How to retain and nurture Gen Z employees

There’s a joke that goes, “If a Gen Z employee isn’t happy, they’ll find a new job on LinkedIn by lunch!” 

This joke is exaggerated, of course. But it underlies the fear and uncertainty that employers experience every time a new generation enters the workforce – and shakes it up. Gen Z will represent one-third of the global workforce in 2030, and many employers simply don’t feel ready.

Well, we’re here to tell you that there’s a straightforward way to keep the young ones at your company happy:

1. Get to know them.
2. Give them what they want.

Yup, that’s it. But as the saying goes though, “the devil is in the details.” So let’s dive into those now!

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We'll cover:

• Part I. (Really) get to know your Gen Z employees
  • Tip 1: Ask 
  • Tip 2: Pay attention to the “four vitals”
  • Tip 3: Make Gen Z personas
• Part II. Give Gen Z what they want
  • Support Gen Z’s financial well-being
  • Support Gen Z’s work-life balance
  • Support Gen Z’s learning & development
  • Support their well-being and mental health
• Last but not least

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Part I. (Really) get to know your Gen Z employees

The first part of your attack plan should be to get to know your Gen Z employees. And we mean really get to know them.

A surprising number of companies don’t do this. Many treat them like “Millennials 2.0” and then wonder why they’re not excited about free snacks.

While Gen Zers and millennials share some similarities, they’re quite different in the workplace. In fact, the millennials at your company probably also have some trouble understanding the Gen Zers they manage!

So the first step towards retaining your Gen Z employees is making sure you understand them. Our best tip for doing this? Ask them!

Tip 1: Ask 

In many countries, Gen Z is the most diverse generation in the workforce. This diversity extends from their race and ethnicity to their sexuality and religious beliefs – and even their expectations for the workplace. 

That’s why you’ll come across so much conflicting information on Gen Z trends in the workplace. For example:

• Some sources say that Gen Z is interested in management roles, while others say they prefer to be individual contributors forever.
• Some say they’re entrepreneurial and want to start their own business, while others say they prefer a corporate career – the bigger the company the better.

You get the idea. So the best way to know what your Gen Zs are thinking is to ask. Here are some things you can ask about:

• Motivations: Are they here to climb the ladder? Or are they here to learn skills that they’ll apply to, say, starting a business of their own in the future? Gen Zs have a lot more career paths to choose from than previous generations, and knowing their motivations will help you understand how to better support and retain them.
• Frustrations: What are some frustrations of the job? These can be things like “My manager is always late to give feedback,” “The software that we use brings down my productivity,” or “I hate printing things out all the time.” Try to figure out Gen Z’s frustrations so you can address them before they build up and result in bigger problems.
• Who they are outside work: What do they do after hours? What are their passions and interests? What’s stressing them out every day? What events have shaped them into the people they are today? Knowing who they are as individuals will help you make sense of the data you collect.

So poll Gen Zers and conduct focus groups and stay interviews. You can also host panel discussions where Gen Zers share their experiences and take questions from other generations – read about an event like this here.

Tip 2: Pay attention to the “four vitals”

In medicine, the “four vitals” refer to a person’s heart rate, body temperature, blood pressure, and breathing rate. These are some of the first things medical professionals check when examining a patient.

It turns out there are also four vitals for retaining Gen Z. These are their satisfaction with their:

1. Pay
2. Well-being and mental health
3. Work-life balance
4. Learning and development opportunities

According to Deloitte, these are the top reasons Gen Zers worldwide choose to stay with or leave an employer. As their report explains:

• “Pay, feeling the workplace was detrimental to their mental health, and burnout are the top reasons … Gen Zs left their employers over the last two years.” 
• The top reasons Gen Zs chose their current company were "good work/life balance," "learning and development opportunities," and "high salary or other financial benefits."

There are actually six reasons but considering the overlap where pay and mental health and wellbeing are concerned, the result is four vital pieces of information to pay attention to. Home in on them, and you’ll get a better idea of how your Gen Zers feel about your company.

Tip 3: Make Gen Z personas

After you’ve gathered enough information, distill your insights into employee personas. Personas divide your pool of Gen Z talent into distinct segments so you get a clearer picture of the different types of people you’re helping.

