The Phoenix metro area, with its growing technology, healthcare, finance and manufacturing industries, is becoming a draw for Gen-Z workers. According to a recent ADP Research analysis looking at the best labor markets for this demographic, Phoenix ranked as the 8th best city in the U.S.
ADP analyzed anonymized payroll data from more than 140,000 individuals of people aged 20 through 29, employed at more than 27,000 U.S. companies from January 2019 through April 2025. Out of 55 U.S. metro areas with at least one million residents, Greater Phoenix showed the most significant improvement in ADP’s metro ranking, rising from the 20th percentile in 2024 to the 87th in 2025, driven by an increase in median annual wages — from $47,840 to $49,252 — and a rise in the hiring rate from 2.3% to 2.9%.
This raises an important question: In a competitive Phoenix labor market for young workers, how can local businesses differentiate themselves during the recruiting process to win talent?
A New Generation with New Expectations
This year’s Gen-Z cohort is unique, with many having attended college during and after the COVID-19 pandemic. They are accustomed to using virtual communication tools, working independently and learning from home. As such, their workplace preferences differ in significant ways from previous generations. To compete for this talent, it’s important to understand their perspective and relationship with work.
As the newest entrants to the workforce, Gen-Z employees are digital natives. Many of them are comfortable with technology and have an expectation of their employers to provide them with current technological tools to be productive.
Gen-Z workers also look for flexibility in how and where they work, valuing work-life balance even more than previous generations. They also seek meaningful work that contributes to a greater purpose and aligns with their personal values. They want to work for employers who value their employees and the diverse perspectives they bring to the table.
They are also highly selective and well-informed. With access to extensive online reviews, social media content and peer networks, Gen Z candidates do their homework before applying. Employers should be mindful of how their company culture, leadership style and career development opportunities are presented publicly. First impressions matter, and transparency, authenticity and responsiveness during the hiring process can be deciding factors for prospective young applicants.
Six Recruiting Strategies for Attracting Gen-Z Employees
In today’s competitive labor market, Phoenix employers must market their “brand” to candidates. From a thoughtfully written job posting to a respectful and efficient interview process, companies have the opportunity to showcase what makes them unique.
Following are strategies to present a company’s culture and workplace to best attract Gen-Z talent:
- Meet them where they are. Gen-Z employees consume information differently than other generations, with a strong emphasis on digital and social media platforms. An active, authentic social media presence can greatly bolster an organizations’ efforts to reach and engage qualified, young applicants.
- Offer independence with clear expectations. With many having adapted to independent learning during the pandemic, this cohort values autonomy in the workplace. Rather than micromanaging, managers should provide clear expectations, defined timelines and measurable outcomes. Establishing regular check-ins early and often can also help to maintain alignment without stifling independence.
- Provide flexibility. Between balancing an academic courseload and social and personal commitments, Gen-Z workers are accustomed to managing work on their own schedules. Whether it’s adopting a hybrid work arrangement or encouraging the use of PTO, offering flexibility in how and where work is completed can be a competitive advantage to attract this generation of talent.
- Emphasize meaningful work. Gen-Z workers want more than just a paycheck; they want to contribute to work that matters, within organizations led by empathetic leaders who prioritize people over process. Phoenix business leaders should speak authentically about the company’s values and how they play out in the workplace. For example, does the organization support off-site volunteer days or matching contributions to an employee’s charity of choice? These types of engagement are a perfect way to emphasize your company’s core values to new hires.
- Show a path to growth. Having a clear career growth path is another top priority for Gen Z. In fact, ADP Research found that only 21% of workers ages 18 through 26 in North America strongly agree they have the skills needed to advance their career, while 22% strongly agree their employer invests in the skills they need to advance. Highlighting opportunities for skill development, internal mobility and access to mentors who can guide their professional journey and broaden their networks can be a great way to help young workers feel empowered from day one.
- Understand compensation ranges. For employers, staying competitive on compensation isn’t optional, it’s essential to attract and retain young talent. An analysis published in ADP Research’s Today at Work 2025 report found workers under 25 earn a median annual wage of $33,900, while workers aged 25 through 34 years old have a median annual wage of $68,700.
With rising wages, expanding industries and increased hiring, Phoenix is well positioned to attract new the best young workers. But location alone won’t win talent. Employers must align their strategies with the expectations of Gen Z — offering flexibility, clear communication, meaningful work and competitive pay. Companies that adapt and demonstrate authenticity will be better positioned to recruit, retain and develop the next generation of workers.
Lisa Schmidt is senior director of Talent Acquisition Global Tech and Early Careers at ADP. With more than 25 years of experience in recruiting, Schmidt holds a passion for campus recruiting and early career development. She leads a global team focused on hiring high-potential talent across functions such as Software Development, Product Management and HR.
