Attracting talent: understanding generation Z’s expectations of technology-driven workplaces

Generation Z, often known as Gen Z, refers to those whose birth years are between 1997 and 2012 (Dimock, 2018). In recent years, this generation has been entering the workforce and influencing the way people work due to their distinct personalities (Goh and Lee, 2018). Individuals belonging to this particular cohort are commonly known as digital natives due to their upbringing in an environment characterized by unlimited access to the internet and all kinds of digital tools (NASSCOM, 2022). Schwieger and Ladwig (2018) argued that Gen Z never experienced a time without internet availability and access to real-time information, making it difficult for them to imagine a world before the internet. Unlike previous generations, Gen Z is comfortable with technology and hence expects the integration of technology in all aspects of life, including the workplace (Pandita, 2022; Gen Z in the workplace: How to keep them happy, 2023). According to Gen Z, technology enables people to increase their productivity and effectively multitask, thereby facilitating optimal time use (Gomez et al., 2018). The current generation possesses a remarkable proficiency in working with technology and demonstrates a strong inclination toward digital technologies that facilitate skill enhancement and collaboration despite remote working (Deloitte, 2022; Monje-Amor, 2023). Unily (2023) asserts that digital transformation promotes employee engagement, which consequently enhances job satisfaction and productivity (Bharath and Sreedevi, 2021).

Digital transformation advocates for the integration of digital technology into all business areas, which would change the ways firms operate and deliver value to customers through the use of artificial intelligence and automation (Schwarzmüller et al., 2018). It results in greater decision-making abilities and employee engagement. By offering essential collaboration capabilities, it enables employees to communicate, coordinate, and cooperate effectively (Cijan et al., 2019). Technology enables employees to access and utilize any database, network or device regardless of their location or the time of day (Fenech et al., 2019). Instead of viewing digitalization as a trend, we should embrace it as a universal approach to shape the future of work (Bresciani et al., 2021). The digital transformation is driven by the belief that emerging technologies hold significant potential for fostering innovation through improved efficiency and a competitive edge (Ballestar et al., 2021). Popular MNCs such as Meta, AirBnB, Uber and Google have expanded significantly because they have embraced transformed business models through digital technologies (Hein et al., 2020; Solberg et al., 2020).

Once again, it is worth noting that Gen Z possesses exceptional technological skills and actively advocates for the integration of technology into talent management (Baša et al., 2023). They admire the organizations that employ sophisticated techniques to promote work-life balance (WLB), provide training and facilitate feedback (Nichols and Wright, 2018). Utilizing digital tools in various HRM functions effectively fosters participation among Generation Z (Parmelee, 2023). Based on these arguments, we can assume that Gen Z significantly prefers a digitalized work environment. Recent studies have explicitly stated that Gen Z expects remote work options and digital learning platforms from organizations (Robert Half, 2023; Ayoobzadeh et al., 2024). In light of the predicted shortage of professionals in billions by 2030 (Franzino et al., 2023), it becomes important to understand what prospective employees expect from employers for attracting the best talent (Yameen et al., 2021; Gandasari et al., 2024). In fact, a survey revealed that newcomers leave organizations within a few months and even weeks if the employer fails to meet their workplace-related expectations (Silletto, 2023).

Despite the extensive adoption of digital platforms in workplaces, there is limited research about the impact of expectations of Gen Z regarding such transformations on their decisions to join an organization. This study make an attempt to bridge this gap by investigating the expectations of Gen Z about the digitalized training and development, work-life balance, and employee engagement. Specifically, the study will examine how these expectations shape the perceptions of Gen Z about potential employers. Furthermore, this article aims to investigate how these expectations about the digitalization of several aspects of HRM affect their intent to join a particular organization. The study will contribute to the fields of workplace digitalization and talent management, as well as improve our understanding of how technology may help attract young talent.

We have organized the paper as follows: The paper begins with a review of existing literature on the topic, followed by a section outlining the research methodology. Next, the paper presents the data analysis and findings, followed by a discussion and implications section. This section also acknowledges the limitations of this study and offers suggestions for further research. At the end, the conclusion of the study is provided.

This section provides an overview of the literature on the utilization of technology for human resources management and the perspectives of Generation Z on this matter. Hypotheses of the study are proposed at the end after a comprehensive understanding of the topic.

