playing field. With remote hiring, employers can access untapped talent and build inclusive, globally diverse teams. During the pandemic, more than 35% of US workers adopted remote working practices, proving that virtual teams can succeed.

“AI is not going to take your job. The person who uses AI will,” says Jensen Huang, Nvidia’s CEO. In fact, tech change, including AI, is expected to create nearly 70 million new jobs by 2027. The challenge? While a survey of US parents and children shows that 58% of young people have used ChatGPT, only 24% of Africa is online. AI has the potential to be the great equalizer, but only if everyone has access to it.

To address this digital divide, we must start by getting 2.6 billion people online. Initiatives like Giga Global aim to connect every school globally by 2030. We must also drive AI literacy to stay ahead of the skills gap. This means demystifying AI and getting the next generation excited about its potential – especially those at risk of being left behind.

In a collaboration with Microsoft, Goodwall is launching an AI learning pathway starting in Sub-Saharan Africa to equip the region’s next generation with essential AI skills. The GenAI for Youth programme will use experiential learning to help young people harness AI to boost their creativity, learning and self-expression. This will position them for success in the future-ready workforce.

“AI offers tremendous potential to empower workers around the world – but only if everyone, everywhere has the skills to use it,” agrees Kate Behnchen of Microsoft Philanthropies.

This is just the beginning. To make the Intelligent Age inclusive, both private and public sectors must collaborate to upskill young people – particularly those from developing economies and marginalized communities. This will help to create a global future-ready workforce.

Generation Z, which is generally accepted as covering people born between 1997 and 2012, is the largest generation in history. They are tomorrow’s workforce and leaders. To embrace skills-based hiring beyond borders and bridge the digital divide, we must create a resilient, inclusive workforce that’s ready to meet tomorrow’s challenges and opportunities head-on. This is how to make the future of work work for the next generation.