Using hard data from an Allegis Group survey, the paper unveils findings on employers' efforts to attract and retain Millennial and Gen Z talent, and debunks myths and stereotypes about these workers. Additionally, the paper provides approaches to help companies improve their talent practices and boost employee success across these generations.
"Companies' future success hinges on their ability to forge relationships with Millennials and Gen Zs, who are some of the most capable people in the workforce," says Andy Hilger, president of Allegis Group. "A talent acquisition approach built on respect and an understanding of the workforce will win today's battle for talent. That need for understanding applies to recruiting talent of all ages, and we are pleased to shed light on the discussion."
New Survey Shows Companies Struggle to Attract, Retain and Engage Millennials and Gen Zs In a survey of more than 1,000 senior-level human resources (HR) decision-makers, Allegis Group found:
49 percent are concerned with their organizations' ability to attract and retain Millennials and Gen Zs.
62 percent believe that issues with attracting and retaining them may lead to negative business impact. This impact may be felt in several areas, including slow company growth, limitations on productivity, obstacles to achieving business goals, curbs on innovation and costly hiring cycles.
But while HR professionals express concerns about their organizations' inability to recruit and retain employees from these generations, few are taking action to improve their results. According to the Allegis Group survey of HR decision-makers:
71 percent believe outdated work practices, unclear career paths, or limited advancements, skills development or mentoring would result in Millennials and Gen Zs leaving their organizations.
69 percent find their organizations struggle to provide incentives that most interest Millennials and Gen Zs, such as innovation autonomy, executive facetime, mentorships, fast access to promotions, flex scheduling, and workplace wellness programs.
31 percent say their companies have difficulties creating a collaborative culture to improve engagement among Millennial and Gen Z workers.
Look Beyond Compensation Millennials and Gen Zs look beyond salary and benefits when considering a job. Two areas of employer commitment rank high among their priorities: diversity and inclusion (D&I) and corporate social responsibility (CSR).
According to the U.S. Census Bureau, Millennials are 46 percent non-Caucasian, and Gen Z is 48 percent non-Caucasian. So while Millennials and Gen Zs are highly diverse generations, Allegis Group survey respondents with D&I programs in place reveal that:
Only 12 percent believe their D&I programs help them to attract Millennial and Gen Z talent.
Only 17 percent consider D&I a key part of their employee value proposition (EVP).
In addition, research shows that most newer workers would take a pay cut to work for a more socially responsible company. However, according to the Allegis Group survey, HR professionals with CSR programs in place reveal that:
Only 13 percent believe their CSR efforts help them attract Millennial and Gen Z talent.
Only 16 percent consider CSR a key part of their EVP.
Use technology to give Millennials and Gen Z workers more control over their careers
Align company values with those of Millennials and Gen Zs
Establish and run D&I and CSR programs that have a real impact on Millennial and Gen Z talent acquisition
"Millennial and Gen Z populations are reshaping the global workforce," Hilger says. "Considering their numbers, their skills and the concerns companies have about attracting them, tapping these generations is both a priority and a challenge. This white paper provides data and best practices to help employers mature their talent practices and deliver an enriching talent journey that can lead the next generation of workers to their vision of success in work and in life."