Hey bosses: Here's what Gen Z actually wants at work.

Younger workers today crave transparency in roles, salaries, and career growth. Recent global trends show that employee engagement is on the decline, especially among the younger workforce.

Gen Z has seen a significant drop in engagement, while older generations, like the Baby Boomers, have experienced slight increases. The impact of this shift is huge.

First, the most engaged employees are nearing retirement. Second, their replacements are younger workers who are becoming increasingly disengaged.

By 2030, Gen Z will make up about 30% of the global workforce, and their disengagement could seriously hurt organizational performance, affecting productivity, quality, and customer service.

To reverse this trend, companies need strategies to keep their Gen Z employees engaged. A crucial approach is embracing transparency about the organization and the overall employee experience.

TRANSPARENCY IS A MUST

Gen Z values transparency more than previous generations. They seek purpose and fulfillment in their work and want their values to align with their employer's practices.

According to LinkedIn, 74% of Gen Zers find it crucial to work at companies that reflect their values, and 87% are willing to switch jobs if they find an employer whose values align more closely with their own.

In essence, transparency isn't just important; it's essential for gaining Gen Z's trust. It demonstrates a commitment to honesty and respect—qualities that younger workers highly value.

Gen Z wants transparency on various issues, including diversity, equity, inclusion, environmental policies, and social issues.

But it doesn't stop there—they also want clear information about their work environment and the employee experience.

3 KEY AREAS OF TRANSPARENCY

To attract, retain, and engage Gen Z workers, focus on transparency in these three critical areas:

Career Development

Gen Z is passionate about career growth. 61% want more opportunities for career development, and 76% want more time to learn new skills.

McKinsey & Company highlights that 74% of Gen Z and millennials are considering leaving their jobs due to a lack of career mobility and skill development.

Employers should create clear career development plans, showing potential growth paths and opportunities to engage Gen Z workers effectively.

Compensation

Gen Z places a high value on compensation. Having lived through global recessions, economic downturns, and job market instability, they prioritize financial security. They expect transparency about salary ranges and compensation practices.

A 2023 survey found that 85% of college students value pay equity and transparency, with 53% unwilling to apply for jobs without specific salary information. Gen Z also openly discusses pay more than previous generations.

Meaningful Work

A sense of purpose is vital for Gen Z. Research from Great Place to Work® reveals that a lack of meaningful work drives Gen Z to leave jobs.

Conversely, those who find meaning in their work are three times more likely to stay with their employer.

Managers can help by setting impactful goals during one-on-one meetings, reinforcing the significance of their work.

BOOSTING ENGAGEMENT FURTHER

Here are two additional ways to enhance engagement and retention among Gen Z employees:

Provide Mentorship: 83% of Gen Z workers believe mentorship is crucial for their development. Yet, only about half have mentors. Offering mentorship opportunities with experienced colleagues and leaders can set them up for success.

Clarify Flexible and Remote Work Expectations: Gen Z values mentorship, which can be hindered by remote work.

Clear guidelines for in-office work days can help build strong personal relationships and a deeper connection to the organization.

Gen Z is pivotal for the future of any organization. Like every generation, they need support and guidance.

By improving transparency and providing the necessary support, employers can reengage younger workers, boost talent retention, and enhance overall performance.