More than a third of Generation Z and Millennial employees are actively looking for a new job, confirmed a new survey.
Employee loyalty is at risk among younger generations, with one in three Generation Z and Millennial workers actively looking for a new job, amid the Great Resignation, according to new research from Paychex and Future Workplace; a HR research and advisory firm.
However, the study research revealed that older generations, including Boomers and Gen Xers, appear to be more content with their current employment. Only 11% of Boomers (born 1946-1964) and 27% of Gen Xers (born 1965-1980) are actively seeking a new job; compared to 35% of Millennials (born 1981-1996) and 44% of Gen Zers (born 1997-2012).
RETAINING YOUNGER GENERATIONS
“The pandemic gave many workers the opportunity to reflect on what is most important to them in a job and employer; and assess their priorities for future roles,” stated Alison Stevens, Director of HR Services, Paychex. “For many, the Covid-19 pandemic revealed that their current position or company was not serving them. If companies are not adeptly responding to the rapidly evolving and expanding needs of their employees, they are likely falling behind in the race to recruit and retain top talent.”
Different generations weigh benefits and incentives differently. The research revealed that employees from younger generations prioritise other key benefits above a pay increase. Flexible work hours, mental and wellness benefits and familial care benefits all outrank a pay increase; when asked what changes their employer could make to increase their loyalty. Around 43% of Millennials and 44% of Gen Zers agreed that flexibility in work hours would increase their loyalty to their employer.
LOYALTY ENHANCING INCENTIVES
According to the research, loyalty-winning incentives that appeal to all generations include:
- Increase in pay (61%)
- A stay bonus (39%)
- More paid time off (39%)
- Flexible working hours (35%)
The research showed that remote work also plays a key role across generations. Employee loyalty is at significantly higher risk among employees working in a hybrid environment; than those working in a fully remote environment (73% compared to 58%). Furthermore, of those actively looking for a new job, 42% indicated a 10-15% salary increase would motivate them to stay in their current role; whereas a 3-10% salary increase would be unlikely to make an impact.
WORKPLACE FLEXIBILITY
“The way employers approach workplace flexibility and embrace both the lessons learned and the challenges of the past 18 months may, have a lasting impact on who stays, who exits; and who builds their skills to prepare for a new role at their company,” concluded Stevens. For more insights from this research, click here.
Another recent study found that today’s millennials are prepared to quit their jobs if employers fail to provide equity, transparency, flexibility and purpose. Click here to read more.
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