Engaging And Retaining Gen Z Talent
How does an organization begin the shift to a more agile mindset?
Posted on 09-16-2019, Read Time: Min
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Approximately six percent of today’s workforce is made up of the generation that was born from 1997 and beyond: Generation Z. Just as Boomers, Generation X and Millennials each have unique approaches to learning, growing their career and training their team, Generation Z brings a new set of considerations that require HR teams to use a fresh approach to attract and retain employees—and this begins with engagement.
Employee engagement is critical. However, there is a macrotrend of employee disengagement across today’s workforce, and it’s costing global economies billions of dollars annually (according to Gallup’s 2018 State of the Global Workplace Report). Also, with job switchers realizing more than five percent wage growth (according to ADP Research Institute’s most recent Workforce Vitality Report), it truly pays for employees to change jobs if they feel unsatisfied with their situation. Engaged employees, on the other hand, enjoy lower turnover, and in turn, organizations flourish with increased stock prices, greater productivity and higher customer satisfaction.
Generation Z is clearly important; therefore, understanding how to engage this emerging generation is critical to companies that want to succeed in the next decade and beyond.
Employee engagement is critical. However, there is a macrotrend of employee disengagement across today’s workforce, and it’s costing global economies billions of dollars annually (according to Gallup’s 2018 State of the Global Workplace Report). Also, with job switchers realizing more than five percent wage growth (according to ADP Research Institute’s most recent Workforce Vitality Report), it truly pays for employees to change jobs if they feel unsatisfied with their situation. Engaged employees, on the other hand, enjoy lower turnover, and in turn, organizations flourish with increased stock prices, greater productivity and higher customer satisfaction.
Generation Z is clearly important; therefore, understanding how to engage this emerging generation is critical to companies that want to succeed in the next decade and beyond.
Understanding the Differences Between Millennials and Generation Z
Before addressing how to keep Generation Z engaged, it’s important to make a distinction between Gen Z and their predecessors, Millennials.
At first glance, both groups share some similarities: they are more diverse and open-minded than previous generations, they grew up with the Internet, so using mobile devices are a core a part of their lives, and they lived through the Great Recession from 2007 to 2009. However, these factors and the impact they had at their young age is what also differentiates them.
Generation Z has been shaped by the recession and the slow recovery that followed. Financial instability caused this generation to be more pragmatic than Millennials, who came of age during a time of economic expansion, which was followed by a weak and inhospitable job market post-college.
When this is translated in the workplace, the Generation Z employee tends to seek an organization that values stability, trust, equality, and corporate social responsibility. These employees look for a strong corporate culture and identify with a dynamic team mentality that shapes how works happen, including improved engagement, insight and performance.
Beyond a paycheck, the emerging generation craves innovation, involvement, influence, and growth, which are part of a strong company culture and a valuable piece to employee engagement. For companies that wish to attract and retain an engaged Generation Z workforce, a healthy company culture is a “must-have” rather than a “nice-to-have.”
At first glance, both groups share some similarities: they are more diverse and open-minded than previous generations, they grew up with the Internet, so using mobile devices are a core a part of their lives, and they lived through the Great Recession from 2007 to 2009. However, these factors and the impact they had at their young age is what also differentiates them.
Generation Z has been shaped by the recession and the slow recovery that followed. Financial instability caused this generation to be more pragmatic than Millennials, who came of age during a time of economic expansion, which was followed by a weak and inhospitable job market post-college.
When this is translated in the workplace, the Generation Z employee tends to seek an organization that values stability, trust, equality, and corporate social responsibility. These employees look for a strong corporate culture and identify with a dynamic team mentality that shapes how works happen, including improved engagement, insight and performance.
Beyond a paycheck, the emerging generation craves innovation, involvement, influence, and growth, which are part of a strong company culture and a valuable piece to employee engagement. For companies that wish to attract and retain an engaged Generation Z workforce, a healthy company culture is a “must-have” rather than a “nice-to-have.”
Developing Healthy Company Cultures: An Agile Approach
The key to fostering a company culture that fully engages Generation Z is to develop an agile approach to employee and career development. It’s time to take away the boxes and accept that one size no longer fits all. Generation Z demands collaborative and open environments that foster communication. They want work cultures that are geared toward individual needs, emphasize the most positive capabilities in people and commit to utilizing them.
