How do you build the loyalty of Generation Z?
Born between 1997 and 2010, the number of Generation Z workers will triple by 2030, to represent 30% of the payroll. Retaining Generation Z will therefore become a crucial issue for businesses. The change has already begun as Generations Y and Z are outpacing the number of Generation X and Baby Boomers workers.
And the stakes are high. LinkedIn data shows that Gen Z professionals are changing jobs at a 40% higher rate than last year, twice as much as Millenials.
To retain them, you must therefore offer something other than a reasonable salary. Now more than ever, businesses need to offer Gen Z elements benefits that speak to them: embodied values, flexible hours, opportunities, and transparency.
Bringing meaning makes it possible to retain Generation Z
80% of Gen Z workers take into consideration their alignment with the values of the company they are applying to, according to the LinkedIn Workforce Confidence Index. Thus, speaking out about values is no longer enough to appeal to the younger generation. The words put forward by the employer must be fully embodied. HR teams and managers must therefore provide evidence that demonstrates how values are lived from day to day.
In the study Education Future Report, we can read that the second biggest fear (61%) of Generation Z is “getting stuck in a job that doesn't bring a sense of accomplishment.” This fear comes just after the fear of running out of money to live comfortably (65%), and just before the fear of not reaching your full potential (54%). That's a generation that doesn't hesitate to change jobs in case of dissatisfaction. You could even call it “agitated” when you see that 25% of respondents say they hope to “change employers in the next six months” according to the LinkedIn Workforce Confidence Index. To retain them, it is better to provide them with more than remuneration and job security. Ideas he enjoys are collaboration, team-building events, continuing education, and personal development courses.
Making them understand that their work is having an impact is the key to retention. The more a young person from Generation Z is aware of their impact and sees meaning in it, the more satisfied they will be. It is therefore advisable to provide young troops with elements that can help them build their careers while helping them stay aligned with their own identity.
Corporate culture: a loyalty tool
Authentic relationships build the loyalty of Generation Z. Communicating, talking, and discussing with young Generation Z is essential, according to McKinsey, because they believe “that dialogue can resolve conflicts and improve the world.” When the nickname for Generation Y was the “Me Generation” (the “Me Generation”), that of Generation Z was “True Gen” (“Generation Truth”). In fact, the consulting firm's study reveals that the behavior of Generation Z is focused “on the search for the truth.” So forget labels and focus on the expression of their individuality, for example during moments dedicated to exchanges. This will allow you to resonate with young workers who do not hesitate to get involved in causes that are important to them.
It is also a generation that is more aware of mental health and well-being in general. If your company offers assistance in this sense, you are winning. Likewise, engaging in discussions with them about their mental state or activities outside of work can create a feeling that they belong to a community and that they are recognized. Praising them and considering their efforts is also a key to improving Gen Z retention.
Do not hesitate to encourage them to think for themselves and to give their opinion on issues that are important to them, such as the meaning, organization, and quality of relationships at work. Remember that, according to McCrindle, up to 62% of Gen Z workers consider the quality of relationships to be one of the main causes “that would encourage them to keep or leave their job.”
Finally, you earn points if your company promotes flexible hours or remote working. According to a Linkedin survey in January 2022, 72% of Generation Z consider leaving a job that does not offer these kinds of advantages.
Promote career progression and development to improve retention
Make no mistake: the retention of Generation Z employees will always be lower than that of Baby Boomers or Generations X and Y. The reason is simple: they have always been used to operating in a rapidly changing world and they had more choices in their studies than their elders. But there are ways to avoid too much turnover: young workers are mostly inclined to choose a job that opens doors and new possibilities. 3 out of 5 Generation Z workers believe that career opportunities are crucial in choosing a job. According to the latest Linkedin Workplace Confidence survey, 40% of them are “ready to accept a 5% reduction in their salary in exchange for career opportunities”.
Highlighting career and learning opportunities is crucial to satisfying Generation Z. It should be understood that they avoid at all costs entering a dead end path that would not offer them anything new in the next 30 or 40 years. Generation Z is demanding change and evolution. It is up to companies to provide them with the keys they are looking for to evolve in their careers. Continuing training is therefore becoming a way of retaining new workers. The numbers point in this direction: 52% of Generation Z workers see continuing education as essential for the development of their careers. It is good to note that learning methods have changed. Relying on mentoring or online courses are keys to satisfying these young workers: 86% of them have already taken virtual education. Also, young people from Generation Z are more kinesthetic and visual in the way they learn. Likewise, interactive games and teamwork are ways to help them learn new concepts and skills.
In conclusion, Generation Z is bringing something new to the world of work. More demanding than their elders about company values, they are always looking for ways to improve in order to be more efficient at work. This makes them demanding professionals who require companies to make an effort to communicate and be transparent. Dialogue seems essential to improve the retention rate of young workers on a larger scale.