Here are some sample Gen Z personas that you might create depending on your industry:

• Taylor, a 19-year-old warehouse worker: Taylor started working at one of your company’s warehouses three months ago. They (Taylor’s preferred pronoun) work night shifts and some weekends to pay for university tuition. They wish the pay were higher but choose to keep working at the warehouse, because the work keeps them active and is relatively suitable for their introverted self (no need to deal with people!). However, Taylor wishes the company would relax some of its rules, which they regard as bordering on “oppressive,” and they would not oppose joining a union if the opportunity presented itself. In particular, the cell phone ban is Taylor’s biggest annoyance. Taylor has had a cell phone since they were 12 and can’t help but feel insecure when they don’t have it on them. Plus, as long as they’re getting their work done properly and safely, shouldn’t they be free to listen to their favorite podcasts during their shifts, right?
• Mark, a 23-year-old lawyer: Mark joined your firm as a fresh grad two years ago. He chose law as a career because he believes it to be one of the best-paid jobs for non-STEM people like himself, and financial stability matters a lot to him because of his family’s experiences during the Great Recession. Uninterested in making partner, he aims to eventually move to roles in-house, where he believes he’ll feel less like a “cog in the wheel.” For Mark, a big source of frustration is his superiors. He feels that the firm promotes lawyers for their ability to handle clients and cases – but not their own team members. Mark would also like to see the firm put more effort into supporting the mental health of its employees.

After you’ve crafted some persona, put Tip 1 into practice – ask your Gen Z staff if you got the personas right. As the Society for Human Resources Management puts it, “[I]t's so easy to … skip one of the most critical steps—verifying accuracy with employees … If personas are not accurate, they will do more harm than good.”

You can even make an event out of this. For example, one company surveyed Gen Zs and then invited a group of Gen Zs to react to the results. It’s a great way to make sure your Gen Zs feel heard. You can even record the event and turn it into a reaction video — what could be more Gen Z than that?

Once you finalize your personas, you can launch the second part of your plan: giving Gen Z what they want.

Part II. Give Gen Z what they want

Gen Zers want a lot of things. To keep things simple, we’ll focus on suggesting ways to improve your performance in the four vital areas we outlined earlier.  

Support Gen Z’s financial well-being

Pay is important to Gen Z – and it’s not because they want money to buy more stuff.

It’s because of their experiences with economic instability. During the recent COVID-19 pandemic, they were the age group that was hit hardest. In OECD countries for instance, their unemployment rate was nearly two times that of the rest of the population.

Naturally, money is at the forefront of their mind. According to the Deloitte survey we mentioned earlier, Gen Z’s number one concern isn’t climate change, but something a lot less “woke” – the cost of living.

Money is also their top source of stress. Their "long-term financial future" and "day-to-day finances" are the top two reasons for their stress and anxiety. 

So to better retain your Gen Zers, be an employer that understands their struggles and is willing to help. When employees feel more secure about their finances, they’ll also be more productive at work!

What employers can do

It goes without saying that offering competitive pay – and adjusting it for the rising cost of living – will help you retain your Gen Zers.

Just make sure you’re not throwing money at the problem. Ask Gen Z what would help them feel financially secure and see how your company can help. For example, in the US, where young people struggle with college debt, top employers now help repay student loans.

Here are some more potential solutions based on large-scale surveys of Gen Zers:

• Offer or expand on traditional benefits such as healthcare coverage: According to a global survey by the Workforce Institute at Kronos, “Nearly half (44%) of Gen Zers care more about good healthcare coverage than paid time off (37%). And contrary to popular belief, Gen Z is drawn toward good employee benefits (30%) more so than ‘perks’ like free snacks, happy hours, or gym reimbursements (15%).”
• Offer financial literacy training and financial counseling: A recent US survey found that two-thirds of Gen Z respondents expect their employer to help them “improve or maintain their … financial wellness.” 

Support Gen Z’s work-life balance

Work-life balance is the number one factor that Gen Zers consider when deciding whether to work for a company. To past generations who were more willing to sacrifice their personal lives for their job, this behavior may seem entitled.

