In this discussion, Sheena Butler-Young, BoF’s workplace and talent correspondent, unpacks the unique challenges managers face with Gen-Z employees in the fashion industry. Sheena highlights how Gen-Z's high expectations around remote work and salary are amplified by a labor shortage that grants them leverage. Unlike Millennials, this generation demands transparency and real communication over traditional sales tactics. The conversation also emphasizes the need for brands to understand these desires instead of relying on stereotypes.
Gen-Z professionals are leveraging a competitive job market to demand significantly higher salaries and flexibility in work arrangements.
Fashion industry employers face challenges in balancing Gen-Z's expectations for rapid career advancement with the need for long-term business sustainability.
Deep dives
The Impact of Salary Demands on Hiring Practices
Entry-level and junior employees are increasingly demanding salaries that exceed traditional expectations, with up to 30% increases reported in common salary levels for new roles. This shift is attributed to a competitive job market fueled by low unemployment rates, allowing early career professionals to leverage their demands effectively. Executives in the fashion industry express concern that this trend may lead to long-term challenges, particularly if economic conditions change and they need to rein in compensation. The struggle becomes balancing the need for talent against the potential pitfalls of inflated salary expectations amidst economic uncertainty.
Gen Z's Unique Expectations in the Workplace
Gen Z employees exhibit distinct characteristics that set them apart from previous generations, particularly their demand for rapid advancement and flexibility in work arrangements. Many Gen Zers, accustomed to instant success stories from social media, display impatience in career progression, leading to challenges for employers striving to manage these expectations. Companies are grappling with how to appease these young professionals while maintaining profitability and long-term sustainability. The focus on career transparency and clear pathways for advancement has become essential in retaining talent from this cohort.
Navigating the Future Workforce Amid Economic Uncertainty
Current economic indicators suggest a potential recession, leading to concerns about softening demand in various industries, including fashion. Companies are becoming aware that they must manage employee expectations carefully, particularly regarding salary and career growth, to ensure long-term loyalty and reduce turnover. The use of wage transparency and honest communication about company stability can help navigate these turbulent times. As the labor market shifts, employers may need to reassess their strategies to attract and retain talent while balancing financial pressures.
BoF’s workplace and talent correspondent Sheena Butler-Young explains why managers in the fashion and beauty industries are struggling to balance their youngest employees’ expectations against the needs of their businesses.
Background:
The youth-obsessed fashion and beauty industries can’t get enough of Gen-Z talent: they believe they need to recruit more entry-level employees in order to maintain relevance and attract new customers. But the cohort is entering the workforce with big expectations — not only around salary, but remote working, too — that many companies feel unprepared to meet.
“Gen-Z is entering the workforce amid a labour shortage… So that’s real leverage behind the demands they’re making,” explained Sheena Butler Young, BoF’s workplace and talent correspondent.
Key Insights:
Gen-Z is the latest in a long line of generations accused of impatience entering the workforce.
A key difference between Gen-Z and its Millennial predecessors is that the job market currently favours job-seekers rather than employers — so their demands are more likely to be met.
Fashion is finding demands surrounding remote work particularly hard to deal with given the collaborative nature of most jobs.
Brands shouldn’t get caught up in stereotypes about young talent, but find ways to actually understand job-seekers’ desires.
Often, the generation that hates being sold to and just wants transparency, honesty and open lines of communication about career progression.
Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.
Want more from The Business of Fashion? Subscribe to our daily newsletter here.
Follow The Debrief wherever you listen to podcasts.