The integration of technology in the workplace received distinct response from different generations, based on their experiences and exposure to technological advancements. Generation X (1965–80) have witnessed the transition from analog to digital systems and they are very practical about using technology at the workplace. To this generation technology is a tool that can ease the performance of operations and thereby enhance their work efficiency (Jones et al., 2018). But they do not depend on it for communication and engagement but prefer face to face communication and personal engagement initiatives. Millennials (1980–96) on the other hand are those who grew up alongside the internet revolution and they can integrate technology into their work routines effortlessly (Dimock, 2018). However, their preferences lean toward practical applications that align with their values, such as work-life balance and continuous learning (Deloitte, 2024).

Finally, coming to Gen Z, this is the generation known as pure digital natives because they have demonstrated the highest level of comfort with technology (NASSCOM, 2022). They excessively prefer use of innovative technologies at workplace for easy learning which not only increases productivity but also foster employee engagement (Choudhary and Pandita, 2024). There are a few studies emphasizing that Gen Z is critical of over-reliance on technology and recognize the need to maintain mental well-being as line between work and personal life blurs due to remote work (Schroth, 2019). Benitez-Marques et al. (2022) even reported that Gen Z favors face-to-face communication with their superiors. However, Gen Z is still unique then the previous generations and these differences advocate for customized technological initiatives for meeting the unique expectations of each generation to increase engagement and productivity across the workforce (Robert Half, 2023).

Gen Z is well known for their career-driven nature and therefore, this generation places higher importance on opportunities for learning while making employment decisions along with career development, and self-training (Yameen et al., 2021; Gandasari et al., 2024). Along with this, Gen Z strives for continuous opportunities for training and professional development to progress in their careers (Bińczycki et al., 2023). Employees’ knowledge and abilities can be greatly enhanced by providing up-to-date information through the utilization of tools like internet and computerized websites for employee training (Areiqat and Al-Doori, 2018). Moreover, e-training is acknowledged as a superior method of training due to its cost-effectiveness alongside the micro-learning facilitated by digital age given the shorter attention span among Gen Z (Choudhary and Pandita, 2024). So, organizations can fulfill the development needs of Gen Z without making huge investments. Gen Z itself reflected a strong desire for the utilization of digital technologies that can facilitate customized learning for each employee as per the requirements of skills, time, and learning abilities (Gomez et al., 2018). Platforms such as Coursera, Google Learning and LinkedIn Learning offer a diverse selection of learning materials on various topics, from leadership lessons to technology-oriented courses (Parmelee, 2023). These platforms effectively cater to the developmental requirements of Generation Z.

Gen Z prioritizes jobs with a good work-life balance, which can be attributed to the independent nature of this generation along with a pleasant work atmosphere (Robert Half, 2023; Ayoobzadeh et al., 2024). Gen Z reflects greater expectations from employers to incorporate digitalization in providing remote work opportunities (Monje-Amor, 2023; Osorio and Madero, 2024). It was found in a survey that 85% of the Gen Z participants expressed a desire for either entirely remote or hybrid arrangements of working, whereas just 15% preferred working from a physical corporate office, which highlights the significance of technology to fulfill such expectations of young talent (NASSCOM, 2022). Technological advancements have brought about major changes in the key component of work-life balance (Stephen et al., 2024). It has been found that remote work supports employees in achieving a harmonious equilibrium between their personal lives and their lives at work, resulting in increased productivity and job satisfaction (Kossek et al., 2015).

Gen Z is known for having the shortest attention spans, as they always need something interesting to keep them engaged (Chicca and Shellenbarger, 2018; Namhata and Ghosh, 2020). To meet the aspirations of Generation Z, firms must adapt their employee engagement techniques to incorporate technology, as it increasingly plays a significant role in all aspects of HR operations (Gen Z in the workplace: How to keep them happy, 2023). Employee engagement can fosters a deep sense of purpose and belonging among employees and fuels their enthusiasm for their work (Gallup, 2022). The total productivity of a business is improved when actively involved personnel willingly communicate their expertise, suggestions, and critiques using digital platforms (Anderson, 2019). It is crucial to actively engage Gen Z to preserve connections and promote cooperation. Employee engagement ensures that employees feel a sense of connection toward the teams in which they work as well as the firm while being physically distant due to the prevalence of remote work options (Monje-Amor, 2023). Specifically, Gen Z is attracted toward organization that engage the employees through online communications (Hovořáková & Pauknerová, 2024). Furthermore, members of Generation Z actively seek out digital tools of collaboration, including Zoom, Google Meet and Microsoft Teams, to enhance involvement in the workplace (ETCIO, 2020). Hence, the utilization of technology is vital for effective employee engagement.

