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  • In 2024, Gen Z surpassed Baby Boomers in the US workforce, triggering cultural shifts
  • Their emphasis on flexibility, purpose, and mental health may amplify professional restlessness, pushing organisations to adapt
  • Gen Z employees may seek change after a few years, driven by unmet expectations, a desire for impact, and a need for novelty
  • Addressing this "seven-year itch" through growth opportunities and meaningful engagement can help retain top talent
  • This Commentary provides actionable strategies to align with Gen Z priorities, essential for attracting and keeping young leaders
 
The Seven-Year 'Itch' in Companies

The workplace is undergoing a generational shift, with Generation Z (Gen Z) surpassing Baby Boomers in 2024 as the largest group in the US full-time workforce. This transformation introduces a new set of values, expectations, and behaviours that challenge traditional workplace norms. Gen Z’s ethos - characterised by a strong emphasis on purpose, flexibility, and inclusivity - may accelerate cycles of professional restlessness, reshaping the structures and dynamics of modern organisations.

The concept of the "seven-year itch", often associated with phases of dissatisfaction in personal relationships, finds a parallel in the corporate world. Employees, particularly those who feel their career trajectories have stagnated, frequently experience similar restlessness after years in the same role or organisation. This professional “itch” often arises from unmet expectations, a lack of growth opportunities, and the intrinsic human desire for change.

For leaders, this turning point can prompt a reassessment of goals, ambitions, and alignment with organisational values. Without meaningful challenges or a clear path forward, many employees are driven to explore new opportunities - not from disloyalty, but from a need for professional fulfilment and purpose. Like personal relationships, professional careers often begin with optimism and ambition, yet can become routine as visionary goals give way to operational demands. Recognising and addressing this restlessness is essential not only for individual growth but also for sustaining long-term organisational success in an evolving business landscape.

 
In this Commentary

This Commentary explores the concept of the "seven-year itch" in professional contexts, examining why employees often experience restlessness or dissatisfaction after a period in a role. It delves into the expectation gap, the search for impact, and the human need for novelty, highlighting organisational implications. The Commentary also considers how Generation Z's workplace values - such as flexibility, purpose, and mental health awareness - may accelerate this phenomenon, urging companies to adapt for sustained engagement and retention.
 
The Expectation Gap: A Key Catalyst for Discontent

The "seven-year itch" in a professional context often arises from a growing disparity between employees' aspirations and the realities of their role. This disconnect is likely to intensify as Gen Z increasingly replaces Baby Boomers in the workforce, reshaping workplace dynamics. For high achievers, who are accustomed to consistent recognition and advancement, such misalignment can be disheartening. Career trajectories often serve as a cornerstone of identity and self-worth, making stagnation - whether due to organisational barriers, limited promotional prospects, or uninspiring projects - feel personal. This divergence between ambition and reality fosters frustration, gradually eroding both satisfaction and motivation.

A Quest for Meaning and Impact
For many Gen Z employees, titles and compensation alone are insufficient; their drive is fuelled by the desire to create meaningful change. Yet, as time passes, some may find their influence waning, their ideas side-lined, or their contributions no longer yielding significant outcomes. This reduction of impact can lead to a sense of disillusionment, sparking a  search for roles or organisations where they can regain a sense of purpose, reconnect their efforts to meaningful outcomes, and align their work with their core values.

The Draw of Novelty and Renewal
Humans thrive on novelty, and employees are no exception. Just as personal relationships can lose their spark without renewal, professional roles can grow monotonous when stripped of fresh challenges. Many people excel in dynamic environments that require innovative thinking and problem-solving. When their roles become predictable or routine, the allure of a new setting - one that offers variety, fresh perspectives, and opportunities - becomes irresistible, compelling them to seek renewal in their careers.
 
Organisational Implications of the Professional Seven-Year Itch

Just as the "seven-year itch" can lead individuals in relationships to reconsider their commitments, a similar phenomenon in the corporate world prompts employees to question their professional loyalty. When growth, impact, and variety are lacking, talented individuals may feel driven to move on, seeking roles that better align with their aspirations for personal and professional fulfilment. Recognising this tendency is valuable for organisations, as it offers an opportunity to structure career paths that maintain people's engagement and satisfaction, potentially reducing turnover among high performers.
 
A Generational Shift: The Influence of Gen Z on the Seven-Year Itch
 
Smart leaders will recognise this shift as an opportunity rather than a disruption, proactively aligning organisational practices to these emerging priorities. By fostering purpose-driven cultures, embracing flexible work arrangements, investing in skills-based development, and prioritising mental health and wellness, forward-thinking executives can engage and retain Gen Z talent. Organisations that anticipate and respond to these expectations with agility and authenticity will not only adapt to the changing workforce but position themselves as employers of choice in an evolving business landscape. To assist in this regard, here are the changes Gen Z are expected to bring to workforces.

