Amazon enters the vending machine business
Brian opened with breaking news from the Amazon Reshape conference in Dallas: Amazon has launched vendor-managed inventory vending machines. These machines sit in facilities around the country, a traditional B2B go-to-market approach used by companies like Fastenal and Grainger where inventory is positioned close to the point of use. Workers can order a glove on their phone and pick it up from the machine. The hosts noted this is another application of Amazon’s AWS playbook for infrastructure and supply chain management.
Gen Z sees B2B as second choice
A Master B2B survey found that 65% of practitioners believe B2B is destined to always be Gen Z’s second choice for employment. The hosts argued this is a messaging problem, not a reality problem. B2B companies offer many of the attributes Gen Z values: work-life balance, diversity and inclusion, mental health awareness, career progression, and non-traditional benefits. The challenge is that B2B companies fail to market these strengths.
That statistic at 65% saying it’s our second choice, we’re not surprised by that, but we’re shocked that it is not shocking more B2B companies.
Andy Hoar, Master B2B
What Gen Z wants from employers
Research from Ripple Match, a company that studies Gen Z employment preferences and awards companies for meeting them, identifies four key priorities. First, Gen Z wants training and development. Many graduate from college without exposure to business and are eager to learn but intimidated by sink-or-swim environments. Second, company culture matters. Gen Z does not want cutthroat competitive environments like investment banking or high-tech. Third, financial security is essential. This generation came of age during the 2007-2009 financial crisis and watched their parents struggle. They want 401k programs, retirement plans, and safety nets. Fourth, diversity, equity, and inclusion remain important.
Grainger earned its reputation with Gen Z
Grainger was named to Ripple Match’s Next Gen 100 in 2021 for being an attractive employer to Gen Z workers. Andy emphasized that Grainger did not accidentally receive this recognition. They sought it out by investing in learning and development, retirement benefits, and DEI programs. Grainger also won an award in 2018 for being a good place for Millennials to work, demonstrating a sustained commitment to attracting younger talent.
Fastenal takes a different approach
Fastenal has invested heavily in NASCAR and NHL sponsorships. These appeal to younger audiences both as potential customers and as potential employees, particularly Gen Z men who follow these sports. Fastenal also released an Environmental, Social, and Governance report this year discussing their environmental commitments, the kind of corporate responsibility messaging that resonates with Gen Z.
What practitioners are doing
Betsy Rudman, a senior manager at Xylem and adjunct professor at Marquette, shared observations from the Master B2B community. She noted that Direct Supply, a senior living equipment company, has become a sought-after employer among her students by maintaining a consistent campus presence with a dedicated university relations employee. Dave Allen from Sager Electronics credited their internship program for much of their success in recruiting recent graduates. Justin Rinaldi from Safety Speed Manufacturing takes a different approach: spending three to four days per year speaking at local high schools, building relationships while gaining priority on projects that previously went to competitors.
What I think they do well is consistently being present on campus, and they have a dedicated university relations employee who is phenomenal.
Betsy Rudman, Xylem, on Direct Supply
Work-life balance tops the list
A LinkedIn poll asked what is the best way for companies to convince younger workers that B2B is a good career bet. Work-life balance won decisively at 55%, followed by emphasizing the importance of the role at 25%. Cool tech and funky offices drew 20%, while focusing on the work family received zero votes. The hosts noted that B2B companies can deliver on work-life balance better than many alternatives like Wall Street or consulting, where long hours are expected. This is a strength B2B should be marketing more aggressively.