But as McCrindle’s “Understanding Gen Z” report explains, “We all want work-life balance today regardless of age. The main difference is that while it is a ‘want’ for most, it is an ‘expectation’ for Gen Z.” Here are some factors which explain this phenomenon:

1. Gen Z was born in the internet age: They’re used to harnessing the power of the internet to do things whenever and wherever they feel like it. Just as they might reply to work messages at home, they might also take care of some personal matters in the office. So in their minds, work and life don’t come at the expense of each other. Instead, they should blend into each other in harmony – hence the term “work-life blend.”
2. Gen Z grew up in the shadow of a recession: Gen Z saw the adults around them lose jobs and homes during the Great Recession, so they know that a company won’t guarantee their well-being. In exchange, they won’t sacrifice their well-being for one either!
3. Gen Z came of age during a global pandemic: Despite all the havoc it wreaked, the pandemic had a great side effect – it got people worldwide to take their health and well-being more seriously. Gen Zers coming of age during this crisis took this lesson to heart.

So Gen Z means business when they talk about work-life balance, and employers would do well to take note. Companies who do this will also see their employees stick around longer, as they’re less likely to burn out – the number three reason Gen Zers around the world left a job in the last two years.

What employers can do

Employers can push out benefits that promote a healthy work-life balance. These include four-day work weeks, flextime, hybrid/remote work options, generous leave, mental health days, and sabbaticals. 

However, nice benefits are just the cherry on top of the cake. They only make sense if there’s already a sound foundation for work-life balance: a culture where employers trust their employees, value results over hours worked, and make sure their staff can unplug guilt-free.

To achieve this, managers may need additional training in the following areas:

• Managers should be trained to step in when they sense their staff are working too much. A good manager might tell an employee, “We want you for the long term, so we don’t want you to burn out.”
• Managers should be familiarized with the concept of “work-life blend.” Let’s say you discover that many of the Gen Zers at your company work a side job (over 40% of Gen Zers around the world do). This means they’ll probably need to work on it at the office from time to time and managers need to be understanding of that. 
• Building on the previous point, managers should learn to value results over hours worked. They should adopt the mindset that as long as a team member gets their work done, it shouldn’t matter whether they’re working on a side hustle or watching a movie on their work laptop!

Lastly, as we keep emphasizing, listen to your Gen Zers. Some may actually like the traditional 9-to-5 and prefer to keep work and life separate. Better to ask than assume!

Support Gen Z’s learning & development

In a global study, LinkedIn found that over three-quarters of Gen Z respondents believe that learning is key to their career success – a proportion that is 10%-20% higher than in other generations.

A few factors explain this interest in learning:

• Despite being the most educated generation yet, Gen Zers feel unprepared for the professional world and look to employers to help them close their skills gap.
• Close to 40% of Gen Zs believe that AI will replace many jobs and functions in the next 10 years, so they want employers to help them stay relevant.
• Professionally, the pandemic set back Gen Z, so they need L&D to catch up. The World Economic Forum warns that they “miss[ed] out on formative years gaining experience and training,” which can affect their ability to climb the ladder and reduce their lifetime income.

As a result, Gen Z sees L&D as a critical part of their job. But as an employer, you may be wondering, “Gen Zers are job hoppers. Why should I invest in them if they just plan to leave?” 

Well, as Henry Ford once put it, “The only thing worse than training your employees and having them leave is not training them and having them stay.”

You’ll also be surprised to learn that young people are actually changing jobs less frequently than previous generations at the same age. Employee loyalty is also on the rise.

So Gen Zers stick around longer than most people realize! You just need to show that you care to make that happen – and nurturing them is a big part of that. 

