The struggle to source candidates is fast becoming a ubiquitous conversation in Australian workplaces, with job ads in June of this year 52.4 percent higher than June of 2019, prior to the start of the pandemic.
But rather than dwelling on this concerning statistic, employers and organisations should perhaps be looking to a new set of data to help shape their future attraction and retention strategies.
The 2021 Australian census found the proportion of Gen Z is quickly approaching Gen X, and that this younger generation will soon surpass Millennials as the most populous generation on earth - making up at least a quarter of the global workforce by 2025.
According to research by Deloitte, the impact of Gen Zs entry into the workforce “will be swift and profound, its effects rippling through the workplace, retail consumption, technology, politics, and culture. Radically different than Millennials, this generation has an entirely unique perspective on careers and how to define success in life and in the workforce.”
Here, we discuss why it’s crucial for organisations to focus on this generation as part of a sustainable talent strategy, and what employers can do to attract and retain them.
Attracting Gen Z
In order to attract Gen Z talent, employers need to better understand them – what they want from their career, what appeals to them both personally and professionally and what they expect from employers. Here’s what makes Gen Z tick and how you can infuse this into your workplace culture.
Offer flexibility and work/life balance
The last few years have proved that remote or hybrid work is possible for a wide range of roles, and that many people prefer these arrangements. According to a survey of more than 1,000 Australian Generation Z workers, they would opt for a hybrid model of work over the traditional in-office experience, and wouldn’t accept a job if such a model wasn’t offered. Other flexibilities, such as choosing their own hours were high on the list of priorities for these younger workers. This is largely due to the fact they see it as a strategy to help achieve a better work life balance, save money, improve mental health and reduce their environmental footprint.
It is important to note however, that this is a generation who grew up in the era of instant interaction and social media, so the desire for social connection and a sense of belonging is high. One in five Gen Zs who have worked remotely say it made forming connections with colleagues more difficult, and just under 14 percent say it made opportunities for mentorship or sponsorship harder to find.
The key, then, to creating an effective hybrid work strategy is to offer flexibility while fostering an inclusive workplace culture, where everyone has equal opportunities to form connections, learn, grow, and progress professionally. Steps to achieve this could be implementing unconscious bias training to help eliminate proximity bias, and regularly scheduling team meetings or events, purely for the purpose of bonding and connection.
Provide career pathways and progression
29 percent of Gen Z workers say they chose their current place of work due to its training and development opportunities. This is perhaps not unsurprising, given the evolving nature of work demands and skills requirements, particularly over the last three years.
On track to be the most educated generation ever, 64 percent of Gen Z say they find it easy to deliver on expectations at work, indicating that they are not being challenged with higher-level tasks. In fact, leadership training is a top priority for 49 percent of Gen Z employees, who, having just entered the workforce, seem keen to prove themselves and climb up the ranks.
Given how much Gen Z cares about career development, 28 percent indicate they haven’t yet received any training or development from their current employer. To entice ambitious candidates to your organisation, investing in these initiatives, making career pathways clear from the outset and creating a culture of learning will be vital.
Retaining Gen Z
While attracting the younger generation is one thing, keeping them engaged and satisfied in their current role is another. In fact, four in 10 Gen Zs would like to leave their current job within two years, and roughly a third would do so without another job lined up. Here’s what organisations and employers can do to entice Gen Z to stay.
Consider compensation
The main reason for such high levels of professional dissatisfaction amongst Gen Z is their salary. In fact, pay is the top reason for why Gen Zs left a role in the last two years.
Financial security is a growing concern for young people, with 53 percent of Gen Zs reporting they can’t comfortably pay their living expenses each month, and 26 percent not feeling confident in their ability to retire comfortably. As a result, many are experiencing higher levels of stress, or need to take on an additional job to make ends meet.
It’s important for organisations to understand the current labour market and keep salaries competitive in the current climate if they wish to reduce the risk of top talent being poached. If the resources are available, organisations could also consider offering financial education and resources to help employees plan and manage their finances. Addressing any wealth inequality will also go a long way in enticing Gen Zs to stay. Closing the pay gap will ensure women and minorities are represented at all levels and have equal opportunities to earn equivalent compensation.
Wellbeing and mental health
Stress and burnout levels are particularly high amongst both Gen Z and Millennials and pose a significant challenge for employers when it comes to retention. 46 percent of Gen Zs feel burned out due to the intensity and demands of their working environments, and 44 percent say many people have recently left their organisation due to high workload pressure.
Despite more than half of Gen Zs agreeing that mental health has become a greater focus for their employer since the Covid-19 pandemic, the data is less optimistic about whether this has led to any meaningful impact on the workforce. Data shows that 50 percent of Australians still won’t reveal a mental health issue at work due to fear of the stigma.
With stress and anxiety levels unlikely to ease due to mounting economic pressures and continuing global uncertainty, employers have a crucial role to play in supporting mental health at work, and in mitigating the causes of stress and burnout. Providing better mental health resources is a critical first step—from supportive leaders and educational resources to company-sponsored Employee Assistance Programs. Furthermore, creating a psychologically safe workplace where employees feel confident being their authentic selves and able to speak to their manager about issues they may be experiencing will also be important. Specific mental health training can also be provided, to help managers build empathetic leadership skills and recognise when their team may be experiencing mental health challenges.
Societal and sustainable values
Values and purpose play a huge role in the professional choices of younger workers. So much so, that 37 percent of Gen Zs say they have rejected a job based on their personal ethics, and are willing to walk away from employment if the company’s values aren’t in line with their personal beliefs.
Diversity, inclusion and the environment are the driving values of Australian Gen Zs, with 49 percent saying they wouldn’t accept a job with a business that doesn’t align with their social and environmental values.
This generation wants to see authentic, bold action from organisations when it comes to these values. This could include initiatives such as eliminating single-use plastic from the workplace, offsetting current carbon emissions, or providing appropriate diversity training and education. Data suggests that those who are satisfied with their employers’ societal and environmental impact, and their efforts to create a diverse and inclusive environment, are more likely to want to stay with their employer for over five years.
If you’re looking for talent, partner with Bayside Group specialist recruiters. With over 45 years’ experience, we have a proven track record of identifying and sourcing top talent for leading Australian organisations.
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