Gen Z at work: how to attract and retain young talent

Gen Z is making its mark at work. The socially aware, eco-conscious generation is set to make up just over a quarter of the workforce in OECD countries by 2025. Champions of equality, they seek workplaces that prioritise diversity and foster inclusivity. So, how should businesses prepare for this new wave of workers?

Our Talent Trends 2024 survey, a comprehensive global study of nearly 50,000 skilled professionals conducted by PageGroup, has uncovered key insights around Gen Z’s work trends and values. Companies must understand this new generation of workers, as they represent the future of your business.

Who is Gen Z?

Before we look at the trends around Gen Z at work, let’s get the basics straight. Generation Z describes people born between 1997 and 2012. Also known as Zoomers, this cohort follows Millennials and precedes Gen Alpha, today’s youngest generation. 

They’re the first generation to have grown up with smartphones and tablets. In Europe, they’re the most culturally diverse generation and the best educated. However, an ageing population and low birth rates mean Gen Z makes up a smaller share of the European population compared to the rest of the world. What does this mean for European [A1] [A2] employers? It suggests they need to take a proactive approach to appeal to and hold onto high-quality young talent. 

Curious to dive deeper into the current talent market and emerging workplace trends in Europe? Check out our Talent Trends 2024 report for all the details.

Manufacturing out, healthcare in

When it comes to differences between Gen Z at work and their older colleagues, a few trends stand out:

• Gen Z is less tied down. Around 10% have fixed-term, temporary or freelance contracts, compared to about 5% of those aged 30 to 64. 
• Manufacturing is losing its appeal. While 34% of workers aged 40 to 64 are in industrial or manufacturing roles, that drops to 21% for Gen Z. 
• Healthcare is having a moment. 9% of Gen Z work in the industry, compared to around 6% for the ones over 50. 

Gen Z at work: what makes them tick?

So what drives Gen Z at work, and how do you motivate them? Here’s what you need to bear in mind:

Salary is key – but flexibility and work-life balance are even more important

For Gen Z, a competitive salary is important, but not the main concern.

• 10% say it’s their number one job consideration (versus 15% of over 50s).
• 55% have looked for a new role because they’re unhappy with their pay.

What else spurs Gen Z to switch jobs compared to older generations?

• 21% want more flexibility in their work schedule (versus 9% of 50 to 64-year-olds).
• 34% are unhappy with their work-life balance (versus 9% of 50 to 64-year-olds).

In-office work still holds value for Gen Z

Almost a third of Gen Z employees are working in the office more than they did 12 months ago. But it’s not always because they’ve been mandated to return. They see opportunities for career advancement, learning, collaboration and socialising.

• 14% say they are spending more time in the office to learn from colleagues.
• 14% say they feel too isolated working from home. 

Well-being matters the most

When asked about their top priority at work, Gen Z chooses mental health (30%) or work-life balance (31%) above job satisfaction (14%) or a good salary (10%). In contrast, 25% of 50 to 64-year-old workers prioritise job satisfaction above anything else, with only 14% considering mental health the most important factor.

They embrace (and prioritise) technology

Gen Z often prefers tools such as Slack, Google Workspace and Microsoft Teams, which allow for real-time collaboration, file sharing and project management. They also tend to prefer instant messages to lengthy phone calls or email threads. They’re highly alert to the potential of AI and expect up-to-date workplace tech like time-saving AI tools.

• Almost one-third say they use AI at work (more than any other generation).
• 92% believe AI’s growth will impact their career plans. 

Gen Z Employees Traits at Work

How to attract Gen Z talent

Rolling out the same old recruitment tactics isn’t going to cut the mustard with Gen Z. It’s crucial you change your mindset, adapt, and develop new strategies aimed specifically at this generation. 

Luxury brand Lacoste is a good example of a company that successfully appeals to Gen Z on one simple yet effective web page. The business innovatively combines images of smiling young employees with powerful messages about company culture, values, benefits and individual development, backed up by clear, compelling statistics.

When creating targeted job postings, you need to highlight:

1. Meaningful DE&I initiatives with proven success

Like their counterparts in their 30s and 40s, 16% of Gen Z workers say closing the gender pay gap is their top priority when it comes to diversity, equity and inclusion.

25% report experiencing discrimination at work based on their religion or beliefs. Employers must prove to Gen Z talent that their DE&I initiatives are meaningful and not simply box-ticking exercises.

2. A commitment to corporate social responsibility

Younger employees value working for businesses that aren’t just focused on profit. A company with an impressive track record of corporate social responsibility (making a positive impact on the environment and within the community) will stand out. Engaging social media content is a great way to call out achievements. 

• 6 in 10 Gen Z employees choose to work for a company whose ethics and values align with theirs. 

3. Greater flexibility

If an employee is weighing up two or three job offers, attractive flexible working conditions can give your company a competitive advantage. This could include remote work, a hybrid model (a blend of at-home and in-office work), job sharing, flextime or part-time hours. Or you could offer employees Fridays off with a compressed workweek. 

• 64% rank flexible working arrangements among their top 3 influences when considering a job offer. 

4. Generous benefits that go above and beyond

According to our survey, 37% of Gen Z employees have initiated job searches because they were unhappy with their non-financial work benefits. Providing benefits that contribute to well-being and work-life balance can make a difference in attracting the best young talent. Examples include:

• Gym passes
• Financial counselling
• Continuing education
• Mental health support through an Employee Assistance Programme (EAP)

Keeping Gen Z employees happy

What effective strategies can businesses employ to motivate Gen Z workers from day one?

1. Develop a digital onboarding process

Ensure your onboarding process is digital-friendly. Use online platforms, videos and interactive modules for training and orientation.

2. Create a culture of feedback, recognition and transparent communication

Gen Z values honesty and authenticity at work. Be clear about expectations and regularly provide timely, constructive feedback. Acknowledge success at company-wide events or on social media platforms, as well as through promotion and compensation. 

3. Provide attractive career development paths

Gen Zers place a high value on career progression and aren’t afraid to job-hop if they don’t get what they want. 

• 45% say training and development is an important part of company culture.
• Insufficient training opportunities have spurred 37% to look for a new job.

Prioritising learning and development for younger employees can keep them engaged and lead to higher job satisfaction. It’s an investment in the business too.

Conclusion: Future-proof your organisation with Gen Z on board

In today’s competitive European job market, understanding Gen Z’s unique characteristics and preferences is essential. Flexible working, well-being and a good work-life balance rate highly in their priorities, as do factors such as strong DE&I initiatives, a sense of purpose at work and opportunities for training and development.

If you’re currently hiring and would like further assistance in harnessing the power of Gen Z, contact Michael Page today.

Frequently asked questions

How to manage Gen Z employees

Don’t assume Gen Zs are like every other age group. Keep these important steps in mind:

• Respect their work-life boundaries: Schedule meetings during the day only and don’t expect answers to emails and Slack messages outside working hours.
• Let them shine: Give them the chance to prove themselves by leading projects.
• Place them in a team: Gen Z loves collaborating with and learning from colleagues.
• Remember – tech is king: This generation does everything online, so equip them with the right tools and allow flexible working.

What do Gen Z want from work?

Gen Z values purpose, a positive work culture and career growth. They prioritise attractive flexible arrangements and a healthy work-life balance. They seek employers who embrace diversity and inclusion and who provide access to technology that allows creativity and innovation.