Gen Z - Attract, Manage, and Retain the Next Generation of Talent

February 27, 2025

SEB Marketing Team

Generation Z (Gen Z), born between 1997 and 2012, continues to enter the workforce and their unique set of expectations and motivations are reshaping the modern workplace. Having grown up in an era of rapid technological evolution, economic uncertainty, and heightened social consciousness, Gen Z employees bring a fresh perspective to the professional world—one that emphasizes purpose, flexibility, wellbeing, and inclusivity. Understanding their values and career aspiration is crucial for HR professionals, business leaders, and managers who aim to attract, manage, and retain this emerging talent pool.

Understanding Gen Z’s Expectations

Purpose-Driven Work Over Pay Alone: Gen Z prioritizes meaningful work that aligns with their values over higher pay, seeking employers who share their commitment to making a positive societal impact. This shift challenges employers to go beyond competitive compensation and highlight how their mission, workplace culture, and corporate social responsibility (CSR) initiatives create a larger impact. Companies that actively address sustainability, climate change, and social justice issues are more likely to attract and retain Gen Z employees.

Flexibility Work Arrangements Are a Must: Flexibility and work-life balance are a non-negotiable for Gen Z. Unlike previous generations that viewed flexibility as a perk, they expect the autonomy to work remotely and with flexible schedules that allow them to balance their professional and personal lives. This generation values a high quality of life and expects their employers to support this through flexible work arrangements. Organizations that embrace flexible work policies will have a competitive advantage in attracting and retaining this talent pool.

A Workplace That Supports Well-Being: An extension of work-life balance, Gen Z views work as an extension of their lifestyle, which means they expect employers to prioritize holistic wellbeing. Benefits such as paid time off, mental health days, wellness programs, and activities that foster a sense of community are essential for engagement and retention. Employers who invest in well-being initiatives—such as fitness programs, employee assistance programs, and social events—can build a work environment that promotes both productivity and personal fulfillment.

Continuous Learning and Career Personalization: Unlike previous generations that followed traditional career paths, Gen Z is eager to develop their skills and advance in their careers in a personalized manner. They seek opportunities for continuous learning and professional growth. This generation thrives in environments where they can acquire new skills, explore different career paths, and receive individualized career development plans. Employers that invest in professional growth programs, offer the latest tools and technologies, and allow for nonlinear career progression will better engage and retain Gen Z employees. Creating a work environment that supports ongoing learning can help organizations maximize the potential of Gen Z employees.

Inclusive and Diverse Workplaces: Gen Z is one of the most diverse generations in history, and they expect their workplaces to reflect that diversity. They are more likely to work for companies that actively promote inclusivity, equal opportunities and support for underrepresented groups. Implementing inclusive practises in hiring and culture-building can help organizations create a culture that resonates with this generation.

Technological-Driven Workplaces: As digital natives, Gen Z are accustomed to seamless technology in all areas of their life, so they expect their workplaces to be technologically advanced. Leveraging the latest tech tools enhances efficiency, streamlines collaboration, and supports hybrid work environments. Companies that embrace automation, AI-driven solutions, and intuitive workplace technology will find it easier to attract and retain this generation.

How to Attract and Retain Gen Z Talent

To attract and retain Gen Z talent, organizations must adapt their recruitment and retention strategies to align with the unique expectations of this generation. Here are some key steps to consider:

• Align Company Values with Gen Z Priorities: Companies should clearly communicate their mission, values, and commitment to broader social and environmental challenges. Employers should demonstrate—rather than simply state—how they are making a difference in areas such as sustainability, social responsibility, and workplace ethics.
• Offer Flexible Work Arrangements: Providing flexible work options, such as remote work options, flexible schedules, and autonomy can help organizations attract and retain Gen Z employees. Organizations that resist flexible work risk losing top Gen Z talent to competitors that embrace adaptability.
• Invest in Career Development: Creating opportunities for continuous learning and professional growth can help organizations engage and retain Gen Z employees. This includes offering training programs, mentorship opportunities, and access to the latest tools and technologies.
• Foster an Inclusive and Diverse Culture: Ensure diversity, equity, and inclusion are embedded in the workplace. Encourage open discussions, provide inclusive benefits, and implement equitable hiring practices.
• Embrace Technological Innovation: Integrate modern digital tools to enhance productivity and collaboration. A technology-forward workplace appeals to Gen Z’s comfort with digital ecosystems.

Gen Z is redefining workplace expectations with their unique perspectives, tech-savviness, and evolving expectations. Understanding and addressing their motivations—such as purpose-driven work, flexibility, continuous learning, and inclusive environments—organizations are invited to rethink traditional approaches and create a workplace that aligns with Gen Z values. Companies that successfully adapt to these evolving expectations will not only secure top talent but also foster a future-ready workforce that drives long-term success.