The challenge of engaging Gen Z

A recent survey by the Manpower Group has revealed that 45% of UK managers intend to hire Gen Z employees over the summer but that 96% of them reported challenges when engaging workers with less than ten years in work.

To stay competitive, companies need the diverse, innovative talent that Gen Z brings but understanding and meeting their unique characteristics and expectations can be problematical. Younger workers place a high value on work/life balance and flexible working opportunities which may be difficult for organisations with more rigid work structure to meet. They are drawn to dynamic and inclusive workplace cultures that align with their own values and aspirations and expect employers to offer the latest technology and tools. However, there are also some factors that have specifically shaped Gen Z’s attitudes to work.

Gen Z witnessed the burnout suffered by many millennials and this has prompted many of them to prioritise work-life balance and higher salaries over long-term career promises. The disruption brought by the Covid-19 pandemic influenced this further when the opportunities of remote work and flexible schedules reinforced the importance of employee wellbeing. Additionally, Gen Z is entrepreneurial, confident, and tech-savvy, making them able to take advantage of online business ventures and far less tolerant of jobs and organisations that don’t meet their expectations.

So, although engaging Gen Z may be difficult, there are some steps you can take to make a job and organisation more appealing:

• Flexible Work Arrangements: Offer flexible work hours and remote work options that offer them a better work-life balance.

• Professional Development: Provide clear career paths and continuous learning opportunities to meet their expectations for growth and development.

• Adopt Latest Technology: Ensure the workplace is equipped with modern technology to attract tech-savvy candidates.

• Promote Job Stability: Communicate openly about job security and company stability to alleviate concerns about economic uncertainty.

• Demonstrate Corporate Values: Showcase genuine commitment to corporate social responsibility and ethical practices.

• Competitive Compensation: Offer competitive salaries and benefits, including non-traditional perks that cater to their overall well-being.

• Engage with Authenticity: Foster an authentic employer brand that resonates with their values and expectations.

• Streamlined Recruitment: Optimize the recruitment process for efficiency and transparency, leveraging digital tools to enhance the candidate experience.

The current job market is highly competitive, so employers need to understand and cater to Gen Z’s unique needs and preferences. By aligning company values, educating on benefits, and investing in employee development, organisations can attract, hire, and retain top Gen Z talent.

Why an organisation needs an EVP.

The EVP, or employee value proposition, has become increasing important since the great resignation changed the employment market. An EVP can play a key role in attracting, engaging, and retaining top talent as well as elevating an employer brand so, in a competitive recruitment market, should all organisations have one?

An EVP simply aims to set out and communicate the unique benefits and rewards that an organisation offers to their employees in exchange for their skills, experience, and commitment. This includes salary, benefits, rewards, career development, and work-life balance, as well as the organisation’s values, mission, social purpose, and culture. In short, it’s the value employees can expect to receive from their employment with an organisation. and why it’s the right place for an employee to thrive.

Key components of an EVP include:

·      Compensation and Benefits - salary, bonuses, health insurance, pension plans and any other financial incentives.

·      Career Development - the opportunities for growth, learning, and advancement that are available

·      Work-Life Balance - policies and practices that support a healthy balance between work and personal life

·      Company Culture - the values, mission, and culture of an organisation

·      Job Security - the assurance of a stable and secure employment environment.

·      Recognition and Rewards - programmes that acknowledge and appreciate employees' contributions.

·      Work Environment - the physical and social aspects of the workplace

·      Leadership and Management - the quality of leadership and management within the organisation

·      Corporate Social Responsibility (CSR) - the commitment to give back to the community and address environmental and social issues.

·      Employee Wellbeing – the support for physical and mental health, wellness programmes, and employee assistance services.

Whilst an EVP highlights what an employee can or will receive in return for their commitment to an organisation, an employer brand is external and refers to an organisation’s reputation in the outside world. It highlights its mission, values, what it stands for, and what it’s like to work with, something that is increasingly important to potential employees. The EVP is therefore the core of an employer brand, something that shows the substance of an organisation and why it’s unique.

A well-defined EVP helps an organisation attract the right talent, engage employees, and retain them in the long term. It’s something that should be communicated clearly to both potential and existing employees, align clearly with the organisation’s values and goals and most importantly evolve over time as the organisation's needs and the job market change.

Just ticking the boxes? The rise of wellbeing washing.

In a time of tight recruitment markets, employee wellbeing has gone from a nice-to-have to a must-have.  However, research from Claro Wellbeing seems to show that not all employers are as committed to their programmes as they might not be - they are not  ‘putting their people first’ and instead are ‘wellbeing washing’.

