It’s far too easy to stereotype young people as more interested in protesting or wasting time on social media than attending class and preparing for a real job. But the data poke holes in these caricatures.

Forty percent of full-time undergraduates and nearly three-quarters of part-time college students work while in school, with more than half putting in at least 20 hours per week. American teenagers’ labor force participation rate has surged to its highest rate in 15 years.

In this era of tight labor markets, with unemployment rates remaining near historic lows, employers seek an edge to help them recruit and retain scarce talent. But employers should also take the long view. By the end of the year, Generation Z – whose eldest members are approaching 30 – will outnumber baby boomers in the nation’s workforce.

Gen Z will constitute about 30% of the United States labor pool by the end of the decade. Failing to incorporate early talent strategies could further exacerbate ongoing labor shortages. 

To build robust early-career pipelines that leverage the aptitudes and interests of young adults, savvy companies should seek to understand what Gen Z values, then implement and expand work-based learning opportunities that align with those needs.

So, what does Gen Z want from work? Stability. According to a new Handshake survey for the class of 2024, job stability ranks ahead of job location, employer reputation, and starting salary. For a cohort born after 9-11 and shaped by recession, inflation, and a pandemic, job stability taps into Gen Z’s desire for security and to plan now for their future. 

Gen Z also seeks purpose. A recent Gallup and Walton Family Foundation survey reveals that Gen Z happiness is strongly connected to finding a sense of purpose at school and work. When Gen Z is doing something at school or work they believe is interesting or important, they’re much more likely to report feeling happy. 

They want school to prepare them for work. When Gen Z youth were asked what could be done to improve the education system, their top answer (59%) was more learning opportunities focused on real-life work. 

Work-based learning – internships, apprenticeships, cooperative education, and part-time campus-based opportunities – allows employers to build pipelines that attract Gen Z workers. These opportunities expose students to hands-on workplace experiences and potential career paths.

They help students gain technical know-how and learn the norms of the world of work, such as showing up on time, collaborating with other team members, and dealing with customers. Work-based learning also helps young people build social capital and professional networks that will help them launch and sustain their careers. 

Research from the Strada Education Network points to the post-graduation benefits of work-based learning opportunities. College students who participated in work-based learning during college, compared to those who did not, reported higher personal income, greater career satisfaction, and a higher likelihood of saying that college helped them achieve their goals and was worth the expense.

Paid internships were particularly correlated with higher earnings – around $3,000 in the first year after graduation. The impact of work-based learning appears strong across multiple demographic groups, as survey findings were consistent across race, gender, and socioeconomic backgrounds. 

The evidence also tells us Gen Z wants skills and knowledge to advance their careers. Early talent frequently seeks one-on-one feedback about their work. They’re eager to get guidance from mentors in the workplace. They value the chance to upskill and reskill to improve their marketability with their current employers and the broader job market.

Though their turnover rates are higher than average, Gen Z workers are more likely than any other demographic to say that reskilling opportunities make them more likely to stay with their current employer. 

More companies are turning to innovative work-based learning models to build talent pipelines. At Northern Kentucky University, Butler University, and Ivy Tech Community College, students can “learn and earn” by working in flexible part-time roles with First Financial Bank and earning tuition assistance through a partnership with Education at Work, the national nonprofit where I serve as president.

Online platforms like Handshake and Riipen enable businesses to hire college students for remote internships and project-based tasks to fill immediate talent demands and identify students with the industry-specific skills needed for future opportunities within those companies. 

For employers, the return on investment in work-based learning is evident. A 2022 survey conducted by the National Association of Colleges and Employers found that nearly 85% of employers considered internships to be their most effective recruiting strategy, ranking far ahead of career fairs (9%), on-campus visits (3%), and participating in campus panels (3%).

NACE research also found that 75.5% of paid interns who accepted a full-time job were still working with the same employer a year later, compared with just 51.5% of employees who didn’t participate in an internship. 

As Gen Z enters the workforce en masse, companies must understand this complex and often misunderstood generation. Gen Z has high expectations around what they want out of life, so smart companies should shed their outdated assumptions about Gen Z employees and bridge the intergenerational divide between corporate America and the labor market’s fastest-growing segment. With baby boomers retiring more quickly than anticipated, the economic incentives have never been stronger. 

Jane Swift is the former governor of Massachusetts and the president of the nonprofit Education at Work.