Tailoring ethics and compliance training for Generation Z

In today's constantly changing workforce, ethics and compliance training must evolve to reflect the diverse perspectives and needs of multiple generations. As organizations strive to foster ethical cultures and reduce misconduct, a one-size-fits-all approach no longer suffices, especially with the growing presence of Generation Z (we define as being born between 1997 and 2012) in the workplace. As I travel to different cities around the world to talk about our 2024 LRN Code of Conduct Report, I’m constantly asked about how this younger generation is adapting to and using E&C resources. The data contained in this report echoes some research we released earlier this year in our LRN Benchmark of Ethical Culture Report. I firmly believe, leveraging insights from both of these papers, we can identify key trends to design more effective ethics and compliance (E&C) programs, particularly for Gen Z employees. 

Understanding the generational divide in ethics and compliance 

Firstly, the 2024 LRN Benchmark of Ethical Culture Report highlights that Gen Z has a higher tolerance for bending the rules, compared to older generations. We found via our survey of 8,500 respondents, that they are 2.5 times more likely than Baby Boomers (we define as being born between 1946 and 1964) to agree that it’s acceptable to break the rules to get the job done, and nearly a quarter of Gen Z admitted to engaging in unethical behavior. These findings suggest that the traditional ethics training many of us take every year may not fully resonate with this generation. 

In contrast, Millennials (we define as being born between 1981 and 1997) often score the highest in terms of ethical culture, while Gen X (we define as being born between 1964 and 1981) tends to score the lowest. This disparity underscores the need for a tailored approach to E&C training, as different generations bring diverse attitudes and behaviors to the workplace. 

Why tailoring ethics training for Gen Z is essential 

Given Gen Z’s propensity for simplicity and their willingness to challenge the status quo, E&C training must go beyond rule reinforcement. It should focus on contextual learning, meaning that the content should be relevant to their daily work experiences and emphasizing the long-term value of ethical behavior over short-term gains. We believe that while rules are good and necessary, the right values, if communicated correctly and consistently throughout an organization, can be so much more powerful to help guide and change behavior. Any learning should incorporate real-world scenarios and demonstrate how ethical choices can positively impact business outcomes. We should be asking “How can you make a difference in our organization?”.  

We found that Gen Z show a higher rate of engagement with codes of conduct compared to Boomers and are more likely to consult the code as a resource. Though our annual research aids in understanding what makes effective compliance programs, and compliance officers are looking for more digital and easily accessible training formats to demonstrate effectiveness, employees surveyed across the board found solace in accessing PDF, at a rate of 1.7x. This disconnect between what this ever-growing demographic of employees are looking for, the want by CECOs to deploy more web-based codes and policies, organizations as a whole are still stuck with resources that we were using in the 2000s. It is painfully clear that training methods that are mobile-friendly, interactive, and quick to reference align better with Gen Z’s learning preferences. Just ask a Gen Zer if they still get DVDs delivered by Netflix.  

Key strategies for effective Gen Z ethics training 

1. Leverage technology for accessibility
   Gen Z are a truly digital generation; they were born into a world whereby the time they were 18 years old, there had already been six versions of the iPhone. They prefer formats that are mobile-accessible and interactive, such as web-based codes of conduct, chatbots, and interactive training modules. While traditional PDFs are still the preferred offering, companies need to continue to innovate in digital solutions, making it easier for employees to access and understand ethical guidelines in real-time. 
   
   
2. Create psychologically safe environments
   Psychological safety is a significant factor influencing whether employees will report misconduct. According to our Benchmark of Ethical Culture Report, organizations with strong ethical cultures, where psychological safety is emphasized, see much higher rates of misconduct reporting. Creating an environment where Gen Z feels empowered to speak up without fear of retaliation is crucial.  
   
   
3. Align ethics with purpose and values
   Gen Z also place a high value on corporate responsibility and purpose. E&C training programs need to get better at tying ethical behavior to the wider values and mission of the company. Highlighting how ethics contributes to social good and aligning it with Gen Z’s desire for meaningful work can make training more impactful and engaging.
   
   
4. Offer bite-sized, continuous learning
   Instead of relying solely on traditional annual training, companies should offer ongoing, short form learning as part of a continuous learning strategy, reinforcing key ethical principles and making them part of the day-to-day workflow. Micro-courses, refresher training, and just-in-time training can be a powerful way to ensure that the workforce is equipped for a rapidly changing work environment. Using a comprehensive E&C management platform designed to simplify program management, not only engage employees, should provide all important actionable insights and help track key metrics effortlessly. 
   
   
5. Focus on transparency and trust
   We highlighted in the reports that employees are often hesitant to report misconduct due to a lack of trust in the system. For Gen Z, transparency about how ethical concerns are handled and ensuring that leaders model ethical behavior can significantly enhance their engagement with compliance initiatives. When employees feel they are being listen to, they are more likely to engage.  

Closing thoughts 

So how do we bridge the generational gap? Well, as more Gen Z employees enter the workforce, organizations need to prepare to adapt their E&C training to meet this generation’s unique perspectives. A focus on technology, continuous learning, and transparent leadership will go a long way to create, and hopefully, maintain a culture where ethical behavior is not only expected but embraced. 

By measuring the ethical culture of an organization, you then start understanding the generational divide and begin to start a journey in creating a more tailored, effective, and engaging E&C training program, that meets the needs of today’s diverse workforce.