As the next generation enters the workforce, the skilled trades industries may see an influx of new labor. Society has historically encouraged young people to pursue traditional four-year post-secondary institutions, but Gen Z is forgoing that path, opting instead for quicker routes to rewarding careers in industries like construction, plumbing, and welding. To attract, hire, and retain Gen Z workers, companies must understand their values, implement flexible policies, offer competitive pay and benefits, and provide career development opportunities.

The difference with Gen Z

Aside from the years they were born, the fashion trends, and the popular media they grew up on, there are significant differences between younger and older generations in terms of attitudes, values, and drive. 

Gen Z is the first generation to grow up entirely in the digital age, which lends itself to its refreshed, technically inclined approach to work. It embraces career fluidity and meaningful work experiences and often shares an entrepreneurial spirit. It also craves innovation and impactful work.

Put simply, Gen Z doesn’t just want to work—they want their work to mean something and to be done in alignment with their terms.

How they differ from Gen X: Generation X, born between the early 1960s and late 1980s, values a work/life equilibrium versus Gen Z’s preference for more downtime. They also tend to be slower on the change curve, opting instead for stability over the quickly evolving workplaces Gen Z appreciates. They value hard work and employee loyalty over job hopping and fast-tracked growth. 

How they differ from Millennials: Millennials, born between 1981 and 1996, are considered digital pioneers versus the digital natives of Gen Z. Millennials value optimism over realism and are more open to collaboration over Gen Z’s preference for independent work. Millennials are also said to prefer digital communication in the workplace over face-to-face communication, which Gen Z also opts for. 

What characterizes Gen Z workers?

Tech savviness: The generation raised with a smartphone in hand is motivated by hands-on experience with the latest technology. They value technological innovation, improvements in efficiency, and mastery of technical production and utilization. 

Being purpose-driven: Gen Z feels that a rewarding career makes a difference. Jobs with companies that promote social justice, commitment to sustainability, implement energy-efficient processes, and develop eco-friendly products appeal significantly to them. 

Valuing work/life balance: People used to live to work, and Gen Z is part of a generation that works to live—and live, they do. Lengthy shifts of 10+ hours often don’t appeal to the younger generations, which may deter them from entering the industry. 

Gen Z and the skilled trades

The construction industry has received a reputation overhaul in recent years, with the adoption of machine learning, increased pay, and the slow implementation of more flexible schedules. What was once known as a dirty, less educated, more-do-less-think industry is now being rebranded as innovative and more stimulating than a 9-5 desk job. 

As young people continue to be disenchanted at the prospect of a traditional University path, more Gen Z workers opt for these trade roles, giving them the fitting name of the “toolbelt generation.” Some of the main reasons for a career path swap to skilled trades include:

• Hands-on learning: Hands-on, on-the-job training and education allow job seekers to scale the ranks quickly, helping them learn more, earn more, and feel more mentally fulfilled. 
• Better job security: The construction industry is experiencing a labor shortage and needs more workers now than ever. Knowing their roles are high in demand and won’t be going anywhere could be a significant pro for Gen Z. 
• Good pay and benefits: The construction industry offers excellent wages and increasingly competitive benefits. Avoiding the financial burden of University student loans and moving straight to a lucrative career could be reasons enough to join the trades. 
• It’s technology-heavy: Artificial Intelligence (AI), drones, simulation training, and software advancements are modernizing the AEC spaces and make a great selling point to Gen Z workers who are eager to blend physical and technical work. What was once a hammer-and-nail industry is more like a 3D print-and-simulate industry. 

6 tips to retain Gen Z workers in the skilled trades

1. Provide a career development roadmap

Gen Z values having a direct, attainable career path ahead of them, so companies must create an environment that encourages development and clearly lays it out. These workers seek opportunities to make a meaningful impact, so encourage creativity, offer advancement opportunities in the organization, and show them plainly what that looks like. These are simple, effective processes to establish to attract younger workers. 

2. Offer opportunities for entrepreneurship

Gen Z’s attraction to impactful work comes mainly from their entrepreneurial spirit; it’s in their nature. They desire autonomy and the chance to be their own boss. The trades go hand in hand with entrepreneurship, whether it’s starting their own contracting company or specializing in a valuable, niche skill. Employers will support their natural independence by providing resources that teach young workers how to sharpen their business acumen and make Gen Z feel more valued. 

These skills provided to Gen Z will also support better retention rates. Employers shouldn’t fear that Gen Z will run off to start a competitor company. Instead, they’ll appreciate that their new skills and experience offerings will incentivize them to stay and learn as much as they can or help them advance into leadership. 

3. Flexibility is key

The skilled trades are known for long, grueling hours. Schedules often consist of five or six days a week and mostly 10+ hour shifts. Some companies are transitioning to a shorter workweek and fewer hours with varied shifts that overlap to avoid delays due to lost hours.

As expected, the result shows boosted employee morale, more productivity, and a thriving work culture. 

4. Offer competitive pay and benefits 

Attractive pay and competitive benefits will always be an effective retention tactic. Especially now, in the middle of a cost-of-living crisis. Trades companies should keep salaries competitive and benchmark regularly to ensure their compensation packages are aligned with industry, age, and geographical standards. 

Companies can utilize compensation benchmarking tools to stay aware of market rates. This ensures they offerx attractive wages that will open the young worker talent pool. 

5. Keep your technology up to date

By incorporating the latest technology and digital tooling, companies create an environment that naturally attracts Gen Z workers. They value modern technology, and having cutting-edge tools and innovations accessible will boost productivity and make Gen Z’s work feel exciting and rewarding. They were raised in the digital age, and having them on board would make them a great resource for onboarding new technology systems. 

6. Partner with schools

Gen Z tends to shy away from traditional post-secondary institutions, which means influencing them when considering their career options is key. Companies can do this by collaborating with schools and other educational institutions, providing them insight into the technology and hands-on skills they could gain in the skilled trades space.

Bottom line

Who doesn’t want a workspace with more innovation, collaboration, flexibility, and purpose-driven work? Gen Z could bring all of those aspects to the skilled trades industry, and attracting these workers is as simple as keeping a tech-savvy space, partnering with schools, offering clear career paths, and catering to their entrepreneurial spirit. 

Bridge the industry labor shortage with people looking to revolutionize the space. Change is a good thing, we promise. 

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