What employers can do

Unsurprisingly, there is a disconnect between how Gen Z actually wants to learn and how employers think they want to learn. So the first step is to figure out what they want. This includes:

• What they want to learn: Linkedin research suggests that they are most interested in improving their hard skills (think: Excel, programming, and data analytics). But if a lot of your Gen Zers want to become managers, they’ll be more interested in developing soft skills like communication and leadership.
• Why they want to learn: You’ll likely find that your Gen Zers tie their learning to their financial and career success. However, 73% also want to learn things they’re personally interested in.
• When they like to learn: Compared to other generations, Gen Z feels more comfortable learning anytime – including the weekend. They also prefer learning on an “on-demand” or “need-to-know” basis. This means they’d rather learn what they need, when they need it – instead of going through a month-long orientation in the beginning.
• How much time they want to spend on learning: Gen Z prefers shorter spurts of learning. Think 1-10 microlearning sessions.
• What devices they want to use and whether they want in-person learning: Many Gen Zers prefer learning on their phone, though this will also depend on what they’re learning (not all things can be taught over a tiny screen). There are also many Gen Zers who prefer in-person learning – remember, many are tired of “Zoom university.”

Once you’ve figured out their L&D needs, you can design solutions around them. For example, here are some L&D ideas for Gen Zers with different motivations:

• L&D programs tied to promotions: According to LinkedIn, Gen Z is more motivated than all other generations to learn if it helps them “get another job internally, be promoted or get closer to reaching my career goals.” Globally, Gen Zers are also in a rush to be promoted, with around 57% of them expecting to be promoted within one year! If your Gen Zers are like this too, tie L&D to promotions.
• Rotation programs: According to Microsoft, 73% of Gen Z would stay at their job if they could easily change roles internally, and employers need to think of “internal mobility … [as] more like a career playground, rather than a career ladder that you’re just climbing up.” If your Gen Z staff express interest in learning a variety of skills, allowing them to switch roles can prevent them from switching jobs!
• Leadership programs: Create L&D programs where younger staff receive mentorship and coaching to become future leaders in the company. Better yet, target women and minorities. Programs like this will help your company diversify its future leadership and also send a clear signal that you actually care about diversity and inclusion – a trait which will also help you retain your Gen Z talent.

While you’re at it, why not make L&D experiences extra fun and engaging? Here are some ways to do this:

• Customization: Gen Z is used to customizing everything – and their approach to learning is no different. According to LinkedIn, “nearly half of Gen Z respondents prefer a fully self-directed and independent approach to learning” so make sure they have plenty of course options and learning paths.
• Community-based learning: Make learning social by encouraging Gen Z to set up learning groups, adding a chat room component to coursework, providing peer-to-peer coaching opportunities, and hosting lunch-and-learns. 
• Gamification: Gen Z loves gaming – 87% games on a weekly basis. They’ll also love the fun and instant gratification that comes from gamified learning. For example, you can have different learning groups compete against each other for prizes.

Because of their desire for L&D, Gen Z will also demand more of their managers. Employers should make sure middle managers are ready. Here’s how:

• Gen Z wants to work independently but expects their managers to point them to the right resources (e.g. training courses) when they need them. So be sure to familiarize managers with the company’s L&D offerings.
• Gen Z expects feedback to be like social media likes and follows – regular and real-time. Train managers to give thoughtful feedback and check in often.
• Gen Z expects to be treated more like a mentee than a subordinate. Make sure managers are aware of this expectation and adapt their management style accordingly. 

Support their well-being and mental health

If you’re doing well on the first three vitals, congrats – you’re already well on your way to supporting their well-being and mental health!

However, it’s worth taking a closer look at what you can do to support them even more, because:

• Gen Z is the most stressed out generation – nearly half identify as “stressed all or most of the time.”
• Gen Z wants “an employer who cares about their wellbeing" more so than one whose “leadership is ethical.”
• The feeling that “the workplace was detrimental to their mental health” was the number two reason they left an employer in the past two years.

All this goes to show that well-being and mental health are top concerns for Gen Z.

What employers can do

First, get an idea of what aspects of well-being and mental health matter most to your Gen Z workers. You can use Gallup’s five essential elements of well-being as a framework, while paying special attention to the following factors:

• Their financial future
• Day-to-day finances
• The health/welfare of their family
• Mental health
• Work-life balance
• Workload
• Family/personal relationships
• Workload
• Inability to be themselves at work

According to Deloitte, these were all major sources of stress for Gen Zers worldwide. If you find that any of these issues are especially common among your staff, see how you can help. For example, if many of your employees worry about the health and welfare of their family, you might add a healthcare benefit that covers annual health check-ups for immediate family members.

