Differences between Generation Y and Generation Z

This research focuses on the changes in the working world caused by the New Generations.

Using the Mann-Whitney test will investigate whether there are significant differences between the New Generations in terms of organisations. According to theoretical research, the main difference between the two generations is the use and the need for digitisation. It remains to be seen whether there are any differences in terms of requirements to the working world since Generation Z is only at the beginning or entering their working career.

The data were analysed using SPSS-16 software for Microsoft Windows. The Wilcoxon-Mann-Whitney-Test was used to test the established hypotheses. In contrast to the independent t-test, this is the non-parametric alternative test that is used to compare if two sample medians are equal or not (Glen/Leemis, 2017: 98f).

75 H0: The central position parameter of the two groups is the same (Median Gen Y = Median Gen Z)

H1: The central position parameter of the two groups is not the same The confidence level is 0.95, and the critical p-value is 0.05.

Regarding the study, the online survey was filtered to focus on those specific results, which are relevant for this paper and shows the differences between the New Generations. Eleven hypotheses were extracted from the survey, which are subject to a detailed investigation. The questions were selected because of the importance of the requirements of the New Generations.

The new sample includes 150 participants limited to members of Generation Y (n = 98 / 65.33%) and Generation Z (n = 52 / 34.67%) without a university degree. (Reason: Gen Z is demographically too young to finish their studies).

6.3.2.1 Making career has top priority for me

Figure 11 shows that Generation Y and Generation Z partially agree on the question "making career has top priority for me". The participants gave answers between two and five, with only one outlier within Gen Y. The median was three. The p-value is 0.059. Thus, there is no significant difference between the groups.

Figure 11 Online survey - Making career has top priority for me, source: online survey

76 6.3.2.2 Job-hopping is part of making career

The participants partially agree on the question "Job hopping is part of making career". The median of the groups was three, and there were only a few outliers. Group 1 (Gen Y) gave answers between one and five, and Group 2 (Gen Z) gave answers between one and four. The p-value is 0.285. Thus, there is no significant difference between the groups.

Figure 12 Online survey – Job-hopping is part of making career, source: online survey

6.3.2.3 Flexibility in working life is essential for me

The next graph shows that participants agreed that flexibility is essential in working life. The overall median was four, and there was only one outlier in group one (Gen Y). Participants gave answers between three and five which underlines the importance of flexibility in working life.

The p-value was 0.475. Thus, there is no significant difference between Millennials and Generation Z.

Figure 13 Online survey - Flexibility in working life is essential for me, source: online survey

77 6.3.2.4 Work and leisure must be able to blend into one other

Generation Z (group 2) gave answers between one and five that work, and leisure must blend into one other. Within group 1 (Millennials), only one person (outlier) strongly agreed on this comment. The overall median was three. The p-value is 0.148. Thus, there is no significant difference between the groups.

Figure 14 Online survey - Work and leisure must be able to blend into one other, source: online survey

6.3.2.5 Home office is a significant aspect of time

Figure fifteen shows that the answers were between two and five. The median of the two groups is four which means that Gen Y and Gen Z agreed that home office is a significant aspect of time. This strengthens the aspect of flexibility in working life within the New Generations. The p-value is 0.522. Thus, there is no significant difference between the groups.

Figure 15 Online survey - Home office is a significant aspect of time, source: online survey

78 6.3.2.6 Continuing education must be an integral part of the profession

Personal development is an integral of Gen Y and Gen Z professional life and the New Generations "agreed" on this comment. The figure (16) shows that there was only one outlier within group 1 and 2. All other participants gave answers between two and five. The median is four. The p-value is 0.749. Thus, there is no significant difference between Millennials and Generation Z.

Figure 16 Online survey - Continuing education must be an integral part of the profession, source: online survey

6.3.2.7 I am willing to change job if promises are not kept

The participants agreed that they are willing to change the job if promises are not kept. No one of group 2 disagreed or strongly disagreed on this statement. This underlines the willingness to seek a new challenge if they are dissatisfied. The median is four, and the subjects agree. The p-value is 0.444. Thus, there is no significant difference between Generation Y and Z.

