How Gen Z Side Hustles Drive Business Growth

Gen Z: A Brief Overview

Gen Z, born between 1995 and 2010, is the youngest yet one of the most influential generations in the world today. Known for their deep affinity for technology and commitment to social justice, they are a force to be reckoned with in the current business landscape. This generation’s notable traits include their ambition, their diversity, and their deep-rooted attachment to technology.

Gen Z workers are increasingly leading the way in the workforce. They are introducing a new age of data-driven contributions that can enhance productivity and decision-making for companies. While this generation seeks a healthy work-life balance, a compatible culture, and opportunities for career growth, they also value job performance. However, instead of relying on constant feedback from their manager, they rely on workplace data to measure their work quality and track their performance.

Gen Z and the Side Hustle Trend

The concept of a side hustle has gained significant popularity among Gen Z. A side hustle is a supplementary business or job that brings in extra income in addition to a person’s primary job. It offers an avenue for exploring business opportunities, testing entrepreneurial waters, and gaining invaluable experience. For Gen Z, a side hustle is more than just a means of earning extra money; it’s a means of expressing their entrepreneurial spirit and creating social impact.

The Power of Data in Gen Z’s Side Hustles

The key differentiator in how Gen Z approaches their side hustles compared to previous generations is their deep-rooted understanding and usage of data. Gen Z recognizes the power of data in driving business decisions and enhancing performance. They leverage data to inform their decision-making processes, measure their performance, and identify areas for improvement.

Slingshot’s 2023 Digital Work Trends Report identified that Gen Z workers use data more than any other generation. While older generations may find the idea of data daunting, for digital natives, data is not something too complicated or complex. 74% of Gen Z workers use data to improve performance, whereas only 61% of Boomers (ages 59+) do the same. This same report found that 61% of Gen Z workers utilized data on a daily basis. Data is an essential driver of productivity, performance, and informed decision-making for this generation.

Earning Gen Z’s Engagement: A Seven-Point Strategy

Earning the engagement of Gen Z, however, particularly in the workplace, requires a unique strategy. Their unique traits and preferences necessitate an approach that caters to their individualistic nature. Here are seven strategies that can be implemented to earn the commitment of Gen Z employees:

1. Increasing information sharing: Gen Z values transparency. They appreciate when information is shared openly, helping alleviate any fears of uncertainty.
2. Showing paths to career progression: Gen Z is ambitious and motivated. Showing them clear paths to career progression incentivizes them to perform better.
3. Explaining the importance of individual contributions: Gen Z wants to know that their work matters. Explaining how their individual contributions impact the company’s overall success can motivate them to perform better.
4. Providing autonomy: Gen Z values independence. Providing them with room for autonomy can lead to increased motivation and productivity.
5. Providing specific, constructive feedback: Gen Z appreciates feedback. Providing them with specific, constructive feedback shows that you are invested in their success.
6. Harnessing community and connection: Gen Z values community. Creating a space where they can connect and collaborate with others can improve their engagement and empower them.
7. Prioritizing wellness and mental health: Gen Z places high importance on their mental health. Prioritizing wellness and mental health shows that you care about their well-being.

Key Technologies for Gen Z Engagement

For Gen Z, technology is more than just a tool—it’s a way of life. They expect modern technology to be integrated into their work environment. For instance, having a mobile HR app that allows them to manage their schedules, access important information, and keep in touch with coworkers on the go can significantly improve their engagement.

Three Ways to Follow Gen Z’s Data-Driven Approach to Business

Showcase it

Data goes beyond just numbers in a spreadsheet. It can be used to enhance performance, decipher customer behaviors and needs, prioritize goals, and make better decisions. Many companies have failed because they launched a product without directly communicating with the market or launched a social campaign without analyzing the performance of similar campaigns. It’s not surprising that such projects have turned out to be unsuccessful. Data is, without a doubt, the key to success in every business and often underpins the success of Gen Z side hustles.

Make it accessible

Eliminate the data silos, which typically occur when only one person or team controls specific data. Every individual in an organization should have access to data from all departments at any time. This allows for a comprehensive view of the organization, making it easier to execute projects that span multiple departments. Additionally, team members will be able to make better decisions because they can see the whole picture. By making all data accessible, teams will no longer be limited to just one perspective.

Implement Data Driven Technologies

Companies can introduce workplace tools that make it easy for workers to visualize and understand data, irrespective of their level of data training. Although some upskilling and onboarding may be necessary, they can help employees get the most out of their data. With the help of these tools, employees can spot trends and interpret their meaning to make better and more intelligent decisions.

How to Attract & Retain this Talent in Your Organization

The Importance of Diversity

Gen Z is the most diverse generation to date. They expect diversity and inclusion to be reflected across all levels of your organization. Ensuring that diversity and inclusion are woven throughout the fabric of your organization’s culture is fundamental in creating a Gen Z-friendly workplace.

The Need for Transparency

Gen Z craves transparency. They want to understand the reasoning behind business decisions, particularly those that directly impact them, such as pay and promotions. They also want to understand who they’re working for and what the organization stands for.

Skills-Based Learning and Gen Z

Gen Z is eager to learn and expand their skills. Providing them with opportunities to learn and practice new skills can help them bridge their skills gaps and follow a career path that excites them.

Mental Well-Being and Gen Z

Gen Z prioritizes work-life balance and mental well-being. Providing them with emotional support, more autonomy, and financial flexibility can help them manage the stressors of everyday life more effectively.

Creating Connections

Gen Z values human interaction and connection. Creating ways for them to connect meaningfully with their coworkers—whether they work onsite, remotely, or in a hybrid setting—can significantly boost their engagement.

Embracing Gen Z’s Approach in Your Company

Gen Z’s approach to their side hustles can offer valuable insights for traditional businesses. By embracing transparency, promoting diversity, leveraging modern technology, and encouraging skills-based learning, companies can create an environment that fosters innovation, engagement, and productivity.

Conclusion

As Gen Z continues to make their mark on the contemporary business landscape, companies need to adapt to their unique traits and preferences to stay relevant. Successful organizations will implement the data-driven approach that Gen Z workers are practicing, to enhance productivity, performance, and decision making. By understanding Gen Z’s approach to their side hustles and implementing strategies to engage them, more organizations can ensure their own continued growth and success in an increasingly digital era.