The Impact of Sustainability and Purpose on Gen Z's Choice of Employer

Currently, the labor market is facing many challenges after the Covid pandemic. While many employees were laid off during the pandemic, companies are now searching intensively for qualified workers. While the average vacancy rate is rising, job portals also report new open positions peaks. In this context, Gen Z becomes relevant, as they have already partially entered the labor market and expect to account for 27% of the global workforce in 2025. This generation is described as the most socially oriented and educated generation and wants to actively make a difference. Due to the labor shortage, there is increasing competition for highly qualified workers, which makes it particularly relevant for companies to understand what Gen Z expects from their employers. Therefore, this study investigates the meaning and assessment of Gen Z regarding the sustainability and purpose of a workplace. To address this research gap and why Gen Z applies to a specific company, three focus groups with 5 participants each were conducted. The participants were master’s students enrolled in a business program. The comparison between the existing literature and the findings shows that the sustainability and purpose of Gen Z concerning the workplace are essential. Participants indicated that they would prefer working for a sustainable company. It is crucial to Gen Z in the study that their values align with the company's values and that there is a high level of transparency and authenticity. A limitation of the study's findings are more catered to Gen Z business master students and may not apply to the whole generation.