According to a new survey published on Intelligent.com, 38% of hiring managers say they prefer to hire older workers over recent (Gen Z) college graduates. The reason? Nearly 6 in 10 hiring managers say that Gen Z workers are “unprepared” for the workforce.
The benefits of this accrue to older workers, who can collect higher salaries and better benefits, and even work remotely, just for NOT being part of Generation Z. In fact, nearly half of survey respondents say they will hire an older worker who is overqualified for a position to avoid bringing a Zoomer into the office.
So, what qualifies as “being unprepared” for work? Survey respondents had plenty to say about that. According to them, younger workers lack interpersonal and communication skills, don’t know how to dress for the office, have outrageous salary demands, won’t turn on their cameras for interviews, can’t manage their workload, are late to work and meetings, and miss deadlines.
Ouch.
What does this mean for community colleges? The insights offer opportunities on all fronts to improve the employability of their students and graduates. (And with the new Gainful Employment rules set to take effect, offering support may be the quickest, easiest way to comply with these regulations.)
First, community colleges can help older workers prepare for job opportunities by ensuring they have the hard and soft skills that employers want and need. This is a great chance for older workers to upgrade their job and take advantage of the higher pay and better benefits on offer.
Second, community colleges can do a better job of preparing Generation Z adults for the work environment. Think of it as an opportunity to polish the community college’s brand.
Generation Z expects a salary that will cover their expenses
A common complaint among hiring managers is that Generation Z adults have unrealistic salary expectations. (I wonder where they get those ideas?) Honestly, I’m not sure who needs a dose of reality here. Zoomers face a housing market that’s virtually impossible to get into. According to Zillow, the median rent in Ypsilanti without regard to unit size is $1,240 per month. That’s nearly $15,000 per year (net). If rent is supposed to be no more than 30% of one’s income, then to afford a rental unit in Ypsilanti, a worker should be making about $50,000 per year.
According to Bankrate, the average monthly new car payment is $726 and the average used car payment is $533. If one is spending no more than 15% of monthly income on a car payment, to afford a used car, the buyer needs to clear $43,000 per year. To afford a new car, that jumps to $58,000. That’s just the payments. According to AAA, the average operating cost for a personal vehicle is about $0.75 per mile. At 10,000 miles per year, that’s $7,500. That includes depreciation, finance costs, fuel, insurance, licensing and registration costs, maintenance, and repair. That does not include parking, tolls, and other similar operating costs.
Using data from the Bureau of Labor Statistics, the average benefit cost that employers pass on to employees is about $11 per hour. That’s nearly $23,000 per year, or $1,900 per month. Between housing, transportation (used), and benefits, the average employee needs a salary of $51,600 just for those expenses. Tack on utilities, clothing, food, debt, savings, and other basic spending, it’s no wonder that new college graduates expect “outrageous” salaries!
This is what Generation Z faces, and frankly, a $37,000/year associate degree salary won’t help them.
Photo Credit: Kristoffer Trolle, via Flickr
