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News » Gen Z service issues cost companies 25% of customers: ResumeTemplates study

Gen Z service issues cost companies 25% of customers: ResumeTemplates study

Photo from ResumeTemplates

WASHINGTON, UNITED STATES — A recent survey revealed that Gen Z employees in customer-facing roles are impacting business relationships, with one in four hiring managers reporting client losses due to behavioral issues.

Customer service challenges and impact on business operations

The study by ResumeTemplates, which gathered insights from 1,000 U.S. hiring managers on October 23, 2024, uncovered that 24% of respondents directly linked client losses to Gen Z employee conduct.  Additionally, almost half (48%) needed to reassign or remove Gen Z employees from client-facing roles following complaints.

The issues highlighted unprofessionalism, such as an inappropriate tone (41%) and tardiness (34), leading some businesses to reconsider their hiring practices. Most notably, approximately 12.5% of hiring managers now express reluctance to place Gen Z candidates in customer-facing positions.

Other issues involved:

– poor attention to detail (40%)

– unwillingness to go above and beyond (39%)

– lack of enthusiasm (38%). 

– difficulties in handling conflict (35%)

– misunderstandings due to a casual communication style (35%), and

– reluctance to take responsibility for mistakes (34%)

Understanding the generation gap

Julia Toothacre, ResumeTemplates’ chief career strategist, offers insight into this phenomenon, attributing these challenges to Gen Z’s unique upbringing in a digital world

“It’s no surprise that Gen Z faces challenges in customer service roles, especially given that many spent their formative years online. With virtual internships or remote roles often marking their early career experiences, their customer service exposure differs from older generations, who remember a time before email,” Toothacre explained.

“Ultimately, Gen Z may need more training than previous generations due to the unique circumstances that have shaped them. But, with guidance, they’ll adapt — just as those before them did.”

Solutions through training

These challenges concerning Gen Z employees can be addressed through targeted training programs and consistent feedback mechanisms as 74% of businesses believe that Gen Z employees need extra customer service training compared to older generations.

“Many of these concerns are valid and should be proactively addressed in training, especially for customer-facing positions, or through regular feedback from managers,” Toothacre noted.

While acknowledging that Gen Z may require additional guidance compared to previous generations, Toothacre maintains a balanced perspective, reminding employers that early career challenges aren’t unique to any single generation. 

“Is this unique to Gen Z compared to other generations early in their careers? Likely not. Older generations may have simply forgotten what it was like to be ‘green’ at work. Most people probably have a few stories of early career missteps or challenging customer interactions,” she observed.

The key to success lies in providing proper guidance and support, ensuring that Gen Z employees receive the tools and training necessary to excel in customer-facing roles.

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