Welcome back to The Gen Z Guide for Employers! In this series, we will challenge some of the prevailing Gen Z workforce myths. Our ultimate goal is to debunk these myths and create a level of understanding between Gen Z and the generations that came before us to make workplaces:
More efficient
More inclusive
Better places to work
Each newsletter will be written from the perspective of an employer or a member of the Gen Z workforce. In this edition, Jarrod Nelson-Robb, our Community & Marketing Manager, is here to give his take on a new myth that surrounds Gen Z employees: that we are not loyal to our workplaces!
As one of the elder members of Gen Z, I identify with both millennials and my fellow Gen Zers. I experienced MySpace, MSN, and the era of Big Brother, but I’m also an avid TikTok user, and the thought of working five days a week in an office scares the life out of me.
This issue, I want to give my take on a topic (which is a likely cause of stress to employers), which is ‘why does Gen Z seem to lack loyalty to their jobs?’
I will explain why I think that the narrative that Gen Z is disloyal to their jobs is not entirely accurate… by exploring the root causes of Gen Z dissatisfaction and how employers can address them. After all, when job satisfaction is high in the workplace, everybody wins right?
The Myth: "Gen Z Workers Are Disloyal"
Gen Z have been given the title of ‘The Job-Hopping Generation’. I’d like to firstly clear up the following. This title has been wrongly bestowed upon us, as it was found in a recent Gallup report that Millennials are three times more likely to switch jobs than non-millennials. If you’re going to give a whole generation a nickname based off of job hopping, at least get the right generation! With that said, it isn’t uncommon to hear that members of Gen Z are quick to leave their jobs these days, with some data even suggesting that more than 70% of Gen Z workers expect to move on from their current role within a year (Milojevic, 2023). I can understand why this might be a cause for concern to many employers from older generations, but, as with many generational stereotypes, this statistic isn’t as simple as it may seem.
Before jumping to conclusions, it’s important to look beyond the surface and understand the reasons behind this behaviour. Research shows that for Gen Z, when comparing “the three variables Job Satisfaction, Positive Organisational Culture, and Meaningful Work, the most dominant influence on Turnover Intention is Job Satisfaction” with meaningful work being the least influential. (Rohayati, Destalani, Arizka, Fahrezi, & Dwidienawati, 2022). I believe Gen Z has higher expectations for their jobs than any generation before them—expectations that are not always being met in today's workplaces.
Dissatisfaction in the Workplace: What’s Causing It?
At the core of Gen Z’s dissatisfaction is the mismatch between what they expect from their careers and what they actually experience. They have high standards and will not settle for less, as previous generations did. We spend most of our time at work, so it has really become important to this generation that they are in an environment in which they are at least valued and cared for to some degree.
In previous jobs when I’ve been having a hard time, I’ve gone to my friends for support and heard many of them respond with words to the effect of ‘if your boss doesn’t care about you, why would you care about them? Just leave!’ I’m sure those are the kinds of conversations you’d rather your employees didn’t have.
In our last issue, we discussed how Gen Z are more values driven in their work so I won’t talk about that - I want to focus on some of the other key factors which contribute to this growing sense of discontent:
Lack of Career Growth and Development
Gen Z are always learning new things and building their skillset. They recognise their own potential and are well aware when their environment is not helping them to reach it. According to a McKinsey survey, 58% of Gen Z employees look for jobs which offer diverse tasks and responsibilities (Casic, Panselina, Lionatos, Fay, 2022).
So the issue isn’t that Gen Z doesn’t want to stay in one job—it’s that they don’t see the point in doing that if there’s no clear path for advancement. A survey by Handshake (2023) showed that 87% of Gen Z workers consider professional development opportunities to be a critical factor in choosing a job. If a company isn’t offering opportunities for growth, they will just look for one that does.
With so many workplaces that give their employees simple, repetitive tasks and adhere to hierarchical structures that limit their ability to face new challenges, it’s no wonder they aren't satisfied. In the long term, Gen Z wants progression, but even in the short term, they just don’t want to be bored at work.
A Desire For More Support At Work
Lack of support at work is a huge problem for many reasons. For employees, it becomes easy to feel lost and isolated. For employers, you get a disconnected and unmotivated body of staff. In many cases I’m sure employers have good intentions but all too often, the support given is not of an adequate standard.
In our last issue, Tameika spoke on De Smel et al (2023)’s research which showed poor leadership was one of the top reasons why people are leaving their jobs, regardless of the generation.
Research shows that 47% of Gen Z get better guidance from AI compared to their manager (Casic, Gavala, & Kanaki, 2024) which is a problem if you’re trying to build a cohesive team who are able to communicate with each other well.
Support doesn't just have to come from the management team though. Many Gen Z’ers who I’ve spoken to would say that the thing that massively impacted their time at work is their colleagues. It’s very unfortunate but Gen Z really do feel lonely at work, with 73% of Gen Zs report feeling alone sometimes or always (Bakhtiari, 2023) . If an employer can’t support everyone, they should at least foster a culture where the team supports each other. To develop a high functioning team, you don’t have to all be best friends but it helps to at least feel comfortable with who you're working with. When they feel isolated and lonely at work, this surely can't help productivity?
Support can also come in the form of giving employees the ability to support themselves. Casic, Panselina, Lionatos, Fay (2022) found that 30% of their respondents never received training at work, with Gen Zers who didn’t receive workplace training being significantly more likely to quit than those who did. I’ll say it again - Gen Z just has high standards. I’m a big believer in learning from experience, but training should be a compulsory part of the onboarding process or it is easy to feel like you don’t know what you’re doing. All they want is some direction and a little guidance.
The Reality: Is It Disloyalty or Is It Advocacy for Change?
