How to Retain Gen Z Employees: 5 Steps to Take Now

The new CEO just gave a presentation. “She ate.” You give someone a task: “Bet.” Your long term client asks for a discount: “It’s giving broke.”

If you have been exposed to these terms or others like them, you may have Gen-Z in the workplace—no cap (‘capping,’ or ‘cap’ in this scenario means to tell an untruth, so ‘no cap’ is a way to say “no lie/truthfully”).

Imagine being born just before 9/11 changed the world forever. Growing up in the shadow of the late 2000s financial collapse. Coming of age during the 2016 U.S. presidential election and navigating the social unrest that followed. Confronting a global pandemic at the exact moment you’re about to enter the workforce. And experiencing all these major world events—along with the ups and downs of everyday life—through a digital lens while keeping up with the ever-changing advancements of the internet age.

Gen Z members of the workforce don’t have to strain their imaginations to envision this scenario. It’s their reality. And it shapes how they feel about their lives, their futures, and how work plays a role in both.

As an HR leader overseeing a multi-generational workforce, you already know that talent’s attitudes about work differ depending on age. But with the eldest members of Gen Z just beginning to make their presence felt in the workforce, it might be hard to pinpoint exactly what motivates this generation—and how to give them what they need to stay happy, productive, and engaged at work. The traditional approaches that worked for previous generations may not resonate with Gen Z employees.

Discover more about what makes Gen Z employees tick so you can better understand how to attract and retain them in today’s competitive talent market.

How old are Gen Z employees?

Gen Z encompasses individuals born between 1997 and 2012. This age range is based on definitions from the Pew Research Center, which has become the widely accepted standard for generational classifications. The span covers a significant developmental period from middle school students to young professionals establishing their careers.

As of 2025, the oldest Gen Z members are now 28 years old and have been in the workforce for several years. They’re reaching peak productivity in their careers and may be taking on leadership roles or starting families. Meanwhile, the youngest Gen Z members are just 13 years old and are still navigating middle and high school.

Understanding this diversity within Gen Z is crucial for HR professionals. The older among them may prioritize career advancement and financial stability, while younger Gen Z workers might focus more on learning opportunities and purpose-driven work. Companies need flexible approaches to accommodate both the seasoned young professionals and the emerging talent just entering the workforce.

Early career talent strategy: 3 things to know about Gen Z

It’s impossible to characterize an entire generation of workers in a single blog post. But we can cover some basic data about Gen Z from their demographics to career trajectories. Here are three things for you to know about your company’s youngest professionals:

Gen Z workforce share is on the rise

While Gen Z workers may not yet dominate the workforce, their presence is rapidly expanding. Currently the largest generation on the planet, Gen Z comprises 27% of the world’s workforce and is expected to be the largest generation in the workplace by 2035.

By 2030, there will be over 38 million Gen Z employees in the United States, putting them just behind Gen X for the second-largest share of workers in the country. Many companies are now seeing Gen Z employees in mid-level roles and some early leadership positions.

Gen Z is more diverse than previous generations

A study from Deloitte anticipated that Gen Z would be the most diverse in history, and newer data suggests that is the case. Recent research confirms that Gen Z is significantly more diverse than previous generations, with higher representation across all ethnic and racial groups. The U.S. Census Bureau data shows that non-white individuals now represent nearly half of Gen Z, marking a historic shift in workforce demographics.

Gen Z is ready to change jobs

One of the more commonly circulated notions about Gen Z workers is that they’re exceptionally likely to job-hop, and recent data backs up that assertion. Current research indicates that Gen Z workers change jobs every 2-3 years on average, significantly more frequently than previous generations. For context, consider that the average person changes jobs 12 times in their entire life.

Another study reveals that 70% of Gen Z workers are actively or passively looking for a new job despite saying they are “loyal” to their current employer (sounds like some of them are indeed ‘capping’).

5 Ways to keep Gen Z talent—and keep them happy

Considering Gen Z’s willingness to give their two weeks’ notice in search of greener pastures, retaining your youngest talent can be a challenge. Fortunately, it’s easier to keep Gen Z employees when you know what they’re looking for. Here are five workplace offerings that Gen Z prioritizes—and steps you can take to meet their needs.

Workplace flexibility

When Business Insider published an article asserting that Gen Z actually “hates” working from home, it went viral—for all the wrong reasons.

Gen Z employees across social media platforms ridiculed the article for being out of touch with reality. Others noted that the article directly contradicted a previous piece from the same outlet claiming that Gen Z employees were quitting their jobs due to return-to-office mandates.

There’s clearly some confusion about whether Gen Z prefers in-office or remote work. The answer? They want a little bit of both.

Gen Z prioritizes workplace flexibility—the ability to choose between working in an office or remotely without being locked into either option. In fact, 81% of Gen Z employees say it’s important they have flexibility in when and where they work. At the same time, reports indicate that 65% of Gen Z employees prefer a hybrid approach, compared to 29% who want fully remote work and 24% who prefer an office-based model.

The right strategy? Offer your employees a mix of remote and in-office work. If you hire globally and don’t want to set up offices everywhere you build teams, give your people access to on-demand workspaces.

Work-life balance

Closely tied to workplace flexibility, another top priority for Gen Z talent is work-life balance.

According to Deloitte’s 2025 Gen Z and Millennial Survey, Gen Z professionals are more focused on achieving a work-life balance over climbing the corporate ladder, with only 6% stating that their primary career goal is to reach a leadership position.

Considering these findings, it should come as no surprise that 82% of Gen Z employees say it’s crucial for their employer to offer mental health days, according to a survey by TalentLMS. Respondents also rank burnout and lack of work-life balance as the second-most likely reason they’d quit their job.

