The labor market is ever-evolving, influenced by technological advancements, socio-economic shifts, and the changing expectations of new generations entering the workforce. As we continue through 2024, employers must understand what the next generation of talent is looking for in their careers. I wanted to share statistics on the average tenure for next-generation talent.
In the workplace, the average tenure of the next generation of candidates, particularly Gen Z, has shown interesting trends. According to data from the Pew Research Center, young workers today have job tenures similar to those of previous generations, with the median tenure for 25- to 34-year-olds at about 2.8 years. This stability contrasts with the high voluntary quit rates seen during the "Great Resignation" in 2021, where young workers were more likely to change jobs frequently Pew Research Center
Further analysis indicates that Gen Z employees have shorter tenures than older generations. A significant portion, about 40%, plan to leave their current employment within the next two years, down from 53% in 2021. By comparison, 25% of Millennials expressed a similar intention.
Additionally, the average tenure across various demographics and industries reveals that younger employees, particularly those in consumer-facing roles, are more likely to job-hop. For example, 49% of Gen Z in consumer roles and 48% in retail roles intend to leave their jobs within the next two years (CapRelo).
Overall, while the job tenure among young workers remains relatively steady over decades, current economic and social factors influence their propensity to change jobs more frequently than their older counterparts.
Here are some key insights into their expectations and how companies can adapt to attract and retain top talent.
1. Emphasis on Work-Life Balance
The concept of work-life balance has become non-negotiable for the new generation. They value their time outside of work and seek employers who respect and support this balance. Flexible working hours, remote work options, and generous leave policies are no longer perks but expectations. Companies that prioritize work-life balance are likely to see higher levels of employee satisfaction and productivity.
When considering work-life balance many owners think that offering any weekend time off is non-negotiable for them. They remain resistant to change to address this challenge. We thought we would highlight some areas worth reviewing where taking steps to address this challenge pays off and becomes a recruiting advantage for you against your competitors.
Close on Sundays - a strategic advantage
There are some great examples of highly successful companies such as RC Willey on the larger scale and BILTRITE Furniture that seem to have cracked the code. They have successfully trained their shoppers to shop on other days. Not only do they have great service standards but they also have customers waiting at the door for them to open up on a Monday.
Another option is to get serious and offer your Sales Managers and Store Managers a weekend day off at a minimum of once per month. Yes, this is a significant scheduling challenge, however, if you apply a little creativity it could also be an opportunity to create a career pathing. For example, you could assign a key person to develop (think key holder) and schedule them to step in on those days per month to increase your bench strength.
I am on the front lines and hearing it verbatim about the reluctance to work weekends from former Store and Sales Managers. Many of them will tell you they are looking for another opportunity that will give them flexibility. Many of these folks cite the fact that they gave up prime years of missing these milestone events with families all to support a weekend schedule without a break. Some even take a step back in pay and responsibilities to get into a better schedule and work-life balance.
2. Commitment to Diversity and Inclusion
Diversity and inclusion are paramount for the next generation. They expect their workplaces to be environments where everyone feels valued and included, regardless of their background. Companies that actively promote diversity and implement inclusive policies are more attractive to young talent. This includes having diverse leadership, equitable pay, and a zero-tolerance policy towards discrimination.
3. Focus on Sustainability and Corporate Social Responsibility (CSR)
Environmental consciousness is a significant factor for the new generation. They prefer to work for companies that are committed to sustainability and actively engage in CSR activities. This could mean adopting green practices, supporting local communities, or participating in global initiatives. Transparent reporting on these efforts also helps build trust and loyalty among employees.
There are great examples across our industry of companies large and small that highlight why their company is a great place to work. Giving back to the community is key and involving your employees in this opportunity really enhances and sends a message that the company has a heart.
4. Opportunities for Growth and Development
Continuous learning and career development are critical to the next generation. They seek employers who provide opportunities for professional growth through training programs, mentorship, and clear career progression paths. Offering educational benefits, such as tuition reimbursement or access to online courses, can be a significant draw.
5. Technological Integration
Having grown up in a digital age, the next generation expects their workplaces to leverage the latest technologies. This includes not only the tools they use daily but also the infrastructure and processes within the company. Employers who invest in modern technology and encourage digital innovation will likely attract tech-savvy talent.
6. Transparent and Open Communication
Transparency and open communication are vital to building trust with the next generation of employees. They appreciate being kept in the loop about company decisions, performance, and future plans. Regular updates from leadership, open forums for discussion, and a culture of feedback help in fostering a transparent environment.
7. Wellness and Mental Health Support
Mental health and wellness are top priorities for the new generation. They expect their employers to provide support in these areas through comprehensive wellness programs, mental health resources, and a culture that promotes well-being. Initiatives like on-site gyms, mental health days, and access to counseling services can make a significant difference.
8. Purpose-Driven Work
The next generation wants their work to have meaning. They are drawn to companies with a clear mission and values that align with their own. Employers should articulate their purpose and demonstrate how their employees' work contributes to broader societal goals.
Adapting to Meet Expectations
To attract and retain the next generation of talent, companies must evolve. This means reassessing current policies, investing in new initiatives, and fostering a culture that aligns with the values and expectations of young professionals. By doing so, employers can build a dynamic, engaged, and loyal workforce ready to tackle the challenges of the future.
In conclusion, understanding and adapting to the expectations of the next generation of talent is crucial for success in the 2024 labor market. Prioritize work-life balance, diversity and inclusion, sustainability, growth opportunities, technology, transparency, wellness, and purpose, companies create an environment that not only attracts but also nurtures and retains the best talent.