Wellbeing washing is the practice of superficially promoting or claiming to support well-being without genuinely addressing the underlying issues or taking meaningful action - offering employees gym membership, fruit boxes and stand- up desks but then not worrying about unrealistic workloads which mean instead of exercising and eating healthily the same employees are slumped on a sofa at home with a takeaway! 

The Claro survey was taken from a nationally representative survey of 1,000 adults in May 2023 and it suggested that over a third of those surveyed thought their employer was wellbeing washing with one in six thinking that their employer had lost trust as a result of this behaviour. It also found that seven in ten workplaces celebrated mental health awareness days, but only a third of organisations had mental health support that was seen as good or outstanding by employees. So, in the eyes of employees, company rhetoric is not matched by the robust structures, schemes and mechanisms needed to support better wellbeing.

The disconnect seems to be between what employers offer and what employees feel they need. Many employers’ wellbeing initiatives are well-intentioned but lack a systemic approach and are based on a poor understanding of the true state of workforce wellbeing. Others though are focused on boosting their brand reputation, using social media to pump out their support, cynically paying lip service to mental health issues without considering the real needs within their own organisation.

Now more than ever employee wellbeing is something employers need to get right. It isn’t a perk. A free gym membership will do nothing if someone is too exhausted to exercise. The aim has to be the creation of a company culture that really cares about wellbeing, because getting this right is a win-win for employees and employers. There are commercial risks in not engaging properly with employees and if the negative aspects of wellbeing washing are to be avoided, businesses need to lead by example.

Changing employee expectations.

Driven by evolving work environments, technological advancements, and shifting societal values, employee expectations have undergone significant change in recent years.

Now, a new study by Oracle that surveyed 1,000 employees and HR leaders in the UK has found that despite current economic uncertainty, worker expectations for pay, flexibility, and training are continuing to increase. At a time when many of those surveyed were worried about job stability, burnout, a lack of career growth, having to reduce their standard of living or take on a second job, 57% of them still had higher expectations than they did three years ago. Pay raises to meet inflation, flexible work options and more learning and development opportunities were seen as essential, with 89% of them saying they would walk away from a job that doesn’t meet their expectations, even during a recession whilst 55% were more worried about having the right job than the right salary.

What employees expect from employers is obviously changing and with recruitment and retention problems in many industries, organisations that don’t address these changed employee expectations may find it difficult to build a positive work environment, retain talent, foster productivity, and create a strong organisational culture that benefits both the employees and the organisation as a whole.

To address these changing expectations, employers should consider implementing the following strategies:

• Flexible work arrangements, with remote and flexible options

• Opportunities for continuous learning and career development.

• The development of a strong company culture with a clear mission and purpose.

• The embracing of diversity and inclusion initiatives and the creation of a sense of belonging for all employees.

• Prioritising employee well-being and the creation of a supportive work environment.

• Investment in technology and tools that improve productivity and collaboration.

• Enhancing transparency and communication channels within the organisation.

By understanding and addressing these evolving expectations, employers can attract and retain top talent and create a positive work environment that promotes employee engagement and satisfaction. Failure to meet employee expectations can have negative consequences for both the employees and the organiation with detrimental effects on job satisfaction, employee retention, morale, teamwork, customer satisfaction, and the organisation's overall reputation. It is therefore essential for organisations to prioritise understanding and meet employee expectations to foster a positive work environment and achieve long-term success.

Never go back?

When people resign from a position it generally means they’re finished with that company permanently but that's not always the case. Following the Great Resignation, a large number of people are going back to their former workplaces as returning employees. In fact, a recent study by UKG shows that 43% of people who quit their jobs during the pandemic think they were better off in their old job with almost 1 in 5 of those who left jobs during the pandemic returning to their previous employer.

People can change jobs for many reasons such as improved salary, increased job security, flexible work options or simply a change of scenery but, during the pandemic, many of these things took on greater importance. Organisations entered a survival rather than an expansion mode so there were few new opportunities, which left employees, stuck in their role with limited options for change. Many decided to move elsewhere but now, as the pressures of the pandemic recede, their original companies are coming back with new opportunities and working conditions. So, as the original reasons for leaving lessen, we’re seeing the rise of the boomerang employee!

A boomerang employee is someone who leaves their organisation but then chooses to return after a period of time and it's a move that can be beneficial for both the employee and the organisation. For the employee they may bring new skills, perspectives, and experiences gained from their time away and these new credentials can be useful tools for negotiating a return to a higher position, improved pay or a more flexible work arrangement. Organisations may benefit from boomerang employees because they already have an understanding of the company culture, policies, and procedures, which can mean lower training and on-boarding costs. Because they want to return, whether its because they miss the culture, people or work itself, they will be motivated and want to succeed which can only be good for productivity and overall performance. 

