Generation Z is changing the game in the job market, with recent studies showing that more and more young people from this generation prefer freelancing over traditional jobs. According to a report by The Upwork Research Institute, over 52% of Gen Z professionals in the U.S. choose to work as freelancers, compared to 44% of Millennials, 30% of Gen X, and only 26% of Baby Boomers. This trend demonstrates a significant shift in how work is perceived and how careers are developed. How does Gen Z prefer to work? What is their view on recruitment? Find out below! 

For the first time, The Upwork Research Institute's study identifies five distinct types of freelancers, called "freelance career models": Portfolio Careerists, Independent Consultants, Moonlighters (Part-time Freelancers), Temporary “Gig” Workers, and Company Founders. (Freelancer part-time), Temporary “Gig” Worker (Lucrator Part-Time) si Company Founder (Fondator de companie). 

The largest group of freelancers in Generation Z identifies as Portfolio Careerists (39%) – qualified professionals managing a diverse portfolio of projects across various industries and for multiple clients.

"Our research shows that the new generation of talent perceives the modern career as much more diversified and dynamic than previous generations. They want freedom, control, and autonomy, which allows them to take advantage of new ways of working, influencing their performance and financial stability," said Kelly Monahan, Managing Director at the Upwork Research Institute. "Many leaders and professionals associate freelancing only with short-term and transactional work, but it’s much more complex than that. The five distinct freelancing models show that each of these work arrangements has unique motivations, which have clear implications for the ever-changing employment landscape."

 

How Generation Z prefers to work

 

• The majority of Generation Z professionals prefer freelancing over traditional jobs: More than half (53%) of freelancers work at least 40 hours per week on various types of projects, with a third of them having been freelancing for over two years.
• Gen Z embraces an entrepreneurial mindset, building flexible careers based on choices, not necessity: Although financial stability is important for all Generation Z freelancers, 70% say they choose freelancing for the flexibility it offers, 64% for working in an environment without age, race, or gender restrictions, 64% for the freedom to work from any location, 62% to pursue meaningful work, and 61% for more control over their personal and career development.
• Generation Z freelancers prioritize learning and adopting new technologies like AI: 51% of Generation Z professionals use generative artificial intelligence, but the rate is even higher among Gen Z freelancers (61%), compared to their full-time employed peers (41%). Additionally, 39% of Gen Z freelancers have already earned a specialized certification in AI.
• "Portfolio Careerists" is the preferred freelancing model of Generation Z: 39% of freelancers identify as such, 26% as Independent Consultants, 24% as Moonlighters, 7% as Temporary Gig Workers, and 3% as Company Founders. Temporary Gig Workers, and 3% as Company Founders.
• The majority of Generation Z freelancers offer specialized services:45% work in fields such as programming, copywriting, and design, while 24% work as social media experts and content creators for others.

The study also shows a preference for temporary work as a form that offers flexibility and the opportunity to choose projects. But what is Generation Z's perception of temporary staffing agencies? 

Bullhorn, a U.S.-based cloud software company for the recruitment and workforce placement industry, surveyed 1,000 Gen Z candidates in the U.S. (born between 1998 and 2004) in 2022 to explore their attitudes towards work and recruitment companies. Here’s what they found:

Perceptions of recruitment: positive, but awareness is low

Only 25% of Gen Z respondents fully understand what staffing agencies do. There’s both good and bad news for staffing firms concerned about the increasing competition from online talent platforms: Gen Z has a positive opinion of staffing agencies, but awareness of the recruitment industry is generally low.

Three out of four respondents say they don’t fully understand the role of staffing firms. However, nearly half plan to work with staffing agencies in the near future or already do.

95% expect recruiters to help them find a better job. Respondents who have not worked with recruitment agencies are more likely to hold this opinion than those who have already worked with them.

Expectations regarding recruitment: Simplified process, constant engagement

Three out of four Gen Z respondents have dropped out of a promising opportunity midway through the recruitment process. Staffing firms could lose numerous opportunities due to a cumbersome or outdated recruitment process. Three out of four respondents dropped out because of an obstacle in the process, and a third dropped out before applying.

