Two types of employees that will revolutionise your start-up (but be careful of the three-year surge)
Feb 14, 2025
Why Most Startups Fail – And How Yours Can Succeed
10% of start-ups fail in the first year, on average, and 70% fail in years 2-5 (ExplodingTopics). But yours doesn’t have to.
Here are two overlooked employee demographics could be your secret weapon… if and ONLY if you can navigate a critical workplace trend.
1. Crisis-Minded Gen Z: The Future of the Workforce
Flexible, innovative, resilient.
27% of the global workforce by 2025 (FreshMinds), Gen Z employees are redefining the workplace already. They’re digitally fluent, having grown up immersed in tech that was constantly reinventing itself, so they’re perfect for fast-moving workplaces.
Most of them entered the workforce during the COVID-19 pandemic, which means their perspective on work is bound up in crisis management
- How to deal when situations inevitably change
- How to succeed when your team is scattered across different timezones
- How to adapt a project to an uncertain budget or an urgent deadline
These are qualities start-ups NEED to survive their critical early years.
2. Network-Minded Women: A Missed Opportunity for Startups
Bold and adaptable innovators.
Despite strides in recent years, women remain significantly underrepresented in leadership roles within startups, particularly in the tech sector. This is a massive missed opportunity.
What do they bring to the workplace?
- An unbelievably high innovation rate of 83.7% (PMCID)
- 35% higher ROI on investment compared to those led by men (Flat6Labs).
- 20% greater profits - companies with gender-diverse executive teams outperform competitors by 20% (WomenInTech)
- Women-led startups generate 78 cents per dollar of funding, while male-founded startups generate only 31 cents (MassChallenge, BCG)
- Despite receiving less funding on average, women-led startups also achieved 10% more cumulative revenue over a five-year period ($730,000 compared to $662,000) (MassChallenge, BCG)
So what’s the three-year surge, and why do you need to be aware of it?
3. The Three-Year Surge: Alarming Statistics on Workplace Discrimination
In 2022, workplace discrimination rates against young women were at 42%.
By the end of 2024, they were as high as 61%.
Yes, it’s essential to harness Gen Z and female demographics, but start-ups need to be ACUTELY aware of this surge of discrimination rates over the past three years (CIPD, December 2024).
- 54% of women experienced competence-based microaggressions in 2024, up from 35% in 2023
- 33% of HR decision makers agree sexist behaviour exists in the workplace
- 10% of HR decision-makers are AWARE of gender pay gaps for same-level jobs
- 23% of young women report being paid less than male colleagues for similar work
- 28% of young women given fewer career progression opportunities compared to men
(People Management, McKinsey)
Key Points: How Startups Can Thrive with Gen Z and Women Employees
- Gen Z employees and women are ESSENTIAL for surviving the first risky 5 years as a business
- You can retain these employees with anti-discriminatory, flexible workplaces
- Take action to avoid becoming part of the three-year surge
- WCorp strategies can help you reshape your working culture and boost your profits at any stage in your organisation’s development
