New Cangrade Research Shows HR Has Been Wrong About Gen Z and Millennials for Two Decades

Cangrade released research based on 71,747 validated behavioral assessments from 2024-25 that challenges common assumptions about Gen Z and Millennial workers. Emotional Intelligence ranked first among 40 competencies, 30.3% above the overall workforce average, while Novelty ranked last among motivational drivers and compensation ranked 15th of 16. The AI hiring platform recommends that employers focus development on critical thinking, active listening and consensus building, while retention strategies should emphasize stability and autonomy.

Analysis

This is not a fundamental catalyst for LAMR, AIT, or W: a vendor-sponsored behavioral study does not establish adoption, pricing, contract value, or measurable retention savings at any referenced customer. The more investable read is that enterprise HR buyers are shifting budget language from broad "AI hiring" toward validated workflow ROI—quality of hire, time-to-fill, attrition, and manager productivity. That favors scaled HCM platforms such as ADP, PAYX, DAY, and WDAY if they can embed assessment, skills inference, and internal-mobility tools into systems of record; point-solution screening vendors face procurement friction and likely price pressure.

Over the next 1-3 months, watch whether HR software commentary shows rising demand for retention and workforce-planning modules rather than recruiting-seat expansion. A weak labor market can suppress external hiring volumes, limiting near-term upside for recruiting-tech exposure even if employers increase assessment rigor; the better revenue pool is existing-employee analytics and learning/development. Over 6-18 months, AI-screening adoption remains constrained by auditability, adverse-impact testing, and state/local automated-employment-decision-tool rules—regulatory compliance may accrue to large incumbents with legal, data-governance, and distribution advantages.

Contrarian view: the claim that compensation is a secondary engagement driver should not be extrapolated into labor-cost relief. Employees may rank non-pay factors highly while still requiring market-clearing wages, particularly in tighter skilled-labor categories. For W, which remains more sensitive to discretionary demand and execution than HR policy, and for LAMR/AIT, any implication is too indirect to alter estimates; there is no tradeable read-through absent disclosed hiring, turnover, or vendor-spend data.

Key Decisions for Investors

• No position change in LAMR, AIT, or W on this item; treat as immaterial until a customer discloses quantified turnover reduction, recruiting-cost savings, or a material contract commitment.
• Maintain a 1-3 month watchlist on DAY and WDAY versus recruiting-dependent HR software peers: favor the platform with evidence of attach-rate growth in workforce analytics, learning, and compliance modules, not merely AI product announcements.
• Use upcoming earnings calls from ADP, PAYX, DAY, and WDAY to monitor net new hiring/payroll volumes versus retention-module bookings. A deceleration in hiring alongside durable recurring-module growth would support a relative long in diversified HCM platforms; falsify if bookings soften broadly or implementation cycles lengthen.
• Monitor automated hiring-tool regulatory developments and disclosed adverse-impact litigation. A material enforcement action or mandatory audit expansion would be negative for stand-alone assessment vendors but could create a relative tailwind for compliance-capable HCM incumbents; this is an alert, not a current trade.