Implementing digitalized human resource management (DHRM) practices can improve the effectiveness of the firm in attracting Gen Z individuals with unique talents to navigate the digital age (Pandita, 2022). It provides several benefits, such as facilitating talent management, cultivating a better work environment and diminishing the negative repercussions of longer working hours in the office (Gomez et al., 2018). Digitalization plays a direct role in promoting the development needs of Gen Z employees by offering personalized learning (Parmelee, 2023). It also indirectly contributes to employees’ productivity through improved work-life balance, facilitated by remote work options. (Monje-Amor, 2023; Schwarzmüller et al., 2018). The digitalization of HRM can aid organizations in attracting young talent, enabling the development of employees’ skills while considering their personal well-being (Ngoc et al., 2022). Digitalization has been a topic of interest across industries specifically over the last, but how HRM can benefit from it, has attracted attention only recently (Bresciani et al., 2021). Digitalized HRM places a high value on fundamental practices such as employee training, growth, fair compensation, employee engagement, and personal well-being (Cijan et al., 2019; Fenech et al., 2019). It plays a significant role in attracting the youngest generation of employees, as they expect to incorporate technology in every facet of the workplace (Nichols and Wright, 2018; Pandita, 2022). Hence, it is reasonable to assert that the expectations of Gen Z about the digitalization of HRM have a positive impact on their intent to join. Based on the above discussion, the following hypotheses are proposed:

This study employs a descriptive method by utilizing quantitative surveys of Gen Z students who are in the final year of their post-graduation across two streams, including management and commerce. The survey utilized statements derived from previous research studies (Pandita, 2022; Robert Half, 2023; Monje-Amor, 2023; Stephen et al., 2024) to assess individuals’ perspectives on workplace digitization and intent to join. The measurement scale of expectations about the integration of technology for employee engagement (EE), work-life balance (WLB) and training and development (TD) consists of 5 items each. These expectations are assessed using a five-point scale, ranging from “not at all” to “to a great extent.” The intent to join is assessed using a five-point scale ranging from strongly disagree to strongly agree. This scale comprises five items developed by Highhouse et al. (2003).  Appendix provides the statements.

Pilot testing was done with 60 responses and the results met the reliability and validity criteria, only then the final survey was started. A total of 300 questionnaires (in paper form) were distributed using a mix of purposive and convenience sampling to collect responses from students, out of which 265 questionnaires were returned. Purposive sampling is used to ensure that the sample consisted of only Gen Z individuals while final year students from commerce and management are considered as they were already appearing for interviews and will be joining the workforce soon. Upon examination, 17 responses were excluded from the analysis owing to incomplete data, leaving just 248 valid responses. Nevertheless, Hair et al. (2009) affirmed that a sample size of 150 is adequate when there are five or fewer constructs with outer loadings exceeding 0.5. Therefore, 248 responses are deemed suitable for moving toward analysis. The survey collected demographic information solely pertaining to age and gender, as the study’s main objective is to gain insights from the Gen Z population. The respondents’ profile indicated that the age of the participants varied between 21 and 27 years, with a nearly equal distribution of males (54.07%) and girls (45.93%). Initially, the mean values of constructs have been calculated using MS Excel. Subsequently, the data is analyzed using Structural Equation Modeling with the utilization of Smart PLS 4 Software.

The results of descriptive statistics and model assessment are given below.

The mean values indicated moderate to high expectations among students for digitalization of work-life balance and training and development, while moderate expectations for employee engagement. Table 1 contains mean values for all the construct where value for intent to join as a result of digitalization found to be very high.

When evaluating the measurement model, it is important to consider Cronbach’s alpha which represents the internal consistency of the scale. The value should exceed 0.7 for ensuring the realiability (Shiva et al., 2020). In the present model, this criterion is satisfied as alpha’s values for all scales are more than 0.7. Furthermore, the study evaluated the composite reliability (CR) to assess that the indicators of a particular constructs actually represent that construct along with average variance extracted (AVE) for establishing the convergent validity. The CR and AVE values for all constructs surpassed their respective threshold requirements of 0.7 and 0.5 (Hair et al., 2019). All statements, excluding one statement of engagement (EE2), had outer loadings that exceeded the satisfactory value of 0.7. However, since the values of CR as well as AVE met the required criteria, this item is kept for final analysis. The results are presented in Table 1. For assessing the discriminant validity the Heterotrait-Monotrait (HTMT) values are used. HTMT is the to the ratio between the mean of correlations across different constructs and the mean of correlations within the same construct which indicates that how two constructs are different from each other. It is found to be below the specified threshold of 0.90, as Table 2 indicates.

