Best Practices for Recruiting, Retaining, and Managing Gen Z Employees

At present, Gen Z employees comprise 24% of the global workforce, a number that will only climb as they continue to age into full-time positions. The changing expectations of this new generation of workers means that modern HR leaders need to expand their talent management strategies. Talent management is not one-size-fits-all — it’s a variety of strategies that enable the recruitment, retention, and management of top talent from all generations. In a competitive talent market, understanding what it takes to recruit and retain Generation Z employees is crucial for continued success.

Key Motivators for Gen Z Workers

As times change, so do the factors that motivate each generation of the workforce to accept a position and remain with the company. As organizations gear up for an influx of Gen Z employees, understanding what factors contribute to their career decisions will help you to create a recruitment strategy that not only attracts the best talent but works to retain it as well. Recent trends show that Generation Z talent prioritize companies that act on diversity, equity, and inclusion promises, foster career growth, and offer flexibility:

1. A focus on workplace diversity — Generation Z is the most diverse generation of workers yet, so it should come as no surprise that they care deeply about fostering environments of diversity, equity, and inclusion at their workplace. It is no longer enough to simply provide statements supporting diversity or to implement surface-level inclusivity measures. Job seekers today want proof that their potential employer truly values diversity, and they want to see continued commitment with real results. Many Generation Z workers take the time to evaluate potential employers before interviewing and accepting positions to see whether they prioritize DEI. To stay competitive in the recruiting space and attract top Gen Z talent, organizations need to find ways to prioritize diversity, equity, and inclusion and weave it into the culture of their company.
2. Flexible work environments — There’s a difference between the kind of flexibility that Gen Z workers are seeking and the kind that older working generations prefer (we’ll touch on this more later). Tech-savvy and digitally native, Gen Z workers appreciate work environments that allow for some degree of remote work. After the effects of the pandemic on workplaces, many Gen Z employees have become accustomed to working from remote locations, whether from home, a coffee shop, or a coworking space. Consider offering flexible work schedules to bring in more Gen Z applicants. What this looks like will be different for each organization, but there are plenty of options for leaders to consider. Some workplaces are embracing a fully remote format, while others are implementing flex or hybrid schedules that allow for some remote work during the week.
3. Career advancement — Generation Z employees want to know that their employer has a clear plan in place for their career development. As the job market recovers from the uncertainty of 2020, the average Gen Z worker is looking for long-term stability and career growth opportunities. The younger generation of workers wants to stay in their role for at least a few years, but stability alone isn’t enough to keep them in a role. Studies show that 75% of Generation Z workers want to quickly advance up the ladder at their organization and have opportunities for promotion within the first year. Recruiters and HR leaders use this to their advantage when it comes to attracting and retaining Gen Z workers by offering clear promotional tracks. When organizations fail to communicate professional development plans and opportunities, they risk missing out on top Gen Z talent.
4. Mentoring and coaching — Gen Z workers want to learn from people from different backgrounds and generations — a desire that goes hand-in-hand with their need for a diverse work environment and career advancement opportunities. One great way to achieve this is through a mentoring and coaching program.  Mentoring and coaching from peers and leadership help to establish human connections in an increasingly digital world and foster professional, supportive workplace relationships.Discover 9 New Ways To Recharge Your Recruitment Department With This Checklist

Managing Millennials vs. Gen Z

Just like you need to customize your strategies for recruiting Gen Z employees, leaders also need to adjust their management strategies to better engage and retain their workers. Understanding the differences between Millennial and Generation Z employee values will help you to attract a variety of candidates and create a culture of engaged and loyal employees. Below, we break down three of the main differences between managing your Millennial workforce and your Generation Z employees.

1. Craving a healthy work-life balance vs. a desire for salary advancement — Generation Z is shaping up to be more financially driven than previous generations. With a distaste for risk, Gen Z would prefer to undergo as much training or education as necessary to secure their role and advance their career. Millennial workers are ones that prefer the kind of independence that gives them ”purpose and a voice,” whereas Generation Z wants practical skills that translate to higher-paying jobs. HR managers can capitalize on this by customizing their approach to workplace incentives. Where flexible work-life benefits such as additional paid time off and flexible scheduling might motivate your Millennial employees, research indicates that monetary benefits are a much more impactful way of motivating your Gen Z workers.
2. Job hopping vs. stability with a company — As many HR leaders are aware, the Millennial workforce is one that is willing to move around jobs and companies until they find a fit that works well for them. Generation Z, on the other hand, prefers stability in their jobs and aims to stick with their chosen company for a longer period of time. Recent studies have shown that 51% of Gen Z employees expect to stay at their first full-time job for at least three years. This is a stark difference from the Millennial workforce, often referred to as the “job-hopping” generation. The significant impacts of unemployment on Generation Z workers and the turbulent job market mean that Gen Z wants some security in their careers. Managers can capitalize on this by providing flexibility in their workplace formats while creating a sense of job security and offering opportunities for internal growth.
3. Using encouraging feedback vs. being honest and direct — Both Millennials and Generation Z workers prefer consistent and timely feedback, but the kind of feedback you provide makes a difference to these two generations. Millennial workers prefer having conversations built around encouragement. Generation Z workers prefer feedback that is transparent and straightforward. And despite their status as digital natives, a vast majority of Gen Zers — 84%! — prefer receiving feedback face-to-face.    Both generations do share a need for clear, regular communication and feedback. Understanding the nuances of feedback styles will help you to better motivate and engage employees of any generation.Bonus Material: Read up on the latest tips and best practices for recruiting for remote roles. Generation Z workers are ambitious and ready to jump into the workforce, but a lack of qualified candidates and high demand for talented workers means that organizations are sure to face recruitment competition. By understanding the demands of the youngest set of job seekers, HR leaders can create a strategy to attract, retain, and manage Generation Z employees. Tailored recruitment strategies lead to better hires and foster a workplace with high levels of engagement, productivity, and loyalty. 

With the right Talent Management and employee engagement strategies, organizations can find and keep their A Players of any generation. ClearCompany’s Employee Engagement Suite helps HR leaders to facilitate consistent feedback, foster heightened morale and teamwork, and listen to the needs of their workplace. With tools like employee surveys, managers can quickly assess the sentiment of their staff and gain insights into what they can do to better support the needs and ambitions of their new and current workforce.  

To learn more about how our award-winning software solutions can help you to better recruit and retain Gen Z employees, reach out to our team of experts and start your free demo now.