Gen Z pushes firms beyond paychecks

As Pakistan's Gen Z workforce enters offices in growing numbers, companies are being forced to rethink decades-old workplace practices, shifting away from rigid hierarchies and long-hour cultures towards more flexible, inclusive and employee-centric models to attract and retain talent in an increasingly competitive labour market.

Research by Gallup suggests that highly engaged teams can generate up to 23% higher profitability, while organisations with stronger employee engagement report lower absenteeism and staff turnover.

Similarly, studies by consulting firm McKinsey & Company have found that companies with greater ethnic and gender diversity are more likely to outperform peers financially, reinforcing the view that inclusion is not merely a social objective but a business imperative. International frameworks such as the World Economic Forum's Stakeholder Capitalism Metrics and the International Organisation for Standardisation's ISO 30414 guidelines have helped standardise how organisations assess and disclose workforce-related data.

For Pakistan, the transition comes at a particularly important time. With more than 60% of the population below the age of 30, the country is experiencing a demographic shift that is reshaping workplace expectations. Younger professionals entering the workforce are placing greater emphasis on flexibility, purpose-driven work, mental well-being and career development opportunities alongside compensation.

As competition for skilled talent intensifies across sectors, including technology, telecommunications, banking and financial services, employers are increasingly recognising that workplace culture can influence recruitment, retention and productivity. Industry leaders say successful organisations are moving beyond isolated human resources (HR) initiatives and embedding culture into governance structures, leadership accountability and business performance metrics.

"Culture at easypaisa is shaped by the demands of an environment where speed and innovation define the operating model," said Farah Sheikh, Chief Human Resource Officer at easypaisa digital bank. "As Pakistan's first digital retail bank, we have embedded entrepreneurial thinking into our people model, recognising that diverse perspectives directly influence product design, customer relevance and our position as an employer of choice."

She noted that the bank's strong Gen Z workforce brings digital fluency and fresh perspectives that are helping shape the future of banking in Pakistan.

The trend is also visible in multinational organisations operating in the country. S&P Global Pakistan, which employs more than 1,400 professionals, has integrated workforce development into its business strategy through structured learning pathways, leadership development programmes and international mobility opportunities.

"We view our workplace culture as a strategic asset," said Atta Rehman, Senior Regional People Advisor at S&P Global Pakistan. "By prioritising psychological safety and continuous investment in our people, we equip them to accelerate their careers while driving the overall performance and purpose of the organisation."

Telecommunications and digital services provider Jazz has similarly aligned its people strategy with its broader transformation agenda. The company has invested in hybrid work arrangements, employee wellbeing initiatives and leadership accountability mechanisms focused on diversity and inclusion.

"At JazzWorld, culture is not an abstract ideal. It is a strategic lever powering our evolution into a digital services company," said Chief People Officer Tazeen Shahid. "We are building an environment where inclusion, agility and continuous learning are embedded into how we work and owned by leaders at every level."

Technology firms are also adapting global best practices to local realities. SAP Pakistan has focused on creating a culture of trust, transparency and measurable inclusion through personalised development planning and stronger managerial accountability.

However, experts caution that many of these concepts are not entirely new. Saad Abdul Wahab, Chief Executive Officer of Grow Safe, noted that worker welfare, fair wages, whistleblower protections and anti-discrimination measures have long been part of HR management frameworks.

"The challenge is not the absence of policies but uneven implementation," he said. "Some organisations apply these practices effectively, while others struggle due to weak enforcement mechanisms and broader institutional limitations."

He added that while artificial intelligence is expected to reshape workplaces, human capital will remain indispensable due to the cognitive and creative capabilities that machines cannot fully replicate.

As companies increasingly quantify employee engagement, diversity outcomes and workforce development through data analytics, workplace culture is becoming more closely linked with business performance.