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Gen Z is the most likely to report mental health issues and needs support to succeed in the corporate world
A generation Z, the most anxious and which reports worse mental health conditions, you need help, be it coaching, mentoring, skills development or even therapy. By seeking this help on the internet and social media, the latest generation to enter the job market is driving the growth of an entirely new billion-dollar industry.
It is a digitally savvy generation that feels very comfortable seeking advice, whether career or life, through online services. And they’re not shy about telling people they need that help or that they’re seeing a coach or therapist – unlike previous generations.
For entrepreneurs with an eye on this, there are plenty of opportunities here as Gen Z is looking for authentic brands and experts they can trust.
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Generation Z values mental health
Gen Z is the most likely to report mental health issues. The American Psychological Association surveyed Americans ages 15 to 21 to determine the key stressors, life events and statistics that affect and define these young people.
The report found that they are significantly more likely (27%) than other generations, including millennials (15%) and Gen X (13%), to rate their mental health as fair or poor.
In another report, from McKinsey, one in four Gen Z respondents said they felt emotionally distressed (25%), almost double the levels reported by Gen Y and Gen X respondents.
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Expanding market
Allied Market Research published a report that showed that the global online coaching market was valued at US$3.2 billion in 2022 and expected to reach US$11.7 billion in 2032growing at a rate of 14% between 2023 and 2032. According to research firm Technavio, the global market for online therapy services is expected to reach US$16.16 billion, with a growth rate of 28.09% between 2023 and 2028.
These are big markets and they are getting even bigger. And this presents huge opportunities for entrepreneurs – if they can understand Gen Z better.
For these young people, being healthy is not just about the physical, but also the emotional. For entrepreneurs, this means understanding that any new platform needs to be a mix of digital technology and human interaction, taking physical and mental well-being into account.
The platform can contain a variety of self-help services related to counseling, career, skill development or even goal setting. But at some point, as Gen Z advances in the content offered, they will also need to interact with humans, especially for therapy services.
Where is Gen Z looking for help?
About half of Gen Z seeks career-related advice on TikTokand one in five said they made career decisions based on this advice, according to a report from resume platform Resume Builder.
Additionally, about 11% of respondents to the organization’s survey said they paid TikTok creators for career coaching. With data from the USA, the study shows that the majority pays between US$500 and US$1,500 for this type of service.
While creators share their experiences and professional advice, and may call it career coaching, it is not the same work as certified and trained professionals. But Gen Z is desperate to look for ways to get help. An article in The Wall Street Journal this month highlighted a startup that just received $72 million in funding to support an online platform that connects therapists with patients.
Coaching is not therapy – and vice versa. Therapists use their knowledge of human behavior models and theoretical frameworks to assess, diagnose, and create treatment plans to support the improvement of their patients’ mental health.
Coaches work to make behavior changes, but are focused on goal setting and supporting clients to achieve their career goals.
Because Gen Z is comfortable with technology, coaching, career guidance, and therapy, online platform solutions are perfect for them. They can help them take control of their mental health while allowing this to happen in an environment that is more familiar to them.
Here are 3 things Gen Z wants their bosses to know:
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1. The pandemic was difficult for them
Managers of Generation Z professionals need to be aware of how this generation has been impacted by the pandemic. While everyone has faced challenges during and after the pandemic, Gen Z has been hit the hardest because many young people missed a number of important developmental milestones. At a time when they should have been creating memories, building relationships and their own identities, they were actually isolated from friends and family, which had an impact on their mental health.
A 2022 report conducted by the National Library of Medicine showed that the impact of the pandemic on Generation Z will persist throughout their lives, longer than other generations.
Leaders need to be aware of the mindset that many of their young employees bring with them as they enter the workforce. Many members of Gen Z began their careers working from their childhood bedroom in their parents’ home, without the ability to meet their coworkers in person and missing out on opportunities for mentorship from more experienced professionals.
Managers will benefit from taking the time to ask their new employees about their personal experiences during the pandemic. Understanding what someone has been through makes it easier to determine what will inspire and motivate that person at work.
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2. They want you to be empathetic and care about what they are doing
A 2023 Deloitte study compared what Gen Z really wants from work with what their managers think they want. One of the biggest differences was in relation to empathy. Gen Z ranked empathy as the second most important trait in a boss and as a “prerequisite for work engagement.” They need to feel like their bosses care about them.
Gen Z seeks guidance and support from their leaders on how to manage their workload. Young workers want to feel that their managers care about them as people, as much as they care about their ability to be productive and deliver results. They need meaningful, objective conversations about balancing work responsibilities with their mental health.
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3. They care about their careers but don’t want that to be their entire identity
The Deloitte study also found that Gen Z professionals and their bosses place different values on work as part of their identities. The report finds that 61% of Gen Z members feel that work is a significant part of their identity, while 86% of bosses say the same.
Gen Z wants to make an impact on the world and values work, but they are also aware of how toxic work environments and burnout can affect their mental health. At the end of the day, that’s what’s most important to them. Gen Z has seen the impact of overwork on both their millennial co-workers and leaders and their Gen X parents.
While Gen Z may irritate some people by not being willing to work more than ten hours a day and setting limits on their time, their desires are in line with what is recommended for a better work-life balance.
1. The pandemic was difficult for them
Managers of Generation Z professionals need to be aware of how this generation has been impacted by the pandemic. While everyone has faced challenges during and after the pandemic, Gen Z has been hit the hardest because many young people missed a number of important developmental milestones. At a time when they should have been creating memories, building relationships and their own identities, they were actually isolated from friends and family, which had an impact on their mental health.
A 2022 report conducted by the National Library of Medicine showed that the impact of the pandemic on Generation Z will persist throughout their lives, longer than other generations.
Leaders need to be aware of the mindset that many of their young employees bring with them as they enter the workforce. Many members of Gen Z began their careers working from their childhood bedroom in their parents’ home, without the ability to meet their coworkers in person and missing out on opportunities for mentorship from more experienced professionals.
Managers will benefit from taking the time to ask their new employees about their personal experiences during the pandemic. Understanding what someone has been through makes it easier to determine what will inspire and motivate that person at work.
*Bernhard Schroeder is a contributor to Forbes US. He is a university professor and has more than 20 years of experience in marketing and entrepreneurship.
