Generation Z is making headlines as it replaces millennials as the youngest generation in the workforce and introduces its own perspectives and approaches to work life. According to the United States Department of Labor, Gen Z accounts for almost one-fifth (18%) of the labor force, surpassing baby boomers. That number is expected to grow as more individuals from this generation graduate from college and enter the workforce.
With every new generation, there’s a learning curve for the generations that came before. Generation Z has already made its mark with its expectations for work-life balance, company culture and more. Still, perhaps the greatest challenge for employers with Gen Z talent is the turnover rate. Studies have found that approximately 65% of Gen Z employees leave their jobs within the first year of employment. It’s a staggering statistic, but Gen Z retention can be improved with the right policies and programs in place.
My goal with this article is to lay out small but effective changes you can make at your company to improve the retention of your Gen Z talent. It all boils down to understanding your Gen Z counterparts and developing an open narrative with them.
It’s a Balancing Act
At the top of Gen Z employees’ priorities in the workplace is their commitment to a healthy work-life balance. According to HR Brew , 32% of Gen Z employees rank work-life balance as the most crucial aspect of a job. It’s the main topic that separates them from millennials and Gen X, who prioritize compensation and benefits.
So, how do you create a space that rewards and prioritizes work-life balance? It starts with a flexible foundation. Identify roles within your company that may not need to be 100% in-person and offer hybrid or remote work for those positions. Giving employees more flexibility in their work schedule not only shows them they are trusted to get the job done but also encourages them to prioritize work-life balance in their day-to-day lives. Employees have more time for self-care when working from home. They can take breaks to exercise, prepare healthy meals or run minor errands. In fact, according to a study by Buffer, 53% of remote workers reported a better work-life balance.
Another way to foster an environment prioritizing work-life balance is by offering more comprehensive PTO packages. The standard two-week paid time off is no longer sustainable, as Gen Z is particularly more interested in travel than previous generations. Gen Zers often prefer to spend money on experiences rather than luxury goods, a trend also seen among millennials.
This evidence suggests that a more comprehensive PTO package with more days than the standard two weeks would go a long way with Gen Z employees. Companies will find that employees return to work from vacations renewed and energized.
Company Culture
One of the biggest differences that separate one employer from another for Gen Z talent is the company culture. Team building can significantly improve Gen Z retention. However, team-building activities should not be mandatory. Instead, encourage participation by ensuring every team member is covered and can leave their desk to participate.
Team building humanizes team members among each other. It allows them to separate the work from the person and see their colleagues in a new light. Building bonds within the workplace reduces the likelihood of quick turnover. When Gen Z has trusted colleagues and friends in the workplace, they are more likely to stay longer, as it adds another perk to their employment situation.
Another way to improve company culture is to introduce an open-door policy. Creating an open dialogue with employees, especially Gen Z employees, allows them to share any thoughts, struggles or grievances they have. It’s always better to find out what is making an employee uncomfortable or unhappy at their job as it is happening rather than when they’re putting in their two weeks’ notice.
An open-door policy gives companies the opportunity to evaluate employees’ frustrations in real time and course-correct or offer solutions before the employee decides to look elsewhere.
Career Progression
Many companies do not invest in their current employees by offering training programs, resources and mentorship programs. Often, Gen Z employees leave their current workplace to progress in their careers, whether it’s a title change upward or a salary increase (or both).
By offering Gen Z employees the resources and tools needed to grow in their specific field, it makes it easier for them to climb the ladder of success and develop professionally in their roles.
Mentorship programs also offer another layer of help to employees looking to grow and learn more in their fields. This helps them connect with individuals in their field and learn how they got to where they are today. Mentors can also provide a safe space for employees who may not feel comfortable confiding in their managers or direct team members. Mentors can offer proper guidance and constructive feedback without the underlying pressure from their boss or direct supervisor.
All these tools can be helpful, but the most important part of career progression is ensuring you consider your current talent for promotions rather than seeking new talent to fill roles. When you promote from within, you reduce the likelihood of high turnover. Investing in the talent already available and giving them opportunities to grow offers a positive outlook and shows them that there’s longevity at your company. When employees can see a bright and rewarding future at a company, they feel more inclined to stay. If there’s no way to grow upward, they are more likely to seek other opportunities.
Speak the Language of Tech
Gen Zers are even more tech-savvy than their millennial counterparts. If your systems and processes are outdated and not tech-forward, it could drive away some of your most promising employees. With platforms like Beekeeper, you can make onboarding new employees easier, engage directly with teams and employees across the entire company, and celebrate the successes of individuals and teams.
If your company is spread out with employees in different cities, locations, branches, etc., using a tool like Beekeeper helps create a sense of community among employees and welcomes interactions across teams who may not otherwise collaborate in their typical day-to-day activities.
Recognition and Praise
Yearly reviews are great and effective ways to analyze employee performance and gauge where promotions are necessary. However, they should not be the only touch point that leadership has with its Gen Z employees, let alone the rest of the talent in your organization. When an employee has to wait a whole year to receive any constructive feedback on their work, it stalls their growth. In that time, they could’ve been tackling areas where growth is needed.
It’s important to offer Gen Z employees additional touch points prior to their annual reviews. These can be weekly, biweekly, monthly or quarterly; it ultimately depends on what works best for your company. However, multiple touch points give employees opportunities to grow, provide feedback and request the proper resources they need to succeed in their current roles. It also sends a message to them that you care about their development and want them to succeed and grow at your company.
Providing various touch points also gives employers the opportunity to celebrate employees’ successes. Recognition in the workplace is essential to creating a positive company culture and improving employee satisfaction. Work can sometimes feel thankless, especially in the hospitality industry, where employees must cater to many different personalities and individuals. A little recognition for a job well done can go a long way.
It Goes Beyond the Office
We’ve already touched upon ways to build trust, like creating an open-door policy, offering flexible work-from-home schedules, and introducing a trusted mentorship program. One final tool to build trust among your Gen Z employees is to introduce an employee assistance program. These programs are great for helping with personal and/or work-related issues. Whether it’s financial services, family and marital issues, stress management or even mental health counseling, knowing that their employer cares about their lives even outside of work contributes significantly to the wellness aspect Gen Z seeks from employers.
In turn, when employees are less stressed in their personal lives, they are more likely to perform better at work. It’s a win-win situation for both parties.
The More You Know
It can definitely be challenging to get to know a whole new demographic of employees. Gen Zers may be different, but they’re not difficult. You’ll find that your Gen Z employees are some of your most driven and promising employees. Nurture their growth, recognize their wins, reward their hard work, and, most of all, communicate! Ultimately, they seek employers that offer a healthy work environment with a strong work-life balance. To retain these employees, build a level of understanding, create an open dialogue and ensure they know they can grow right where they are.
Small changes can make a huge impact on the satisfaction of employees and the likelihood of them sticking around for the long run. The first step is wanting to retain your talent. You’re already headed in the right direction.
Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com.
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