There are a few downsides though. Returners may be coming back to the same problems they faced previously, they may just want to return to their comfort zone and there could be personnel issues with employees who stayed with the organisation and have not been promoted. Some organisations may have a different mindset around rehires. Given that these employees have already left once, does it appear to be rewarding disloyalty and encouraging other employees to leave and, if companies are looking at re-hiring former workers, where does that leave the labour market going forward?

The pandemic has delivered many new social and work trends and one is the opportunity for employers to engage with and truly listen to what their workers want and need. Maybe, as well as being an indicator of what motivates people to leave a job, boomerang employees could show what could make them stay?

Adjacent skills. The answer to the skills gap?

With a widening of the skills gap and the on-going talent shortage, organisations are having to adapt their recruitment processes. The days of having people fit into strict job descriptions are long gone, now it’s about finding applicants with adjacent skills or upskilling existing employees who are capable of taking on in-demand roles.

Adjacent skills are skills that are closely related and complement each other through shared similarities. These skills are often used together in various tasks and jobs, and having proficiency in one skill can enhance the development and mastery of another. There are several reasons why an adjacent skills strategy can be effective:

• It can fill a skills gap. By recruiting and developing people with skills just outside what’s required, you can close the gap.

• It’s a cost-effective way to build skills. Training existing employees is generally more affordable than recruiting externally.

• It can help with succession planning. Identifying high-potential employees who can develop the required skills means you can start preparing them for future roles.

There will of course be times when using adjacent skills just won’t work but inflation, the great resignation, quiet quitting and a possible recession means organisations need to stay flexible to ensure that they have access to the necessary talent when its needed. To achieve this, leaders need to connect their people and their adjacent skills with the organisation’s ever-changing needs in a strategic way through well-targeted reskilling and upskilling programmes.

The growing importance of ESG in recruitment and retention

Companies may risk losing talent if they don't take account of the greater ethical awareness of younger jobseekers and employees, with the majority willing to sacrifice earnings for their value.

Over the past few years we’ve seen businesses move their priorities to embrace environmental, social and governance (ESG) issues. Whilst it may not seem like the most exciting element of a remuneration package, increasingly job seekers are highlighting that its effective implementation is one of the reasons that leads them to initially accept a position and then stay with an organisation.

The influence of millenials and their commitment to social contracts is already being felt across business. Research by Robert Half shows that 38% of employees would look for a new role if they thought their organisation was not doing enough on ESG issues, and this rises to 47% of 18-34-year-olds. 53% said they would never work for an employer they thought was unethical, regardless of the salary on offer and this increases to 59% among the younger group.

When it comes to attracting new talent, it’s no longer as easy as offering the most competitive remuneration package. 22% of the 18-34-year-old group listed corporate values as their leading concern when choosing a new role, with 50% saying they research potential employer’s corporate values before making an application.

In a tight recruitment market a clear ESG strategy is becoming a vital tool for differentiation. If it came down to two employers offering the same salary, 69% of the 18-34 group said they would review the companies’ corporate values before making their decision.

Young professionals are looking to make a positive impact, in the workplace through the work they do and the choices they make. To attract the best and brightest talent, it’s vital to remember that todays and tomorrow’s job seekers aren’t just considering salaries and benefits. ESG has become a critical part of recruitment and retention especially among younger employees who want to work for an organisation that has a clear, demonstrable ESG plan in place with tangible, measurable actions.

The benefits of workplace mentoring

Mentoring has often been seen as a great way to help new employees to integrate into the workforce but it could be used for a whole lot more.  A strong mentorship programme can help improve employee engagement, create more diversity, help with succession planning, develop leadership skills, create a strong company culture as well as impact positively on personal development and mental health.

Mentoring can be done on an informal basis by ‘buddying up’ or via a more structured programme but, whichever way, it needs to be part of the company culture. A formalised programme should be part of the recruitment process so new employees are matched with mentors straight away. Managers across the organsiation need to be onboard and the programme communicated so everyone knows it’s an important part of the goals and objectives of the organisation and one they that they can participate in.

It’s not just the organisation that benefits. Mentors have the opportunity to develop their leadership skills and show their readiness for further responsibility in addition to increasing the fulfillment they get from their role. For mentees, the support and encouragement they get helps them develop new skills, improve their confidence and ultimately provide them with further career advancement opportunities.

At the moment many organisations are looking for new ways to nurture and retain their best employees. Mentoring can play an important role in this by not only providing support for new employees but also helping to create an open, inviting culture that helps in the retention of staff.

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