Figure 17 Online survey - I am willing to change job if promises are not kept, source: online survey

79 6.3.2.8 It’s important for me that my employer is represented in social media

The medians of both groups do not overlap in the statement. The employer must be represented in social media. The median of Generation Y is at two (disagree), and the median of Generation Z is at 2.5. This result might reflect the difference between digital usage. There are only two outliers. The p-value is 0.871. Thus, there is no significant difference between the two groups.

Figure 18 Online survey - It’s important for me that my employer is represented in social media, source: online survey

6.3.2.9 I must be able to identify with the vision of the company

The figure (19) shows that the median of both groups is four. Participants agreed on the statement that they must be able to identify with the vision of the company. There was only one outlier in group one. All other answers were between two (disagree) and five (strongly agree).

The p-value is 0.658. Thus, there is no significant difference between the groups.

Figure 19 Online survey - I must be able to identify with the vision of the company, source: online survey

80 6.3.2.10 I read reviews and experiences about companies on the internet

Figure twenty shows that subjects partially agreed to read reviews and experiences about companies on the internet. The participants answered between one and five. The median of both groups is three. There was no outlier. P-Value is 0.854, and thus there is no significant difference between the groups.

Figure 20 Online survey - I read reviews and experiences about companies in the internet, source: online survey

6.3.2.11 If I had the opportunity to work at a start up, I would use it.

The boxplot shows that no one from group two strongly disagreed of the comment "if I had the opportunity to work in a start-up, I would use it." The median of Generation Y and Generation Z is 3. Group one answered between one and five. The p-value is 0.186, and thus there is no significant difference between the Millennials and the Z's.

Figure 21 Online survey - If I had the opportunity to work at a start up, I would use it, source: online survey

81 In conclusion, there is no significant difference between participants of Generation Y and Generation Z in the tested statements. H0: The central position parameter of the two groups is the same (Median Gen Y = Median Gen Z) is accepted.

The investigation has shown that there are no significant differences in any of the hypotheses examined. The requirements of Generation Y correspond to those of Generation Z. Furthermore, the evaluation has shown that the results corresponded with the literature.

6.3.2.12 Summary

The theoretical analysis has shown that there is already much scientific research on Generation Y. However, there are only a few records about Generation Z because they did not arrive in the working world. In the generation analysis, it has been shown that there are usually differences between the members of an assigned age group. Therefore, it is also to be assumed that this is the case between the Ys and Zs. Therefore, study I offers the possibility to show the differences between the New Generations.

The study analysed the differences between Generation Y and Z, whereby the aspect of digital media is the main difference between both New Generations. Testing showed there is no significant difference. The median of the two generations is equal in 10 out of 11 tested hypotheses. When asked "It's important for me that my employer is represented in social media"

the median for Gen Y was 4 (disagreed) and for Gen Z "partially agreed." This statement underlines again that the essential difference between these two generations, as also described in theory, is the usage of digitisation.

Since many participants have not actively worked in organisations, management must wait to see what the working attitude of Generation Z will look be.

6.3.3 Conclusion

While Generation Y differs significantly from its predecessors, there is currently no significant difference to the subsequent Generation Z. However, these are still often at the beginning of their working career or their studies. Occasionally they could already gain experience through internships.

The change, caused by the Generations born after the year 1985, within today's organisation is evident through the fact that making career has not a high priority. They focus on friends, family and personal satisfaction. The time when employees started in a company and retired there are over. Nevertheless, Gen Z shows a trend to more loyalty. The organisations have the task to meet the new requirements, but human resource management and leadership are directly responsible for the execution. Whereby organisations can only provide the framework conditions and HR and management, have to implement measures. The keywords networking, transparency and communication became important.

Organisations are struggling to hire the best people on the job market and to keep them. In addition to adapting HR processes, leadership qualities are essential to achieve corporate goals.

NG want to be part of a collective journey which means to have transparency in everyday life and to be involved in decision-making activities. Millennials and Gen Z is driving digitalisation

82 in the working life and expect it as a prerequisite for their future employers. This enables them to network with each other and provides the basis for flexibility in everyday working life.

In the following years, future leaders will be responsible for the change in organisations.

Therefore, qualitative analysis with expert interviews was conducted to find out if leaders and HR manager already react to the new requirements of the New Generations, respectively Gen Y and to gain insights in their viewpoints and expectations of Generation Z. Results of the survey are summarised in the following chapter.