Talents mention communication or engagement issues as the main challenge they face. 17% mention concerns about salary or benefits, 24% poor communication from the recruiter, 20% a time-consuming process, and 19% a recruitment process that is too complicated.

 

Technology preferences

85% spun ca intregul proces de cautare a unui loc de munca si aplicare este invechit. 89% say the entire job search and application process is outdated. 89% of those who have an opinion on recruitment sites say an outdated website makes them lose trust in a company. 85% think the entire recruitment process is outdated.

What does Generation Z think about the role of AI and automation, such as chatbots, in recruitment? When asked about their preferences regarding human contact during job searching and applications, two out of five respondents said they prefer to work exclusively with chatbots, without human recruiter contact. However, three out of five still prefer at least some human interaction, suggesting that companies should offer multiple options to meet the unique needs of each candidate.

If you want to improve the experience for Gen Z, you should focus on mobile experience. 71% of Gen Z respondents primarily use a mobile device to apply for jobs. While 59% of all respondents use smartphones primarily to apply for jobs, only 9% use dedicated apps.

 

Preferred communication: frequent contact, on their terms

3 din 4 tineri Gen Z vor ca recrutorii sa ii contacteze cel putin la fiecare doua saptamani. Three out of four Gen Z respondents want recruiters to contact them at least every two weeks. Nearly half of them prefer recruiters to communicate via email, with LinkedIn being the second preferred platform for career opportunities. 

Young people say that recruiters do not contact them enough during the recruitment process. Four out of five respondents want recruiters to contact them at least twice a month, and 55% want to be contacted at least once a week.

Gen Z believes in the value of recruiters but will not tolerate outdated recruitment processes. Like other generations, Gen Z talent expects a simplified experience with clear and consistent communication. You can offer them a top-tier experience tailored to their preferences if you have:

• Transparency and clarity in the recruitment process: Gen Z values clear information about salary, responsibilities, and organizational culture. A lack of transparency can lead to a loss of interest in a job opportunity. A
• A digital and efficient application process: Being digital natives, these young people expect fast recruitment processes that are accessible from mobile devices. Implementing tools like chatbots for immediate responses and user-friendly application platforms can enhance the candidate experience.
• Opportunities for professional development: Gen Z values continuous learning and development opportunities. Agencies should highlight mentorship programs, training, and career advancement possibilities available.
• Work flexibility: The ability to work remotely or in a hybrid setup is highly valued. Agencies that can offer such opportunities will have an advantage in attracting Gen Z candidates. Turn to a staffing agency, like Smartemp, to keep up with Gen Z's preferences!

Work with a staffing agency, like Smartemp, to keep up with Gen Z's preferences! 

Smartemp has over 13 years of experience in staffing services and more than 10 years of working with multinational companies. We recruit specialists in HR, Finance, IT&C, IT helpdesk, Office management, etc., for a set period. The application process is simple, on the smartemp.ro website, optimized for mobile. Candidates can register there and then apply for available jobs in the Careers section. We maintain communication with them throughout the recruitment process, providing details about the stages, as well as feedback. We handle the necessary employment documents, prepare the additional documents and decisions, and prepare and send the electronic employee registry to the authorized authorities.

 

Request a personalized recruitment offer here or at office@smartemp.ro aici sau la office@smartemp.ro

 

Sources: 

• Bullhorn - "How Do Gen Z Workers Feel About Staffing Firms? | A Bullhorn GRID Report"
• investors.upwork.com - "Gen Z Is Abandoning Conventional 9-to-5 Corporate Jobs for More Diverse, Flexible Careers in Freelancing, According to New Upwork Research"
• The Guardian  - "Conscious unbossing: why Gen Z are refusing to become managers" - The Guardian
• Agent for the Future "Attracting and Retaining Millennials & Gen Z" - Agent for the Future
• World Economic Forum - "How to recruit Generation Z workers and hold on to them"
• TriStarr Recruiting - "Gen Z Job Candidates Have Different Expectations – How Staffing Agencies Can Flex" - TriStarr Recruiting

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