Companies face the challenging task of adapting to the expectations and preferences of an increasingly diverse talent pool. With the settling in of millennials and the entrance of Generation Z into the workforce, there arises the need to understand and address their motivations, needs, and unique way of working.
Therefore, fostering engagement among new generations has become a priority for many organizations, due to the urgency of retaining talent and promoting a culture of innovation and collaboration in a competitive and ever-changing business environment.
In this article, we will explore generational differences in engagement, some key strategies to cultivate it among the new generations of employees, and different success stories of companies that are investing in emerging talent.
Engagement, a (partly) generational aspect
According to a 2023 Gallup report, engagement levels hit rock bottom in the year 2020 due to the unprecedented challenges brought about by the pandemic. This widespread decline is also explained by the radical shift in the labor market, driven by various factors, including the emergence of new business models such as startups and rapid technological advancement.
The exponential growth of startups has introduced new dynamics into the workplace, such as the era of remote work and a culture and way of operating that differ significantly from traditional companies.
While startups have more easily embraced this new work reality, established companies have had to adapt, which may have created a disconnect between the latter and the new generations, who seek a modern and dynamic work environment.
On the other hand, rapid technological advancement and digital transformation have significantly impacted the nature of work and the expectations of recent generations. Those who grew up in a digitally connected world value flexibility, innovation, and the opportunity to constantly learn and grow. When they do not find these characteristics in their current jobs, they are more likely to experience lower engagement and seek opportunities in companies that do offer them.
Therefore, addressing the decline in engagement among new generations is certainly complex, and it is not enough to simply implement mentorship programs, professional support, among others. A corporate culture that fosters innovation, collaboration, and continuous learning is also necessary, which will positively impact employee satisfaction.
More generational (and impactful) insights
According to Gallup’s study, it’s generally observed that newer generations feel more disconnected from their work and employers, while older generations remain engaged.
Baby Boomers and Gen X
– Since March 2020, the percentage of engaged Baby Boomers (born between 1946 and 1964) has increased from 34% to 36%, while the percentage of actively disengaged Baby Boomers in this same group has decreased from 17% to 15%.
– The percentage of engaged Gen X employees (born between 1965 and 1980) has decreased from 35% to 31%, while the percentage of actively disengaged Gen X employees has increased, rising from 17% to 18%.
New generations, the greatest impact
– The percentage of engaged millennials (born between 1981 and 1996) has decreased from 39% to 32%, while the actively disengaged has increased from 12% to 17%.
– The percentage of engaged employees among the younger millennials and Generation Z (born between 1997 and 2012) has decreased from 40% to 35%, while the percentage of actively disengaged employees has gone from 13% to 14%.
Therefore, it can be observed that millennial and Gen Z employees have experienced the greatest decline, especially in the following factors: feeling cared for by someone at work, having opportunities to learn and grow, feeling connected to the organization’s mission, and feeling that their opinions matter. All these aspects have fallen between five and nine points for the new generations since March 2020.
In summary, these data suggest that new generations are increasingly feeling more distanced from their organizations, seeking a purpose they can identify with in them.
Next, let’s explore different strategies that can increase the engagement of these new generations.
Keys to boost engagement
There are various ways and initiatives that companies adopt to increase engagement and keep their talent committed and satisfied. Let’s explore some examples below.
The importance of a good onboarding process
A solid onboarding process is crucial for retaining all employees in general, and new generations in particular, as this phase is decisive in generating a positive initial impression. This process facilitates engagement from an early stage by aligning employees with the company’s culture and values. While offering opportunities for professional development, it reduces turnover by ensuring that employees feel valued from the start, and it facilitates social integration by establishing relationships with the rest of the team.
During this phase, most new employees are still deciding if they have made the right decision. The 2023 Retention Report from the Work Institute revealed that 35% of employees quit within their first year of employment, and 37% of those resignations occurred within the first 90 days of employment.
Therefore, the onboarding process must be inclusive and effective to cultivate a positive work experience from the outset and promote long-term retention. Additionally, as the job landscape continues to evolve towards remote and hybrid models, the need for these integration practices becomes increasingly important.
It’s interesting to note that many companies are starting to explore creative and engaging approaches to the onboarding process for new employees. For example, through technologies like virtual reality, where new employees can take a virtual and immersive tour of offices located in different parts of the world. Moreover, this allows them to meet colleagues from various countries and even discover information about the company through a gamification approach. To discover how companies are creating immersive experiences, evolving from a storytelling approach to one of storyliving, click here.
