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Understanding the value (and values) of Gen Z

Three key strategies for family enterprises to connect with Gen Z for long-term success identifying and leveraging core business drivers.


In brief
  • As Gen Z steadily becomes a strong workforce segment, family businesses must encourage cohesion and understanding between generations to stay competitive.
  • Transparency, leadership development, communication and governance are paramount in engaging Gen Z and supporting their transition into leadership roles.

Today in the US, we have five generations — from the Silent Generation to Gen Z — coexisting and interacting in new ways, with a sixth generation rising quickly behind Gen Z. This intermingling among age groups brings unprecedented challenges to family enterprises, from shifting dynamics in the boardroom to evolving customer expectations and family ownership. With Gen Z (born between 1997 and 2007 and turning 18 to 28 this year) making waves in the workforce and set to shape the future, family businesses face the critical task of bridging generational divides. Those that learn to adapt to the values and expectations of these younger generations will unlock a significant competitive advantage in an ever-changing market.

Notably, the rise of Gen Z is accelerating transformation at a faster pace than in previous generations. The 2024 EY Gen Z Live Work Play Study highlights the pivotal shift in generational attitudes. The Gen Z cohort is not only technologically adept but also financially astute, having grown up in an era of economic upheaval marked by the Great Recession and a global pandemic. These experiences have cultivated a generation of savers who understand how to make money, with 52% of Gen Z having multiple sources of income and a natural curiosity about financial security.

 

To bridge the gap between the generations and meaningfully engage with Gen Z, family enterprises can take three key actions:

 

1. Embrace a culture of transparency.

 

Family businesses must move beyond their long-standing commitment to discretion and privacy to meet Gen Z’s demand for transparency. This includes adopting artificial intelligence–driven tools that provide financial clarity and disclosure. Gen Z’s values of accountability, authenticity and financial openness align with artificial intelligence’s democratizing effect on information, helping family enterprises stay relevant and build trust across generations. By embracing this shift, family businesses can avoid conflict and create a more inclusive, forward-looking culture.

 

2. Invest in education and next-generation leadership development.

 

Gen Z is eager to be involved in financial governance and business strategy, but their interest doesn’t always equate to experience or knowledge. Family enterprises should invest in next-generation academies and tailored educational programs (administered, if possible, through a family office) that equip younger family members with the skills and understanding they need to lead effectively. This proactive engagement nurtures Gen Z’s entrepreneurial mindset while also preserving the values and long-term vision of the family enterprise.

 

3. Foster effective succession planning through clear communication and governance.

 

Succession planning is crucial to the longevity and sustainability of family enterprises. This involves establishing clear communication channels, creating robust governance structures and actively involving the next generation in strategic decision-making. A structured approach to succession, where younger family members are gradually integrated into leadership roles, helps mitigate conflicts and prepares them to carry the business forward. By aligning family dynamics with business leadership, family enterprises can foster smooth transitions and preserve the vision and values of the business across generations.

 

By implementing these strategies, family businesses can connect with Gen Z and remain relevant in a rapidly changing world. Through a combination of transparency, education and strong governance, they can pass down the wisdom of past generations while embracing the values of the future.

 

This article was originally published by FamilyBusinessMagazine.com in February 2025.

Summary 

With Gen Z and four other generations actively in the workforce, family enterprises can face challenges as they navigate differing dynamics and expectations. Embracing and adapting to values important to next-generation leaders is essential for continued competitiveness and success.

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