As recent graduates prepare to trade their caps and gowns for blazers and button downs, businesses must also prepare to welcome this influx of new talent. It’s incumbent on managers to understand what makes this generation tick, what their expectations of business are, and what issues they’re passionate about.

Recent graduates came of age in a complex world, having grown up in the aftermath of September 11, the financial crisis of 2008, the "Me Too" movement, and a pandemic that upended their college education.

Both broadly and individually, these and other influences have profoundly impacted Gen Zers' lives. Now, they're carrying their perspectives with them into the workforce.

Shifting business expectations

To help us understand generational differences in values and moral principles, Harris Poll conducted a survey on behalf of AICPA & CIMA examining perceptions of business ethics. We explored how current workers, executives, and future talent prioritize ethical behavior and where there are gaps.

We consolidated our findings into takeaways to help today's employers meet and harness the expectations of tomorrow's business leaders.

Actions speak louder than words

Gen Zers and Millennials are passionate about making a positive impact on the world. They are eager to tackle big challenges like climate change, corporate greed, discrimination, harassment, and pay inequity – and expect their employers to do the same.

For them, actions speak louder than words. A clear plurality of future talent respondents (aged 20-30) cite “taking action” as the most meaningful way to show an organization is performing ethically, among more than 10 potential choices.

But what does action look like in the face of controversy or an ethical dilemma?

Our survey data revealed that corporate bromides like statements from CEOs are "check box" items that are not enough to demonstrate a meaningful commitment to ethical behavior. So, before you scramble to release a statement or performance report, lead honest conversations with employees about the dilemma, and use this as an opportunity to reinforce key principles in your code of conduct. Clearly communicate the actions your company is taking to prevent similar lapses in the future, such as updating reporting and compliance policies.

In addition to societal challenges and expectations for an organization to act ethically, managers must also understand the daily ethical decisions that young talent face. This includes practical workplace challenges like navigating technology, salary transparency, and combatting discrimination and harassment.

Set ethical guardrails around technology

This cohort is the first generation of true digital natives born into the era of high-speed internet, smartphones, and social media. Gen Z employees might expect employers to quickly adopt emerging technology trends, but there is an expectation that employers will have guardrails for using technology ethically.

Data privacy and security are among the top five concerns for future talent, a generation born into the age of bulk data collection. Younger workers especially are more aware than their predecessors of the potential risks involved in data sharing, and they expect companies to handle customers' personal information responsibly.

While ChatGPT didn't exist when earlier generations joined the workforce, machine learning and artificial intelligence present new challenges for today’s workforce.

Managers must support innovation while acknowledging this generation’s concerns about appropriate technology use and safeguards. We didn’t have to think about or understand AI when we joined the workforce, but this generation does. Are we prepared to enforce policies and best practices surrounding the use of AI technology?

As technology evolves and advances, ensure you are providing clear, principle-based guidelines about the ethical risks and consequences technology introduces.

Straddle new norms and grapple with old taboos

Long gone are the days when workplace compensation was a taboo subject. Now, job seekers are demanding employers disclose this information, and they’re having these conversations with their peers and colleagues. Economic uncertainty and higher cost of living have made salary transparency a norm in many workplaces, while legislation has made it a requirement in at least seven states.

Salary transparency is a new factor in talent acquisition, with 26% of Gen Z respondents citing it as a reason to consider a workplace, compared to 19% of Boomers. These results are a clear indication that sharing salary information, and having more candid discussions about compensation, are more likely to be viewed not only as ethical by an increasing number of young workers, but a requirement for recruiting top-quality young talent. While some managers may feel conflicted about topics like this, they should be ready to address discussions about salary transparency.

The bottom line for employers

Managing Gen Z means embracing a generation that values ethics and transparency. To meet their expectations, we must confront the tough questions of today, including DEI, fair pay, data protection, and workplace misconduct. We can build on these values and empower new employees by fostering a culture of openness and communication.

By setting clear expectations from day one, we can establish a strong foundation for our organizations and ensure we're meeting the needs of future talent.

Whether that means evolving your ethics training programs, facilitating round-table discussions about ethical behavior, or role-playing tricky situations, let’s not shy away from these challenges. Let’s confront them head-on and lead the way in advancing business ethics.

Transitioning from the college-to-career path is a big step, but with open communication and collaboration, we can begin to navigate these challenges for ourselves and help bridge the gap for the ethical ambassadors of tomorrow.

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