Oz Choudhri, head of mobility solutions UK & Ireland, Enterprise
Adapting to the preferences of a growing Gen Z employee base has become a mainstream business concern.
The operational adjustments that will appeal to this age group also extend to travel and especially ground transportation policies, which is leading to a wider business conversation: to what extent does Gen Z want better options for business travel?
It’s easy to make assumptions for how a travel policy might look to accommodate Gen Z’s needs. But alongside more Gen Z employees joining the workplace, we’re seeing a fundamental shift in the dynamics of business travel across the board – and most businesses are not aligning their travel policy to reflect these new employee habits and needs.
One key shift is that the types of journeys being taken are becoming polarised. At one end we see a dramatic increase in the number of shorter business trips, typically under 100 miles and often starting and finishing from many different locations, reflecting the shift to hybrid working.
And at the other end of the spectrum, many employees are taking longer trips with much higher mileage, where they are renting cars for a number days to pack more visits into a single trip.
As a result, when we polled 4,000 business travellers across four European countries – including around 25 per cent Gen Z workers – we found that around half of workers’ business trips are taken in a (typically privately-owned) car, and that was broadly similar across younger and older employees. However, the study did show a generational discrepancy in that Gen Z have been driving more over the past 12 months compared to other generations.
The significance of this data is enormous. While research in general shows that younger generations are learning to drive later and are deferring car ownership, when it comes to how they are travelling for work they are just as likely to default to business trips by car as any other age group. Could this be because there are few other viable options on corporate travel policies?
Overall, Gen Z respondents reported that they were able to complete around a third of business journeys using public transport alone, which is comparable to older colleagues.
There is also a greater focus on personal safety as a key factor in the selection of one transport type over another. One in four Gen Z employees cited safety as a key reason for selecting a transport type when they travel for business, compared to around one in six older employees.
The detail of the research indicates a promising mindset shift that could become a major ally in helping businesses meet evolving employee travel behaviours. There is, for one, a growing openness to using new modes of transport and micro-mobility compared to other generations.
Around one in five Gen Z employees will use active travel – walking, cycling or a scooter – for a business trip compared to around one in seven older employees. And as many as one in three Gen Z employees – compared to one in four people from older generations – are also more likely to use multi-modal travel for a business trip abroad and only to use a car for those parts that aren’t possible by train, bus or another shared mode.
Gen Z workers were twice as likely to have used a shared bike for work, compared to older generations, and the disparity continues when considering the use of e-scooters and e-bikes.
When asked about the motivation to use multi-modal forms of transport, Gen Zs cited the opportunity to exercise more and to try something new. They also cited pressure from family, friends and colleagues to travel in a more sustainable manner.
The implication for business is that creating a travel policy with options that better cater to Gen Z preferences can start to create a shift in travel habits for business trips at home and abroad.
Combined, these preference factors bring the opportunity to drive new policies that can embrace all generations in a more ‘future fit’ approach to business travel. That will help create behaviours that are good for the business, for the employee and for the community.