What: Gen Z employees face criticism, lack of recognition, and insufficient support at work, resulting in high stress and potential turnover.

Why it is important: Addressing generational tensions and supporting Gen Z is crucial for retail innovation and competitiveness, aligning with trends identified in the past year.

Gen Z employees are experiencing significant generational tensions in the workplace, with nearly half reporting criticism from older colleagues for their passion, communication style, boundaries, or appearance. This environment has led to high stress, with many considering leaving their jobs within the first year. A substantial portion of young workers feel their opinions are dismissed, and a lack of recognition further undermines their sense of belonging and motivation. The need for upskilling is pronounced, as most Gen Z employees feel unprepared for their roles, yet they are also driving digital transformation through reverse mentoring. The absence of effective mentorship exacerbates uncertainty around career progression, mental health, and work-life balance. Experts suggest that clear onboarding, inclusive leadership, and opportunities for involvement in decision-making are essential to help Gen Z integrate and thrive. These challenges underscore the necessity for retail organizations to adapt their cultures and management practices to retain and empower the next generation of talent. 

IADS Notes: The issues highlighted in the Kahoot report are reflected in recent industry analyses. In February 2025, the Financial Times noted Gen Z’s reluctance to pursue traditional management roles, while Retail Week emphasized the need for retailers to adapt to Gen Z’s expectations for flexibility and digital engagement. Retail Wire’s October 2025 coverage revealed the generational divide in department stores, and LEADNetwork’s February 2025 report stressed the importance of inclusive leadership to fully leverage young talent.

Younger employees report generational tensions at work