Generation

The latest generational gap

Executive Summary

3

About the report

The first members of Generation Z, born between 1994 and 2009, are now starting to enter into the working world and claim their space. This is the first generation that uses the Internet in the early phases of learning and socialization. The economic and political crisis has left a mark on the personalities of these young people because their families have suffered crudely from the crisis. The difference between them and the previous generation, millenials, is that the Z’s begin to use entrepreneurship earlier as a tool for social change in areas such as environment, inequality or citizen participation. Therefore they are early to enroll in initiatives that enable them to find solutions to problems in the environment by creating startups.

We have high expectations in terms of the young Z’s. They are the first generation to believe that the world is small, diversity is inherent to any modern society and that the democratic development along with technology is unstoppable and generate new human rights. Between their most outstanding features are: the ever present use of digital tools in all social, labor and cultural relations; their creativity and adaptability to the emerging labor environment; the distrust of the traditional education system that gives way to new modes of learning, which is more practical and with respect to other people’s opinions and lifestyles. On the other hand, it is possible that we are facing a more poorly informed generation than in the past, despite its ease of access to all kinds of sources of knowledge. This is due to the fact that the figure of authority is disappearing and there is an installed belief that every voice deserves to be heard and taken into account.

Thus, rather than being scandalized by their different way of behaving, we have to do everything possible so that this generation can be an opportunity for society. This is something that will be reached only if we transform the educational, labor and corporate world to facilitate the implementation of their extraordinary capabilities. This way, helped by technology, they will lead the 21st century and reinvent the economy and employment system to make it a more humane world.

4

5

X, Y and Z are not only the last letters of the alphabet but they are also the names of the generations that have people younger than fifty years old. It all began with what the photographer Robert Capa wrote after the great wars about the unknown generation X. From there he took this name for the group of people born between the 60s and 70s. After the Y’s appeared, then the millennials came, a generation that grew up with the new millennium, hand in hand with the crisis and technology. The Z’s are now coming out of the classrooms.

After the release of a report on the habits of students, this headline appeared “Uncanny effect of audiovisual stimuli in education”. It sounded the alarm on the way that teenagers abuse electronic devices, stating the inverse relationship between the number of hours that students are exposed to the five screens (TV, mobile, tablet, console and PC) and school performance. Apparently, “students adopt leisure activities that reduce the effort involved in, for example, reading a book”.

More than two centuries ago in England, they warned against technological advances. The Luddites were a movement led by artisans who sought against new machines, like the mechanized looms that were introduced during the Industrial Revolution in Britain, that replaced low qualified workers. More than 300 years ago, Miguel de Cervantes, wanted to laugh at pessimists who stated that there

were harmful effects of excessive reading, which coincided with the popularization of printing and paper. He invented the nobleman Don Quixote, who was sick because of his consumption of chivalrous novels.

When reading this report, it is possible to identify the criminalization of the screens, performed by those who do not know how to use them, with the Luddites who burned the new industrial looms because they did not know how to use them or with those that demonized chivalresque bestsellers because they did not know how to write them. Those who fought against the step of time in the 17th century and 19th century used arguments almost as pilgrim as those that argue that the new technological formats are too dangerous. Reading novels of knights does not make anyone go mad; loom machines are not bad instruments; social communication today cannot be understood without a mobile; studying, playing and reading from a screen will not turn you into a slob. They are truths that each historic moment found hard to understand, especially for those who are not in the heart of the change because of age, mentality or capacity.

The boys and girls that are now in the classrooms have been baptized as Generation Z. They are the heart of this disruption. They are the generation born with the internet, which were born between 1994 and 2009. They have grown up entertaining

themselves with the mobiles of their parents and for them tablets and consoles do not hold any secrets. What for us is a new innovative experience like browsing a digital newspaper, reading a book on a Kindle or listening to music on Spotify, for them is the natural support of these contents. That is the key. For Z’s, Technology is the means and not the end. That is why pessimists fail at predicting that this generation is doomed to fail school due to its characteristics. Literature is key in education, as well as math or art and it will remain so regardless of reading on a paper or screen, doing math on a calculator or Excel or drawing with rotring or on autocad.

The executive summary of this study, carried out by the Deusto Business School and ATREVIA, will conduct a series of interviews with representatives from Generation Z: Meriem El Yamri, a twenty something developer and winner of the competition for student entrepreneurs called Junior Achievement, told us that it is terrible learning with textbooks written by technological illiterates. Luis Iván Cuende, a 19 year old hacker and entrepreneur, defended computing technology and technology in general as key elements at this time and not as simple subjects, incoherent as regards to the rest of the educational system. Rodrigo Fernández Touza, just over twenty and already a consulter at McKinsey, does not understand that, if you can work with mobiles and computers at work then why it

is forbidden in the classrooms. Finally, Sara Izquierdo, winner of the National Advanced Secondary Education Qualification 2015 Award, is keen on having more practical work in schools and defends technology to accelerate the effort of students.