1. Purpose-Driven Work and Social Impact
Gen Z places a premium on purpose-driven careers, seeking roles that enable them to create a meaningful and positive impact. For this generation, work transcends financial security - it serves as a platform for driving societal and environmental change. Employers will increasingly face pressure to implement and transparently communicate socially responsible initiatives that resonate with these values. To attract and retain Gen Z talent, companies must embed these priorities into their operations, demonstrating a commitment to sustainable and ethical practices.

2. Digital Native Advantage and Technology Expectations
Raised in a tech-driven era, Gen Z has an innate proficiency with digital tools and a strong expectation for workplaces to match their technological fluency. They are drawn to companies that embrace innovation, prioritise cybersecurity, and adopt advanced, tech-enabled work models. Organisations slow to adapt risk losing out on this digitally savvy talent pool, as Gen Z seeks employers that leverage cutting-edge technologies and foster forward-thinking, agile environments.

3. Flexibility, Autonomy, and Work-Life Balance
The traditional 9-to-5 schedule often holds limited appeal for Gen Z, a generation that values flexibility, autonomy, and work-life balance. They are advocates for hybrid and remote roles, which empower them to manage their time more effectively and work in ways that align with their personal and professional priorities. To attract and retain this talent, companies must rethink conventional work structures, offering adaptable schedules and redefining career pathways to foster environments that prioritise individuality, productivity, and wellbeing.

4. Career Growth and Development Focus
Gen Z challenges the traditional career ladder by prioritising skills-based growth, lateral moves, and opportunities for continuous learning over hierarchical promotion. They value environments that provide regular feedback, mentorship, and diverse development opportunities, seeking roles that allow them to build adaptable, future-ready skill sets. This generational mindset motivates companies to rethink professional development strategies, investing in training programmes, mentorship initiatives, and personalised growth pathways.

5. Diversity, Equity, and Inclusion as Non-Negotiables
Diversity, equity, and inclusion (DEI) are non-negotiables for Gen Z, who expect meaningful and authentic efforts rather than gestures. This socially conscious generation values workplaces that champion inclusivity, representation, and fairness at every level. Companies that fail to cultivate a genuinely inclusive culture risk disengagement and high turnover among Gen Z employees. To meet these expectations, organisations must prioritise diverse hiring practices, implement impactful DEI training programmes, and establish equitable policies that foster belonging and promote long-term cultural change.

6. Mental Health Awareness and Wellness
Mental health is a priority for Gen Z, a generation that actively advocates for workplace wellness and openly addresses mental health challenges. They seek employers who normalise conversations around mental wellbeing and demonstrate a commitment to supporting it. To meet these expectations, companies must create a culture of psychological safety, offering comprehensive wellness programmes, flexible mental health days, and access to professional counselling as part of standard benefits. By prioritising mental health, organisations can foster a more engaged and resilient workforce.

7. Transparency and Trust
Transparency is a cornerstone value for Gen Z, who tend to be sceptical of organisations that operate without openness or clarity in decision-making. This generation seeks employers who foster trust through honest communication and actively involve employees in shaping workplace policies and strategies. To engage and retain Gen Z talent, companies must prioritise transparent leadership, encourage open dialogue, and create opportunities for meaningful employee input. By adopting these principles, organisations can build trust and strengthen their connection with this discerning workforce.

The findings from the 2024 CYPHER Learning study underscore these seven needs, revealing that tailored learning, supportive management, and trust are essential to retaining younger talented employees. By investing in customised training and development programmes, fostering transparency, and supporting mental health and wellness, companies can create environments that meet the evolving expectations of Gen Z, fostering long-term engagement and satisfaction in the workforce of tomorrow.

 
Takeaways

The "seven-year itch" in the workplace may be taking on a new, accelerated meaning as Gen Z reshapes workforce dynamics with their distinct values and priorities. This generation, entering their careers with a strong emphasis on growth, purpose, autonomy, and inclusivity, is driving an era where job satisfaction and organisational alignment are reassessed more frequently. Unlike previous generations, Gen Z's expectations for meaningful work and rapid professional development create a challenge - and an opportunity - for companies. Employers who embrace this shift by fostering environments of transparency, inclusivity, and flexibility will not only navigate higher turnover rates but also build stronger, more resilient teams. By prioritising professional development and aligning with the evolving expectations of their workforce, organisations can position themselves as leaders in attracting and retaining top talent in an era of dynamic workplace transformation. Recognising this shift is not optional but essential to thriving in the modern world of work.
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  • Value creation in the MedTech industry has recently slowed
  • Companies face disruptions from a volatile macroeconomic environment, unpredictable supply chains, and rising geopolitical tensions
  • Traditional firms face challenges with mature products in slow-growing markets, compounded by predominantly older, mostly male, senior managers
  • Leaders must revamp their people strategies to support growth, enhance value, and boost competitiveness
  • Attracting, developing, and retaining Generation Z talent helps maintain a strong leadership pipeline and long-term agility

Is MedTech ready for Gen Z?

