Navigating Gen Z Recruitment And Retention: Challenges, Impacts, And Strategies For The Future Of Work

Tuesday, 27 June 2023, 9:43 am
Press Release: Hugh Grant

Job transitions are up 80% year-over-year for Gen Z. What does this mean for recruitment professionals, or for that matter, the future of work?

The current status of Gen Z recruitment indicates that they are the future of the modern workforce. They are projected to comprise 30% of the workforce by 2030, an increase from 27% in 2025. Furthermore, organizations are expected to hire 14.7% more college graduates in 2023 compared to 2022. Additionally, 33% of Gen Z individuals aged 16 to 19 are employed, surpassing the 26% employment rate of Millennial teens. However, many organizations face challenges when it comes to effectively engaging and retaining Gen Z employees, as half of hiring managers struggle to establish connections with early-career workers.

Organizations find it hard to integrate Gen Z workers with their existing employee base with 74% of hiring managers stating that Gen Z is the most difficult generation to deal with. There could be three major reasons for this hiring gap with the first being changing workplaces in a post-COVID world. Gen Z experienced a 79% increase in layoffs and a 73% increase in furloughs compared to other generations between March 2020 and April 2021. Second is the unnecessary friction in the workplace as negative headlines from research companies and news outlets stimulate aggressive responses on both sides of the equation. And lastly is the misaligned expectations between employees and employers with 65% of Gen Z talent quitting within 12 months of employment.

These turnovers have various impacts on organizations. On average, it takes 42 days to complete the recruitment process, and the total cost to replace an early-career employee who reneges is $22,000. Time and money are crucial as companies strive to attract and retain top talent. Furthermore, the failure to hire Gen Z individuals could result in workforce gaps, especially considering that 10,000 people reach retirement age annually. Additionally, when 52% of early-career employees express that their turnover could have been avoided, it signifies the need to revise hiring strategies in order to effectively engage the future generation.

By comprehending how to recruit and retain Gen Z, we enhance our understanding of the factors that shape the future of work. There are five potential measures that can help bridge this gap, starting with establishing clear expectations. Given that 98% of Gen Z agrees on the importance of having clear role expectations, this entails providing detailed information about salary, benefits, daily job responsibilities, growth opportunities, and paid time off. Fostering genuine transparency alleviates stress for Gen Z by eliminating uncertainties about the future. Salary transparency holds the utmost influence on their job decisions, as 52% of Gen Z individuals state that they would not accept a job without it. The next crucial step is to offer workplace respect, which for Gen Z means promoting work-life balance, demonstrating appreciation for their work, and supporting positive mental health.

Nurturing meaningful connections is also pivotal, considering that the COVID-19 pandemic disrupted both the professional and personal growth of Gen Z. Before commencing a new job, 59% of Gen Z individuals desire to connect with their team members, while 24% seek interaction with their direct supervisors, and 11% wish to engage with other new hires. Almost half of Gen Z employees want to acquaint themselves with their coworkers' personalities, interests, and lives outside of work. Lastly, the final essential step is to prioritize intentional communication. When gathering information about a job, 51% of Gen Z seeks clear and concise details, and 69% of them desire regular communication with their new employer, ideally on a weekly basis.

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