How Gen Z Can Drive Family Business Success

The discussion about Gen Z (generation born from 1997 to 2013) in the workplace has become mainstream, but perhaps for a good reason. Today’s young adults are distinguishing themselves from older generations by bringing a multifaceted perspective to the table. Having grown up during the digital age and through periods of financial turbulence, Gen Z has developed a distinct culture characterized by digital literacy and a global consciousness. 

Since family businesses often face challenges in adapting and maintaining competitiveness in their operations, it is essential to recognize the strengths that Gen Z brings into the workplace. When engaged effectively, Gen Z can help transform the traditional family business model and position it for long-term success.

What sets Gen Z apart is that they are the first generation to experience internet-connected technology as a normal part of their childhood. Navigating digital interfaces, using a wide range of devices, and communicating across global social platforms, is not only second nature to them, but has become a native digital language. Within the past decades, the volume of available information has skyrocketed with Gen Z’s being uniquely equipped to navigate, interpret, and communicate it. 

These capabilities are highly valuable for family businesses where digital proficiency is increasingly critical.  Technological fluency combined with the experience and knowledge of older generations can significantly enhance operational efficiency, support decision making and ensure long-term adaptability. 

Gen Z’s digital literacy goes hand in hand with early exposure to global perspectives. Growing up with social platforms and online communities, they have developed a cross-cultural awareness and a broader understanding of global trends. This constant connectivity enables them to think beyond local markets, anticipate international consumer behaviours and develop hybrid business ideas that bridge cultural and industry boundaries, driving business success.

Gen Z distinguish themselves from older generations and often challenge more traditional ideas. While this may occasionally introduce some workplace tension, it can ultimately result in positive and constructive outcomes. Their willingness to question established norms fosters innovation, pushes teams to reassess outdated processes and helps organizations remain adaptable in a rapidly changing business environment. In family businesses, where long-standing traditions can slow down progress, this mindset can be especially transformative.

Gen Z has shown to value authenticity, multiperspectivity and a sense of community in the workplace. They seek environments where transparency and meaningful connections are prioritized, which keeps them motivated to take initiatives, collaborate effectively, explore a broader range of solutions, and make a tangible impact. Additionally, Gen Z places a strong emphasis on work–life balance and overall employee well-being.

Their emphasis on shared purpose can help build strong team dynamics, improve satisfaction and productivity, boost retention, and overall cultivate a positive organizational culture. These human-centered elements are especially critical in driving long-term success in family businesses which face challenges relating to succession and generational alignment

In conjunction with their digital literacy and increased social connectivity, the unique conditions that shaped Gen Z’s have also cultivated a strong sense of social awareness. Issues such as racial equity, inclusion, gender equality, mental health and environmental protection, have been on the forefront of Gen Z’s political and economic agenda. 

At the same time, young adults have become more conscious market participants, evident by the exponential rise of consumer activism. This shift has transformed the global business landscape, making it increasingly difficult for companies to maintain brand loyalty and long-term competitiveness. 

Gen Z’s awareness of these social issues positions them as valuable contributors in navigating the challenging evolving corporate landscape. 

In conclusion, older generations and current business leaders should view the generational gap, not as a barrier but as a business challenge, that should be addressed collaboratively and be met halfway.  

Workplaces that recognize and leverage on the value that Gen Z’s bring, may be better positioned to remain competitive and support the long-term success of the business. As Gen Z’s gain experience, move into higher roles, and assume greater responsibilities, their approaches to work will increasingly shape workplace culture in meaningful ways.

Family businesses in particular, gradually integrating Gen Z’s perspectives and work habits, can help both the next generation of leaders and the business itself adapt and grow together.  

While the approaches of Generation Z may initially seem unfamiliar or risky to older generations, embracing their ideas and attitudes can foster innovation and ultimately drive business continuity

Renos A. Ioannides
Board Member
Head of Family Business
KPMG in Cyprus

Chara Emilianidou
Team Member
Deal Advisory
KPMG in Cyprus