Talent scarcity is the greatest concern of executives around the world. As Generation Z (the generation born in the mid- to late-1990s) enters the workforce, companies will need to fine-tune their Employee Value Propositions (“EVPs”) to favorably position themselves in the ongoing competition for top talent. This presents unique challenges to managers, supervisors, and Human Resource leaders in every sector.
There are gaps between Generation Z’s preferences and what companies are emphasizing. But you can bridge these gaps by doing these five things:
1. Acknowledge differences: We all know that a one-size-fits-all approach is no longer resonating, and we need to embrace the fact that meeting employees’ needs today requires a more nuanced approach.
2. Align recruitment strategies with talent strategies: Recruiters should be clear about what your company is promising to potential candidates about “the deal” someone will get as an employee.
3. Construct and communicate a job architecture that demonstrates career advancement opportunities: Depending on your company culture, highlight upward, and / or lateral opportunities, preferably using career management technology given the digital fluency of Gen Z.
4. Design and demonstrate work/life integration programs: Explicitly state what Work/Life Integration options are available and how your employees can participate.
5. Educate and engage employees and their managers around rewards offerings: Ensure your employees are educated on what is rewarded, what drives decision-making on pay, and what the linkage is between career advancement and compensation.
Doing these five things will help your company address Gen Z’s priorities, which were uncovered by Mercer’s recent survey and focus groups with members of this cohort. The survey data revealed that Gen Z considers the items in blue the most important factors for evaluating potential employers, and the items in red least important.
Unsurprisingly, today’s multigenerational workforce is characterized by a broad and differing set of preferences. Organizations committed to enabling their workforces to thrive will take a data-driven approach to understanding workforce preferences and needs. They will also seek to actively tailor and constantly iterate their people programs to meet the needs of their employees today and tomorrow.