Gen Z Often Sees Employee Treatment as a Key Driver of Brand Trust

What does it take to earn Gen Z’s trust as consumers? Unsurprisingly, this young and socially conscious generation of workers isn’t afraid of looking beyond a product to what a brand represents, and how an organization chooses to treat its employees plays a significant role in manifesting consumer loyalty. According to FTI Consulting, almost half of Gen Z consumers see employee treatment as a key driver of brand trust, which shows that how an organization operates internally shapes public opinion. 

A separate study from Indeed also showed that only 41% of Gen Z employees actively trust their employers compared to 65% of Millennials and 71% of Baby Boomers, making it all the more apparent that businesses today are failing to connect with the next generation of individuals, whether as employees or customers. 

Employers may shy away from hiring Gen Z workers for being inexperienced and opinionated, but disregarding their perspective could also cost a business paying customers, especially when these young people have an entire lifetime ahead of them to hold a grudge.

A new report by FTI Consulting found that the treatment of employees in the workplace often shapes Gen Z consumers’ trust in the organization. (Image: Pexels)

How Do You Earn Gen Z’s Trust? How You Manage Your Workplace Can Send a Clear Message About Your Business

Does how you run your workplace affect Gen Z’s trust in your business? Yes, it certainly does. FTI Consulting’s inaugural Retail Resiliency Survey conducted across consumers in the U.S. found that young consumers’ opinions of a business are strongly shaped by the values it represents, and their loyalty is often conditional on clear depictions of these values. 

About 68% of Gen Z and younger millennials have stopped buying from a brand in the last year solely because of concerns about company values. This perception is shaped in real time, both directly in their handling of various situations and through the information available about them online, often through AI-driven environments. 

What’s more, for 45% of Gen Z, the organization’s treatment of their employees in the workplace affects their trust in the brand. Both Gen Zers and Millenials are often swayed by how an organization chooses to respond to social issues and the stance they take on operating within the larger world. That continues to be true, with FTI Consulting finding that an organization’s sustainability efforts matter to 41% of Gen Z consumers and their approach to social issues affects 37% of them. 

Gen Z’s Workplace Expectations Don’t Just Matter in Their Hiring as Employees

This emphasis on values and workplace attitudes is apparent in some of the trends we have seen this year, with brands like Target losing goodwill among its customer base for the retraction of its DEI employee policies and other internal changes. Shein has often faced backlash from potential customers for its fast-fashion quality and environmental impact, but also for its alleged treatment of factory workers, which has led many to boycott the brand.

 Union-led brand boycotts also push many consumers to pause their patronage of an organization until they resolve matters with their workers, showcasing just how frequently we do see evidence of employee experiences reshaping public sentiments about an organization.

There are likely other facets in earning Gen Z trust beyond internal matters of the workplace. The use of things they deem “AI slop” has many turning away from a business. Environmental activism has similarly been an unlikely indicator of customer loyalty. The messaging in the market also undoubtedly shapes whether customers want to represent a brand in their daily lives. And yet, it’s hard to ignore the increasingly central role employee experience plays in determining where Gen Z puts their trust, and their money, as consumers. 

Why Are Workplace Expectations Reshaping Consumer Habits?

This emphasis on work values and Gen Z’s attention to it has a lot to do with technology and social media. Access to the internet has made it much easier for employees to share their on-the-job experiences online, whether on networking platforms like LinkedIn or anonymous portals like Glassdoor and Blind. Employees are no longer as afraid of calling out mistreatment on TikTok or releasing a scathing Substack about workplace conduct, whether about a colleague or supervisor. 

A screenshot of a manager asking an employee to work during their vacation can likely go viral faster than any positive marketing the company spent thousands of dollars on. These online channels make it much easier to witness how an organization treats its workforce, and many consumers who see themselves reflected in the plight of the employees, respond with empathy for the workers and contempt for the business. 

What Are Your Employees Saying About You?

How consumers respond to the brand or organization has never been an HR priority, and it still isn’t. However, the data shows us that there are multiple reasons for a business to pay attention to the employee experience, even if their primary reason is to create a loyal customer base. Forcing employees to sign NDAs and swearing them to secrecy may scare a few workers into maintaining their silence, but it is perhaps the worst way to approach workplace management, reserved exclusively for employers who don’t mind feeling like the villain. Not only is this strategy detrimental to morale but also ineffective in the long term. 

Instead, working with employees to create a positive workplace experience is the best way to build genuine connections with individuals, whether employees or not. Positive reviews of the organization from outgoing employees are ideal, but if employees do leave disgruntled feedback regarding the organization, it is important to pause and ask why that might be the case. 

Channeling fixes and improvements back to daily operations won’t just prove to employees that positive change is possible, but it will also make them enthusiastic champions of the brand and its mission. Earning Gen Z’s trust as consumers may require more than offering a good product, but this doesn’t have to be a bad thing for the organization’s operations overall.

Do you agree with Gen Z linking brand trust with employee workplace management? Share your thoughts with us in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.

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