Generation Z (Gen Z), individuals born between 1996 and 2010, is quickly rising to prominence in the labor market—they’re projected to comprise over a quarter of the world’s workforce by 2025.

Often referred to as “digital natives,” this demographic grew up with the internet, smartphones, and social media, making them equipped with the technological savvy sought for in today’s workplaces.

As Gen Z enters the workforce in great numbers, organizations observe a pressing challenge: those that fall within this group have higher turnover rates than previous generations. Gen Z employees have even job hopped more than Millennials in the past four years (73% vs. 44%)!

To help you address this issue and retain young talent, we’ll delve into what drives this generation and how you can keep them engaged.

Factors that influence Gen Z’s job-hopping behavior

To start, several variables motivate Gen Z to change roles and employers more frequently than others.

Lack of career advancement

Growth is a priority for these young workers, as McKinsey found 74% of them looking to leave their jobs due to the lack of career mobility and learning and development (L&D) opportunities.

Unlike older demographics who were content with annual promotions, raises, or long-term ladders, they place a premium on rapid advancement.

Burnout and mental wellness

Gen Z is the most mentally stressed demographic. 42%, in fact, struggle with depression and feelings of hopelessness—nearly double that of Americans over the age of 25 (23%).

At the same time, according to Harmony Healthcare IT, 1 in 2 of Gen Z battle anxiety daily, stemming from worries about:

  • The future
  • Their finances
  • Work
  • Social activities
  • Relationships

Their openness and awareness about mental well-being drives these young professionals’ expectations as well, as they seek access to:

  • Wellness resources
  • Flexibility
  • Work-life balance

When Gen Z feels they receive insufficient support, they won’t hesitate to switch to another company. 65%, in fact, favor staying with an employer one year or less, while 12% lean on two years.

Desire for purpose

Today’s young employees aren’t merely after titles and hefty paychecks. They also want meaningful work. 86% of Gen Z, according to Deloitte’s 2024 Gen Z and Millennial Survey, say a sense of purpose in their job is critical to their satisfaction and well-being.

As a result, they’re more willing to turn down assignments or employers who don’t align with their values. 2 in 10 have even transitioned to roles or industries that better match their views on environmental sustainability.

By carefully considering this compatibility, however, you secure their engagement and retention.

Rigid work models

Flexibility is no longer a simple perk. It has become an essential. Gen Z, in fact, ranks workplace flexibility just as highly as meaningful work, suggesting strict in-office mandates, fixed hours, and outdated policies also push them to job hop.

Inflexible environments and less control over how, when, and where they work won’t only decrease their job satisfaction, but also increase attrition risk.

Poor communication and lack of feedback

Gen Z has grown up in a world where, due to technology, people are hyper-connected and information is instant. As a result, they expect frequent, transparent, and actionable feedback—60% actually desire multiple weekly check-ins from their superiors. 

Hierarchical and siloed communication systems seem outdated to Gen Z as well. When they feel ignored, or even underappreciated, they’ll likely disengage and seek companies that thrive on open dialogue and recognition.

Shorter career expectations

Unlike previous generations who pursue long-term careers with one or few organizations, Gen Z views employment as a series of experiences rather than a lifelong commitment. In fact, 66.4% view changing companies as the best way to develop new skills and advance their careers.

This doesn’t necessarily reflect disloyalty, but rather strategic and growth-oriented outlooks. You must recognize this and respond with retention strategies tailored to Gen Z’s desire for learning, agility, and alignment in terms of values.

Why understanding Gen Z’s work expectations is crucial

Although they’re prone to switching jobs and companies, there are several key reasons for you to appreciate the younger workforce demographic’s needs and secure their loyalty.

Adapt to the changing workforce

It’s inevitable that Gen Z will shape the workplace of tomorrow. They’re actually the fastest-growing segment of the labor market, projected to be the largest workforce demographic by 2035.

At the same time, those who fail to adapt to their expectations risk falling behind in several key areas, namely:

  • Talent acquisition
  • Employee satisfaction and retention
  • Workforce agility

Proactively aligning your policies and culture with Gen Z’s work preferences, however, ensures competitiveness in increasingly talent-driven landscapes.

Increase employee satisfaction and productivity

Gen Z’s engagement and loyalty is tied to how well your company aligns with their values, allows them to grow, and provides a supportive workplace.

By meeting their desire for flexibility, purpose, and advancement, you enable higher performance as well. Companies with higher employee engagement levels, in fact, enjoy a 21% boost in productivity!

Build a future-ready workplace

The younger generation’s expectations ultimately indicate where the workplace is headed, and proactive adaptation will allow you to remain competitive. To prepare for these future trends, take note of these key areas:

An emphasis on technology

According to Dell, 91% of Gen Z evaluates job offers based on the technology an employer offers. With digital readiness being one of their key considerations, you must invest in the latest tools and infrastructure to attract young talent and maintain an edge over competitors.

The focus on inclusivity

DEI has become a focal point in contemporary workplaces, with Gen Z seeking authentic inclusivity, transparency, and representation in their employers.

Understanding this doesn’t only let you build teams from diverse backgrounds and perspectives, but also ones that are more collaborative and resilient.

Well-being as a core workplace value

Unlike older generations—Baby Boomers and Generation X specifically—who often separated personal well-being from work, Gen Z expects employers to support physical, mental, emotional, and financial wellness.

By prioritizing your workforce’s welfare, you build workplaces that aren’t only attractive to Gen Z, but are also more human-centric, adaptive, and sustainable overall.