Not everything in the garden is rosy. That’s where you can forgive the intensity of these reports against the screens. The danger of the excess of individualism and the pathological cases of young people in Japan cloistered at home are known, but anecdotal. There is more science is around this inactive lifestyle and the resulting health consequences of playing on the sofa with a console (although the advances in technology of videogames are beginning to convert the living rooms of houses into children’s sports centers…)

Young people today that devour screens are members of the latest generation. Not because they are going to go mad like Don Quixote or will be brutalized for not reading signs on paper… but because the members of Generation Z are the most recent of an era. It is an era that is dying while beginning another where technology is changing (it is beginning to change) everything: jobs, social relations, travel, buying and also education. They will be the last generation to do things in a certain way by starting doing them differently by having technology as an ally. They will be the last generation also because finally, z is the last letter of the alphabet.

The last letter

Iñaki Ortega Cachón Núria VilanovaDoctorate in economics and lecturer. Chairman at the Deusto Business School in Madrid

Founder and president of ATREVIA

of the alphabet

6

7

These are the characteristics of young people that have grown up with the internet, for whom knowledge has become flat, without hierarchies or compartments. Their personality conforms into a liquid, diverse and in-crisis society which signifies that, with the arrival of the young Z’s, a much more radical generational change occurs than that played by millennials. Are the classrooms, companies and society prepared for them?

Self-educated, creative and overexposed to information.

8

9

Generation Z groups people born

with the World Wide Web which is

totally developed and present in the

great majority of homes. Although

academics do not exactly match

the dates that define the age of the

members, it is usually considered that

the members of this generation were

born between 1994 and 2009.

As we can see in the table, how the

different generations arrived to adult

age is completely different. Perhaps

the change that is most evident is the

digital devices that mark each era.

While Generation X grew up with the

walkman, desktop PC and the Game

Boy, Generation Z had a smartphone

and tablet as well as the intensive use

of WhatsApp to communicate. The

development of the Internet had a

great impact in this process: in 1992

there were only 10 websites; in 2013

they recorded 672 million, data that

undoubtedly shows the technological

leap that has been generated over the

years. Finally, the social context has

also marked the difference between

the three different groups: between

1992 and 2013 youth unemployment

rate has increased by more than 20%,

foreign population has multiplied

almost 13 times and the stability of

bipartisanship has given way to the

rise of emerging parties and the lack of

legitimacy of the major ones.

Who forms part of Generation Z?

Generation Z(2013)

Millennials(2000)

Generation X(1992)

Populardevices

Smatphone, tablet, WhatsApp

2G phones, Portable PC, SMS

Walkman, desktop PC, Game Boy

Internetdevelopment

672 millionwebsites

17 millionwebsites

10 websites

Youth unemployment rate

55.1% 26% 34.4%

PoliticsLack of legal standing from the big emerging

political parties

Bipartisanshipstability

Bipartisanshipstability

Foreign population 5,023,487 923,879 393,100

The first members of Generation Z

are finishing university, entering into

the working world and claiming their

space in the world. As happened with

Generation X and is happening with

the millennials, the arrival of the young

Z’s to adult age will have a strong

impact on society and companies.

There are great expectations in terms

of these young people, being the first

generation that believed for as long

as they can remember that the world

is small, diversity is integral to any

modern society and that democratic

development, linked with technology,

is unstoppable and generates new

human rights.

The intensive use of new information

technologies is one of the signs of

Generation Z and, even though this

is an attribute that is also associated

to millennials, everything seems to

indicate that the digital world has

deeply formed the personalities

of these young people due to the

fact that the immersion in this world

started at a younger age than previous

generations.

Why are we talking about the young Z’s for the next decade?

The arrival of the young Z’s to adult age

will have a strong impact in society and

companies

10

11

Education is constantly evolving and

adapting to social changes. Today more

than ever it does so at a rapid pace to

encompass the way of learning from

digital natives. In this context, the young Z’s

belong to a generation where the concept

of a permanent job is disappearing,

changing jobs, sector and professional

category becomes more normal, and even

formal education is banished to focus on

more practical learning projects.

Likewise, some experts assure that due

to the generalization of short messages

and digital devices have become the

most common way of socializing,

students have more difficulties to speak

in public and write complex texts as well

as maintaining concentration for a long

period.

It is now urgent to prepare Generation Z

for the labor reality that will depend on

the capacity of working on the net, with

different cultures and in positions related

with creativity and innovation.

