Five Gen Z employee retention strategies

Gen Z is expected to outnumber Baby Boomers in the full-time U.S. workforce this year, making them the fastest growing generation of workers. Attracting and retaining them is critical to organizations’ competitiveness and success.

Eagle Hill’s Employee Retention Index finds that compared to other generations of workers, Gen Z has a very different experience of the factors that influence employees’ intent to stay or leave their jobs. This is especially true of their experience with organizational culture and their confidence in their organization and leadership. 

A comprehensive employee retention program is crucial for attracting and retaining Gen Z employees, as it addresses their unique job satisfaction and engagement factors. Our extensive workforce research reveals what matters most to Gen Zers and where employers should focus to influence Gen Z employee retention:

Create a flexible work environment with a strong culture. 

Flexible work environments are a crucial part of broader employee retention efforts, and according to our research, workplace flexibility is much more important to younger workers. In fact, sixty percent of Gen Z workers would look for other employment if remote work were scaled back while just 47% of the overall workforce would. Given that company culture is so key for this generation, employers should take steps to build culture in ways that work in hybrid and remote settings. 

Support employee mental health well-being holistically.

Worker burnout is highest among Gen Zers with 54% reporting burnout, compared to an overall average of 45%. Gen Z workers are also the most likely to say they haven’t taken time off in the last 12 months (46%). The biggest causes Gen Z cites for their burnout are lack of work-life flexibility, communication, support, and feedback. Creating a more flexible work environment with a performance culture that prioritizes development, clearly articulates expectations, and encourages collaboration is key to addressing these issues.

Respect how central tech is to the Gen Z experience. 

Gen Z’s digital savvy influences every aspect of their experience at work. For example, our research shows that Gen Z is more likely than Gen X (2x) and Baby Boomers (5x) to say that coming technology change at work will decrease their stress. With Generative AI a massive force of change in the workplace, it will be especially important for organizations to consider AI adoption through a Gen Z lens. Additionally, using technology for professional development can improve the Gen Z employee experience and benefit your organization’s financial health.

Insist on an inclusive culture. 

Gen Z workers seek out inclusive work environments where they feel respected, valued, and can be their authentic selves. In fact, 77% of Gen Z workers (compared to 53% overall) say that when considering who they work for, a company’s inclusion strategies are a key factor in their decision. Effective inclusion strategies create a supportive and engaging workplace that contribute to job satisfaction and retention.

Champion career growth through internal opportunities and professional development.

Effective retention strategies are crucial in promoting career growth for employees. Our research on internal mobility shows that nearly half of younger workers are concerned about negative repercussions if they openly express interest in new roles within their organization. This is why it’s critical for leaders to be positive ambassadors of internal mobility and build a culture that encourages—and expects—it.