The benefits of having Gen Z in the workplace

Keeping Gen Z talent, however, isn’t simply a matter of reducing turnover, but also future-proofing your organization. By understanding their motivations and establishing environments that let them thrive, you can maximize their various strengths.

Digital literacy and technological savvy

Gen Z, being immersed in technology their entire lives, quickly adopts new platforms and tools. From smartphones, to social media, to artificial intelligence (AI), utilizing digital instruments is second nature to them.

This proficiency can streamline any modernization efforts. It makes Gen Z particularly valuable in roles tied to data, online communication, and process automation as well.

Not to mention, these types of roles align with their interests—Dell also found 80% of this demographic wanting to work with cutting-edge technology!

Fresh perspectives and innovative thinking

Gen Z was raised in an ever-changing world, being exposed to constant economic, political, and technological shifts. Due to this, their mindsets are more agile and inclined to explore creative approaches to problem-solving.

Since they’re less constrained by traditions, they don’t fear challenging the status quo, nor bringing bold and disruptive ideas to the table. With the right support, Gen Z can propose user-centric solutions, transform legacy systems, and pinpoint business improvements.

Strong desire for inclusivity

Gen Z is deeply driven by values. Monster even found 83% of candidates from this demographic saying an employer’s commitment to diversity, equity, and inclusion (DEI) is critical to their selection.

This expectation for fair, ethical policies, leadership, and business practices, however, will compel you to align with global standards and resonate with diverse stakeholders.

Continuous learners

Gen Z is a growth-oriented demographic, 53% of whom see learning as a valuable component of career progress. They’re more likely to actively pursue upskilling opportunities as well.

With structured support from your human resources (HR) or L&D teams, Gen Z can quickly adapt to new roles, making them ideal for dynamic organizations facing skills shortages.

Meaning-driven

As mentioned earlier, Gen Z seeks meaningful roles and impactful employers. Aligning with their values supports this desire for purpose-led jobs and companies, as well as secures their commitment.

This can deliver one notable advantage to your company as well: drive innovation in areas like sustainability, business ethics, and community engagement.

Adaptable to change

Having lived through various global disruptions—from the rapid evolution of technology, to the 2007-2009 Global Financial Crisis, even the COVID-19 pandemic—Gen Z has become an adaptable and resilient demographic.

These characteristics equip them to navigate uncertainty, work in cross-functional teams, and drive project agility.

Retention strategies: What Gen Z looks for in an organization

At this point, you should recognize the value of having Gen Z talent. This, however, entails moving beyond traditional approaches. To truly meet the younger workforce’s expectations, employe these strategies:

Flexible work environments

Since Gen Z values flexibility as highly as purpose, make sure to offer:

  • Remote or hybrid setups: 77% of Gen Z employees in remote or hybrid roles would think of leaving if they were asked to work on-site full-time.
  • Flexible hours: Gen Z favors results-driven work models since rigid 9-to-5 schedules provide less autonomy and freedom to manage their own schedules.
  • Work-life balance: Gen Z prioritizes wellness over the hustle culture, viewing employment as merely a component to a fulfilling life. Macromanagement is also an approach you should consider, as it places more emphasis on independence and trust.

Growth opportunities

Professional development is non-negotiable for Gen Z, so embed L&D into your company’s culture through:

  • Microlearning: Accessible modules present a convenient, engaging, and personalized means of education and growth.
  • Tailored learning paths and development plans: Each employee has unique strengths, weaknesses, and career aspirations. Personalized roadmaps that align with individual and organizational goals can cement their engagement and loyalty.
  • Mentorship programs: Gen Z desires regular feedback. Opportunities that offer tutelage from more skilled and experienced professionals can match this need.

By going beyond a one-size-fits-all approach, you present young professionals with agile and attractive learning ecosystems.

Support for mental wellness

Being a particularly stressed workforce demographic, mental health is a key concern for Gen Z. Open dialogues and regular check-ins, for instance, provide platforms to freely share their challenges and insights.

To provide more comprehensive support, however, offer perks and resources such as:

  • Employee Assistance Programs (EAPs)
  • Access to mental health professionals
  • Well-being stipends and fitness memberships
  • Mental health days and no-meeting weeks

By building a psychologically safe workplace, you not only retain Gen Z employees, but also create resilient teams.

Positive and inclusive culture

DEI influences Gen Z’s perception of employer credibility. To establish a workplace founded on belonging and respect, embed diversity and inclusion into your training programs. Some best practices for your efforts should include:

  • Transparent DEI goals and progress reporting
  • Representation in leadership and decision-making
  • Safe spaces and employee resource groups (ERGs)
  • Zero-tolerance policies on harassment and discrimination

It goes beyond compliance. Gen Z wants to see these values emulated across your company, from its recruitment practices to everyday internal communications.

Feedback and open communication

Since Gen Z prefers frequent, real-time, constructive feedback from managers over traditional performance reviews, transparent and consistent communication is key to building trust and engagement. In practice, this would look like:

  • Two-way dialogue
  • Regular face-to-face check-ins
  • Ongoing input for tasks, projects, and performance
  • Open forums, town halls, and digital forums
  • Coaching, not just supervision

Openness goes beyond the employees themselves. As Gen Z likes being informed and involved, they appreciate transparency regarding the company’s decisions and future plans.

Wrapping up—Secure and retain Gen Z talent to future-proof your organization

Gen Z’s greater emphasis on flexibility, purpose, and inclusivity is redefining work. Understanding and meeting their expectations, meanwhile, not only addresses their job-hopping behavior, but also cultivates a young, agile, resilient, and future-ready workforce.

Ultimately, by embracing these emerging values and incorporating them into the workplace, you allow your organization to thrive.