Z’s and education

Capacity of working on the net, with different cultures and in positions related with

creativity and innovation

The members of generation Z

have massively used social media

to signal their identity. In this way,

they now have more opportunities

to collaborate in cultural, social,

political and corporate projects as

well as expressing their creativity

with less effort. This socialization

concept also involves a challenge

for this generation who should

know how to balance their real and

cyber lives as well as dealing with

the risk of technology addiction and

other dangers related with privacy,

harassment and cybercrime.

The great change in respect to

previous generations is delayering

the transmission of information.

Generation Z does not only believe

that they possess the inalienable

right to create, modify and transmit

information, but is unaware that

information had filters in the past.

On the positive side, knowledge is

at close reach and the fact is that

shares on social media have become

a powerful educational tool for the

young Z’s, who are going to take

advantage of it now more than ever.

Without that, members of Generation

Z have the critical judgment to know

how to sift through this information;

they are also contributors to the

entanglement of knowledge on the

internet.

The digital progress has meant a

profound change in the structure of

mass media that has become massive

headline generators to the detriment

of analysis and contrast information.

So we are facing a generation with

more access to historic information

but not necessarily the best informed.

Z’s and their use of technology

Massive use of

social mediaDelayering the transmission of information

Balance real life and “cyber life”

12

13

At the time of the young Z’s

incorporation to universities and the

working world, the rate and way they

produce information has changed

enormously in respect to the previous

generations. The world scientific

production has doubled in the last

decade, the volume of digital data is

now being counted in petabytes and

the speed in which it is transmitted

and processed is immediate thanks to

iOt and big data.

In this context, innovating is not

thinking out of the box anymore. The

box has overflowed and broken and

also their contents are constantly

questioned in a way that is difficult to

know what it is useful for and what

should be discarded. Therefore,

the members of Generation Z are

prepared to innovate in a different

way: everyone should build their own

box taking elements of information

to be modified and altered. They can

come from academic or vulgar sources

and can be related to one or various

sectors in science or economics. The

achievers will be, therefore, those who

are the most capable of selecting and

combining pieces of information and

getting an innovative idea. Moreover,

technical knowledge will be essential,

but the most valuable professionals in

the future will not be those specialized

in a particular field but those who

are well-educated and can hybridize

knowledge from different fields.

Z’s,innovation and entrepreneurship

The achievers will be therefore, those who

are the most capable of selecting and combining

pieces of information and getting an innovative idea

Preference for

autonomy in the

working world

The young Z’s worry that they

won’t find a job that suits their

personality, not having opportunities

of professional growth and not

reaching the goals that they want to

achieve along their career. Likewise,

they prefer flexible environments

that facilitate the conciliation of the

professional and personal lives as well

as stimulating creativity.

On the other side, Generation Z

emphasizes the distinctiveness of

the millennials, as their preference

for autonomy in the working world

forces companies to provide a

sphere of freedom in which their

interests are aligned with those of the

organization. Therefore, these young

people are used to the immediacy

and efficiency that technology

provides, which increases the

pressure on companies to revise their

internal processes and invest in their

improvement.

Finally, new generations are the main

characters of what is called the gig

economy, which is a big network of

autonomous jobs which are linked in

a channel and generate a big project.

Young Z’s will be used to linking

projects, which gives employees

greater freedom and autonomy, but

also increase uncertainty and the risk

of falling into job insecurity.

The Z’s in the working world

15

55% of 50,000

adolescents surveyed

by Universum in 45 countries showed

having interest in launching their

own startup

In Spain the percentage is lower

at 39%, but it still continues to be very relevant

14

The preference for autonomy within the

working environment has brought many

millennials to become entrepreneurs

before even having their first job,

something that we can see in their heirs..

The report carried out by the

International consultant Universum

on the attitudes and working

preferences of high school students

seems to endorse the idea that the

entrepreneur phenomenon will reach

new dimensions with the progressive

entrance of Generation Z. It is expected

that the number of new companies

created by young entrepreneurs will

increase as a result of the appeal for self-

employment versus paid work. 55% of

50,000 students surveyed by Universum

in 45 countries showed having interest

in launching their own startup. In Spain

the percentage is lower at 39%, but it still

continues to be relevant. It breaks the

dichotomy between administrations and

big multinationals that traditionally has

governed the working preferences of

the most prepared.

In terms of the motivations to undertake,

earning a lot of money is at the highest

along with other non materialistic, like

being your own boss and contributing

better to the environment. They are

now beginning to become consumers

of some of the initiatives born recently

in the collaborative economy, a

phenomenon that this generation

understands, supports and accepts

as something normal. Many of their

members will be gradually adding

to this emerging reality, no longer as

users but also as service providers and

entrepreneurs.

