Gen Z in the workplace: Six insights for recruitment and retention

Jason Ellis, Group Protection Sales Director for Aviva, shares insights into Gen Z and how advisers and employers can attract, engage and retain this emerging workforce.
 

As the first generation to grow up with the internet and social media, Gen Z (born between 1997 and 2012) represents the future of our workforce. Their unique experiences and values shape their expectations and behaviours in the workplace. Recent research from Aviva provides valuable insights into what matters most to this emerging generation. By understanding these priorities, advisers and employers can develop effective recruitment and retention strategies to attract and retain Gen Z talent. This article explores six key strategies to help businesses connect with and support their Gen Z employees.


1. Emphasize authenticity and transparency

Gen Z values honesty and openness. As digital natives, they are accustomed to accessing information quickly and expect the same level of transparency from their employers. According to Aviva's research, 47% of Gen Z believe it is their employer’s responsibility to provide financial support if they cannot work due to ill health. This expectation underscores the importance of clear and honest communication about benefits and support systems. Employers should maintain open communication channels, provide clear and honest feedback, and foster an inclusive environment where every voice is heard.

2. Leverage technology

Growing up with the internet and social media, Gen Z expects seamless integration of technology in the workplace. They are highly connected and tech-savvy, making it essential for employers to utilize modern tools and platforms to enhance their work experience. For example, 1 in 5 of Gen Z respondents spend between £101-£200 per month on non-essential items like entertainment and hobbies, reflecting their comfort with digital and online services. Employers can create a dynamic and efficient work environment by offering remote work options, using collaborative software, and providing access to the latest technology.

3. Promote work-life balance

Gen Z places a high value on work-life balance. They view their career as just one aspect of their identity and seek employers who respect their need for personal time. Flexible working hours, remote work options, and a supportive work culture are significant attractors for this generation. Aviva's research shows that many Gen Z individuals are motivated to achieve key milestones in their future, balancing their career ambitions with personal goals. Employers should highlight their commitment to work-life balance during the recruitment process and ensure that their policies support this balance.

4. Invest in career development

Ambition and drive are prominent among young Gen Z individuals, particularly those in the early phases of their careers. They are eager to invest in their skills and career progression. Employers can attract and retain Gen Z talent by offering continuous learning opportunities and clear career progression paths. For instance, 24% of Gen Z respondents spend between £101-£300 per month on essential items, indicating their willingness to invest in their future. Providing access to training programs, mentorship opportunities, and resources for professional development can help meet their career aspirations.

5. Provide comprehensive benefits

Gen Z values health and wellness, making comprehensive benefits a significant attraction. Group protection policies that include mental health support and wellness programs can be a major draw for Gen Z employees. According to Aviva’s research, 45% of Gen Z respondents expect to rely on family, partner or friends  for financial support during long-term illness, highlighting the importance of employer-provided benefits. Employers can demonstrate their commitment to the long-term financial wellbeing and security of their employees by offering these benefits.

6. Enhance financial education

There is a notable knowledge gap among Gen Z regarding statutory sick pay (SSP) and other financial protections. Many Gen Z individuals are unaware of the exact amount they would receive if eligible for SSP. The research shows that 33% of respondents were unsure about the weekly amount they would be entitled to, highlighting the need for better financial education and awareness. Employers can address this gap by providing resources and training to help Gen Z understand their benefits and financial options. This includes offering financial education workshops, providing clear information about available benefits, and ensuring that employees know how to access these resources.

Conclusion

By implementing these strategies, advisers and employers can create a supportive and attractive environment for Gen Z, ensuring their recruitment and retention efforts are successful. Understanding Gen Z’s financial behaviours, preparedness, and attitudes towards financial protection and support systems is crucial. Leveraging these insights and offering comprehensive benefits can make businesses more attractive to Gen Z employees, fostering a loyal and motivated workforce. As Gen Z continues to enter the workforce, adapting to their unique needs and expectations will be key to building a thriving and dynamic workplace.

Source

Aviva’s GEN Z Insight Research, January 2024

The research was conducted by Censuswide with 1,002 UK employees of working age (16-65) - (full time OR part time) who do not currently hold a personal income protection policy (minimum of 250 Gen Z respondents) between 09.09.2024 - 13.09.2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.