In the dynamic landscape of MedTech, innovation, digital expertise, adaptability, and a deep understanding of market trends are essential for success. The industry stands as a testament to US manufacturing prowess, characterised by rapid innovation and exacting development processes. However, traditional enterprises with established product portfolios in slow-growing markets, led predominantly by older managers, may be challenged to maintain and enhance their success in the coming decade. Integrating Generation Z (Gen Z) into the workforce presents a potential solution. As digital natives, Gen Z is adept at leveraging new technologies, values access to information, and prioritises sustainability, diversity, and inclusivity - traits they expect corporations to embody. Yet, attracting and retaining their talent requires traditional corporations to undergo cultural adaptations.

The current leadership demographic within large MedTechs is predominantly older males, with the average age of C-suite executives ~56 and a substantial proportion of managers >50. Despite women constituting ~50% of the workforce and making most household healthcare decisions, they occupy only ~23% of executive leadership roles in the largest medical device companies. This senior management composition underscores the experience and industry-specific knowledge deemed necessary for these positions, with many executives having >25 years in the field. However, the traditional approaches and possible resistance to change within this group can conflict with the aspirations of Gen Z employees, creating barriers to an inclusive and innovative work environment.

As the MedTech industry anticipates changes in the next five to ten years, integrating the younger generation into the workforce is essential for ensuring sustained growth, and enhanced value. Their adeptness with digital technology, novel viewpoints, and alignment with contemporary values are indispensable for fostering innovation and securing a leading position in the market. Effectively harmonising the seasoned expertise and stability of senior managers with the dynamism and digital fluency of Gen Z employees is critical for the future success of MedTech companies, despite the challenges it entails.

A March 2024 report from Newsweek revealed that ~40% of hiring managers exhibit an age bias against younger candidates. If such bias exists in the MedTech industry, it poses an obstacle to integrate Gen Z capabilities into the workforce. Additionally, seasoned managers may undervalue the skills and potential of younger employees, thereby limiting opportunities for them despite their competencies. Addressing these issues is necessary to create a diverse and inclusive workplace where talent is prioritised over age, ensuring the future success of traditional companies.

 
Technological Adaptability

Integrating Gen Z into MedTechs introduces a familiarity with modern technology. Growing up with the internet, smartphones, and social media has endowed this generation with digital fluency. Their adeptness in navigating and leveraging new social tools is indispensable for companies that depend on technological advancements.
In contrast, older managers, despite their experience, may not possess the same level of comfort and proficiency with emerging technologies. This generational technology gap can lead to slower adoption of innovative solutions and impede the company's progress. Recruiting younger employees helps enterprises adopt the latest technologies and integrate them into their operations.
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Reimagining Boards
Innovation is the lifeblood of the MedTech industry. Gen Z, with their perspectives and forward-thinking mindset, can drive the development of new products and services. They are more inclined to think creatively, challenge established norms, foster cross-functional collaboration, and propose novel solutions to existing problems. This spirit of innovation can encourage corporations to develop new offerings that meet the evolving needs of healthcare providers and patients.

Understanding Market Trends

As older generations become a significant market segment, they will drive demand for age-related health solutions and services. Recognising their needs, preferences, behaviours, and expectations is essential for effective product development and marketing. This is why integrating Gen Z employees, who possess expertise in modern tools, social media, and innovative trends can help companies effectively connect with both older and younger consumers by offering new insights. Their perspectives complement the experience of seasoned managers, ensuring the company remains attuned to current market dynamics. Additionally, their expertise in digital marketing and understanding of online consumer behaviour can enhance an enterprise's market relevance through targeted campaigns and engaging digital platforms.

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The Silent Obstacle to MedTech Growth and Value Creation

Corporate Culture

Corporate culture is pivotal in attracting and retaining talent. Gen Z values inclusive, diverse, and flexible workplaces that support continuous learning, offer growth opportunities, and foster a sense of belonging. In contrast, incumbent managers may not always prioritise these aspects, leading to a culture that fails to resonate with younger employees and complicates recruitment efforts. New team members are likely to drive initiatives that promote diversity and inclusion, advocate for flexible work arrangements, and champion continuous learning and development.
This cultural shift not only attracts talent but also enhances employee satisfaction and retention. A company whose corporate culture values and supports younger employees, offering them career advancement prospects, fosters their sense of loyalty and commitment. When provided with a supportive and engaging work environment, Gen Z is more likely to remain and contribute to the enterprise's long-term success. By investing in their professional development and recognising their contributions, corporations can retain top talent and build a strong workforce for the future.

