Winning Over Gen Z: How AI & Data Can Create the Ideal Workplace

By Serena H. Huang, Ph.D.

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Let's face it, the traditional playbook for employee wellbeing and DEI isn't cutting it anymore, especially when it comes to attracting and retaining Gen Z talent. This generation isn't just looking for a job; they're seeking purpose, flexibility, and a real commitment to their wellbeing.

Forget the 9-to-5 grind and empty promises of job security. Gen Z has witnessed the shifting sands of the modern workplace and they're opting for control and entrepreneurship. My Gen Z clients openly tell me the gig economy and the allure of building their own companies are far more appealing than climbing the corporate ladder.

Before you dismiss this as just another plea for remote work, consider this: Gen Z deeply cares about wellbeing and DEI. Studies show that a staggering 83% factor in a company's commitment to diversity and inclusion when choosing where to work. And nearly all (92%) college seniors expect mental health support as a standard benefit, on par with retirement plans.

It's time for a strategic reset. Instead of relying on time-consuming, manual analysis, you can leverage the power of AI and analytics to ensure your investments in these areas are truly impactful. Ignoring this shift isn't just a missed opportunity; it's a risk your organization can't afford to take.

Here are 3 ways AI and analytics can help:

1. Understanding Gen Z's Unique Needs

AI-powered social listening tools can analyze online conversations and identify the topics and concerns that matter most to Gen Z. This data can inform the development of tailored wellbeing programs in your workplace.

Additionally, wearable devices can track sleep patterns, activity levels, and stress indicators, providing valuable data for personalized wellbeing recommendations. Companies must be transparent about data collection and usage, ensuring employee consent and ethical use of such data.

If wearables sound too futuristic, I assure you it’s not. In 2019, a pilot group of PwC employees in the UK began wearing devices connected to their work calendars. During the COVID-19 lockdown in 2020, PwC UK asked for volunteers to wear a wearable device for comparison with the 2019 baseline. Some of the comparisons between this newly remote workforce and their pre-COVID peer group were unsurprising, such as the 27% drop in daily steps. Other data analytics showed how much back-to-back video calls impacted employees’ sleep. For a more comprehensive discussion on the topic, check out my full article on HRD Connect “Wearables, surveys, and more: Using data analytics to improve employee wellbeing”.    

I am certainly not advocating for companies to leverage wearables as the only way to obtain data on employees but given the prevalence of such technology, it is easier than before to find a small group of volunteers and run the pilot for a short period of time to understand drivers of wellbeing that are likely unique to your workforce.

2. Building an Inclusive and Equitable Culture

Gen Z is the most diverse generation yet, so it should come as no surprise that they value workplaces that reflect this diversity and actively promote inclusion. There are several ways you can leverage data and AI.

First, your organization can analyze the recruitment and promotion data to identify disparities, and create new processes to ensure that opportunities are distributed fairly. Second, GenAI can review job descriptions to flag non-inclusive language and help hiring reams create better descriptions to attract candidates. Additionally, GenAI can analyze text data in employee surveys and internal communications to identify problematic areas on a continuous basis.  

While AI offers immense potential for advancing DEI, it's essential to acknowledge the potential for bias within these technologies. The use of AI in hiring, for instance, has stirred heated debates. Keeping humans in the loop is crucial. Regular audits of AI recommendations and a commitment to human oversight ensure that AI is used ethically and effectively to promote inclusion, not perpetuate existing biases.

3. Measuring the Impact and ROI of Wellbeing & DEI Programs

In my time leading people analytics at large organizations, I was often asked to quantify the ROI of wellbeing and DEI programs.

ROI = (Gains from the program - Cost of the program) / Cost of program x 100

Often times the gains may appear non-financial, such as higher employee retention/lower turnover, then I’d convert those metrics into the cost savings. It’s important to consider other factors that may also impact the same metric such as turnover outside of the program you are analyzing.  

I have also done analysis on absenteeism data as it is one of the key metrics the wellbeing program aimed to improve. In times where budget is tight, it’s extra critical to show positive impact and ROI of programs in order to keep or renew these programs. In my experience, it’s far easier to get the CEO and CFO’s attention with absenteeism reduction than burnout reduction or an increase in employee engagement given the more direct impact.

If you don’t have a large analytics team to run these impact and ROI calculation, feel free to message me for Data With Serena to help your organization on a project basis. For additional reading, check out this MyHRfuture blog to dive deeper on the ROI of training and development programs.

By leveraging AI and data to understand and address the needs of Gen Z, companies can build a workplace that attracts and retains this new generation. However, it's crucial to approach these technologies with transparency and ethical considerations. Open communication, data privacy, and responsible AI deployment are essential for building trust with Gen Z and ensuring that technology serves to enhance wellbeing and DEI.

Tell us: Are you using AI and data in your wellbeing and DEI strategy?

Highlights: Since a picture is worth a thousand words, here are a few pictures from recent engagements!

Coming up next:

I am starting a season with numerous speaking engagements that will take me on a journey to multiple countries in coming weeks. I made a decision earlier this year to focus on what brings me the most joy, which is speaking to and connecting with a live audience, and I am grateful this pivot has enabled me to live the life I could only dream of a few years ago.

Dr. Serena Huang is an accomplished thought leader and professional keynote speaker who regularly guest-lectures at top MBA programs including Kellogg, Wharton, and Haas. She provides keynote speaking, hands-on training, and consulting services on people analytics, data storytelling, and AI strategy. She also serves as a fractional data analytics leader in high-growth companies.

Dr. Huang is the author of a series of popular LinkedIn Learning courses on People Analytics with 30K+ learners, and recognized as a Top 15 LinkedIn Expert in Chicago in 2023. She most recently served as the Global Head of People Analytics & HR Tech at PayPal and previously built the people analytics functions at Kraft Heinz, GE, and Koch Industries. She holds a Ph.D. in Economics with specializations in Econometrics and Labor Economics.

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