How to retain millennial and Gen Z workers

One of the main challenges facing rapidly growing organizations is retaining talent. Retention can be overlooked, but it’s important to keep your current employees happy while onboarding new ones. This is especially true of Millennial and Gen Z employees. The Great Resignation has highlighted how these generations are likely to change employment frequently. And as an organization evolves, having younger, yet invested and knowledgeable employees is critical to effective succession planning and growth. 

Read more: Gen Z workers are quitting because they don’t know how to talk about promotions

There are three critical items that organizational leaders should consider to retain their youngest employees. Flexible work arrangements, mentorship and fostering and promoting an inclusive culture will help companies retain their youngest employees, setting up their workforce for the future.

Flexibility 
A recent survey shows that a third of GenZers would never tolerate being forced to work when they don’t want to, not being able to use vacation days when they want to or an employer who gave them no say over their work schedule. And 71% say they would consider quitting if they couldn’t bring their pet to the office when it reopens after the pandemic.

This attitude aligns with what we are all seeing in the employment market — a change in attitudes and expectations by workers. At Safeguard Global, we believe employers will need to be prepared for the future of work — Work in Any Way  — a flexible approach to work that addresses the new expectations people have of their work experience.

This new emphasis on flexibility may cause some longtime executives or directors to bristle, but to ignore this changing workscape will put your company at a competitive disadvantage. Companies benefit in the form of cost savings due to reduced turnover, absenteeism, and workplace accidents. And when employees have more say over their work experience and choose styles that are best for them, they experience decreased stress, improved health and wellbeing and increased commitment and engagement to their companies. 

Read more: Everything employers need to know about Gen Z in the workplace

Remote work is today’s reality. To get ahead of the curve, you’ll need to adopt new workplace approaches that put your people at the center, and give them the flexibility to shape their overall work experience. Some workers may want remote, while others want a hybrid model. One may want to switch from full-time to part-time, or from direct hire to contract. And still others may need asynchronous hours. In short, you must accommodate individual workstyles by becoming a company that fits into the lifestyles people want for themselves.

Mentorship
A study by CNBC found that  90% of employees who have assigned mentors say they are happy in their jobs. Additionally, greater employee satisfaction leads to better retention of the skilled workers employers have already invested.

Virtual mentorship also means mentees are no longer restrained in finding a mentor local to them — nurturing greater cross-functional and cross-cultural mentorship. Similar to opening your recruitment efforts to a global talent pool, now that location is no longer a requirement, virtual mentorship affords your mentees with a global mentor pool.

Read more: Is mentorship the key to career advancement for women in tech? This CEO weighs in

A successful mentorship program should have clearly defined goals or objectives and mentors should have identified experiences and skillsets they are interested in sharing. And while technology offers some solutions to facilitate mentor/mentee matching (based on algorithms), it is important for the mentor/mentee to self-match. Self-matching creates ownership and a commitment to the process.

Beyond reducing turnover rates and improving employee engagement, mentorship programs also help to support diversity in the workplace. And according to a study from McKinsey, companies with diverse workforces experience up to 43% higher profitability. Capitalize on the opportunity to share those diverse experiences through a global mentorship program. 

Inclusion
In 2008, the National Association of Colleges and Employers (NACE) asked new graduates to rank the importance of a diverse workforce. Diversity ranked 12th out of 15 options. By the spring of 2020, it had risen to seventh out of 19 options.

Your youngest employees value a diverse workforce, and it is likely to be a factor in where they choose to work, and whether they remain as employees.

The explosion in remote work has expanded hiring possibilities in many ways and best in class recruiters are leveraging this trend. The talent pool now includes people who might not ordinarily have the ability to work for your company. People with caregiving responsibilities, and people across different regions, time zones and cultures can now bring their much-needed perspectives to your teams.

But there’s more to it than just hiring diverse talent. It’s about building a culture of inclusion that provides opportunities, invites new perspectives, and develops a broader understanding of diversity that includes race, gender, ethnicity, country of origin, age, personal style, sexual orientation, physical ability, religion and life experiences.

For large businesses looking to grow, it’s important to retain your current employees while recruiting. And with a distinct set of values and a willingness to move jobs — special attention should be paid to your youngest employees. A flexible approach to working, institutionalized mentorship and a culture of inclusion are critical in regard to retaining these colleagues and enabling the long-term success of your organization.