Gen Z, the generation born between the mid-1990s and early 2010s, presents unique challenges. Recruitment professionals and organizations must learn the best ways forward for recruiting and retaining Gen Z.
By 2030, Gen Z is expected to make up 30% of the global workforce, so it is crucial to understand the factors driving this trend and adapt hiring strategies accordingly. This generation is also entering the workforce at an earlier age, with 33% of Gen Z aged 16 to 19 already having jobs, compared to 26% of Millennials at the same age. To meet the demand, organizations are projected to hire 14.7% more college graduates in 2023 than the previous year.
However, engaging and retaining Gen Z employees has proven to be challenging for many companies. Integration of Gen Z workers with existing employee bases is difficult, with 74% of hiring managers considering them the most challenging generation in the workplace. Several factors contribute to this hiring gap. The post-COVID world has seen a disproportionate increase in layoffs for Gen Z. Additionally, there is a misalignment of career expectations between Gen Z employees and employers, leading to a high turnover rate of 65% within the first year of employment.
To recruit and retain Gen Z effectively, organizations need to set clear expectations, as 98% of Gen Z employees emphasize the importance of understanding their roles, salary, benefits, day-to-day expectations, growth opportunities, and paid time off. Transparency plays a vital role in relieving stress and uncertainty, with clear responsibilities, goals, recognition, and salary transparency being key factors for Gen Z job decisions.
Source: Abode HR