This article is part of the Retail And Consumer Journal.

Older people sometimes caricature Generation Z as a temperamental collection of “snowflakes” and “strawberries” who personify the excesses of the social media era. But these digital natives are so much more than that. They are emerging from the global pandemic resilient and pragmatic, self-reliant and collaborative. Businesses that dismiss them do so at their peril.

Born between 1997 and 2012, Gen Zers are still coming of age — but they already display fierce independence, passionate activism, and unwavering acceptance of others. They possess a moral compass and a willingness to chart their own paths rather than conform to previous norms. These traits will serve them well as they reshape society, the economy, the workplace, and much more in the years to come.

We spent two years studying this generation. Our research included focus groups and a recent poll of 10,000 adults in the United States and the United Kingdom. While Gen Z is not a monolithic group — far from it — our exhaustive research enables us to connect the dots in new ways on many of the commonly shared views and traits that define this cohort.

While many generations “become their parents” as they pass through life’s many stages, the evidence suggests Gen Z will be different. Given the economic, social, and political trauma they have faced in their short lives, many of their values, behaviors, and lifestyle choices are now etched into their DNA. Brands and employers expecting Gen Z to revert to the mean will be surprised when they don’t.

Our report dives deeply into what makes Gen Z tick and examines in detail the changes they are bringing. Here is a summary of our most important findings — and how businesses should prepare.

Who they are. When it comes to identity, Gen Z defies all labels. Its members are spiritual, but not religious. They’re realists, and are also optimistic. They embrace gender fluidity and view “situationships” as a practical alternative to defined relationships.

Gen Zers want bosses who understand them — and brands that celebrate their differences and support them in their fight against gender norms, beauty standards, and outright discrimination. To stay relevant, many companies must learn to shapeshift, too, by amending their policies, procedures, and benefits to fit Gen Z’s needs.

Where they are. Gen Zers are the first true digital natives, and it shows in how they choose to stay informed. They may trust print and broadcast news, but 60% get their news from social media and its many influencers and creators, in part because they appreciate multiple viewpoints. They are skeptical and aware of the need to doublecheck what they hear. But they often struggle to distinguish fact from the conspiracy theories, half-truths, and outright lies that pervade social media.

To remain relevant and combat disinformation, media organizations must compete with social platforms through content that is not only informative and entertaining but also relatable. That means partnering with influencers and building up their presence on social media. The same is true for companies that want their story to be heard — and to stick. They should listen first, then understand and meet Gen Zers where they are.

How they feel. Coming out of the pandemic with twice the reported mental health issues as before, Gen Zers have become obsessive about their well-being. And they’re managing it on their own terms. Increasingly distrustful of mainstream medicine, Gen Zers are embracing a more holistic approach that gives greater weight to their mental well-being. They track their health with wearables, are trying alt-treatments like CBD, and follow TikTok influencers for medical advice.

Their embrace of alternative medicine reflects a concern that many aspects of mainstream healthcare don’t address their needs. Gen Zers are demanding greater attention is paid to the mental health crisis, women’s health issues, and the inequalities in access to healthcare. And even those with access to care want better communication with their providers and options that fit their perceptions of self-care.

Over time, Gen Zers’ proactive approach is likely to reshape the healthcare industry with their expectations for what care should look like and how it should be delivered. That has implications for the healthcare establishment — and will compel employers to greatly expand the health benefits they provide.

What they care about. Gen Zers are throwing their idealism and ingenuity into fights against climate change, income inequality, and other issues. While they disproportionately engage in public protests, Gen Zers also see value in posting on social media or talking with their friends due to the collective impact of these small actions. Yet, they are aware they can’t create change alone. Their trust in government and media might be fading, but they believe big institutions have the responsibility to act. They think businesses need to raise their game — and any business that does will have a distinct advantage.

Yes, some corporate leaders are facing a backlash from investors who want them only to focus on the bottom line rather than taking a stand. But if companies don’t speak out about issues that matter to Gen Z, they risk losing the next generation of consumers and employees. Gen Zers have a keen eye for performative activism, and issuing a statement that is blatant “greenwashing” won’t suffice. Instead, this generation pays attention to substantive commitments of time and money. Giving Gen Zers the volunteer time and financial backing to support their passions are good first moves.

What they are doing financially. Watching their parents and older siblings struggle financially has made Gen Zers debt-averse, stressed about money, and determined to manage their finances differently. Gen Z investors are starting younger and, as a group, have a higher percentage of women and people of color. And true to their digital upbringing, they seek community by crowdsourcing investment ideas from subreddits and the flashy influencers on TikTok and Discord.

And yet, they’re not sure if they’re making the right moves: Gen Zers are 1.4 times more likely to report that “money stresses me out” than older generations — and five times less likely to be disciplined with their spending. While many Gen Zers may not have money today, wealth managers, asset managers, and other types of financial institutions need to play the long game and grab the hearts, minds, and wallets of this next generation of investors. Retooling their products and marketing to reflect Gen Z’s diversity is a good start, as is providing more educational and investing content.

How to win them as customers. Gen Z has always had a world of online information at its fingertips. As comparison-shoppers, they are frugal, cynical, and can sniff out marketing gimmicks and false claims in a heartbeat. They expect more from companies than millennials do, and won’t hesitate to bury companies on social media for their missteps.

Yes, they are a tough sell. But as they fully reach adulthood over the coming decade, Gen Z will become the largest consumer demographic in history. That means brands have no choice other than to learn what Gen Z wants and find ways to be relatable, inclusive, trustworthy, and transparent. Brands need to show authenticity, get “phygital” with the right mix of physical and digital engagement options, and understand that dialogues are the path to transactions.

How to win them as employees. While previous generations did whatever it took to climb the corporate ladder, Gen Z isn’t about it. The pandemic turned their first jobs into a two-year video call and raised the bar for what they want from their working lives. What many want is to work for globally aware companies that provide the flexibility, autonomy, and work-life balance they seek. And they will #quietquit or #jobhop from employers that don’t. A large portion of Gen Zers already are fashioning work for themselves that fits what they want, on their own terms: Today, 45% of them have side hustles.

With Gen Z expected to account for nearly a third of the workforce by 2030, employers must raise their game to recruit and retain the best and brightest. Covering the basics — pay, growth opportunities, better worklife balance, transparency — is a start. So, too, is prioritizing their health, offering career optionality and initiatives that help them find personal fulfillment at work, and nurturing their entrepreneurial spirit.

As this report shows, Gen Z is different from even the young millennials who are only a few years older. Timeworn strategies won’t work on this cohort — and waiting for them to conform to the old rules is risky for businesses and employers alike. Gen Zers want more — more transparency, personalized attention, democratized information, equitable treatment, and options in the jobs they work and products they buy.

Businesses that became nimbler and more agile during the pandemic should use those same skills to adapt to Gen Z’s unique needs. Companies need to be creative and approach decisions more like experiments they can learn from. Given Gen Z’s size and clout, employers and brands have no choice but to adapt. The question is whether they will forge ahead to leapfrog the competition — or be leapfrogged. Seizing the moment will help them win over the most consequential generation in modern history.