Very related to the opportunities

that bind the collaborative digital

environments would be the gig

economy, in which new generations

play main roles. This reflects the jump

from an economy where working for

others or for just one employer was

stable, to an economy where work

tends to be temporary, freelance and

for several employers along your career.

These changes will generate a large

network of freelance work that, together,

will allow society to undertake powerful

initiatives.

The consequence of this is that

many Z’s will get used to taking on

new projects more than working for

employers. This will provide them

with greater autonomy and freedom.

However, it will also increase uncertainty

and risk of falling into job insecurity.

Z’s as entrepreneurs

16

17

Testimonials from generation Z

“The challenge for companies is changing the way of doing

things and learning to have more lenient rules and flexible

timetables that help increase productivity and generate a

positive working environment”.

Sara Izquierdo Martínez, Advanced Secondary

Education Qualification National Award and students

in Economics

“The incorporation of young people to the labor

market will have an impact on the technologization

of companies because the external market pressure

will be joined by young people demanding the digital

transformation of companies”.

Rodrigo Fernández, WEF Global Shaper and

McKinsey & Company consultant.

“The education system is obsolete and still focusing on

the concerns of a past generation that have nothing to

do with the current world in which we live”.

Luis Iván Cuende, hacker and serial entrepreneur.

“In my opinion, the aspect that has been the most

influential is the way that we communicate and relate

with each other, as well as the way in which we browse

information. Now everything is within reach of a click

and I think it is important to take advantage of this and be

clear that this makes our personality different. If we want

something, we take it”.

Meriem El Yamri El Khatibi, Software developer and

Startup Program Award of Junior Achievement.

“Now the new systems are able to do operations beyond

the capacity of people. The pending issue of education

is to provide students with the necessary abilities to

hybridize neuronal processes and electronic skills”.

Almudena Moreno, head of Millennials Makers Open

Future (Telefónica).

“The contents taught at universities are far from the

approach to real problems that those who choose to be

entrepreneurs need”.

Nestor Palao, entrepreneur and technological innovator.

“For them technology is part of their genes. They have

different brain synapses, new neural circuits, activated

for their development in the digital era. This drives new

conducts, visions and behaviors. It is nothing more than

evolutionary theory of species. Yes, we are in front of

“homo digitalis”.

José Antonio Marina, philosopher and author of the

Handbook for the Teaching Profession.

18

19

What is being said on Generation Z?

The preferences of Generation

Z are linked to realities,

perceptions and different

experiences, so every vital

experience will be applicable to

the working world and the way

they work. Companies should

be receptive to this type of

qualities and take advantage of

them when they arise.”

Margarita Ortiz

Vice-president of the

Créate Foundation

The underlying ideology of Generation Z, their idea of society,

and the labor market provide a new and unique offer consisting

of entrepreneurial talent, ability for collaboration, ethical interests

and autonomy.

César León

Chief Executive of the Promete Foundation

These new employees

have capabilities that make

them multidisciplinary

when undertaking daily

tasks in the company. They

will demand participation

and open communication,

environments that

encourage creativity and

facilitate team work.

Blanca Narváez Chief Executive of Junior

Achievement

The incorporation of young Z’s into the working world is a

challenge for companies and for society. There needs to

be an education system according to the characteristics,

objectives and values of this new generation. They need to

be able to receive training according to the jobs that will be

generated in the next few years.

José Manuel Pérez Pericles

Social entrepreneur, ASHOKA fellow and creator of Valnalón

About ATREVIAIt is a global communications consultant

with Latin spirit, no.1 in Spain. It has more

than 25 years of experience and presen-

ce in 13 countries operating in five conti-

nents. It is composed of a multidisciplinary

team of 300 professionals convinced that

communication has the power to change

realities. ATREVIA strives for investigation

and knowledge development as entre-

preneurial and social transformers. That is

why it has become a leader in this sector.

About Deusto Business SchoolDeusto Business School is the business

school from the Universirty of Deusto. This

year 2016 it celebrates its first centenary,

being the dean of business schools in

Spain. Deusto Business School is the lea-

der in training business professionals and

graduating entrepreneurs. Their alumni

are in the most important companies in

the world or leading successful startups.

It has three axes of differentiation that can

be found transversely across its educatio-

nal offer: digital strategy, humanism and

competitiveness, and entrepreneurship

and innovation.

This document is the executive summary of the report “Generation Z”, carried out by Iñaki Ortega Cachón, Iván Soto San Andrés and Ce-cilio Cerdán Carbonero for ATREVIA and Deus-to Business School.

If you are interested in getting the complete re-port, you can apply at atrevia.com