So, is Gen Z truly disloyal, or are they advocating for a better workplace? I would argue it’s the latter. Gen Z is challenging the status quo, refusing to settle for work environments that don’t meet their needs or align with their values.
This generation can easily spot a toxic workplace and will leave jobs that negatively impact their mental health or fail to provide opportunities for growth. Far from being disloyal, this is about setting boundaries and advocating for healthier, more fulfilling work environments. Can you really blame them?
How Employers Can Retain Gen Z Talent
Because of the current cost of living crisis, a higher salary is going to be the most effective method of retaining your employees.
Outside of financial remuneration, understanding the root causes of Gen Z’s dissatisfaction is the first step. The next step is figuring out how to make changes that will encourage loyalty. Here are a few key strategies employers can adopt:
Offer Continuous Learning and Development Opportunities
If there’s one thing Gen Z craves, it’s growth. By offering training programs, upskilling opportunities, and clear career progression paths, employers can show Gen Z workers that they’re invested in their futures. According to a survey by Gallup, 94% of employees would stay longer with their current employer if they saw an investment in their learning and development. The key here is to go beyond just offering occasional workshops or seminars. Employers should actively create a culture of learning, where employees are encouraged to take on new challenges and develop new skills. Recognise the individual strengths in your team and allow them to flourish. To read more about the importance of prioritising learning opportunities for your workforce, check out a previous issue of The Gen Z Guide which focuses on this here
Create a Positive Work Culture
Gen Z wants to work for companies with positive work cultures which foster open communication and mutual support among employees. A place where hierarchy doesn't mean any one person is valued less than another and teamwork and collaboration is encouraged. This includes transparency around business practices, pay, and internal policies. As last episode’s interviewee, Chi said, “Transparency is key”. Gen Z workers, in particular, appreciate when their employers are forthcoming, as it builds trust and engagement.
It also means creating a workplace where employees feel like their voices are heard. By creating an open line of communication, where feedback is not only welcomed but acted upon, employers can foster a sense of belonging and loyalty among their staff. Gen Z thrives in workplaces where they are actively involved in shaping the culture, whether through direct feedback or through opportunities to contribute to decision-making processes.
Conclusion: It’s Time for Employers to Evolve
The narrative that Gen Z is disloyal to their jobs is not entirely accurate. What we’re seeing is not a lack of loyalty, but a shift in expectations. Gen Z isn’t willing to stick around in workplaces that don’t align with their values, provide growth opportunities, or prioritise their mental health. Rather than viewing this as a negative, employers should see this as an opportunity to evolve. Just dismissing them as ‘entitled’ is lazy in my opinion and will only have negative effects on your businesses, By addressing the root causes of dissatisfaction—lack of growth, poor work-life balance, lack of purpose, and inauthentic work cultures—employers can create workplaces that not only retain Gen Z talent but also thrive because of it.
It’s time to ask yourself: am I ready to meet Gen Z’s expectations, or will I continue to see them leave for workplaces that do?
Take the time to listen to your Gen Z staff and you never know what you might learn.
-- If you are interested in employing amazing Gen Z talent, you can book a call with us here.
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References
Adkins, A. (2016) Millennials: The job-hopping generation. Available at: https://www.gallup.com/workplace/231587/millennials-job-hopping-generation.aspx (Accessed: 7 October 2024).
Bakhtiari, K. (2023) Gen-Z, the loneliness epidemic and the unifying power of brands. Forbes. Available at: https://www.forbes.com/sites/kianbakhtiari/2023/07/28/gen-z-the-loneliness-epidemic-and-the-unifying-power-of-brands/ (Accessed: 8 October 2024).
Casic, A., Gavala, G. and Kanaki, M. (2024) AI's impact on Gen Z work skills. TalentLMS. Available at: https://www.talentlms.com/research/ai-impact-gen-z-work-skills (Accessed: 7 October 2024).
Casic, A., Panselina, G., Lionatos, A. and Fay, A. (2022) Gen Z in the workplace: What matters to young professionals at work — and what turns them off. TalentLMS. Available at: https://www.talentlms.com/research/gen-z-workplace-statistics (Accessed: 7 October 2024).
Deloitte. (2021) 2021 Deloitte Global Millennial and Gen Z Survey. Available at: https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html (Accessed: 7 October 2024).
Deloitte. (2024) 2024 Gen Z and Millennial Survey: Living and working with purpose in a transforming world. Available at: https://www.deloitte.com/global/en/issues/work/content/genz-millennialsurvey.html (Accessed: 8 October 2024).
Gallup (2016) How millennials want to work and live. Available at: https://www.gallup.com/workplace/238073/millennials-work-live.aspx (Accessed: 7 October 2024).
Handshake Network Trends. (2023) 6 things Gen Z wants from their next job. Available at: https://joinhandshake.com (Accessed: 8 October 2024).
Milojevic, N. (2023) Gen Z workforce statistics. Cake. Available at: Rohayati, T., Destalani, A.A., Arizka, H.D., Fahrezi, M.D. and Dwidienawati, D.I.E.N.A. (2022) Impact of job satisfaction, positive organizational culture and meaningful work on turnover intention in Gen Z. WSEAS Transactions on Systems, 22, pp. 613-621.https://cake.com/empowered-team/gen-z-workforce-statistics/ (Accessed: 8 October 2024).
Petersen, A.H. (2019) How millennials became the burnout generation. BuzzFeed News. Available at: [link not provided] (Accessed: 7 October 2024).
Pinero, F.A. (2023) #Quittok: Why are young people quitting on TikTok? Startups.co.uk. Available at:https://www.startups.co.uk/quittok-why-are-young-people-quitting-on-tiktok/ (Accessed: 7 October 2024).
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