With the first members of Generation Z (anyone born from 1997 onward) moving into the workforce this year, there will be more generations in the workforce than ever before (five!). Employers—including legal employers—must work to understand generational differences and implement policies and procedures that honor these differences in a way that minimizes conflicts and fosters productivity. Employers must be flexible and willing to adapt in order to attract and retain younger attorneys and employees. However, this issue isn't only important as it relates to employees but is also relevant to attracting and retaining clients.

According to the Pew Research Center, millennials currently make up the largest portion of the labor force (approximately 56 million workers or 35% of the labor force), having surpassed Generation Xers and Baby Boomers in the last few years. But by next year, members of Gen Z are expected to account for 20% of the workforce. While much has been written about millennials (a diverse, technologically savvy, entrepreneurial generation who values flexibility and work-life balance), Gen Zs remain a mystery to many.

Here's what you need to know: while millennials were the most diverse generation, 48% of Gen Zs are nonwhite, which makes them the most diverse generation to date. They are also the most digitally connected (iPhones were invented before the oldest members of Gen Z were even teenagers). On average, Gen Zs use five screens (a smartphone, TV, laptop, desktop and iPod/iPad), 96% own a smartphone, and more than half spend at least 10 hours a day on an electronic device. Despite this, members of Gen Z place a high value on offline relationships and crave real-life connections. Only 49% of Gen Zs believe that social media is an important part of their life while 60% are concerned that social media is too public. In addition, 37% worry that technology is weakening their ability to maintain strong interpersonal relationships and develop good people skills. Unlike millennials who stereotypically live in the moment, members of Gen Z are cautious when it comes to finances (understandable, since the recession defined their childhood), with 35% planning to start saving for retirement in their 20s. It is hypothesized that this financial pragmatism will also carry over into their work lives. While millennials value work-life balance over salary, 70% of Gen Z describes salary as their top motivator, 70% say their top must have is health insurance, 58% say they would work nights and weekends for higher pay and only 38% consider work-life balance to be important.

As each generation brings its own unique approach to the workplace, law firms can benefit greatly from embracing generational diversity, ranging from fostering a wider exchange of ideas and problem-solving approaches to attracting a wider client base (especially as successful business leaders are getting younger and more diverse). But while the benefits of having so many generations working side-by-side far outweigh the complications, employers should be proactive in addressing the similarities and differences among their employees to enable a more seamless transition of this upcoming cohort. Employers should consider the following:

• Communication policies and training: While Baby Boomers prefer to talk over the phone or face-to-face, younger generations default to messaging or FaceTime to communicate. Employers should have clear policies on preferred methods of communication—with training where appropriate as millennials and Gen Zs grew up using acronyms and emojis instead of writing formal letters like the Silent Generation.
• Mentoring programs: Members of Gen Z crave social connection and are looking for mentors in their workplace. Employers should reconsider and improve mentoring programs to ensure that all employees—young and old—are learning from each other—which in turn will improve how they work alongside each other.
• Feedback / evaluation process: Members of Gen Z are accustomed to constant feedback in the form of likes and comments. In the workplace, they will want constant feedback too.  According to a study performed by the Center for Generational Kinetics, 40% of Gen Zs stated that they wanted daily interactions with their boss. Many companies and law firms, who currently perform yearly evaluations, will need to improve their evaluation process, encouraging supervising attorneys to provide feedback whenever possible.
• Technology: Technology has been a mainstay in the lives of younger employees for as long as they can remember—it is how they read books, listen to music, buy groceries, and arrange transportation. In addition to expecting that their employers will provide them with the most up-to-date technology (laptops and smartphones at a minimum), younger employees expect that technology will be used to enhance their professional experience and make them more efficient (whether it is working remotely on a laptop, entering time on their phone, or answering their direct dial at work while on vacation overseas).
• Flexibility: While members of the Silent Generation refuse to retire, coming into the office every day to chat with colleagues and read the newspaper, the younger generations seek flexibility—both in terms of where they work and when they work. For example, a working mother (whose husband or partner also has an active career) does not have to sacrifice her career to also take care of family if her supervisors are flexible (and say, allow her to work a few hours from home each day after the children are put to bed). According to Lean In, “43% of highly qualified women with children are leaving careers or off-ramping for a period of time.” Deborah Rhode, a law professor and director of the Center on the Legal Profession at Stanford University, noted that, while “over 90% of law firms offer part-time or flex benefits, only 6% or 7%t of lawyers use them because they signal second-class status”. Therefore, if companies and law firms are serious about retaining younger employees (especially women but increasingly men as well), employers must remove all stigmas associated with working from home and alternative work schedules.
• Benefits and Salary: As members of Gen Z value salary and benefits over work-life balance (in contrast with millennials who value work-life balance over salary), employers will need to be creative in order to appear attractive to younger candidates. To the extent it is financially feasible, employers should offer salaries and bonuses at or above market rates while offering benefits that are expected from this age group (e.g., flexible schedules, paid family leave and comprehensive health insurance coverage).

While certainly there will be growing pains in adapting to a five-generation workforce, law firms that embrace and foster a culture that celebrates collaboration and acceptance will be better off for it, and their employees and clients will be too.

Melissa Hazell Davis is a senior associate at Griesing Law, where she focuses her practice on complex commercial litigation and labor and employment matters. She can be reached at 215-732-3924 or [email protected].