For obtaining the results of the structural model we conducted used the bootstrapping technique with 5,000 sub-samples. Figure 1 displays the structural model of this study. The independent constructs, training and development, work-life balance and employee engagement accounted for 58.2% of the variance (R²) of intent to join. In the field of social science, this figure is considered to be quite high, as noted by Shiva et al. (2020). In addition, the adequacy of the model fit is assessed using the “standardized root mean square residual” (SRMR) because while applying the PLS-SEM through Smart PLS this is the sole criteria to examine the model fitness. The SRMR has a value 0f 0.068 that is below 0.08 and hence showed a good model fit (Hair et al., 2019). Results show that students’ expectations regarding the integration of technology for training and development, work-life balance and employee engagement have a positive as well as significant impact on their intent to join an organization.

Beta coefficient (b) is widely adopted measure for determining the strength and direction of relationship among constructs. Higher beta value reflect stronger relationship while the sign shows that if variables move in same or opposite direction. In case of positive beta both predicting (independent) variable and dependent variable move in same direction. On the other hand, in case of negative beta, independent and dependent variable moves in opposite direction where an increase in predicting variable results in a decrease dependent variable. More precisely, the factor that has the greatest influence on intent to join is training and development (b = 0.386, p-value < 0.01), followed by work-life balance (b = 0.346, p-value < 0.01) and employee engagement (b = 0.174, p-value < 0.01) as displayed in Table 3. Hence, all the three hypotheses, H1, H2 and H3, are accepted which shows that higher the expectations an individual holds higher will be the intent to join.

Effect size indicates the magnitude of the effect of an individual variable and its practical significance. A moderate effect size (f2) of 0.231 for training and development and 0.165 for work-life balance toward intent to join is found, whereas the effect size for employee engagement on intent to join was low at 0.058 (Hair et al., 2019). Q² value is used for assessing the predictive power which is computed using PLS Predict process. A value above zero reflects that the model has ability of prediction. The value is found to be 0.553 indicating the high level of predictive power of the model. In summary, it is found that expectations regarding each job aspect are found to be high leading to higher level of intent to join. The expectations for training and development, work-life balance and employee engagement play important role in shaping Gen Z intent to join.

Gen Z values technological integration across various facets of work environments for supporting the employees’ growth, flexibility, well-being, and enhance sense of belongingness as the extant literature suggested (NASSCOM, 2022; Baša et al., 2023; Gen Z in the workplace: How to keep them happy, 2023; Monje-Amor, 2023). Contrasting these findings with other generations, shows that while Millennials, are also tech-savvy they are primarily interested in career development and work-life balance rather than complete digitalization of workplaces (Deloitte, 2024). This reflects that for Millennials technology is just a tool for building meaningful connections, rather than an end in itself. In case of Gen X, face-to-face conversations and a clear boundary between personal and professional life (Jones et al., 2018). Digital tools were important to them but not enough to persuade them to join an organization. This contrast validates that Gen Z has distinct view on technology integration at workplace which is strong enough to impact their intent to join. However, it is also to be highlighted that the expectations related to training and development and work-life balance turned out to be the stronger predictors as compared to employee engagement. Low effect of employee engagement could be due to less importance to this aspect while making decision to accept a job offer or the measure used in the present study could have not fully captured the construct. Moreover, employee engagement is mainly studiedsrmr for the working Gen Z and hence, it might emerge as decisive factor to stay in a job after the individual joins an organization (Silletto, 2023).

The study investigates the expectations of Gen Z students who are about to join the workforce regarding the utilization of digital tools for talent management and how these expectations shape their intent to join a particular organization. The results clearly demonstrate that individuals belonging to Generation Z have an inclination toward utilizing technology in the workplace (Baša et al., 2023; Dimock, 2018). Gen Z is characterized as a generation that is highly motivated by their careers and consistently seeks opportunities to advance in their professional lives through constant learning. The impact of development-related expectations is the highest as compared to the other two aspects, indicating the importance of technology usage for enhancing the intent to join among Gen Z. Organizations are suggested to leverage the utilization of the various types of training programs offered by these online systems to enhance the long-term development of employees and meet Gen Z’s thirst for ongoing learning. Digital platforms such can easily provide training to multiple employees with the same resources and this will enable organizations to reduce the cost of individual sessions for training. Digital platforms provide the advantage of customization, where users can learn as per their own interests and at their own speed. Therefore, integration of platforms such as LinkedIn Learning, Udemy and Coursera can meet the diverse learning needs of employees due to variety courses and resources available on them. The flexibility element offered by these platforms will promotes self-directed learning and assist employees in successful performance of their current roles while enhancing their external marketability.