Development opportunities
New generations are eager for learning and growth. Providing professional development opportunities, such as training programs, challenging project assignments, and mentorship, not only increases their engagement but also strengthens their loyalty to the company.
Mentorship is an excellent way to engage employees from new generations. Despite their drive for success, these workers may not yet have the right skills to achieve it, and one way to address this is through a mentoring program. This opportunity allows them to observe and learn from more senior employees who have already traveled that path and can provide valuable advice. It’s not just about these mentors imparting technical skills, but also emotional intelligence and interpersonal skills that workers from the most recent generations may not yet have had the chance to perfect.
Another example of professional development could be a Job Rotation program. These are designed for employees from the most recent generations who are at a more junior level. In these programs, employees have the opportunity to rotate between different departments or teams within the company for a specified period, usually six months to a year, allowing them to identify areas of interest and individual strengths.
Open and transparent communication
New generations value clear and direct communication. Establishing open communication channels where employees feel free to express their ideas, concerns, and suggestions is crucial. Regular and constructive feedback is also essential to keep them engaged and motivated.
To achieve this, it’s essential to provide them with tools such as direct access to the Human Resources departments to facilitate problem-solving and addressing specific needs, as well as an intranet that facilitates internal communication and real-time information exchange.
Managerial involvement and recognition
Companies need to focus on reviewing the responsibilities of managers in this regard as well. As Gallup points out, 70% of managers consider that they have not been trained to manage a hybrid work system. It is necessary for them to be close to employees, helping them establish clear goals, responsibilities, and meaningful conversations to address performance, development, and employee aspirations.
Furthermore, fostering a culture where employees’ good work and great effort are valued and recognized is essential for strengthening bonds within the team and creating a sense of belonging. In fact, organizations where recognition is a priority have a more attractive employee experience and better talent retention, as discussed in this article.
Employee benefits
Employee benefits for the most recent generations often make a significant difference in their satisfaction and commitment to the company. Among these are flexible work schedules, allowing them to balance their work responsibilities with their personal lives, which is one of the highest priorities for millennial and Gen Z employees.
On the other hand, other benefits such as professional development programs and training opportunities provide new generations with the chance to expand their skills and advance in their careers. They also highly value opportunities for travel and international work to gain greater experience and broaden their horizons. Wellness benefits, such as gym memberships or birthdays off, contribute to their health and happiness at work. Finally, benefits such as assistance with student loan payments are also highly valued.
Purpose and social responsibility
Emphasizing the purpose and values of the company, as well as its commitment to social and environmental responsibility, resonates especially among the most recent generations.
Working on projects with a positive impact on society and providing opportunities for employees to engage in volunteering initiatives can significantly increase their engagement and job satisfaction. In this article, we analyze the role that sustainability plays in the employee experience.
In summary, there are various initiatives that organizations can implement to foster the engagement of millennial and Gen Z employees. Now, let’s see how some companies are putting these practices into action in the business world.
Success stories in meeting the demands of a new generation
Companies like Google, Salesforce, and LinkedIn are recognized for their strong commitment to the new generations.
Google, for example, whose employees have an average age of 29, offers Google Mentorship Programs, where experienced employees act as mentors for newer generation employees, providing them with guidance and support in their professional development. Additionally, Google Social Events are regularly organized social activities such as lunches, dinners, and sports events designed to foster connections between employees of different generations and integrate newer generations more quickly.
Another example is Spotify, whose Echo platform and Greenhouse learning portal facilitate knowledge acquisition by allowing newer generation employees to participate in in-person or virtual sessions on a variety of topics. Additionally, Spotify’s internal marketplace provides opportunities to find mentors or mentees, meeting the needs of newer generations who want to improve their technical or leadership skills through coaching.
Lastly, LinkedIn‘s Next Gen Leadership Program is a comprehensive platform designed to enhance both the professional and personal development of new generation talents.
This program provides a wide range of tools and resources aimed at accelerating career progression and achieving success at younger ages. Among its numerous benefits are workshops focused on key skill development, as well as talks and panels led by successful business leaders.
These companies are examples of organizations that have demonstrated an effective commitment to engaging new generation employees.
In summary, fostering the engagement of these employees requires a proactive approach focused on their unique needs and preferences. By prioritizing open communication, professional development, workplace flexibility, collaboration, and shared purpose, companies can cultivate a work environment where the most talented employees thrive and feel valued. This not only benefits individual employees but also drives the long-term success and competitiveness of the organization as a whole.
To delve deeper into the essentials of employee daily life, click here.
