The Growing Force in the Workplace

Gen Z, born between 1997 and 2012, is rapidly becoming a major force in today’s workplace. This generation currently accounts for approximately 2 billion people globally and is expected to represent 27% of the global workforce by 2025. Unlike other generations, Gen Z have grown up completely in the digital age, making their high proficiency in technology a distinguishing characteristic. This technology fluency plays a role in shaping their unique expectations around work, communication, and life balance. As the workplace continues to evolve, it is important for employers to understand ways to engage, manage, and retain Gen Z employees.

The Unique Attributes of Gen Z in the Workplace

The most notable difference between Gen Z and other generations is fluency in digital technology. Gen Z was raised with easy and convenient access to the internet and smartphones, making them highly adaptable to digital platforms and remote working environments, especially during the COVID-19 pandemic. Additionally, Gen Z employees are known to be entrepreneurial, many seeking opportunities for side hustles or starting their own businesses. According to a recent McCrindle report, only 14% of Gen Z students aim for traditional employment, with the vast majority looking to work on something they started themselves. This combination of entrepreneurial attitude and digital abilities therefore shape new expectations and approaches in today’s workplace.

Gen Z also values work flexibility and autonomy. A recent Deloitte survey demonstrates that nearly half (49%) of Gen Z view their job as central to their identity while family and personal life remain top priorities, with 42% valuing work-life balance as their career considerations. The desire for flexibility is part of the reason why Gen Z employees often switch jobs up to 10 times before they turn 34, explaining the phenomenon of “quiet quitting”.

Data from SuperFriend’s Indicators of a Thriving Workplace (ITW) Survey collected in March 2024, further revealed that only 62% of Gen Z workers intended to stay with the current organisation over the next 12 months, significantly lower than the 70% reported by other generations.

Why is work retention rate important to employers?

Improving workplace retention rates allow employers to avoid potential costs of replacing employees, which can range from 50% to 200% of an employee’s salary. The financial influence doesn’t stop there — hiring new employees can cost up to $40,000. Losing experienced employees also often requires additional time and resources to train the replacements, which can negatively impact overall productivity of the company. These statistics highlight the importance of prioritising retention strategies in maintaining workplace stability and productivity.

Intergenerational Dynamics in the Workplace

As Gen Z becomes a dominant force in the workplace, intergenerational dynamics are shifting rapidly. Each generation brings a unique perspective on work, communication, and leadership. Baby Boomers value hard work and relationship building, while Gen X prefers participative leadership that encourages team input. Millennials (Gen Y) enjoy collaborative problem-solving, and Gen Z brings strong digital skills, emphasising authenticity, transparency, and mental health.

Communication preferences also vary across generations. While most still prefer face-to-face interactions, Gen Z is more comfortable with digital communication. According to McCrindle, 87% of Baby Boomers prefer in-person meetings, compared to only 59% of Gen Z, who prefer online communication. Such differences highlight a need to consider the development of flexible communication strategies tailored to multigenerational dynamics.

The preferences for technical proficiency and collaboration also stand out as a distinctive characteristic for Gen Z. According to ITW March 2024 survey data, only 63.4% of Gen Z employees feel their tasks align with their strengths, compared to 69.1% of Baby Boomers. This highlights the importance of assigning tasks by taking unique skills and abilities of each generation into consideration.

Another characteristic particular to Gen Z is their focus on mental health as a priority. More than half (54%) of Gen Z workers believe that employers should prioritise mental health, with 56% comfortable discussing mental health concerns at work (higher than in older generations), as demonstrated by the ITW data from March 2024. While mental health is prioritised by Gen Z employees, only 56.10% report no barriers to accessing confidential counselling or support services, compared to 64.10% of Gen X. These statistics highlight the need for more accessible mental health resources to be provided in the workplace across generations.

What Can You Do To Increase Retention Rate for Our Youngest Workers?

Gen Z asks for more than just a pay check— they seek purpose, growth, opportunities, and social connections in their career path. As reported by McCrindle, 61% of Gen Z fear being stuck in unfulfilling jobs. A strong workplace culture, variety in job roles, and opportunities for professional development are key factors in retaining Gen Z employees. Nearly two-thirds (63%) prioritise career advancement in their career, and expect access to continuous learning through training, mentoring, and professional development programs.

Building a Collaborative, Inclusive Workplace Culture in Which our Youngest Workers can Thrive

Create a flexible working environment

Gen Z values flexibility and freedom in their work. Offering hybrid work options and flexible schedules is important to fostering productivity across generations. The ITW survey shows that only 43.7% of Gen Z has access to flexible work policies (March 2024), making it a top priority for improvement. Flexible work environments allow employees to better manage their personal and professional lives, leading to greater satisfaction and retention.
Embrace diversity across generations

Every generation brings its strengths and values to the workplace. Recognising and embracing the wisdom of Baby Boomers, the pragmatism of Gen X, the innovation of Gen Y, and the digital ability of Gen Z will create a more dynamic and productive environment. With an average of 76.4% reported across generations for the positive quality relationships at workshops (ITW, March 2024), encouraging cross-generational learning can lead to better collaboration and innovation.
Build a respectful culture

Respect is the foundation of a thriving workplace. While 85.90% of Gen Z reported treating others with respect within the workplace (ITW, March 2024), there is still work to be done in creating and effectively implementing policies that minimise discrimination. By fostering open communication and transparency, organisations can foster a respectful and inclusive environment where all employees, regardless of their age, gender and culture, feel valued.
Promote Mental Health Awareness

With the strong emphasis on mental health among Gen Z, promoting mental health awareness and providing access to support services can boost retention and job satisfaction. The ITW March 2024 survey data show that only 56.3% of Gen Z report having access to mental health education in the workplace, highlighting a critical area for improvement. Through promoting a mentally aware workplace by providing targeted resources, a psychologically safe environment can be created.

In today’s rapidly changing workforce, retaining Gen Z employees requires a deeper understanding of their values, work preferences, and career aspirations. By building a flexible, inclusive, and supportive workplace, organisations can come to realise the immense potential of this digital-savvy generation better. As Gen Z continues to shape the future of work, workplacs that embrace their needs and foster collaboration across generations will thrive. By prioritising purpose, mental health, and professional growth, employers can ensure that their youngest workers not only stay but thrive in their roles.

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