Managing millennials, Gen Y, Gen Z: Recruiting and retaining tomorrow's workforce

When we speak about adapting to changing business environments, we’re often focused on external environments. But the next time you’re back in the office, take a second to stop and look around, and you may also notice the changing shape of tomorrow’s workforce.

In effect, for the first time in history, we now have five generations in the workplace – all of which learn, work, communicate, and consume information in vastly different fashions, which begs the question: How can you better communicate with, engage, and inspire all of these audiences/? Likewise, as you think about reimagining the future of employee recruitment and retention – and what it takes to better attract and retain tomorrow’s leaders – you’ll want to consider just how radically workers’ attitudes have shifted.

Case in point: More than three years after we all started this grand experiment in remote and at-home work, employees’ priorities, career goals, and even their basic working rhythms have also fundamentally shifted. (Even as all manner of disruptive forces from economic uncertainty to inflation may cause these priorities and rhythms to shift again.) The answer to finding success here going forward therefore lies in not only rebooting one’s fundamental approach to business strategy, operations, and governance, but also putting talent- and workforce-related concerns near the top of your agenda. At the same time though, it’s also critical to note that embracing the adoption of more elastic (aka flexible and resilient) and employee-centric working models, will only become more necessary, going forward.

Related: Satisfying the ‘why’ for Gen Y: Millennials feel a sense of purpose at these 10 companies

In effect, leaders would do well to be aware: Millennials are still the biggest population in the workforce, though Gen Z is quickly catching up and getting ready to overtake them. Redesigning working setup, HR policies, and business strategy to better support their working models and learning habits going forward will only become more critical with each passing year. On top of this though, we should also keep in mind that it’s not always easy to paint all members of a generation with the same brush. For example: Pew Research says that millennials are often defined as individuals who were born between 1981-1996, and Gen Z between 1997-2012. That’s a 15-year span for each of these groups – meaning that you’re actually talking about several different generations who draw on different historical references and cultural touchpoints when you’re talking about each of these categories.

That said, a few things we know about younger workers:

• They’re increasingly stressed and being pulled in multiple directions.
• The two biggest reasons they leave jobs are lack of pay and burnout.
• The health and culture of working environments plays a huge role in shaping their outlook and mental health.

In addition, research also tells us that what they want from employers is more or better:

• Work/life balance
• Learning and development opportunities
• Chances to progress grow in their career
• Positive workplace cultures where they feel that they belong
• Sense of meaning from their work
• Flexibility in how they do their job

Noticeably, higher salaries and financial incentives, while also on the list, are NOT the most important drivers of interest here. Younger generations are clear in that they want to feel more valued at work, more recognized, and that their contributions really matter. Also keep in mind that these are generations of digital natives who were raised on the Internet, video games, and downloadable apps: They often seek interactivity, immediacy, and positive feedback at every turn as well. In addition, they’re increasingly looking for more help, insight, and mentorship on-demand.

Moreover, it’s no secret that competition to recruit and retain top talent is becoming increasingly fierce. At the same time though, topics like employee experience and professional development have also become growing strategic priorities for organizations. Noting this, leaders should be aware of several concerns as they think about how to help shape employee recruitment and retention strategies in coming months:

• Younger generations are more motivated by organizational missions, chances for individual recognition, and opportunities to do good in their industry or community than pay and financial perks.
• Improving work-life balance, enhancing employee experience, and providing more leadership, learning, and development opportunities are now the key areas of workplace evolution where most businesses are focused.
• Companies which offer flexible working environments clearly enjoy a marked advantage over rivals, as do those that provide personalized benefits and customized incentives.
• To maintain a sense of teamwork and togetherness amongst remote/hybrid teams, it’s also important for organizations to invest in cultural development, mental health support systems, and better ways to collaborate and get work done.

All of this being said, changes that your firm would do well to make here should encompass considering not only how your organization’s talent strategy is evolving, but also how its HR policies and programs are changing to remain competitive. Or, in other words, it’s important to reconsider if the way “things have always been done” is really still the best way to be doing them in a time of constant change and shifting workforce priorities at every turn. Leaders looking to better connect and communicate with young leaders – let alone recruit and retain them in growing numbers – wouldn’t just do well to consider embracing new working approaches and strategies. They’d also do well to reconsider how they fundamentally speak with, train, and strive to empower and engage these employees.

Scott Steinberg is the creator of The Future is Yours – a new board game that can teach anyone to be more creative, innovative, and resilient. Among today’s best-known trends experts and futurists, he’s been a strategic adviser to over 1500 brands, and is the bestselling author of  Think Like a Futurist. The President and CEO of  BIZDEV: The International Association for Business Development and Strategic Partnerships.