Why too many leaders misunderstand Gen Z: they actually want to be in the office

Do you know what is lazier than a Gen Z worker? The conversation about them!

The assumption that young professionals are lazy, entitled and only willing to clock in remotely isn’t just doing a whole generation a massive disservice, it’s drastically undermining their contribution to society and the startup ecosystem.

Since the pandemic, a caricature of young workers has emerged: they are lazy, soft, and remote-obsessed. But research conducted by us at Hatch this year paints a different picture.

It’s about balance

No, young professionals don’t want to be in the office five days a week, but neither do they want to be fully WFH or WFBali.

They see the benefits of work flexibility but more and more, they crave to be in a shared space with colleagues at least two or three days a week. This is not just about social connection, it’s about professional growth (the number one driver of Gen Z in the office).

According to the 2025 Hatch Hotlist, hybrid is the preferred way of working for Gen Z, with 69% choosing hybrid, and 82% preferring at least some time in the office. Preference for fully remote halved year-on-year from 23% to 12%. People want flexibility and structure – not one or the other.

Career over money

We asked young Australians what they care about most when it comes to work. Interestingly, growth and learning opportunities beat salary to the top spot.

These workers still care about pay – of course – but they’ll choose the environment that helps them progress, build skills, and be coached. And that’s particularly great news for lean, startup teams: you can compete for the best talent on meaning and momentum, not just money.

When we asked young people about their biggest red flags in job hunting, the number one reason they’ll avoid an employer isn’t salary – it’s unclear growth opportunities. If you can’t show the pathway, you won’t even get the application.

That helps explain the biggest candidate turn off and employer brand risk in the market: silence and vagueness during hiring. Ghosting is rampant and it’s damaging employer brands with young professionals who expect timely, respectful communication.

Building skills beyond the workplace

Another thing young Australians told us this year was that they want to pursue a side hustle, with 80% of them either already running or wanting to start one.

There is an outdated tendency for employers to view side hustles as a distraction and red flag. But I have always taken a different view of this and it’s only ever served me well.

The kinds of young people who want to take on their own enterprise, in whatever field, are the type of people you want on your team. They are also taking charge of their own professional development and bringing those skills (ownership, storytelling, customer empathy) back into your business.

Our research also told us that AI was deeply integrated into job seeker workflows. This can make it harder than ever for hiring teams to identify candidates that stand out. Hiring managers need to be more innovative to reduce their time to hire (using human tools like video questions on Hatch to cut through the noise and surface candidates who truly fit).

Attracting the best Gen Z talent

But why does this all matter for founders and investors?

Firstly, because like any other founder or business leader, I have learnt through experience that who’s on your bus is 90% of whether you succeed. Great companies are not forged through elegant strategies, but through uniting the right group of people against a common goal. To do this, you need to understand the needs of your people, and how to bring them together.

And therefore secondly, because the demographics of work are shifting fast and if you don’t keep up your chances of building a winning team will be limited.

Gen Z and millennials will make up around two-thirds of the workforce in advanced economies by the next decade, which means what they value today will shape how we all build companies. If we want durable teams, we have to meet them where they are: ambitious, coachable, flexible and hungry to grow.

If you want to win the best young talent in 2025 and beyond, a good place to start is by designing a hybrid working model with clear pathways for learning and growth.

When hiring, over-communicate with candidates and do everything you can to not ghost them.

Embrace side hustles in your team and the skills they bring.

Do all of this and you’ll build a future workforce where early-career stars choose to stay, and grow, with you.

• Adam Jacobs is cofounder THE ICONIC – Australia’s largest online fashion retailer, and Hatch – Australia’s fastest growing jobs marketplace for Gen Z.