Gen Z demands a lot when entering the workforce, but also brings a lot to the table

Young female professionals from Generation Z place particular importance on purpose, security, a positive work environment, fair pay, and work-life balance. Traditional career paths or permanent contracts are less of a priority for them. For companies, however, professional experience, motivation, and reliability are currently key.

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After peaking in 2021, the number of advertised entry-level positions has dropped sharply since 2023. In the first quarter of 2025, it is 45% below the five-year average and even below the level during the early months of COVID-19. This is the result of an analysis by Stepstone.

“For many young people, the situation is currently more difficult than it was two or three years ago,” says Dr. Tobias Zimmermann, labor market expert at Stepstone Group. “We are experiencing an economic slowdown, but at the same time, the shortage of skilled workers remains. Demographic change will significantly tighten the labor market in just a few years. Therefore, those who invest in young talent today will secure decisive competitive advantages tomorrow.”

A good working environment is important to young people

Several recent studies examine what young professionals, especially women from Gen Z, value in a job. The results are remarkably consistent.

A study by JobTeaser Gen Z Lab and the EDHEC NewGen Talent Centre, titled “Gen Z and the First Job: New Trends for 2025,” shows that the most important factors are:

• Good pay (89%)
• A supportive work environment (86%)
• Good relationships within the team (85%)
• Work‑Life‑Balance (84 %)
• Purpose and self-fulfillment, 92% see work as an important source of fulfillment

Overall, Generation Z in 2025 largely views work as a key source of personal fulfillment.

Gen Z is highly flexible

One striking feature of Gen Z is its high level of flexibility. Traditional career paths or permanent contracts are not a priority. Untersuchung zeigt nämlich, dass Hochschulabsolvent*innen, die 2025 ins Berufsleben starten, ihren ersten Job vor allem als Sprungbrett und weniger als Ort betrachten, an dem sie das restliche Berufsleben verbringen werden.

Graduates entering the workforce in 2025 see their first job mainly as a stepping stone rather than a long-term position:

In this respect, entering the workforce seems to represent a kind of transitional experience for young talents.

• Almost half of students do not plan to take on a permanent contract after graduation.
• 20% aim for a fixed-term contract.
• 11% are considering working as freelancers.
• 6% see themselves as entrepreneurs.
• 4% are interested in a graduate program.

54% remain open to permanent contracts.

University graduates need to submit more applications

Academics face more challenges in the application process: University graduates under 30 send a median of 40 applications before getting an interview Vocational graduates need about 26 applications

Time investment also differs: Academics spend up to 7 hours per application Vocational graduates spend about 5 hours

A frustrating trend is “ghosting,” receiving no response at all: 4% of graduates report this 61% of vocational applicants experience it

Companies value communication, teamwork, and self-organization

Of course, companies also have their own requirements for the young people they hire. An HR survey by Randstad and the ifo Institute (Q4 2025) examined the topic of entry-level employees and the role of work experience in the hiring process. The findings showed that for nearly one third of companies (32%), the importance of work experience as a hiring criterion has increased over the past three years.

This may be related to the use of AI, as its importance is expected to grow: 40% of companies plan that tasks which have often been carried out by entry-level employees will be replaced by AI over the next three years. However, the use of AI does not yet appear to be advanced enough to replace employees on a large scale. Only 19% of respondents state that the number of entry-level employees in their company is expected to decrease over the next three years. In contrast, almost two thirds plan to maintain a stable number of entry-level positions.

AI is taking over many entry-level tasks

AI appears to be taking over tasks typically assigned to entry-level employees in particular. In 14% of the companies surveyed by Randstad and the ifo Institute, AI is already performing tasks previously handled by entry-level staff. The remaining 86% deny this. While this is the case for only 10% of companies in retail, the figure is 14% in industry and 16% in the service sector, which also includes the financial industry.

A comparison by company size also shows that larger companies are already more likely to use AI for entry-level tasks than smaller firms. This makes it harder for young people to secure their first job and, consequently, to gain the work experience that companies are looking for.

Professional experience is becoming more important for one-third of companies

This does not stop companies from seeking candidates with work experience. “Over the past three years, work experience has become more important as a hiring criterion,” Randstad and the ifo Institute write in their study. In the survey, nearly one third of companies (32%) stated that they now place greater emphasis on this when recruiting new employees. In industry, the importance of work experience has increased more strongly over the past three years compared to retail and the service sector. Here, 38% of companies reported that they have recently been focusing more on this group of applicants (retail: 34%, service sector: 27%).

Motivation and reliability are in demand

In addition to work experience, companies primarily focus on communication and teamwork skills (66%) when recruiting, followed by self-organization and a sense of responsibility (61%).

https://www.ifo.de/fakten/2026-01-19/berufseinsteigerinnen-im-fokus-unternehmen-setzen-auf-soft-skills-und-ki?utm_source=copilot.com

Companies also value it when applicants complete their education or training. When asked whether they would generally hire candidates who have dropped out of studies or vocational training, 23% of companies responded “no.” When asked why they are skeptical of such candidates, 44% associate dropping out with lower reliability, and 42% with a lack of motivation, which leads them to reject these applicants. A further 33% see the additional effort required for onboarding or further training as a disadvantage, while 26% are concerned about a possible lack of responsibility.

Gen Z demands a lot, but also brings a lot

In a well-functioning market, companies and applicants naturally have to come together. It becomes clear that Gen Z demands a lot, but also brings a lot to the table: openness, willingness to learn, and a sense of responsibility. If companies take their needs seriously, it creates a work environment that is attractive not only to young talent, but to all generations. In doing so, the expectations of Gen Z push companies to deliver on what they promise. Perhaps that is where their greatest impact lies.

Foto: Canva

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