Mental health is a tricky issue to deal with in the workplace. For one, it requires change from the top. Ideally, upper management gets the ball rolling by openly sharing their own struggles. This will help destigmatize conversations about mental health and make people feel more comfortable opening up about their struggles.

In order to improve the mental health climate, middle managers – who interact with Gen Zers the most – will also need additional training and support.

• Managers should receive training that teaches them to lead with empathy and to detect mental health issues early on.
• Managers should also receive general training for managing Gen Z staff. This will prevent misunderstandings, reducing stress on both sides.
• Managers – especially first-time managers – should also feel that the company supports their mental health too. 

Some employers may want to rethink who they promote to leadership roles in the first place. For Gen Z, trust, support, and care are the top qualities they look for in a manager, and they’re willing to work harder and stay longer for managers with these traits. Companies should take this into account when deciding who to promote. As the saying goes, people leave bad managers, not companies!

Other ways employers can support the mental health of their employees include:

• Providing mental health training: Training can teach employees how to be more sensitive to their own mental health needs, manage their mental health at work, and support others who are struggling.
• Providing access to therapy: Your company can subscribe to a professional therapy service for your employers or even have a counselor on site.
• Offering mental health days: 31% of Gen Zers around the world expect paid mental health days.
• Offering flexibility: Flexibility may not sound directly related to mental health, but it is. That’s because giving employees control over their schedule allows them to make time for therapy appointments, exercise, meditation, and other things they need to work on their mental wellness.
• Letting them be themselves at work: Gen Z doesn’t want to hide their true selves at work and needing to do so for fear of judgment is unnecessarily stressful. For starters, you might let them bring their personal lives (such as their hobbies or pets) into the office and encourage vulnerability at least among different members of your Gen Z staff.

Last but not least

Last but not least, here are a few more things that’ll help you stand out in your efforts to retain and nurture Gen Z. These won’t make or break their experience like the four vitals, but they’ll make the experience even better.

• Giving them a voice at the top: Reverse mentoring and shadow boards are both ways to connect your youngest employees to company executives so they can learn from each other. Companies have used programs like these to stay relevant with younger consumers and even reinvent their business! You can also invite Gen Zers to strategy meetings.
• Giving well-reasoned answers and explanations: Expect Gen Z to question a lot of things and know that they won’t take “This is the way we’ve always done things” or “This is above my pay grade” as answers. Gen Z wants to know “why.” They want to be included in their employer’s decision-making process and feel empowered to make a difference. Employers must be prepared to engage in these discussions or they’ll lose talent to competitors who do. 
• Acting on climate change: According to Deloitte, nearly half of Gen Zers worldwide have “put some pressure on their employer to take action” for the climate, and the changes they most want to see are bans on single-use plastics at the office and sustainability-related benefits (think: electric car subsidies). Employers who respond to these demands can expect greater loyalty in return.
• Setting clear expectations: A lot of intergenerational clashes at the workplace stem from unclear or unstated expectations. As an example, one workplace expert told Fortune about a company where management complained about Gen Zers taking too many days off. But when she checked their contracts, she found they allowed for an “appropriate” amount of time off — so Gen Z wasn’t breaking any rules; they simply had a different idea of “appropriate.” Moral of the story: What’s common sense for one generation may not be common sense for Gen Z. So be explicit about expectations and over-communicate if you have to! 
• Being tech savvy: If you’re asking Gen Z to print everything out, you’ll have a hard time earning their respect and loyalty. So think about ways you can make their lives easier with technology. And when Gen Zers ask for automation tools or complain about enterprise software that’s not user-friendly, listen up.

Good luck!

We hope you found some good tips for making your workplace more Gen Z-friendly. The good news is that most of these changes will make your organization a healthier and more nurturing workplace for employees of all ages. 

If you’re feeling inspired to recruit more Gen Zers, contact Prosple to:

• Develop a recruiting strategy that speaks directly to Gen Z talent
• Create an appealing user-generated content campaign
• Put your job openings in front of our audience of 4M+
• Give students a clear look into life for fresh grads at your firm

Schedule a meeting with a Prosple consultant today.