Gen Z is looking toward the trades: Will your company catch their eye?

America’s trades industry is staring down a challenge that’s hard to ignore. With baby boomers retiring and Gen Xers not far behind, a stark reality sets in for businesses reliant on a skilled workforce.

According to Brian Huff, CEO of Midwest Technical Institute, there are over 4.8 million skilled trades workers over 45 years old, with half of them nearing retirement age. If that talent pipeline runs dry, simply meeting today’s demands will feel like a stretch, never mind planning for growth.

But there’s hope. Enter Gen Z. Born between 1997 and 2012, these younger workers are bringing a fresh approach to career choices. Many bypass traditional college paths to dodge soaring student debt, while others, disillusioned by their unused degrees, turn to the trades for stability and career growth.

Now is the time to capitalize on this generational shift.

If you employ skilled tradespeople, now is the time to capitalize on this major generational shift. Yes, there are stereotypes about Gen Z’s work ethic floating around, but if you skip past this younger generation, you’ll miss out on a workforce that’s tech-savvy, data-driven, and eager to redefine what it means to work.

And, if you don’t hire them, you can bet your competitors will.

Here’s how to understand this generation, tap into their potential, and build a team that helps your business tackle the labor shortage today, so you can thrive tomorrow.

Gen Z's Work Ethic Isn't Bad - It’s Different

One of the biggest barriers to hiring Gen Z? Misconceptions about their work ethic. There’s no denying Gen Zers approach work differently from older generations and many seasoned professionals see them as lazy. But that criticism says more about shifting perspectives on work than it does about Gen Z’s capabilities.

A frustrated Gen Zer recently went viral on TikTok, calling out boomer comedians that have been blaming the younger generation's work ethic for their inability to afford homes. He argued that the old-school definition of work ethic simply doesn’t work when homes now cost nearly twice as much and Gen Zers have 86% less purchasing power than boomers did in their twenties.

And he’s not wrong. Back when baby boomers were just starting out, success was often measured by how many hours you clocked and how hard you pushed. The financial rewards were tangible. Greater effort equaled greater reward, which led to home ownership and a comfortable lifestyle. For Gen Z, however, the equation has changed. With skyrocketing housing costs, student loan debt, and record inflation, many feel that “traditional” work habits no longer guarantee the same rewards. Instead of focusing on hours, this generation prioritizes results, efficiency, and balance.

Most Boomers don't know what it's like to work 40+ hours a week and still not be able to afford a house and food,” Robbie Scott said in a viral TikTok video. “We need to stop expecting people who bought a four-bedroom home and a brand-new Cadillac off of a $30,000 a year salary to understand what it's like to be working 40+ hours a week with a Master's degree and still not being able to afford a 400-square-foot studio apartment."

What this means for your business is that Gen Z isn’t lazy. They’re resourceful.

Many juggle side hustles, upskill online, and pursue trade certifications because they want to build careers on their own terms. With Gen Z expected to represent the largest share of the workforce by 2035, it’s time for trade businesses to recognize and respond to their evolving expectations.

If you can tap into that drive by aligning with their values and expectations, Gen Z could be the key to revitalizing your workforce.

Gen Z knows how to hustle and will level up if it leads to a lucrative career

However, far from discouraging them from working, challenging economic conditions have made Gen Zers remarkably resourceful. In fact, over half have side hustles alongside their regular jobs to afford the “normal stuff,” and 44% use their side hustles as a way to level-up and build entrepreneurial skills. This entrepreneurial spirit is one reason Gen Z is being drawn to the trades. Skilled trades offer several avenues to build a stable, lucrative business. So Gen Z isn’t just hustling harder than ever to get by, but also to build careers on their own terms.

With Gen Z set to make up the largest percentage of the workforce by 2035, their terms are already reshaping the workplace. So, for business owners and hiring managers looking to fill skilled trade positions, understanding what Gen Z wants from work isn’t optional.

What is Gen Z looking for in the workplace?

Although every generation desires a healthy paycheck, that alone isn't enough to attract and retain Gen Z talent. On top of good pay, Gen Z wants to feel engaged, respected and that their work has purpose. They also want to work with companies that share their values, incorporate new technologies and offer flexible work schedules.

Winning them over will require building a culture that aligns with at least some of those expectations.

How to balance their needs with your business realities

As a business owner, you have to be realistic about what you can provide while keeping your business financially and operationally viable. Maybe you aren’t able to match a competitor’s wages, but you can offer a strong career path, mentorship opportunities or schedule flexibility. Just be honest. Gen Z values transparency, so a clear conversation about what you can and can’t offer will build trust and attract the right Gen Z candidates to your company.

Top benefits to offer Gen Z if you want to catch their eye

Although you won't need to provide everything on this list to attract Gen Z workers, striking the right balance might be the solution to your labor crisis..

Work-life balance

Gen Z believes that careers should accommodate their lives as opposed to the other way around. So, it’s important to offer scheduling options that allow room for flexibility.