In addition to creating a strong support network for these younger employees, it’s essential for business leaders to establish clear protocols for measuring all aspects of engagement, performance and voluntarily turn over to identify clear trends, pain points and areas for improvements.
How does an organization begin the shift to a more agile mindset? To help kickstart the process, here are some thought starters that can help move an organization into the next generation:
• Instead of: Focusing on job candidate experience and education
• Think about: Paying attention to skillsets and strength identification
• Instead of: Lengthy annual performance reviews
• Think about: Offering short snapshots of employee feedback
• Instead of: Hosting webinars and classroom training
• Think about: Creating mentorship and shadowing programs
• Instead of: Following linear career ladders
• Think about: Developing career mosaics with lateral and vertical movement
• Instead of: Governing by leader decision and delegation
• Think about: Assembling employee focus groups and task forces that have autonomy
• Instead of: Querying satisfaction surveys annually
• Think about: Using strategic and focused pulse point surveys
• Instead of: Adhering to the way it’s always been done
• Think about: How can we do it better now and in the future?
In addition to creating a strong support network for these younger employees, it’s essential for business leaders to establish clear protocols for measuring all aspects of engagement, performance and voluntarily turn over to identify clear trends, pain points and areas for improvements.
How does an organization begin the shift to a more agile mindset? To help kickstart the process, here are some thought starters that can help move an organization into the next generation:
• Instead of: Focusing on job candidate experience and education
• Think about: Paying attention to skillsets and strength identification
• Instead of: Lengthy annual performance reviews
• Think about: Offering short snapshots of employee feedback
• Instead of: Hosting webinars and classroom training
• Think about: Creating mentorship and shadowing programs
• Instead of: Following linear career ladders
• Think about: Developing career mosaics with lateral and vertical movement
• Instead of: Governing by leader decision and delegation
• Think about: Assembling employee focus groups and task forces that have autonomy
• Instead of: Querying satisfaction surveys annually
• Think about: Using strategic and focused pulse point surveys
• Instead of: Adhering to the way it’s always been done
• Think about: How can we do it better now and in the future?
Putting an Agile Mindset into Action
While Millennials currently represent the largest workforce segment, that percentage will surely decline as Gen Z—the U.S’ largest-ever generation—enters the working population. As illustrated above, the old models of thinking will no longer suffice when trying to engage this emerging generation; however, the following are a few ways companies can shift toward a mindset that prioritizes this generation:
• Instead of: Focusing solely on culture and engagement at a high level
• Think about: Approaching employee engagement from the ground level by developing a consultant advocacy program, a diversity & inclusion committee and/or an emerging professional network
• Instead of: Viewing corporate philanthropy as optional
• Think about: Leading with philanthropy by creating Devote-a-Day days for volunteer and community work or even community mentor programs and speaking engagements; set up a philanthropy fund where the organization matches donations
• Instead of: Viewing organizational structure with a traditional, hierarchical lens
• Think about: Encouraging collaboration on a team level by creating an internal collaborative intranet; create task force groups that encourage employee involvement and innovation; host annual and quarterly division summits, recognition programs, awards, and other events
The workforce is changing, and the ways companies seek to hire and retain employees is changing, too. As HR professionals, it is important to adapt to the changes that each generation brings and shape company culture to one that keeps employees engaged.
• Instead of: Focusing solely on culture and engagement at a high level
• Think about: Approaching employee engagement from the ground level by developing a consultant advocacy program, a diversity & inclusion committee and/or an emerging professional network
• Instead of: Viewing corporate philanthropy as optional
• Think about: Leading with philanthropy by creating Devote-a-Day days for volunteer and community work or even community mentor programs and speaking engagements; set up a philanthropy fund where the organization matches donations
• Instead of: Viewing organizational structure with a traditional, hierarchical lens
• Think about: Encouraging collaboration on a team level by creating an internal collaborative intranet; create task force groups that encourage employee involvement and innovation; host annual and quarterly division summits, recognition programs, awards, and other events
The workforce is changing, and the ways companies seek to hire and retain employees is changing, too. As HR professionals, it is important to adapt to the changes that each generation brings and shape company culture to one that keeps employees engaged.
Author Bio
| Susan Hanold is Vice President, HCM Strategic Advisory Services specializing in HR, Talent and M&A Strategy at ADP. Connect Susan Hanold Visit www.adp.com Follow @ADP |
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