Struggling to Retain Gen Z Talent? Strategies for Employers
2 min read
Attracting and retaining top talent is not a new challenge for organisations. Gen Z, those born between 1997 and 2012, bring with them a set of expectations that can be discernibly different, though it is equally fair to say that there are more similarities than differences between the various workforce age-groups. Retaining Gen Z employees requires a nuanced approach - not to do so will mean that tenure will be short and competitors who do address these changing needs will gain competitive advantage. Here then are five challenges facing Gen Z professionals and strategies for employers to retain and engage this valuable talent pool who will represent over one-third of employees by the turn of the current decade.
TLDR: Invest time in their personal development, create flexibility, align business and personal values, support DE & I, recognise contribution and remunerate to retain.
Challenge 1: Lack of Career Development Opportunities
One of the most distinctive characteristics of Gen Z is their relationship with technology. They were the first to be born into a world characterised by the internet, smartphones, touchscreens and social media and so are the first generation that may be viewed as being 'digitally native'. Ironically perhaps, they crave face-to-face interaction above all other, despite their digital upbringing.
Gen Z have grown up with unlimited information at their fingertips and can navigate it with ease, making them more naturally proactive when it comes to learning and independent research. Understandably however, this can lead to a degree of boredom and frustration by the repetitive nature of some tasks.
Aligning expectations with abilities is crucial for employers, who should provide growth opportunities and clear career paths to meet Gen Z's desire for both personal and professional development.
Strategy: Prioritise career development initiatives such as holistic mentorship and coaching programmes, training workshops, and leadership development programmes. Provide opportunities for skill-building, cross-functional experiences, and exposure to senior leaders. Offer clear pathways for career advancement and regular feedback to help track progress and development. Be open and honest in this feedback and provide clarity on what needs to be achieved to enable future progression. Provide appropriate support in the pursuit of these ambitions and prioritise in-person or on-video interactions in addition to offering social events.
Challenge 2: Work-Life Balance
Gen Z employees place a higher value on work-life balance and flexibility than any other group - in a recent McKinsey survey, 77% of Gen Z said that flexibility was a priority for them. They seek employers who offer flexibility in scheduling, remote work options, and support for personal well-being. The seismic transition that was forced on most organisations through the Covid-19 lockdowns merely accelerated and exacerbated a growing trend, especially in this younger demographic. Conversely, the oft-quoted factor of remuneration shows that this particular generation are arguably no different to other age groups in how they rate this factor as a reason for moving role.
Strategy: Implement flexible work policies for all employees where feasible that allow Gen Z employees to balance their work commitments with personal responsibilities. Offer options for remote work, flexible hours, and compressed workweeks where feasible. Encourage boundaries between work and personal life, and provide resources and support for managing stress and maintaining well-being.
Challenge 3: Lack of Meaningful Work
This generation are labelled the 'loneliest generation' - they are far more likely to say that they felt lonely growing up, with factors such as the increased use of technology and the recent pandemic being cited as causes. They've also grown up in an era unprecedented in human history regarding awareness of human ecological impact and the fragility of the ecosystem.
Correspondingly, Gen Z employees are disproportionately motivated by a desire for meaningful work that aligns with their values and allows them to make a positive impact. They seek employers who prioritise social responsibility, sustainability, and corporate citizenship.
Strategy: Communicate your organisation's purpose clearly including commitment to social responsibility, sustainability, and making a positive impact on society. Help them identify their personal values and how they can align these to their everyday work. Offer opportunities for Gen Z employees to engage in meaningful projects, volunteer initiatives, and community outreach programmes.
Challenge 4: Lack of Diversity and Inclusion
Successive generations are growing up in more racially and ethnically diverse communities than their predecessors. Gen Z are more politically progressive with access to news and a broad spectrum of opinion instantly available to them. Accordingly, they value diversity and inclusion in the workplace and seek employers who advocate for an inclusive and equitable environment. It is estimated that 56% of Gen Z workers would not accept a role without diverse leadership. Ideas about gender and sexuality are also more diverse amongst Gen Z. It is also worth highlighting that there is overwhelming evidence that a diverse workforce translates positively to the bottom line, driven by factors such as enhanced innovation, decision-making and collaboration.
Strategy: Prioritise diversity and inclusion initiatives to create a welcoming and inclusive workplace culture. Implement diversity training programmes, unconscious bias training, and affinity groups to advocate belonging and support for underrepresented employees. Take proactive steps to address systemic barriers and promote equity and inclusivity at all levels of the organisation.
Additionally, regarding remuneration, it is perhaps fairer to say that they view inequality in remuneration rather than absolute as a more significant factor. Here, therefore, ensure appropriate compensation commensurate with market and experience with any other potential disparities such as gender being negated.
Challenge 5: Limited Recognition and Feedback
Gen Z employees have a greater requirement for regular feedback and recognition for their contributions. They seek employers who provide constructive feedback, celebrate achievements, and acknowledge their hard work.
Strategy: Establish a culture of continuous feedback and recognition in your organisation. Encourage managers to provide regular feedback. Implement formal recognition programmes, such as employee of the month awards or peer-to-peer recognition initiatives. Provide opportunities for Gen Z employees to showcase their skills and talents and contribute to high-impact projects.
Clearly, not all of these strategies apply uniquely to Gen Z employees and not all Gen Z employees think alike. However, there are valuable insights and lessons from this upcoming cohort of workers that will undoubtedly be a base for expectation from those that come after and organisations would do well to adapt and adopt now to position themselves for this uncertain and undeniably different future.
The days of a job-for-life and from Gen Z, the desire for such, are largely over. Employers should therefore expect lower average tenure and higher turnover from younger generations. However, those businesses and organisations that adapt and strive to appeal to the newest entrants into the talent pool will undoubtedly retain a higher percentage of those individuals that they would rather not lose.
If you would like assistance with coaching, mentoring programs or instigating process around getting a deep understanding around establishing personal values please contact me for an initial free 15-minute chat as to how I might help.
