6 Tips to Attract and Retain Gen Z Employees

By 2030, Gen Z will constitute 30% of the US workforce. As the first true digital natives, this generation brings a fresh perspective to the workplace. Forget ping-pong tables and casual Fridays. For Gen Z, the future of work is about purpose, social impact, flexibility, and digital integration.

As this generation enters the job market en masse, businesses must evolve or risk losing out on this vital talent pool. Is your company ready? 

What Are the Core Characteristics of Generation Z?

Born between 1997 and 2012, the Gen Z label refers to the new generation of workers after millennials. Also known as post-millennials or Zoomers, Gen Zers are on track to be the most diverse and best-educated workers, according to a Pew Research Center analysis. The report also identifies other characteristics of this generation, namely:

1. Digital Natives

Born in a world of peak technological innovation, Gen Z has never known a world without the Internet. Smartphones and social media are integral parts of their daily lives. As a Deloitte report puts it, “Gen Z are often the trendsetters, the trend-enders, the influenced, and the influential.” Consequently, they expect intuitive, user-friendly technology in all aspects of work and life.

2. Values-Driven

With Gen Z, it’s not uncommon for a job candidate to ask about your company’s stance on climate change before inquiring about the salary. According to Deloitte, 55% of Gen Z workers research a brand’s environmental impact and policies before accepting a job. On social causes, Gen Z are more likely to speak out against perceived injustices, even within the workplace.

3. Entrepreneurial Spirit

Gen Z’s digital fluency gives them access to more entrepreneurial ventures than other generations ever had. They’ve also experienced a new world politically, economically, and socially. As a Fast Company report noted, “the traditional pathway to career success—namely higher education and climbing the corporate ladder—has never felt more out of reach or less certain.” Consequently, an estimated 53% have side hustles or aspire to start their own businesses.

4. Diversity and Inclusion Focused

Considered the most racially and ethnically diverse generation in history yet, Gen Zers expect workplaces to reflect diversity, equity, inclusion, and belonging at all levels of the organization. They appreciate value-inclusive policies and practices that go beyond mere representation.  Most importantly, they expect employers to take clear stances on social justice issues.

5. Mental Health Aware

From TikTok hashtags to Instagram reels, Gen Z is more open to acknowledging mental health issues than previous generations. This explains why 82% of respondents in a TalentLMS and BambooHR survey admit they want mental health days and not to be judged for taking them. It also explains why lack of work-life balance is the second reason Gen Zers would quit their job at any time.

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6. Global Mindset

Thanks to the internet and social media platforms, Gen Zers were exposed to global perspectives from a young age. No longer confined to traditional roles or cubicles, Gen Zers are following the steps of millennials and becoming digital nomads. 

6 Top Tips to Attract and Retain Gen Z Employees

Looking at the characteristics we’ve outlined, it’s clear that typical motivators, like perks, benefits, and incentives, may not be enough to attract Zoomers. A standalone, albeit great, remuneration package might not work, either. In addition to a competitive salary, here are surefire tips to attract, engage, and retain top Gen Z employees:

1. Embrace digital integration

Flexibility is crucial for Gen Z. A recent iHire survey found that 59% of Gen Z prefer flex time, and 45% say a four work week is a major draw. There are ways to fulfill this need:

a) Implement hybrid or remote work options

• Develop clear policies for remote and hybrid work
• Invest in technology that facilitates seamless remote collaboration
• Create digital-first processes that work equally well for in-office and remote employees
• Design office spaces that support both collaborative and focused work

b) Focus on results rather than hours worked

• Implement results-only work environments (ROWE) where feasible
• Train managers on outcome-based performance evaluation
• Use project management tools that track progress and outcomes
• Encourage asynchronous work where possible to accommodate different schedules

2. Purpose-Driven Work Environment

For Gen Z, a job isn’t just a paycheck— it’s an extension of their personal brand and values. A staggering 93% of Gen Z workers consider a company’s impact on society when deciding where to work. And they’re not just looking for surface-level corporate social responsibility; they want to see how their daily tasks contribute to larger, meaningful goals. Fulfill that desire by clearly articulating your mission and showing how each role contributes to it.

3. Prioritize diversity, equity, and inclusion (DEI)

As mentioned earlier, Gen Z is the most diverse generation yet, and they expect workplaces to reflect this diversity. A Monster survey found that 83% of Gen Z candidates say that a company’s commitment to diversity and inclusion is important when choosing an employer.

To implement robust DEI initiatives at all levels:

• Conduct regular diversity audits and set measurable DEI goals
• Provide ongoing DEI training for all employees
• Create employee resource groups (ERGs) to support underrepresented groups
• Set targets for diverse representation in leadership positions

4. Continuous learning and skill development

Gen Z came of age during rapid technological change and economic uncertainty. As a result, they’re acutely aware that today’s in-demand skills may be obsolete tomorrow. According to LinkedIn, 76% view learning as key to career advancement. Here are several ideas to help Gen Z future-proof their careers:

• Create a formal process for employees to submit innovative ideas.
• Allocate resources (time, budget, mentorship) to develop promising proposals. Recognize and reward successful initiatives.
• Borrow Google’s “20% time” policy that allows employees to spend a portion of their work time on self-directed projects. Ensure this time is protected and respected by management.
• Showcase successful projects that emerged from this initiative.

5. Authentic leadership and transparent communication

Having grown up with access to vast amounts of information, Gen Z has finely tuned authenticity detectors. They value leaders who are genuine, admit mistakes, and communicate openly. In fact, lack of trust is the main reason 72% of Gen Z workers cite for leaving their current jobs. Companies that foster a culture of transparency and authentic communication are more likely to earn Gen Z’s trust and loyalty.

6. Holistic well-being support

Gen Z’s approach to mental health and well-being radically differs from previous generations. They view mental health support not as a luxury but as a fundamental right. Interestingly, they also report more mental health challenges than other cohorts in history. Consequently, comprehensive well-being programs that address cognitive, emotional, and physical health are no longer optional—they’re essential for attracting and retaining Gen Z talent.

Closing Thoughts on Embracing the Gen Z Workforce

If you successfully integrate Gen Z, you’ll future-proof your organization for the evolving world of work.

Still, Gen Z is not a monolith. While these general trends and preferences may cut across, each individual brings their unique experiences, skills, and aspirations to the table. The most successful organizations will be those that remain flexible, continuously seek feedback, and adapt their approaches as they learn more about their Gen Z employees. If you are interested in learning more on how to recruit Gen Z feel free to schedule some time with our experienced benefits experts at your convenience.

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