5 ways to keep Gen Z employees happy in the office

These five tips may keep your Gen Z employees in post longer, says one HR expert

Feb 27, 2024 - 20:08

5 ways to keep Gen Z employees happy in the office

Gen Z are off ill more than 40-somethings. Here's how to keep younger employees happier

New research from the Resolution Foundation shows that Gen Z people in their early 20s are more likely to be out of work because of ill health than people in their early 40s.

The new data “radically” bucks the trend for older people typically taking more time off work than their younger Gen Z and Millennial counterparts, says the think tank.

As well as being a clear signal of the healthcare challenges facing the youngest working population, their leave time is pushing up the UK’s inactivity rate and hampering the economy, according to the research.

Over the past decade, the number of young people out of work for health reasons has doubled to 190,000 from 93,000. Foundation data also found that 34% of people aged between 18 and 24 said they had issues to do with a mental illness, such as depression and anxiety, between 2021-22. The figure in 2000 was 24%, and women are more than two times more likely than men to be affected.

But how can companies play their part in supporting Generation Z employees? Jeanette Wheeler, Chief HR officer at human resources firm MHR shares five ways companies can increase their chances of keeping Gen Z happy in the workplace.

1. Wellbeing

“When young people enter the workplace, they often feel short-changed by a lack of emphasis on wellbeing and mental health support from HR teams. MHR research shows that 75% of organisations fail to regularly check in on employee needs and attitudes, for example through satisfaction surveys, which means poor employee wellbeing can go unnoticed.

“Worse still, a lack of perceived ‘open-door culture’ can greatly compound stress and mental health challenges, as employees may not feel like they have a support network to turn to. In order to make Gen Z happier in the workplace, companies need to implement consistent check-ins with employees, while the ability to contact trained mental health first-aiders can also provide a reassuring presence for vulnerable employees.

2. Do as I say, not as I do

Although many companies pay lip-service to supporting mental health in the workplace, 79% of UK employees surveyed by us do not believe their employers when they promote their mental health initiatives. With a fifth of FTSE 100 firms posting on social media about mental health during awareness days and then not again for the rest of the year, employees are not unfounded in feeling misled by ‘mental health washing’.

“For Gen Z, who place a particular emphasis on wellbeing, as well as organisational ethics and values, these superficial efforts are often plainly transparent and can greatly erode trust. To combat this, companies should pay close attention to their internal and external communication, and ensure that it closely mirrors actual workplace policy to avoid any allegations of ‘washing’.

3. Money matters

“The impact of the cost-of-living crisis has undoubtedly been felt by employees of all ages, but Gen Z employees at the beginning of their careers (and who tend to be on lower salaries) might feel its bite particularly keenly. A company can demonstrate their commitment to alleviating financial stress where possible through ensuring accurate and timely payroll, which can prevent insecurity when rent and direct debit payments hit at the start of the month.

” Likewise, although initiatives such as financial wellbeing workshops and talks can go some way to raising awareness of money management, many Gen Z employees appreciate having autonomy over their own finances as they best understand their own financial priorities and pain points. Organisations can go one step further by implementing earned wage access schemes, allowing individuals to access money they have accrued throughout the month rather than waiting until payday, or real-time pay information, which allows pay slips to be updated in real-time.

4. Learning and development

“With many coming fresh from education, Gen Z employees often have a real hunger to expand their skills and talents and an aptitude for learning. Many will be finding their feet in their career and will seize opportunities to try new things as they seek to find a niche or broaden their horizons. However, a lot of companies do not capitalise on this through providing sufficient opportunities for growth, leading to junior employees feeling stagnant or disillusioned with their roles.

“Much noise has been made of late about Gen Z employees lacking communication and presentation abilities as a result of the pandemic and the subsequent online working culture. Instead of penalising younger people for skills they may not have had the chance to develop, companies who show real commitment to tailored learning and development plans will surely reap the benefits of higher levels of recruitment, retention and job satisfaction amongst younger employees.

5. First impressions count

“Gen Z is expected to count for over a quarter of the workforce by 2025, and their first impressions to the world of work matter, and will likely set the tone for their whole career trajectory. Companies should make a real effort to understand this new generation of employees, and look to build confidence and skills. Although placing an emphasis on holistic wellbeing may seem alien to some, it is crucial for recruitment and retention to deploy strategies that are conducive to a positive work environment.

“While Gen Z may not boast the same length of experience as their older counterparts, they are often brimming with creativity, fresh ideas and new perspectives. We should look to celebrate our differences, and make the most of the diverse range of talents and viewpoints a multi- generational workplace offers, ultimately fostering a more interconnected and happier environment for all.”