Gen Z greatly values technology that facilitates remote work, as they prioritize attaining a healthy balance between work and life (NASSCOM, 2022). The use of technology to facilitate work-life balance turned out to be a significant predictor of the intent to join an organization. Organizations can incorporate the use of digital tools to offer employees options for working remotely based on their preferences and become an attractive workplace for Gen Z job seekers. Implementing this approach will enable employees to prioritize self-care, establish clear boundaries regarding the job, and achieve a healthy work-life balance. This, in turn, will boost their productivity to a great extent. Online platforms aid employees in effectively managing the work-life balance as they offer accessibility to essential work-related resources irrespective of physical location, hence enhancing job performance. In addition, there are online programs for supporting employee wellness and mitigating stress related to work. Here, tools like GitHub, Asana, and the Google Workspace suite will play a crucial role in facilitating remote work, where employees can get access to almost everything they need to complete a task as effectively as working from the main office.

Gen Z always looks for organizations that keep them engaged, irrespective of their work locations (Monje-Amor, 2023). Although the impact of expectations related to engagement by using digital means is found to be the lowest among the three examined variables, it is still significant, suggesting that Gen Z can be persuaded to join an organization by highlighting their desired aspects during recruitment campaigns. It is recommended that organizations adopt digital solutions to fulfill prospective employees’ expectations regarding engagement. This will not only reduce the potential turnover intentions but will also support inculcating the interest of Gen Z, which is known for easily getting distracted (Chicca and Shellenbarger, 2018). The internet facilitates the establishment of professional connections with coworkers, thereby promoting collaboration and knowledge sharing among them. The employees experience a strong sense of connection with their team and are able to actively engage in organizational-related discussions. Companies should embrace gamification to drive motivation, encourage positive behavior change, and foster a more engaging workplace culture. By incorporating elements like points, badges, leaderboards and rewards, businesses can create immersive and rewarding experiences that inspire employees to actively participate and excel in their roles.

Apart from the practical implications for organizations to frame desirable workforce strategies, the research enhances the theory based on generational cohorts by providing insights into the work expectations of Gen Z. Since Gen Z is has just begun entering the workforce, the research on their perspectives about workplaces is limited. The study also contributes to our limited understanding of the role of workplace digitalization in talent attraction by offering a comprehensive guide for organizations looking to adapt to Gen Z’s evolving expectations while embracing digital transformation. Recently, Industry 4.0 has garnered attention and organizations are adopting digital technologies for several business operations. Hence, our research offers insights into how the use of technology can aid HR managers in talent management.

While the study makes a substantial contribution to the fields of digitization and talent attraction, it does have drawbacks. Initially, the sample exclusively comprised students of commerce and management; hence, it is not appropriate to generalize the findings to the students of other streams. Future research can incorporate samples from engineering, law or medicine to compare or explore expectations among them. The differences across generations can also be examined that how Gen Z has different perspective about technology from Millennials or Gen X. Not only that, future research can examine the moderating impact of gender or academic background on these expectations to see if the expectations of Gen Z vary across demographics. Next, this study remained focused on examining the direct impact expectations about only three specific components; hence, practices related to recruitment, performance management and other aspects can be considered in further research. Future research might include the variables like perceived organizational support and job satisfaction and explore if these variables mediate the relationship between expectations and intent to join. This would help the organizations to understand whether intent to join is a directly influenced by candidate’s expectations or other organizational factors transcend the impact. Finally, this study only examined the expectations of students when they are studying, while expectations might change upon entering the workplace. Subsequent research should investigate the change in expectations in the long term through longitudinal studies.

Organizations seeking to attract the youngest generations should understand that Generation Z’ has a unique perspective on technology and its usage in the workplace. The implementation of technology is vital for attracting Gen Z and enhancing their efficiency and satisfaction at work. The findings suggest that Gen Z’s intent to join is highly influenced by their expectations of the digitalization of the workplace. Companies that combine digital transformation activities with sustainability practices are more likely to attract and retain talent from Generation Z. Businesses may create a work environment that is in line with the values of Generation Z and fosters long-term success by prioritizing and leveraging digital tools in HR practices. Generation Z views the integration of technology as an essential and rational decision because they believe that these tools can not only help them thrive professionally but also fulfill their personal needs related to having control over their time and the freedom to work from their preferred locations. Moreover, organizations that employ technology have a high reputation for being adaptive and innovative in contemporary environments, thereby attracting a larger client base. Hence, firms might allocate resources toward digital technologies to fulfill the demands of present-day Gen Z employees. In addition, organizations can position themselves as preferred employers by emphasizing these factors in their recruitment drives to attract young talent.

The authors are grateful to the anonymous reviewers for their invaluable suggestions to improve the quality of the article.

Conflict of interest: The authors declare no conflict of interests.

Table A1