Gen Z on the Rise: Engaging and Retaining Talent for Long-Term Success

When you think of a Gen Z employee, what do you envision? For some, said moderator Katie Johnston, reporter at the Boston Globe, there are positive stories: “They are good at technology, and they love to learn, and they emphasize work-life balance, which is good for everybody in the workplace.” But there are some negative stories too: job applicants who won’t return calls, candidates who ghost interview appointments, a disregard for return-to-work policies, or even new hires who don’t come to their first day of work. How can leaders support this generation, cultivate their skills, understand and embrace their differences, and set them up for success? Leaders, including moderator Johnston of the Boston Globe, spoke during a panel discussion at From Day One’s Boston conference to address the topic. Guiding the Youngest GenerationPanelists share that Gen Z workers are some of the most empathetic and innovative they have encountered. Parker Pell, co-founder of Abode, says that it was a Gen Z intern at Spotify who created the platform’s viral sensation “Spotify Wrapped.” Cheri Hurtubise, head of university & diversity recruiting, Americas & talent acquisition manager at Siemens Healthineers says she enjoys mentoring this generation of workers. “Opportunities for coaching abound, but it's a really great population to work with,” she said. Some of those opportunities include, for example, teaching basic phone etiquette that came more naturally to older generations, says Diana Frascella, VP of talent acquisition at DraftKings. Many of Gen Z’s challenges, Johnston says, stem from the pandemic, which caused many of them to miss out on formative in-person social and professional growth opportunities at school or work. This can be mitigated through better onboarding training among managers. Panelists shared their insights on supporting Gen Z in the workforce Leaders should not assume new hires will know how to dress for the office or communicate appropriately over Slack, email, or Zoom, says Frascella. “This is also a generation, more so than others, that really craves feedback,” Frascella said. “That’s a nice way for managers to be able to reinforce the positive behaviors that we need to see at work, or also sharing, ‘This is not acceptable,’ or, ‘Here's how you could have done it better.’ We can’t hold people accountable for things we are not telling them.”Gen Z craves stability, says Hurtubise, but due to a disrupted pandemic upbringing and the 9% unemployment rate among 18 to 23-year-olds, they are reluctant to trust established structures.They crave face-to-face interaction, even though they don’t always know how to navigate it. Hurtubise suggests mentoring and educating young employees on the context behind their work, to give them a sense of purpose and avoid boredom while doing entry level work. “Focus on skills and competencies. What is it that you’re learning? What are the things you’re contributing to? They are a purpose-driven generation. If you show them a path that has purpose, they will engage with your company a lot longer.” Pell’s organization found in a survey of employees, only 3% of young new hires shared that they felt like they had been “overcommunicated with” by leaders. “They want more and more communication,” he said. “I think having multiple mediums with which you share this information is of utmost importance.”A New Definition of Achievement Gen Z’s desire for long-term career growth can be paired with rewards and recognition programs, says Erika Marder, head of global R&D HR at Takeda. The organization has a talent marketplace that offers not only new internal role opportunities but also stretch projects. “Maybe they want to sample something and get some new experiences and get some achievement from that without making maybe a full commitment, or they want to look for a new opportunity. That’s one way that we promote learning,” she said. And since Gen Z is so purpose-driven, Takeda allows employees to put their rewards points toward charitable giving in addition to traditional swag prizes. Siemens Healthineers also offers “micro-credentials” for entry-level employees, says Hurtubise. For example, interns get a certificate upon completion of their graduation, which she notes is especially valued by international workers. And because Gen Z is more hesitant when networking than previous generations, the company also offers more structured connection opportunities through employee resource groups (ERGs). In terms of compensation, Edward Zaval, chief customer officer at DailyPay, says Gen Z’s expenses don’t align with traditional pay cycles. “There’s a fundamental disconnect between the way Gen Z lives their lives and how they’re paid. They have this on-demand world, yet their payroll is stuck on this archaic two-week cycle,” Zaval said. “The other thing is that they are more likely not to want to delay experiences. When my kids decide today, on Tuesday, that they want to go to a concert this weekend, they’re going to go,” he said.The gig economy is an extension of this. “Employers, take note: Your Gen Z employees have a side hustle,” Zaval said. “They are getting paid daily. [Then] they’re taking that expectation and they’re carrying it over into the general workforce.” Through independent surveys, Zaval has found that one third of Gen Z employees would consider leaving their current position in favor of flexibility or getting paid more frequently. Financial instability is impacting most generations in the workforce, but Gen Z is feeling it most acutely. “We want to take them on a journey that begins with, for example, on-demand pay or earned wage access, where we give them no-fee options to help them avoid late payment, penalties, [and] interest,” said Zaval. From there, provide education on cash flow management, savings, credit cards, retirement saving, and even health insurance, since many are still on their parents’ plans until age 26. This should be paired, Hurtubise says, with transparency on compensation and promotion opportunity timelines, so that young employees can realistically envision and plan for their future. The Culture of the Future“This generation, even more so than others, really cares about what their company stands for,” Frascella said. Gen Z employees show up to work as their full selves, and expect their company to be transparent in its identity in return. She suggests amplifying executive thought leadership, making statements on current events, and being transparent about corporate social responsibility as ways to better engage with younger workers. This can also mean giving workers a say in how they give back. “We allow our employees to vote for the charities that we’re going to support worldwide, and we have huge participation,” Marder said. “[And] we allow volunteer time off [and] have a very robust matching program.” Your interactions with, plans for, and opportunities to collaborate with Gen Z should all consider this generation’s unique perspective, technological prowess, and disrupted upbringing. “They have long-term visions and goals too,” Pell said. “Their whole life has been unstable. I think it’s a misnomer to think that they’re just thinking about short-term wins and short-term benefits and short-term successes. They’re really looking at what stability could look like at your organization.”Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost, Top Think, and several printed essay collections, and she has appeared on Cheddar News, iWomanTV, On New Jersey, and CBS New York.(Photos by Josh Larson for From Day One)