The Gen-Z Work Meaning Crisis

With an increasing number of Millennials and Gen-Zers taking over the reins in the workplace from their Baby Boomer counterparts, growing pains are at an all-time high. Leaders everywhere are in a proverbial scramble to understand what makes this resignation-prone group of workers stick around. A series of studies on millennials and Gen-Z workers returned some startling statistics about the way the new American workforce views work and some interesting insights on what companies can do to get the most out of America’s new workforce.

The Challenge
A recent Indeed and Forrester study, surveying over 4,000 U.S. adults on workplace wellbeing, unveiled a staggering reality: 71% reported low to moderate job satisfaction, while the 29% who experienced high well-being were more likely to be older males.

Reasons for discontent may not be immediately evident to most, however a close examination sheds light on the issue. The last few years have not been kind to the average Gen-Z worker. The constant struggle against inflation, coupled with stagnant wage growth, is propelling half of Millennial and Gen-Z workers into a paycheck-to-paycheck lifestyle. As a result, aspirations like homeownership and family planning are taking a backseat, overshadowed by the challenge of making ends meet. In addition, a recent Aflac report highlighted that 71% of Gen-Z workers report feelings of burnout from increased job demands and stress. Traditional ideals of pursuing the brass ring seem tarnished under current economic conditions, necessitating a shift in motivation strategies to retain talent. Here are four tips to keep Gen-Z employees engaged at work.

1. Beyond Work-Life Balance
   For the new generation of workers, a simple work-life balance falls short. A Harvard Business Review report mentioned that 55% of respondents have not been able to establish a meaningful work-life balance, with Millennials and Gen-Z workers reporting the highest feelings of discontent. Respondents blamed steadily increasing workloads as the culprit. This being the case, many workers are yearning for satisfaction during working hours, challenging the notion of reserving contentment solely for the weekends. However, this isn't a call for cliché pizza parties; Gen-Zers’ hearts are won through meaningful engagement. Finding ways that allow workers to take ownership of their work and participate more fully in projects that align with their interests play a key role in keeping the new generation engaged with their work.

2. Making It Make Sense
   Surprisingly, a recent Indeed study reveals that 97% of respondents believe it's possible to be happy at work the majority of the time. Contrary to expectations, monetary compensation isn't the primary driver of workplace happiness. A staggering 88% feel work should offer more than a paycheck, with 67% considering well-being at work a right rather than a luxury. The conventional exchange of time for money appears outdated to new workers, prompting a desire for meaning and impact. Millennials and Gen-Zers seek work that makes a difference, urging companies to align their missions with social and environmental causes. A recent article in Forbes gave its best tips for companies choosing a social cause to support.

3. Be Real. No Cap
   With many stories in the media focused on uncovering corporate corruption and mal-intent, it is easy to see why there is a greater push for better communication and transparency in the workplace. Honesty and transparency have emerged in many studies as being top priorities for millennials and Gen-Zers in contributing to job satisfaction. The previously mentioned Indeed study highlights that 82% of happy employees prioritize work effectively, compared to 43% for unhappy employees. Similarly, 74% of happy employees prioritize actions benefiting the company, in contrast to 38% for unhappy employees. With this in mind, companies can improve their work culture, morale, and retention simply by improving their communication. Clear communication of a company's vision and mission, coupled with a firm understanding of employees' roles within that framework, prove vital for boosting focus, productivity, and overall employee happiness.

4. Leaders Gotta Lead
   Creating an environment where younger employees thrive involves cultivating leadership transparency and open communication across all levels, particularly in lower and middle management. Shockingly, 56% of workers remarked that they feel unsupported by their managers, and 73% believe their feedback is unwelcome. When faced with these numbers, the impact middle managers, who work most closely with Gen-Z employees at the beginning of their careers, have on employee wellbeing cannot be understated. To address this, companies should invest in training managers to develop active listening skills, ensuring they respond meaningfully to employee concerns. When individual contributors feel seen, understood, and advocated for by their managers, morale rises, and their effectiveness as employees improves significantly.

Developing a solution to Millennial and Gen-Z talent retention is a complex discussion. In many ways, employers will have to take a more comprehensive approach to selling the positives of work to the new generation if monetary compensation cannot provide the equity it did for generations that came before them. Today’s workers are looking for more than a couple days off. They seek a closer relationship with their work and a greater sense of meaning with the work they do. Providing this requires employers to build a work environment with active, trustworthy, and empathetic leadership, and plenty of opportunities for employees to engage in the types of work that interest them.

Core Group Resources is a staffing and consulting company that specializes in personnel solutions that provide your organization with the resources it needs to manage any project. From complex project staffing with our technical services group, to leadership training through our Business Advisory division, Core Group Resources is your go-to company to retain top talent for your company’s next phase of growth.