According to Deloitte, work-life balance is Gen Z’s top consideration when choosing an employer, and most would accept lower pay in exchange for it.

It is important to note that “lower” pay doesn’t mean “low” pay. This means if you can offer a competitive wage plus perks like flexible schedules and/or paid time off, Gen Zers would likely choose your company over one that offers higher wages but leaves little room for personal pursuits.

How to set your company apart:

• Rethink scheduling: Consider rotational shifts and flex-scheduling to give more control over hours.
• Use smart scheduling tools: Leverage digital scheduling, mobile apps and route optimization to reduce travel time to and from jobs.
• Offer paid time off (PTO): Foster a culture where employees can use their PTO without feeling guilty.

Competitive pay

Due to rising economic pressures, Gen Z feels they need to make more money than previous generations. So, they’re looking for jobs that offer financial stability alongside work-life balance. They also prefer money to status. According to a report by Handshake, 74% of 2023 college graduates said when considering job opportunities, they prioritized getting a good salary over working for a well-known brand.

But don’t think you have to offer astronomical wages to attract Gen Z. Competitive pay is just that, competitive.

Your pay rates should reflect the type of trades industry you’re in, the size of your company and where your company is located. For instance, here’s the standard salary range for industrial electricians:

• Low USD: $52,644
• Average USD: $69,697
• High USD: $92,274

How to set your company apart:

• Keep pay competitive: Regularly review the market to ensure wages are at or above industry standards to attract young workers.
• Provide options to earn more: Offer voluntary overtime, hazard pay and shift differentials so employees can increase earnings while maintaining work-life balance.
• Incorporate performance-based pay structures: Offer performance-based pay, including commissions, bonuses and other incentives, then be transparent with pay progression. This way Gen Z can not only feel rewarded for their work, they can also see a clear path for financial growth.

Values-driven culture

90% of Gen Zers believe that working for a company that shares their values is key to job satisfaction. For many, these values include sustainability and workplace diversity.

They care about sustainability

“Discussions surrounding sustainability are on the rise, and Gen Z are the ones leading the conversation,” Gary Specter, CEO of Simpro, told ACHR News. “We’re witnessing a shift in values as Gen Z seeks opportunities to drive impact for themselves and society.”

This shift is evidenced by the fact that over half of Gen Z researches environmental policies before accepting a company’s employment offer.

They value diversity and inclusion

When choosing an employer, 83% of Gen Zers prioritize a commitment to diversity, equity, and inclusion (DEI). This is not surprising given that Gen Z is the most racially and ethnically diverse generation to date, so they expect to see themselves reflected in an inclusive and diverse work environment.

How to set your company apart:

• Broadcast your company values: Promote guiding principles on your company’s website, job posts and marketing materials.
• Don’t ignore DEI: Even though the U.S. government is scaling back DEI programs, presenting a clear policy about inclusion remains vital to attracting Gen Z talent.

Technological integration

As digital natives, Gen Z expects to use technology in the workplace, and the skilled trades can only benefit from their digital expertise.

“Gen-Z's technological proficiency gives them a unique advantage in the trades,” Specter wrote in a recent Forbes article. “They can leverage their digital skills to integrate technology into traditional trades, whether it's using diagnostic software as HVAC technicians or working with smart home systems as electricians.”

But this desire to work with technology also creates challenges for trades companies wanting to attract and retain Gen Z talent.

Gen Zers not only prefer working with cutting-edge technology, they say it plays a key role in choosing between similar job offers. They also say they would leave their current company in favor of one with better technology.

How to set your company apart:

Invest in digital tools to provide them with smarter ways to work, for example:

• Adopt software that automates scheduling and streamlines manual workflows.
• Equip field technicians with mobile devices and apps to aid in job tracking, task management, record keeping and communication.
• Transition to next-generation tools that offer cutting-edge capabilities, like IoT-enabled devices that allow technicians to monitor equipment, perform diagnostics and resolve minor issues remotely.

Recruiting Gen Z is a smart move for long term growth

Gen Z is redefining workplace norms. More than any previous generation, they prioritize meaningful work, continuous learning and a work-life balance that supports their overall well-being. But along with new perspectives on work, they also bring advanced tech skills to help modernize your company and keep pushing it forward. Recruiting them is a strategic move that can help your company stay ahead of industry shifts, instead of falling behind. So, be willing to rethink work structures, integrate new technologies and find where your company’s values align with Gen Z’s.

While you may not be able to provide everything Gen Z is looking for, you can still make your company a place they want to work. Invest in better tools and technologies, improve communication and foster a culture of respect and collaboration—one where experienced professionals and fresh talent can share their unique knowledge with one another.

As you welcome this generation and the changes they bring, you’ll set your business up for long-term innovation and growth.

To learn more ways to attract new talent to your company, read our recent blog post, How to Hire an Apprentice: Building Skills and Teams With Insider Steps.