When selecting which format to save the file as, it seems it doesn't matter what you choose (Gzipped tar or Zipped), it always saves it as "workspace.tar.gz".
This causes issues when the next job tries to build but can't find the "workspace.zip" file.
In the publisher, pick Zipped
Run the build
Go to $JENKINS_HOME/jobs/$BUILD/lastSuccessful/
Notice it is saved as .tar.gz, not .zip