Pay is a factor in whether I stay in a job or not, but it is not the only one. The values of the organisation need to mean something to me, and I need to see them in practice. Otherwise they are just words.

Gen Zer 2022

The battle to retain

The graph below is from the 2021 Deloitte Global Survey of Gen Zs and Millennials. It does not make easy reading for leaders and organisations.

The dark green bars on the right refer to Gen Z (years of birth 1995-2009), light green to Millennial (1980-1994). Note that data collecting only started in 2018 for Gen Z (as that is when they entered the workplace), and that the implications are greater with each passing year as more start their professional lives.

In each year a higher proportion of Gen Zs expect to leave their job within two years when compared to Millennials, and at least half expect to do so in each set of data.

The pandemic is the likely factor for why figures dropped in 2020 and 2021. However the 2022 Deloitte global survey has recently been published and it shows the trend continuing.

Always. Be. Retaining?

Retention may still be a very high priority, perhaps the priority for a number of organisations but the evidence is that it may not be as difficult as it once was.

A number of points here

The fact that an employee intends to leave may be a strong indication that they might, but it does not necessarily mean they will go.
There are often costs associated with retaining employees, whether as an increase in salary or other benefits.
Deloitte’s analysis is that if an employee has recently moved then it is less likely they will move again. I take the point but am not convinced it is necessarily the case, particularly as the cost of living crisis has meant many looking for alternatives.
The question in itself is a little limiting, as it implies that a ‘single job’ remains the norm. The evidence is that the rise of the side hustle and portfolio career has meant multiple income streams. The ‘main job’ may stay in place as the side hustle changes and vice versa.
The phrase ‘expecting to leave’ is often taken to mean that employees are actively looking for their next best option. It can also mean that they expect their organisation to let them go, merge and reduce in size, or to fold. ‘Expect to leave’ does not necessarily mean by choice.

This cuts both ways. Employees’ trust that they will be retained is not what it was. Covid cuts hit the youngest first. Changes in employment practices, such as the move to zero hour contracts/gig economy, tend to affect them more than any other age group too. Contracting out has a much greater impact on the shop floor, and the lowest paid, than at director level. More on that theme here.

Three main trends

Combining the figures in the charts above, three main trends stand out.

The figures are high, ranging between 24% and 60%. Even the lower end of that feels like a high turnover rate to me, with high recruitment/induction/training costs to go with it.
The numbers expecting to move on dropped during the pandemic, perhaps as a result of hanging on to what you’ve got. Some may still be in that position or, as Deloitte indicates, having just moved they may not look to move again so soon.
The gap between the numbers of Millennials and Gen Zs who expect to move on is marked, and grew over the course of the pandemic.

Also the figures are worse in particular industries as Deloitte indicates. The figures below may cover a range of ‘public-facing’ industries but it includes the public and private sectors.

Despite the signs that the crisis may be abating, recruitment and retention remain highly significant issues. The solutions to both start with one very key concept to Generation Z.

Authenticity counts

The battle for retention starts pretty much as soon as your GenZ employees arrive and does not let up. The key is that they need to find what was described on appointment.

If you want to recruit high quality members of this generation in the first place you also need to think hard about who does the describing and in what format. Gen Z has spent their lives surrounded by clickbait. It takes longer to convince them that what you are saying may be true.

Text on a website only goes so far. In fact, websites themselves only go so far. The quality and consistency of messages across social media channels matter too. Partly that is because what a Gen Z may reach for, but also because social media channels are full of images and video. Video is the most effective method as it conveys the greatest level of transparency. We may not be far off the day when artificial intelligence can create video testimonials from recently recruited staff but we are not there yet.

You need to go further than you might feel reasonable in terms of being open and transparent. Vulnerable even, there is nothing wrong with saying ‘these are our weaknesses and this is how you can help’. You may find this piques interest, in that the role is something more than coming in at the bottom of an organisation.

As indicated in the last blog, be clear who you are and what you stand for. Having established that you need to keep saying it. This generation is used to the repetition of messages. If they stop they may wonder why, and what the implications might be.

They will also look for evidence elsewhere, including websites such as Glassdoor. Interacting with websites such as these needs a blog in itself, but suffice to say it does matter. Gen Z may also be far more perceptive than you might realise in filtering out messages from aggrieved ex-employees they are grateful not to have to work with.

Maintaining the narrative of ‘where your organisation is going, why it is going there and how’ really matters. When it looks as though you will have to change course, say why early on. Connecting the workforce to decisions made at the centre offers a great deal of reassurance. Keep bringing the core messages to life, and ensure others do the same.

It is so much harder in the modern age for messages to cut through. Your challenge is not only to ensure yours do so but to keep them live once they have.

Messages alone only go so far. They need to see them in action.

Diversity, Equity & Inclusion

As established in this blog, Gen Z is more diverse. As a result, it matters far more to them.

They will also spot very quickly if an organisation which claims to prize DEI has a top table which indicates the opposite. The chart below from Tallo - global survey in 2020 makes a valuable point. If you want to recruit and retain effectively Gen Z needs to see that you mean what you say.

There is more to diversity than ‘ethnicity and race’ but it does illustrate a point. Put yourself in the position of the Gen Z looking for a job with an external view on how you come across. What you say and what you are needs to match up.

A changing population

Since my blog on diversity further analysis on the 2021 census has been published. Unsurprisingly it shows the trends from 2011 continuing. The figures below are from England and Wales.

Not only has the White British population fallen as a percentage, but it has also done so in size. This is despite the fact that the population has risen by 6.3% as a whole.

Populations change for two reasons. The first is migration trends and the second is birth/death rates. The average age of the White British population in 2021 was 43, ten years older than any other group.

Any top table comprised mostly or wholly of white men, is therefore not only predominantly white and male but is getting older. Increasingly it is a turn off for the youngest generation in the workplace. As a window into your organisation it does not augur well for your other problems.

Discrimination matters

The Tallo Gen Z survey referenced above stated that 77% have seen discrimination and 51% have felt discriminated against.

Ipsos Mori found in 2017 that only 66% of Gen Z considered themselves to be exclusively heterosexual, compared to 85% of Gen X.

In addition Tallo found that 10 percent of Generation Z regards prejudice toward the LGBT community as one of the most pressing issues in the world today, as compared to only 2 percent of Millennials, Gen X, and Baby Boomers who believe the same.

Gender identity was the subject of a question in the 2021 census for the first time. Only 0.5% of the whole population stated their gender identity was neither male nor female. The breakdown by age is not yet available but I strongly suspect it will be higher for Gen Z.

Your commitment to diversity and inclusion needs to be seen and heard in actions and outcomes. It is not difficult to commit to anything, but designing processes and challenging mindsets that have a palpable impact takes time and effort.

This should be considered as an investment. In this day and age it will make a highly significant difference in your ability to recruit and retain the best Gen Z talent. Being who you say are does not happen overnight, and demonstrating the journey to getting there will only help you on the way.

Alex Atherton bio

Other blogs:

Click for the first blog summarising who Gen Z are and why they are different.

And then for the Key Characteristics:

no.1 - Well-Behaved

no.2 - Prudent

no.3 - Pragmatic

no.4 - Diligent

no.5 - Apprehensive

no.6 - Diverse

no.7 - Patience

Accompanying videos are all here and also on YouTube