Friday 15 Podcast

Will B2B Always Be Gen Z’s Second Choice for Employment?

Brian Beck and Andy Hoar on why Gen Z gravitates toward tech and media, what B2B offers that those industries do not, and why B2B needs to tell its story better.

Friday 15 Podcast

Key takeaways

  • Gen Z career aspirations skew toward media, entertainment, and healthcare, with 57% saying they would like to become a social media influencer, while traditional B2B industries rank low on preferred employer lists.
  • Top preferred employers include Google, Amazon, Apple, and Disney, but these companies are extremely competitive: Apple hires only 1-2% of applicants, and Google interviews can run seven rounds or more.
  • B2B offers work-life balance, diversity, mental health support, career progression, and employee loyalty, matching or exceeding what Gen Z says they want from employers.
  • Recruiters note that Gen Z prefers instant gratification and avoids phone calls, which conflicts with the relationship nurturing that B2B requires.
  • A LinkedIn poll found that 65% of practitioners believe B2B will always be Gen Z's second choice, but the hosts argued B2B has failed to market itself and tell its story to younger generations.

Elon Musk’s Optimus robot arrives

Brian opened with breaking news from Tesla’s October 10 announcement: the Optimus robot is here. After years of speculation and skepticism, Elon Musk unveiled robots capable of natural conversation and physical tasks. The implications for B2B are significant. Robots are already working in factories, and as the technology advances, they may help make industrial workplaces more attractive to younger workers who associate robotics with innovation.

Gen Z wants media, entertainment, and tech

Research shows that Gen Z career aspirations skew toward media, entertainment, and healthcare. The top preferred employers are Google, Amazon, Apple, and Disney. Traditional B2B industries, including banking, automotive, HVAC, and building materials, rank low. Nearly 60% of Gen Z said they would like to become a social media influencer, and nearly 40% have both a job and a side hustle, suggesting entrepreneurial energy but also a pull toward non-traditional careers.

Passions do not often pay the bills. Acting has a 99% unemployment rate, and 83% of actors do not have health insurance because they do not make more than $23,000 a year.

Scott Galloway, NYU professor

Top tech companies are brutally competitive

Andy, who lived in Silicon Valley, noted that getting into companies like Apple and Google is not a cakewalk. Apple hires only 1-2% of applicants. Google interviews can run seven rounds, and some candidates go through 20 and still get rejected. Once hired, employees face constant performance pressure. Work-life balance is often six or seven days a week. The perception of these companies is more glamorous than the reality.

B2B offers what Gen Z says it wants

Deloitte research shows that Gen Z wants work-life balance, diversity and inclusion, mental health awareness, clear career progression, and non-traditional benefits. B2B companies increasingly offer all of these. The hosts noted that B2B is not functionally different from B2C in how it treats employees. It just makes different products for different audiences. The pieces are there, but B2B has not told the story.

The relationship-building challenge

Harry Joiner, known as the Ecommerce Recruiter, offered a dad’s perspective on Gen Z. His observation: they do not like the idea that B2B relationships must be nurtured over time. They prefer the instant gratification of direct-to-consumer transactions, where you never talk to the customer. They do not like the phone.

Kicking the tree does not hasten ripening. They like the instant gratification of direct to consumer. They also like the fact that in DTC you never actually talk with the customer.

Harry Joiner, The Ecommerce Recruiter

Rick Wingender added that Gen Z may find B2B stifling because they do not take direction well. He suggested they may be better suited to small startup consumer businesses. The hosts pushed back: Apple, Google, and Amazon all have processes and hierarchy, often more demanding than B2B companies.

Opportunity for the clear-eyed

Dimitri Cone argued that as the popular verticals become saturated, B2B compensation will rise, making roles in classic sectors increasingly appealing. What one person dismisses as unsexy could become another person’s opportunity. B2B companies tend to offer more loyalty, longer time horizons, and more room for lateral moves than hypercompetitive tech firms. The question is whether Gen Z will recognize this before the opportunity passes.

B2B needs to tell its story

A LinkedIn poll found that 65% of practitioners believe B2B will always be Gen Z’s second choice for employment. Andy argued that the problem is marketing. B2B has done a poor job of promoting itself to younger generations. B2C companies learned to tell their story; B2B has not. Companies that invest in employer branding and articulate what they offer will have an edge in recruiting the talent that other employers are overlooking.

Frequently asked questions

What industries does Gen Z prefer for employment?

Research shows that Gen Z gravitates toward media, entertainment, and healthcare. Top preferred employers include Google, Amazon, Apple, and Disney. Traditional B2B industries like banking, automotive, HVAC, electrical, and building materials rank low on the list. This reflects a perception that tech companies are more exciting and innovative, even though many B2B companies offer similar or better working conditions.

How hard is it to get a job at top tech companies?

The competition is intense. Apple hires only 1-2% of applicants. Google interviews can run seven rounds or more, with some candidates going through 20 interviews and still being rejected. Once hired, employees face constant performance pressure and limited job security. Work-life balance is often poor, with some employees working six or seven days a week.

What does B2B offer that Gen Z is looking for?

Deloitte research shows that Gen Z wants work-life balance, diversity and inclusion, mental health awareness, clear career progression, and non-traditional benefits. B2B companies increasingly offer all of these. Unlike top tech companies where competition is fierce and turnover is high, B2B tends to have longer time horizons, more loyalty to employees, and more opportunities for lateral moves and growth.

Why does Gen Z struggle with B2B relationship building?

Harry Joiner, an executive recruiter, noted that Gen Z does not seem to like the idea that B2B relationships must be nurtured over time. They prefer the instant gratification of direct-to-consumer transactions and dislike talking on the phone. B2B requires patience, consultative selling, and building trust over months or years, which conflicts with the communication preferences many in Gen Z have developed.

Will B2B compensation become more competitive?

Dimitri Cone, a consultant, argued that as the popular verticals become saturated, compensation in B2B will rise, making these roles increasingly appealing. What might be a missed opportunity for one job seeker could become a gain for another. Early movers who recognize the opportunity may benefit from less competition and stronger career trajectories.

What should B2B companies do to attract Gen Z?

The hosts argued that B2B has done a poor job of marketing itself to younger generations. B2C companies learned to promote their culture and values to attract talent, but B2B has not followed suit at scale. B2B companies have the pieces that Gen Z is looking for, but they are not telling the story. Companies that invest in employer branding and highlight their strengths will have an advantage in recruiting.

Sources & methodology

  1. Friday 15 Podcast, Master B2B
  2. Morning Consult and Trade and Industry Development, Gen Z career aspirations
  3. Deloitte Insights, Gen Z employer preferences
  4. Scott Galloway, NYU professor, on passion and employment
  5. Harry Joiner, The Ecommerce Recruiter, on Gen Z communication preferences
  6. Master B2B LinkedIn poll on Gen Z and B2B employment, October 2024
Andy Hoar Andy Hoar
Co-Founder, Master B2B

Andy is a Co-Founder of Master B2B, founder of Paradigm B2B and author of the book Bot2Bot: The New Future of B2B Commerce. Andy is one of the leading global authorities on B2B commerce strategy.

Brian Beck Brian Beck
Co-Founder, Master B2B

Brian is a co-founder of Master B2B, Managing Partner of Amazon agency Enceiba, and author of the book "Billion Dollar B2B Ecommerce." Brian has also been C-level digital commerce executive with two decades of experience.

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