Employers are rethinking performance reviews as Gen Z workers seek more frequent, clear and actionable feedback.
4 min
Bosses are getting no shortage of feedback on how to give their youngest staffers…well, feedback: Do ask how they are doing first. Don’t criticize a personality trait. Do give them concrete direction, and a lot of it.
And whatever you do, call a performance discussion a check-in, not a review.
The oldest members of Gen Z are about to turn 30, yet companies are devoting more time and resources than ever to figuring out how to give this manager-befuddling generation better direction. For help, they are turning to a cottage industry of multigeneration-workplace consultants and even artificial-intelligence bots, while ripping up the script for what used to be once-a-year evaluations.
All of it is a departure for leaders who rose through the ranks in an era devoid of so much thought to effective coaching and criticism. “When I started my first job, I got a performance review a year later, and that was just expected,” said Adam Coyne, chief administrative officer at research and analytics firm Mathematica, which has shifted from annual reviews to quarterly, two-way check-ins for new junior hires.
“This is a group that wants a lot more real-time feedback,” added Coyne, 55.
It is a message managers say they are getting nonstop from surveys and all-hands meetings, not to mention the universities and colleges preparing graduates for the white-collar world of work: Used to the immediate validation of social-media likes and comments, even instantly posted grades, this generation of workers craves clear, frequent direction—and they feel disoriented and anxious when they don’t get it.
Gallup data suggest companies are still struggling to get the hang of it. Younger workers report some of the biggest drops in engagement at work over the past five years. Not knowing where they stand appears to be a big factor. The share of Gen Z and younger millennials who strongly agreed with the statement, “I know what is expected of me at work,” fell 9 points to 42% in surveys between 2020 and 2025.
That doesn’t mean they need the effusive praise that many managers claim they do, some 20-something workers say. “I personally dislike this style,” said Nathan Luckock, a 20-year-old engineer at an AI startup. More effective, he said, is just “pointing out mistakes and then offering a solution.”
That sounds familiar to Lindsey Pollak, a multigenerational workforce expert and executive coach, who says she coaches bosses to be as specific as possible. Instead of “be more responsive,” for instance, she suggests “need to hear from you within an hour of receiving an instruction.”
At Mathematica, Chief Executive Paul Decker said the firm switched to more frequent check-ins in part because so many new entry-level hires were peppering supervisors with questions like: “How am I doing?” and “What does the next level require?” At staff meetings, younger workers often questioned why things were done the way they had always been done.
That included things like “waiting months to learn whether you’re meeting expectations,” he said.
KPMG executives said they, too, began giving their younger workers more frequent assessments on skills like critical thinking and adaptability last year after interns said they wanted to hear more often how their skills were coming along. The firm wanted to “make sure that we scratch the itch,” said Jason LaRue, vice chair of talent and culture at KPMG’s U.S. practice.
Some managers are getting feedback on giving feedback from bots.
Joe Hirsch, a corporate speaker and author of “The Feedback Fix,” recently used an AI coaching platform to work with a tech-company manager on her delivery. She had been frustrated that one of her junior reports wasn’t grasping her pointers on pitching clients, so she role-played the conversation with the AI coach.
The problem, the bot advised, was that she wasn’t giving the employee enough context for why she wanted things done a certain way. “Let’s connect so I can share more about our approach and get your take on it,” it suggested she say.
That did the trick when she tried the approach in real life. “The advice finally landed,” Hirsch said.
Even a few, clear bullet points work, said Valerie Chapman, the 27-year-old founder and CEO of Ruth AI, a career strategist platform for women. “My generation likes to get feedback so that they know how they should adjust.”
She recalls getting bullet-pointed direction when she worked as a strategic growth partner at real-estate company Compass a few years ago. The feedback started with praise before offering pointers.
“It would be, ‘Great job. Here are some things that you could do next week,’” she said. “If that comes in on a Friday, then my Gen Z brain knows exactly what I need to do on a Monday.”
Mike Ekbundit, director of GE Appliances’ engineering programs, said he has tried to make performance discussions with younger workers in rotational programs two-way dialogues rather than top-down critiques. So he revised online evaluations to include prompts for managers to ask questions like “Did you like the assignment leader?” and “Was it too much work?”
Managers are also asked to assess the program participants on nine different categories, like innovation and resilience, while employees are prompted to list their top strengths and weaknesses.
“I need high customer satisfaction to retain this highly sought-after talent, and this is part of how I get it,” he said.
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AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.
3 min
AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.
Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.
Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.
Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.
But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.
Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.
Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.
The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.
How the companies have responded to the possible agentic future is telling.
Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.
Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.
Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.
This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.
Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.
The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.
That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.
To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.
Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.
That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.
Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.
Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.
History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.
Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.