The most likely reason? Unsatisfactory salary.

Your best bet? Offer time-off policies that promote the work-life balance your Gen Z talent expects. How much time off is the right amount? Consider the fact that many European countries offer five weeks of paid vacation. Additional measures you can take include offering mental health days, giving employees more control over their day-to-day schedules, and encouraging managers to regularly check in with talent about their workloads.

High pay

Pay is the only career consideration that Gen Z values more than work-life balance (though, of course, the answer may differ depending on which employee you speak to).

Gen Z’s emphasis on salary makes perfect sense, considering the economy they’re navigating as they enter the workforce. While wage growth averages about 3-4% annually, inflation has stabilized around 2-3% but housing and essential costs remain elevated. Gen Z workers need to be paid well to keep up with persistent affordability challenges—and the relatively diminishing power of their paychecks.

Gen Z talent is also entering the workforce when unemployment remains low and companies are seeking every edge to stand out in a tight labor market. Knowing they have their pick of employers, Gen Z job seekers have the leverage to ask for higher salaries.

Furthermore, Gen Z workers are just starting their careers. They can be less risk-averse than older job seekers with responsibilities like providing for a family or saving for retirement. As a result, they are often more willing to roll the dice and walk away from jobs that don’t pay well, convinced they’ll find a more lucrative opportunity elsewhere.

Your strategy: Take the time to ensure your salaries compete with those offered by other employers in your industry. This goes for not only the salaries you are offering to new hires, but for current employees, too.

Transparency, equity, and accountability

Gen Z employees aren’t only motivated by their salaries. They’re passionate about ensuring equal pay for all. That’s why they want pay ranges listed on job postings.

In a recent survey of 3,700 U.S. college students, respondents said pay transparency and equity was the most essential diversity, equity, and inclusion (DEI) initiative a company could take. Fifty-three percent of the survey respondents said they’d be discouraged from applying for a position if the employer did not list a specific salary range.

Gen Z talent’s emphasis on pay transparency is part of their larger prioritization of accountability, equity, and fairness. London-based psychologist and workplace engagement consultant Elizabeth Michelle said Gen Z employees are very tuned into whether companies are following through on their mission statements and corporate values such as DEI. If companies are not “practicing what they’re preaching, Gen Z will hold them accountable,” she states.

Receive more applications from Gen Z candidates by listing the pay range on your job postings. Then, ensure they stick around by making sure your company follows through on its promises—in everything from corporate values to the DEI initiatives you commit to.

Mentors, not just managers

While Gen Z workers are committed to altruistic ideals for society as a whole, they’re still also focused on their own growth. That’s why Gen Z employees aren’t just looking for managers. They’re looking for mentors who will help guide their careers while also taking an interest in them as humans.

Deloitte’s 2025 Gen Z and Millennial Survey revealed that mentorship, or the ability to teach something, is among the qualities that Gen Z talent prioritize most in their managers. In the eyes of Gen Z employees, though, mentorship goes beyond simply passing along skills.

One study found that 82% of Gen Z talent wants to work under a boss who cares about them and can relate to them on issues outside of work, while 73% feel more motivated when their supervisor cares about them.

While it’s not quite realistic to think you can retain Gen Z employees (or any, for that matter) throughout their entire careers, you can keep them with your company longer by ensuring they receive the mentorship they want.

Your plan: Encourage team leaders to take a holistic approach to supervising their employees. By treating employees as humans, and offering them mentorship accordingly, your team leaders will give talent the comprehensive care and guidance they seek.

FAQs

Understanding how to effectively manage and retain Gen Z employees is crucial for organizational success. Here are answers to common questions about engaging this unique generation in the workplace.

How do Gen Z employees prefer to be managed?

Gen Z employees prefer a personalized management approach rather than a one-size-fits-all style. Research indicates that 20% prefer hands-on micromanagement, 25% opt for a hands-off approach, and 57% desire a balanced management style. They respond well to managers who provide clear expectations, frequent feedback, and show genuine interest in their individual growth and development.

What leadership style does Gen Z prefer?

Gen Z responds best to transformational, servant, and authentic leadership styles. They value leaders who inspire them with a clear vision of the future, prioritize their development and well-being, and demonstrate transparency and ethical behavior. Democratic leadership that emphasizes collaboration and consensus-building also resonates with Gen Z, as 26% favor this inclusive decision-making approach.

How often does Gen Z want feedback from their managers?

Gen Z employees expect continuous, frequent feedback rather than traditional annual reviews. They prefer regular check-ins and ongoing guidance, with 78% of young workers wanting recognition from their manager at least a few times per month. This generation values immediate feedback through frequent performance coaching sessions and appreciates when managers provide both corrective and reinforcing feedback using a balanced approach.

Tap into Gen Z talent with a Global Partner

Making your talent feel valued requires you to be in many places at once—especially when operating across borders. Take it from us bestie—working with an expert partner makes your job significantly easier

So—let us cook (in this instance: give us a minute, the results are going to be amazing).

Pebl (previously Velocity Global) has helped more than 1,000 companies hire, manage, and support talent in 185+ countries since 2014. With our combination of easy-to-use workforce management technology backed by local support from HR experts, you can be right there for every employee without stretching yourself thin. You also get the full-service partner you need to stay on the cutting edge of work—whether you’re keeping up with the needs of Gen Z employees (and their ever-evolving slang), staying ahead of changes to local labor laws, or anything in between.

Get in touch to find out how Pebl (previously Velocity Global) can take you from “thought they ate” (pejorative) to “ate, no crumbs left” (positive).

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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