Leadership Pipelines

Ensuring a robust leadership pipeline is crucial for the sustainability of MedTechs, especially as long-tenured managers retire. Gen Z, with their innovative ideas, are well-positioned to become the future leaders of the industry. Developing this pipeline requires intentional strategies and programmes. Companies must invest in leadership development initiatives that identify and nurture young talent, provide opportunities for career advancement and encourage cross-functional collaboration.

Effective transfer of expertise from older to younger employees is important for maintaining continuity and leveraging the experience of seasoned managers. This preserves valuable insights, helps to bridge the generation gap and fosters a culture of mutual respect and collaboration. It also contributes to a vibrant corporate culture that values diversity, continuous learning, and innovation, ultimately enhancing the company’s market position and long-term success.

 
Agility and Responsiveness

The MedTech industry is marked by rapid shifts and frequent disruptions, necessitating companies to maintain adaptability and quick responsiveness to stay ahead. Established managers often possess crisis management experience, but may exhibit less flexibility and slower response times. In contrast, Gen Z excels in dynamic environments, embraces innovation and drives swift reactions. They introduce urgency and a readiness to experiment with novel approaches, bolstering an enterprise’s capability to quickly adapt to emerging technologies, evolving market conditions, and new regulatory requirements.

This flexibility is crucial for long-term success in the industry. Gen Z’s perspectives can contribute to strategic decisions that drive growth and innovation. They are more likely to challenge traditional business models, explore new markets, and advocate for bold strategies that position the corporation for future success. Incorporating younger talent into decision-making processes can lead to more innovative and forward-thinking approaches. Their insights, together with the experience of seasoned managers, can help enterprises stay ahead of industry trends, capitalise on emerging opportunities, and maintain a leading position.

 
Risks of Not Integrating Younger Talent

An established management team may resist change, leading to a gradual decline in innovation. Such unintentional resistance can stifle the development of new products and technologies, ultimately causing a loss of market share. As market trends and consumer preferences evolve, companies must adapt to stay relevant. A long-standing management team may be challenged to keep pace with these changes, resulting in products and services that fail to resonate with the market, thereby reducing customer loyalty and revenue.

In the MedTech industry, continuous innovation and adaptation are crucial for maintaining a competitive edge. Without the input and influence of Gen Z, corporations risk falling behind more progressive competitors, jeopardising long-term growth and success. Integrating younger talent can help companies remain agile, forward-thinking, and in tune with the latest market demands.

 
Recruitment Challenges and Solutions

To effectively recruit and retain Gen Z, MedTech companies need to adapt their corporate cultures and managerial styles to align with the young workforce's expectations. Shifting from a top-down approach to one that values collaboration and inclusivity is crucial. Prioritising work-life balance is essential, as nearly half of Gen Z values it highly in their employment choices. Addressing mental health proactively and providing resources and support can appeal to and retain young talent.

Offering skill development and clear career progression pathways is vital, as a significant portion of Gen Z is willing to leave jobs that lack these opportunities. Managers should focus on understanding individual strengths and preferences, providing tailored coaching and assignments to enhance job satisfaction and performance. Building genuine connections through empathy and honest communication cultivates a supportive work environment and increases loyalty. Flexible work patterns, such as hybrid working, flexible hours, or compressed work weeks, accommodate diverse lifestyles, boosting satisfaction and productivity. 

To address generational divides, companies should implement coaching initiatives and encourage collaborative innovation. Bridging the gap between younger and older employees requires open dialogue, mutual respect, and a willingness to learn from each other's strengths. By developing an inclusive culture that values contributions from all employees, companies can create a cohesive and dynamic workplace, enhancing productivity, and employee satisfaction.

 
Takeaways

The MedTech industry faces a critical moment as value creation slows amidst market disruptions and a challenging macroeconomic landscape. Traditional companies, with mature product portfolios and established leadership, often struggle to maintain agility and adaptability. To navigate these challenges and ensure future growth, leaders should prioritise recruiting, developing, and retaining Gen Z employees. This generation brings crucial digital fluency, fresh perspectives, and a commitment to values like sustainability and inclusivity. Their integration into the workforce is critical for driving creativity and maintaining a competitive edge.

Addressing age biases is important to unlock the potential of Gen Z, fostering a dynamic corporate culture that values inclusion and continuous learning. Balancing the experience of seasoned managers with the digital proficiency of younger employees is key to creating a supportive environment that encourages creativity and adaptability. 

Will MedTech companies be ready to embrace Gen Z's capabilities and perspectives to enhance the industry's responsiveness to market trends and consumer needs? 
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